The Compensation Recovery Unit (CRU) – What’s it all about? Will if affect my dental claim?
Introduction
CRU stands for Compensation Recovery Unit and a CRU certificate is issued by the Department of Work and Pensions (DWP) in the UK to show the amount of recoverable state benefits which may apply to your dental compensation.
The idea behind the CRU is to stop a person from claiming both compensation AND benefits for the same thing -and therefore being doubly compensated.
A CRU certificate is only really relevant to your dental claim if you are receiving or have received state benefits. It is not relevant if you have not claimed any of the state benefits mentioned below and it is important to note that the CRU can only claim back certain benefits that have been paid
The list of recoverable benefits can be found on the government website (https://www.gov.uk/government/publications/recovery-of-benefits-and-or-lump-sum-payments-and-nhs-charges-technical-guidance/recovery-of-benefits-and-lump-sum-payments-and-nhs-charges-technical-guidance) but include the following:
- Disablement Pension payable under section 103 of the 1992 Act (also known as Industrial Injuries Disablement Benefit)
- Employment and Support Allowance
- Incapacity Benefit
- Income Support
- Invalidity Pension
- Invalidity Allowance
- Jobseeker’s Allowance
- Reduced Earnings Allowance
- Severe Disablement Allowance
- Sickness Benefit
- Statutory Sick Pay paid before 6 April 1994
- Unemployability Supplement
- Unemployment Benefit
- Universal Credit
What damages are NOT recoverable even if I have claimed benefits?
Only certain heads of damage are recoverable if you have claimed benefits at the same time, the damages that are NOT recoverable (which means they cannot be touched) as listed on the government website are as follows:
Damages not recoverable by the CRU:
| Pain and suffering | Loss of congenial employment |
| Loss of future earnings | Loss of benefits associated with injured person’s work |
| Cost of future care | Loss of use of motor car |
| Loss of future mobility | Hospital visits other than for treatment |
| Loss of expectation of life and bereavement | Medical expenses (not included in cost of respite or nursing care and attendance) |
| Loss of amenities of life | Special appliances (except as mentioned in loss of mobility) |
| Loss of society | Special diet |
| Loss of leisure | Special accommodation |
| Loss of specific enjoyment | Paid help, gardener/cleaner |
| Loss of deprivation of privacy | Guide dog |
| Loss of marriage prospects | Court protection fees |
| Breakdown of marriage | Actuarial evidence and related matters |
| Second home on breakdown of marriage | Investment/management advice |
| Loss of carrying out DIY | Loss of financial interest |
| Loss of housekeeping capacity | Loss of pension rights |
| Loss on the labour market | (Smith v Manchester) |
Why have I received a CRU certificate?
The Social Security (Recovery of Benefits) Act 1997 imposes a duty on your opponents defence organisation to register the claim with the compensation recovery unit. All claims have to be registered including claims involving children, or retired people. When the Department of Work and Pensions issues the certificate to your opponent, you or more commonly your legal representatives (i.e- me) will also receive a copy.
Who obtains the certificate?
It is up to the defendants insurance to register any claim with the CRU but I will received a copy of the certificate at the same time.
What information does the CRU certificate show?
The certificate will show the amount of state benefit you have received to date and the type of benefit you are currently receiving, for example universal credit.
These benefits may have been received as a direct consequence of your accident and so are repayable at the successful conclusion of your compensation claim. If no benefits have been paid, then the certificate will simply state there are no recoverable benefits to pay. It is highly unusual in a dental claim to have to repay any benefits.
How are my benefits repaid?
As part of your injury claim your full loss of earnings will have been included as part of your compensation, however this would not have taken into account any state benefits you may have received. When finalising your settlement figure, the amount owed to the Department of Work and Pensions will be deducted from your loss of earnings claim and you will receive the net amount. So ultimately your opponent will repay the benefits.
Why does my loss of earnings claim get reduced by my claiming benefits?
The purpose of any personal injury claim is restorative, by placing you back in the position you would have been had it not been for the accident.
So as part of this claim you are entitled to seek repayment for any expenses that left you out of pocket, including lost wages. But if your injury was sufficiently serious to have prevented you from returning to work for a significant time, you may have claimed benefits as your employer placed you on sick pay (SSP). So these state benefits were paid to you as a direct result of the accident.
If you then recover compensation for your loss of earnings you would have recovered these losses twice. This is because you would have received state benefits in the absence of wages and then compensation for actual lost wages.
What if my benefits are more than my claim for loss of earnings?
The state benefits you receive as a result of an accident or injury can only be offset against certain parts of your claim. These include loss of past earnings along with care and assistance.
The amount to be repaid will be dependent upon the type of benefits that you have claimed since the date of your accident. Any repayment of benefits cannot be offset against your claim for general damages which is the compensation element you receive that’s directly related to the injuries you have suffered.
The legal position is clear on which benefits can be offset against the elements of your compensation. So if your loss of earnings claim doesn’t cover the amount of benefits actually you received, then you will still not have to repay the shortfall.
Will I have to repay all of my benefits?
In most cases you will have to repay the benefits that you received if they are able to be offset against other comparable losses in your claim. However any benefits received five years post your accident/injury date are not able to be recovered by the DWP.
It is also possible to ask for a review of the CRU calculations and certificate if you believe that the information is incorrect, as well as being entitled to appeal against the recoupment of benefits; however this appeal must be made within one month of the settlement of your compensation claim.
What about if I have accepted some of the blame for my dental injury?
If you accepted an element of blame (known as liability, contributory negligence, a 50/50 split liability etc.) for the cause of your accident you will still need to repay the full amount of any state benefits that you have received, as the CRU and DWP does not take contributory negligence into account.
Will my claim affect my ongoing benefits?
If you continue receiving state benefits after the settlement of your injury claim, these will be unaffected. The requirement to repay benefits to the CRU will come to an end upon conclusion and settlement of your claim.
For more information regarding a CRU certificate and how it affects you, you can write to:
Compensation Recovery Unit
Durham House
Washington
Tyne and Wear
NE38 7SF