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Top Other benefit issues topic #3946

Subject: "Certificate of recoverable benefit" First topic | Last topic
mkwrg
                              

Caseworker, Milton Keynes Welfare rights group
Member since
03rd Oct 2007

Certificate of recoverable benefit
Tue 07-Jul-09 08:44 AM

Hi, this is beyond me as a benefit adviser but hoping someone will be able to help.
Cl had a road accident and is due compensation from other drivers insurance, DWP are recovering IB and DLA as benefit paid as a result of the accident on a cert of recoverable benefit, does this mean she has no choice but to pay it all back?
She has a solicitor and I have advsed that it is a legal matter but am interested to know if there may be a legal arguement as care already paid for using the benefit and how do they portion out standard of living, loss of earnings(above IB levels)or is that down to increase in compensation?
This poor kid was hit by a drunk driver on her farewell night out,the day before due to fly out to Australia to start a new life travelling and working around the world!

  

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Replies to this topic
RE: Certificate of recoverable benefit, wwr, 07th Jul 2009, #1
RE: Certificate of recoverable benefit, clairehodgson, 07th Jul 2009, #2

wwr
                              

senior adviser, Wirral Welfare Rights Unit
Member since
07th Oct 2005

RE: Certificate of recoverable benefit
Tue 07-Jul-09 10:11 AM

I'm not expert either but I can explain some of it:
- the certificate of recoverable is issued to the compensator who deducts that amount shown on the certificate from the overall damages payable for financial loss and pays it direct to the DWP - your client doesn't have to pay anything, she just receives less
- only payments for financial loss are affected, not payments for pain and suffering - assuming the settlement specifies these sums separately
- only benefits paid within 5 years of the accident and up to the date compensation is paid can be recovered
- the only grounds for challenging a CRB I know of are that the benefits in question were not paid in consequence of the accident - for instance if the person had a pre-existing illness or disability, or developed one subsequently that was unrelated to the accident. Doesn't sound as though there will be any case on this here
- costs of care, loss of earnings, future reduced standards of living etc should all have been included in the overall gross settlement. The CRB is supposed to prevent double payment, from the settlement and from the DWP.

The solicitor dealing with the compensation claim should be advising on all this. Should also be looking at putting payments into trust if appropriate.

Richard Atkinson

  

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clairehodgson
                              

solicitor, CMH Solicitors, Durham
Member since
09th Apr 2009

RE: Certificate of recoverable benefit
Tue 07-Jul-09 02:05 PM

her PI solicitor should be advising her on all of this.

briefly:

1. if your claim for damages includes a claim for loss of earnings, and you had been on an earnings replacement benefit (such as IS, ESA, like that), then the relevant amount is repaid to the DWP OUT OF THE RELEVANT DAMAGES (that is, the damages for loss of earnings).

2. if your claim for damages includes a claim for care costs, and you had been on a relevant benefit such as DLA CARE, then the relevant amount is repaid to the DWP out of THE RELEVANT DAMAGES

and ONLY in relation to benefits received up to the date of settlement, and for no more than 5 years from first claim to beneft.

and so on in relation to any benefits she has received as a result of the relevant accident (and not benefits she's been on because of something completely different!).

if no damages for those items then no recovery from her damages - her general damages are protected (that is, the damages for pain suffering loss of amenity, handicap on the labour market). Doesn't come out of any future loss claim either.

PI trusts are irrelevant to this, and can't protect the position for the past.

they can only protect the position for the future in relation to means tested benefits such as IS.

I repeat, her solicitor should be advising her directly on the particular circumstances of her case.

  

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