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compensation recovery

SocSec
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welfare benefits/citizens advice//ashfield

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Am I correct in thinking that recovery from a personal injury award can only be made from the welfare benefits paid to the person receiving the compensation. If the person who is compensated is one of a couple and the partner claims income support in his or her own right [ as a couple ]  does that mean that the income support cannot be recouped from the personal injury award ?

Claire Hodgson
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PI Team, BHP Law, Durham

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SocSec - 30 July 2015 02:27 PM

Am I correct in thinking that recovery from a personal injury award can only be made from the welfare benefits paid to the person receiving the compensation. If the person who is compensated is one of a couple and the partner claims income support in his or her own right [ as a couple ]  does that mean that the income support cannot be recouped from the personal injury award ?

that’s an interesting one

benefits are recouped like for like

so if, for example, a person claims ESA as a result of the injuries sustained in the relevant accident, and ALSO recovers loss of earnings in the PI claim, then the benefits paid for a max 5 years from date of claim are recoupable OUT OF THE LOSS OF EARNINGS PART OF THE DAMAGES ONLY.  If, on the other hand, someone claims PIP, and recovers the cost of care from the PI claim, then the PIP is recoupable from that part of the damages referrable to the care claim only.

you have to be using the word partner as meaning a LTAHAW relationship (since otherwise there could be no link anyway), and the partner would not have qualified for income support (on means grounds) but for the relevant accident, then i can see where CRU could make an argument to that effect - which might be challenged by the injured person’s solicitor.

i can see that if the couple claim would not have been made but for the accident, it may well be recoupable.  Since the benefit would only have been claimed because results of the accident.

i don’t recollect anything specific in the CRU rules, but should be very surprised if a tribunal did not interpret them as including this type of situation.

the claims I deal with don’t usually involve means tested benefits (only DLA/PIP, IIDB and Pneumo etc. scheme payments) so i personally haven’t had to consider this particular point

My gut feel, however, is that in the circs you suggest, it would be recoupable.

UNLESS the person was on IS/JSA BEFORE the relevant accident took place (but in that case, there would be no loss of earnings claim anyway, since ipso facto there were no earnings).

SocSec
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welfare benefits/citizens advice//ashfield

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Thanks Claire,
I am thinking of a situation where the partner can claim income support as she gets CA for a non dep child. partner can claim now or at any time on that basis. or the partner could claim income based jsa rather than the one claiming PI compensation !!!

how does the Hassall case fit in with this scenario ?

[ Edited: 4 Aug 2015 at 08:59 am by SocSec ]