How state benefits affect your compensation award?
When a claim for compensation is made, the person or organisation paying the compensation, must tell the DWP about the claim and obtain a certificate of the amount to be repaid. We will receive a copy of the certificate, which we will send to you to check that it is correct. If you disagree with the certificate you must tell us and we can ask the DWP to review it.
When compensation is paid, the compensator must deduct the sum in the certificate from the amount of your compensation, and pay it to the DWP. This will be equal to the sum you have already received as state benefits, which should be viewed as an interest-free loan to be repaid only if you receive compensation. There is no deduction from your compensation for the injury element. This is protected.For more details click here