Which benefits affect your compensation Award
Not all state benefits can be recovered from your compensation. There will be a deduction only from compensation for the following items of your claim:
- loss of earnings
- the cost of nursing care or domestic assistance
- the loss of mobility
and the deduction from each item of compensation will be no more than the amount you have already received in benefits for that item.
Only certain types of benefits can be deducted from certain items of claim. Some of the main benefits are:
Benefits Deductible from Loss of Earnings
Benefits Deductible From Care/Domestic Assistance
|Employment and Support Allowance Incapacity Benefit Income Support Disablement Pension (Industrial Injuries Disablement Benefit) Invalidity Pension or AllowanceJobseeker’s Allowance Severe Disablement Allowance Sickness Benefit Statutory Sick Pay paid before 6/4/94 |
Disability Working Allowance
For a full list see http://www.dwp.gov.uk/docs/z1-print-version.pdf
Every claim must be registered with the Department for Work and Pensions dedicated Compensation Recovery Unit (CRU, even if you are not receiving any benefits. A Certificate must be obtained before any compensation can be paid out.
After your claim is settled.
If you get means tested benefits at the time you receive your compensation and that compensation (or combination of compensation plus any savings) exceeds:
£10,000 - you may lose some of your entitlement to benefits
£16,000 - you may lose entitlement to all of their benefits
However, your entitlement to benefits can be protected by placing your compensation in a special fund or trust.