Recovery of ESA from compensation payment

Morning

Any help would be greatly appreciated.

I have a client who was involved in a car accident in Sep 09.  In Nov 09 she lost her job.  In Mar 10 she started another easier job with the same company but finished in Jul 10 because her back made her incapable of continuing.  She then made a claim for ESA (C) from Feb 11 and this continued to Jul 11 when she failed medical.

She has made a claim because the accident was not her fault and compensation is being decided at the moment.  She is only claiming loss of earnings up to Mar 10 because that is when she went back to work (albeit briefly).  However she is being told that the ESA she has been paid between Feb and Jul 11 will be recovered from any compensation award.

Now I know ESA can be recovered from any loss of earnings compensation.  However what strikes me here is that ESA was not in payment for the period she is claiming loss of earnings and it doesnt seem correct that this should then be deducted from her compensation.

Any thoughts?
Thank you

that’s really a question her PI solicitor should address, and one would hope s/he will do so/has done so when sending your client the relevant CRU certificate.

but, essentially, if she would not have been in receipt of ESA but for the accident (which appears to be the case) then yes, it is recoverable for the first 5 years following first receipt of benefit, or up to date of settlement, whichever is the sooner (so if settlemetn is tomorrow, CRU liablity ends tomorrow)

but bear this in mind - it only applies to ACTUAL loss of earnings up to date of settlement, NOT to future loss of earnings.

i anticipate that the loss of earnings claim will be greater than the ESA recoupment.

her compensation for Pain Suffering and Loss of Amenity (the actual injuries) and handicap on the labour market, and future financial losses, are not affected by CRU and she will get those in full.

CRU only bites on like for like benefits.