Making a no win, no fee personal injury claim can be overwhelming, even though the financial risk is minimised. It's not every day you take legal action against someone or a business, so dealing with complex legal terms, negotiations, settlements, and the possibility of going to court can feel like a lot to handle.
Just when you think you've got a hold on things, your solicitor might bring up the Compensation Recovery Unit (CRU). Despite its intimidating name, there's no need to worry—your personal injury solicitor will manage the CRU as they handle your claim.
However, we think it's important for clients to understand the legal procedures involved in their claims to make well-informed decisions.
In this article, we'll simplify what the CRU is, how it might impact your injury claim, and how to navigate situations where you're given a CRU certificate after making a personal injury claim.
Table of Contents
- What is the Compensation Recovery Unit (CRU)?
- What does the CRU do?
- What is the Compensation Recovery Scheme?
- Why do I have to pay anything back to the government?
- How does the Compensation Recovery Scheme work?
- What benefits are included in the Compensation Recovery Scheme?
- What lump sum payments are recoverable under the CRU?
- What payments are exempt under the CRU?
- What does CRU mean in personal injury claims?
- What is a CRU certificate?
- What does it mean if the CRU certificate shows a nil amount?
- What is the relevant recovery period under the CRU scheme?
- Will I have direct contact with the CRU?
- What if I disagree with the figures on the CRU certificate?
- Why choose Lawhive for your personal injury claim?
What is the Compensation Recovery Unit (CRU)?
The Compensation Recovery Unit (CRU) is a government department responsible for reclaiming certain state benefits paid due to accidents, injuries, or diseases when compensation is received.
The CRU operates under various laws, including:
The Social Security (Recovery of Benefits) Act 1997, which established a system for recovering social security benefits paid to individuals due to injury. It shifted the responsibility for repayment to the compensator instead of the injured person.
The Social Security Act 1998, which clarified grounds for review and introduced new appeal options.
The Child Maintenance and Other Payments Act 2008, which amended the Social Security (Recovery of Benefits) Act 1997 to allow for the recovery of lump sum payments.
The Mesothelioma Act 2014, which specifically addressed the recovery of lump sum payments under the Diffuse Mesothelioma Payment Scheme.
There are specific laws related to recovering NHS and health service charges from road traffic accidents. These laws empower the CRU to reclaim charges associated with providing treatment to injured individuals who have successfully claimed compensation from third parties.
What does the CRU do?
The CRU makes sure that if you win your claim, the taxpayer is reimbursed for any state benefits you received due to your accident like Universal Credit, mobility allowance, or income support.
What is the Compensation Recovery Scheme?
The Compensation Recovery Scheme prevents double compensation for the same injury. So, if you've already received benefits for your injury, you may need to repay them when you get compensation.
But, you don't have to repay them yourself. The party responsible for your injury or their insurer must do that.
Why do I have to pay anything back to the government?
You may have to repay certain benefits you’ve received because of your accident. For example, if you’ve claimed industrial injury benefit or other related benefits, the government may reclaim a portion of your compensation.
How does the Compensation Recovery Scheme work?
When you file a personal injury claim for compensation, the party responsible for the injury, known as the compensator, will receive it. They'll carefully review your details such as your name, address, date of birth, and National Insurance number, which they'll need to provide to the Compensation Recovery Unit (CRU). Within 14 days of receiving your claim, they'll notify the CRU using a form called CRU1.
If all the necessary information is provided, and there are no recoverable benefits to consider, the CRU will automatically issue a certificate. However, if a certificate can't be issued automatically, the compensator will receive an acknowledgment form from the CRU.
When the compensator is ready to offer compensation, they'll fill out form CRU4 to apply for a Certificate. Once approved, they'll receive the certificate and a copy will be sent to you or your representative. Then, they'll proceed to pay the compensation, ensuring to inform you if any deductions are made per the law.
Regardless of whether your claim is successful or not, the compensator will inform the CRU about the outcome using form CRU102. Before making the compensation payment to you, the compensator must settle any recoverable benefits and lump sums specified on the certificate to the CRU.
If the compensator fails to make this payment, the CRU may enforce the debt through the courts.
What benefits are included in the Compensation Recovery Scheme?
Various benefits and lump sum payments are covered under the scheme including:
Loss of earnings
If you’ve received certain benefits during the relevant period to cover the same need as compensation for lost earnings, compensation may be reduced. These benefits include:
Disability-related pensions
Employment and support allowances
Jobseeker’s allowances
Universal Credit
Cost of care
Attendance Allowance
Disability Living Allowance (care component)
Personal Independent Payment (living component)
Loss of mobility
Mobility allowance
Disability Living Allowance (mobility component)
Personal Independence Payment (mobility component)
Travel costs
Travel costs related to hospital visits due to the accident, injury, or disease may also be considered. This could include vehicle costs, taxi fares, or the increased cost of care usage.
The party responsible for your injury has to say which benefits they’re using to reduce their compensation. If the compensation for something, like lost earnings, is less than your benefits, the compensator still has to pay the extra amount. So, you won’t lose out on compensation just because you got benefits.
What lump sum payments are recoverable under the CRU?
Lump sum payments recoverable under the 1997 Act include payments made under specific schemes like:
The Pneumoconiosis Etc. (Workers’ Compensation) Act 1979
The 2008 Diffuse Mesothelioma Scheme
The 2014 Diffuse Mesothelioma Payment Scheme
Any ex-statutory payment made because the person didn't qualify for a payment under the 1979 Act.
What payments are exempt under the CRU?
Exempt payments under the 1997 Act include:
Certain small payments
Compensation orders
Trust payments
Insurance payments
Redundancy payments
Cost-related payments
Prescribed payments
Specific trusts like the Macfarlane Trust or the Eileen Trust
Payments under specific laws or schemes like the Vaccine Damage Payments Act or the Criminal Injuries Compensation Act
Payments for health purposes made under specific health regulations
Payments from schemes or funds like the Skipton Fund or the London Bombings Relief Charitable Fund.
Exempt trusts and payments under the 1997 Act also include:
Payments made due to accidents that fall under the Fatal Accidents Act 1976
Payments made under the Damages (Scotland) Act 1976
Payments under the Fatal Accidents (Northern Ireland) Order 1977
Compensation payments made by British Coal under the NCB Pneumoconiosis Compensation Scheme.
What does CRU mean in personal injury claims?
It means that if you’ve received benefits due to an injury, you could be asked to repay them once your compensation claim is settled.
To do this, the CRU issues a certificate detailing the amount of recoverable benefits, which can significantly impact the settlement of a personal injury claim.
Lump sum payments and certain benefits may be deducted from your compensation, but rules are in place to ensure fairness and transparency.
Example:
Your personal injury claim includes a loss of earnings worth £30,000, but you’ve received £25,000 in benefits since the accident to cover your inability to work. When the time comes to settle, that £25,000 will be deducted from your claim, leaving you with a net amount of £5,000.
What is a CRU certificate?
A CRU certificate is a kind of receipt issued by the government that shows how much money you’ve received in benefits because of your injury. It’s important because it tells the people handling your compensation claim (the compensator) how much of that you might need to pay back once your claim is settled, and helps you determine how much compensation you’ll get to keep.
What does it mean if the CRU certificate shows a nil amount?
If the certificate shows a nil amount, you don’t have to repay anything.
If the certificate shows an amount other than nil, you’ll review it with your solicitor and decide if the government is reclaiming money related to your accident.
If the benefit claimed is unrelated to your accident, you can challenge it as you don’t want it deducted from your compensation. Your compensation is intended to address the impact of the accident, and you don’t want unrelated benefits deducted from it.
What is the relevant recovery period under the CRU scheme?
The period during which benefits can be recovered the the DWP starts either from the day after an accident or injury occurred. Or, in cases of disease, from the date when a benefit related to the disease is first claimed.
The recovery period ends when one of the following things happens:
A compensation payment is made, fully settling the claim
An agreement is reached between the party responsible for the injury and the injured person
Five years have passed since the start of the relevant period.
The relevant period does not apply to lump sum payments under specific schemes like the Pneumoconiosis etc. (Workers’ Compensation) Act 1979 or the 2008 Diffuse Mesothelioma Scheme.
Will I have direct contact with the CRU?
No, your personal injury solicitor will handle all communication with CRU on your behalf.
What if I disagree with the figures on the CRU certificate?
If you disagree with a CRU certificate, you can challenge it through a process called mandatory reconsideration.
Your solicitor will help you through this process and handle it on your behalf.
Have you suffered a personal injury and are unsure about your next steps? At Lawhive, our dedicated team of solicitors is here to guide you through the entire process with compassion and expertise.
Why choose Lawhive for your personal injury claim?
Our network solicitors specialise in personal injury claims and our legal assessment team has legal qualifications, so you always have a professional by your side;
Our team provides compassionate, timely support throughout your journey;
We streamline the process, making it straightforward for you. Your time matters, and we work efficiently to secure the compensation you deserve;
Worried about legal fees? Qualifying cases are taken on a Conditional Fee Agreement basis, so you can seek justice without financial stress;
We keep you informed at every step, ensuring you're in control.
To get started, simply reach out to us for a free case assessment. We'll evaluate your case and discuss the best path forward.