CRU and NHS charges

CRU and NHS charges

Recovery of social security benefits

A claimant will often receive state benefits as a result of their accident, injury or disease. The Department for Work and Pensions (DWP) operates a system for recovering these benefits from the compensator (either the defendant or, in most cases, the defendant’s insurers) via the Compensation Recovery Unit (CRU). The purpose behind the scheme is to ensure that an injured claimant is not compensated twice. The compensator, as the party liable for the claimant's injuries, refunds the cost of any benefits paid out to the claimant to the CRU.

A compensator who makes a compensation payment in any case is liable to pay an amount equal to the total amount of the recoverable benefits received as a result of the injury. The compensator is in turn entitled to recoup certain benefits against three types of loss:

•
loss of earnings
•
cost of care
•
loss of mobility

The compensator cannot offset recoverable benefits against general damages eg pain, suffering and loss of amenity (PSLA), future losses or medical expenses. In addition, the compensator can only offset recoverable benefits as against

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