Terms and abbreviations

Transcription

1 Recovery of Benefits and or lump sums and NHS Charges Z1 Last Updated July 2009 Terms and abbreviations Issued by CRU and tells the compensator which recoverable benefits and Certificate or lump sum payments have been paid (or are likely to be paid) and the total amount to be repaid. Issued by CRU and tells the compensator whether NHS treatment was Certificate of with or without admission to hospital, the number of admission days, NHS Charges ambulance charges and the amount to be repaid. Compensation Any payment made by way of compensation for an accident, injury or a payment disease (whether in money or in money's worth). The person, who caused the accident, injury or disease, or, more Compensator commonly, his insurer. CRU Compensation Recovery Unit. DSD Department for Social Development (in Northern Ireland). DWP Department for Work and Pensions (in Great Britain). A payment specifically exempt from the provisions of the 1997 Act and the Exempt payment Social Security (Recovery of Benefits) (Lump Sum Payments) Regulations 2008 Health Service A health service hospital within the meaning of the National Health Service Hospital Act 1977 or the National Health Service (Scotland) Act Injured person The person claiming compensation. (IP) National Health Service. In Northern Ireland the term health services NHS applies. Any treatment (including examination of the traffic casualty) other than those described in Section 6 of the Road Traffic (NHS Charges) Act 1999 NHS Treatment (including any examination of the injured person) other than see Part 3 of the Health and Social Care (Community and Health Standards) Act 2003, section (7). Social security benefits (and Statutory Sick Pay paid before 6 April 1994) Recoverable listed in Schedule 2 of the Social Security (Recovery of Benefits) Act 1997 benefits and paid in the relevant period. Payments made under the Pneumoconiosis etc. (Workers' Compensation) Recoverable Act 1979, the 2008 Diffuse Mesothelioma Scheme or an ex-statutory Lump Sums payment that was paid because the person didn't qualify for a payment under the 1979 Act.

2 The period in respect of which benefits and NHS charges may be Relevant period recovered. The date on which the compensation payment is made in accordance with either the Social Security (Recovery of Benefits) Act 1997, the Road Settlement date Traffic (NHS Charges) Act 1999 and the Health and Social Care (Community Standards) Act 2003 and the Health and Social Care (Community Health and Standards) Act SSP Statutory Sick Pay. TS Tribunals Service. The Social Security (Recovery of Benefits) Act In Northern Ireland The Acts the corresponding provisions may be found in The Social Security (Recovery of Benefits) (Northern Ireland) Order The Road Traffic (NHS Charges) Act Part 3 of the Health and Social Care (Community Standards) Act 2003 In Northern Ireland the The NHS Acts corresponding Act is the Health & Personal Social Services Act (Northern Ireland) The Health and Personal Social Services (Joint Committee for Commissioning) Order Introduction and general information This Z1 is for general guidance only and should not be regarded as a substitute for the legislation. The legislation is available online at Background CRU GB operates primarily to deliver the following legislation: The Social Security (Recovery of Benefits) Act 1997, the Road Traffic (NHS Charges) Act 1999 and The Health and Social Care (Community Health and Standards) Act In 1997, legislation was passed which introduced a new recovery scheme with effect from 6 October Part IV of the Social Security Administration Act 1992, Part IV of the Social Security Administration (Northern Ireland) 1992 and Sections 2 (1)(1A)(3) and (6) of the Law Reform (Personal Injuries) Act 1948 were repealed. The Social Security Act 1998 introduced changes to the Social Security (Recovery of Benefits Act) 1997 which provide clearer grounds for review, two new grounds for appeal and for appeals to be heard by appeal tribunals instead of Medical Appeal Tribunals (MATs). These provisions are effective from 29 November The Child Maintenance and Other Payments Act 2008 introduced changes to the Social Security (Recovery of Benefits Act) 1997, which provides for the recovery of lump sum payments. These changes are effective from 1 October 2008, and apply to all cases settled on or after that date. On 5 April 1999 the Road Traffic (NHS Charges) Act 1999 came into force. This Act allows CRU to recover NHS hospital charges arising from road traffic accidents where a compensation payment is made on or after 5 April 1999.

3 On 2 April 2001 the Health and Personal Social Services Act (Northern Ireland) 2001 was introduced and allows for the recovery of health services charges by CRU in Northern Ireland. On 29 January 2007 Part 3 of the Health and Social Care (Community Health and Standards) Act 2003 which allows for the recovery of the costs of providing treatment to an injured person in all cases where that person has made a successful personal injury claim against a third party was commenced. The equivalent legislation in NI is The Recovery of Health Services NHS Charges (Northern Ireland) Order Who Administers the Scheme The Compensation Recovery Unit, which is part of the Department for Work and Pensions. The Compensation Recovery Unit (NI) is part of the Social Security Agency, which is an executive agency within the Department for Social Development (DSD). Overview Part 1 of this guide explains the recovery scheme in more detail including how the scheme applies to lump sum payments paid under the Pneumoconiosis etc. (Workers' Compensation) Act 1979 and part 4 of the Child Maintenance and Other Payments Act It also provides information on the review and appeals process. Part 2 of this guide explains the NHS charges scheme in more detail and provides details on the review and appeal procedures. The NHS30 Appeal form may be found at the back of this guide. Part 3 of this guide is for miscellaneous information including Disclosure of Information, Data Protection and Electronic Communications. The law allows us 4 weeks to issue Certificates. The period is four weeks from the day following the day on which an application is received. Certificates of NHS charges will be issued as soon as is reasonably practicable. However our aim is to issue them as soon as possible. We will acknowledge all claim notifications made on form CRU1 within 12 working days and general correspondence within 10 working days. How to contact us. Please tell us the CRU reference number if you know it. It will help us to deal with your enquiry more quickly. It consists of 3 letters followed by 3 numbers, e.g. XYZ-123. If you are unable to provide the CRU reference number please tell us the injured person s National Insurance (NI) number, full name and date of birth. If the case you are enquiring about is located on one of our specialist areas, your call may be transferred to that area.

4 Our normal business hours are Monday to Thursday 8.30am-4.30pm and Friday 8.30am- 4.00pm. Further information may be obtained from the guides below: Z2 Recovery of benefits and or lump sum payments Appeal Guide GL27 Compensation, Social Security Benefits and or Lump Sum Payments Please note: If the case is being handled by CRU Northern Ireland, please read all references to DWP in this guide as DSD and all reference to NHS as Health Services. If the case is specific to a NHS Trust in Scotland please read all reference to the Secretary of State in this guide as the Scottish Minister. Contact details for case specific NHS enquiries. You can read more about the NHS Injury Cost Recovery Scheme on the Department of Health website, and the Health and Social Care (Community Health and Standards) Act 2003 on the Office of Public Sector Information website. Schemes outside Great Britain A separate scheme exists for residents of the Isle of Man; any enquiries should be addressed to: DHSS Markwell House Market Street Douglas Isle of Man IM1 2RZ Tel: The Law The law on the recovery scheme is contained in: The Social Security (Recovery of Benefits) Act 1997 and The Social Security (Recovery of Benefits) Regulations 1997 as amended by paragraphs of Schedule 7 of the Social Security Act 1998 The Social Security (Recovery of Benefits) (Lump Sum Payments) Regulations 2008 The Social Security and Child Support (Decision and Appeals) Regulations 1999, regulations 9, 9ZA and The Social Security (Recovery of Benefits) (Northern Ireland) Order 1997 The Social Security (Recovery of Benefits) (Northern Ireland) Regulations 1997

5 The Social Security Act 1998 The main provisions of the CRU scheme are that: a person should not be compensated twice over in respect of the same accident, injury or disease; a compensator who is, or is alleged to be, liable to any extent for the accident, injury or disease makes a compensation payment, agreed on or after 6 October 1997 and recoverable benefits and or lump sums have been paid (or are likely to be paid); to, or for, the injured person in respect of an accident, injury or disease; However where a payment was made on or after 6 October 1997 in accordance with a Court Order or agreement made before that date, the provisions of the Social Security Administration Act 1992 and the Social Security (Recoupment) Regulations will continue to apply. a compensator who makes a compensation payment after 1 October 2008, is also liable to repay any lump sums paid under the Pneumoconiosis, etc. (Workers' Compensation) Act 1979 and Part 4 of the Child Maintenance and Other Payments Act 2008 the scheme applies in the UK or elsewhere, regardless of where the compensator is based, or where the accident occurred. the 2008 mesothelioma scheme applies to those people who have contracted diffuse mesothelioma as a result of asbestos exposure in the UK. No person shall make a compensation payment (other than an exempt payment) without first applying to CRU for a Certificate. The compensator will be liable to pay the DWP an amount equal to the total amount of the recoverable benefits, however lump sum recovery cannot exceed the amount of compensation paid. CRU must issue the Certificate within 28 days from the date of receipt of a request which contains all the information. If after a Certificate has been issued, CRU become aware that a recoverable lump sum has been paid, a revised Certificate will be issued to include the lump sum amount. Under the provisions of the Social Security (Recovery of Benefits) Act 1997, and the Social Security (Recovery of Benefits) (Lump Sum Payments) Regulations 2008, the compensator - the person who caused the injury or, more commonly, his insurer - is liable both to pay damages to the injured person and to repay benefits and or lump sums to the Secretary of State for Work and Pensions. In certain circumstances it will be possible for the compensator to deduct some or all of the amount he has had to repay to the Secretary of State from the gross compensation award, a practice known as "offsetting"

6 Where the amount of compensation relating to a particular head of compensation is less than the amount of the corresponding benefit, the compensator is still liable to repay the total amount of benefits shown on the Certificate. Under the provisions of the Social Security (Recovery of Benefits) (Lump Sum Payments) Regulations 2008 the compensator must reduce the general damages element of the compensation award before reducing the special damages element of the award. Where the amount of compensation is less than the lump sum payment CRU can only recover an amount up to the equivalent of the gross compensation award. The compensator is liable to repay lump sum payments before repaying recoverable benefits When making a deduction the compensator must inform the injured person. The compensator, the injured person or his representative may ask at any time for the Certificate to be reviewed. It may only be changed if: o o o a mistake occurred in the preparation of the Certificate the amount of recoverable benefit and or lump sum on the Certificate is more than the amount due to the Secretary of State for Work and Pensions incorrect or insufficient information was provided by the person who applied for the Certificate and as a consequence the amount on the Certificate is less than the amount due to the Secretary of State If after we have looked at the Certificate again we find that there is no recoverable benefit and or lump sum due to the Secretary of State then the Certificate may be revoked. A compensator has the right of appeal but only if the claim giving rise to the compensation payment has been finally disposed of, and the liablity under section 6 of the 1997 Act or regulation 10 of the Social Security (Recovery of Benefits) (Lump Sum Payments) Regulations 2008 has been discharged, An injured person has a similar right, but only where his compensation payment has been reduced to take account of benefit recovery under section 8 of the 1997 Act, or to take account of lump sum recovery under Regulation 12 of the Social Security (Recovery of Benefits) (Lump Sum Payments) Regulations An appeal may be made on the grounds that: o o any amount, rate or period specified in the Certificate is incorrect; or benefits and or lump sums listed in the Certificate have been paid other than because of the accident, injury or disease in question, and should not have been included; or

7 o o benefits and or lump sums listed which have not, and are not likely to be, paid to the injured person have been brought into account; or the compensation payment was not made as a consequence of the accident, injury or disease. 1.1 The relevant period The period in respect of which benefits, listed in Schedule 2 of the 1997 Act, may be recovered by DWP begins on: the day following an accident or injury; or in disease cases, the date that a listed benefit as shown in schedule 2, is first claimed in consequence of the disease. The period ends on: the day a compensation payment is made in final discharge of a claim; or the date an agreement is made between the compensator and injured person under which an earlier compensation payment is treated as having been made in final discharge of any claim; or the date five years after the relevant period begins, whichever comes first. Please note: 'The relevant period' is defined in Section 3 of the Social Security (Recovery of Benefits) Act Listed Benefits covered by the scheme Compensation in respect of Loss of Earnings during the relevant period may be reduced where the following benefits have been paid to meet the same need. Disability Working Allowance Disablement Pension payable under section 103 of the 1992 Act (also known as Industrial Injuries Disablement Benefit) Employment and Support Allowance Incapacity Benefit Income Support Invalidity Pension Invalidity Allowance Jobseeker s Allowance Reduced Earnings Allowance

8 Severe Disablement Allowance Sickness Benefit Statutory Sick Pay paid before 6 April 1994 Unemployability Supplement Unemployment Benefit Compensation in respect of Cost of Care may be reduced where the following benefits have been paid during the relevant period: Attendance Allowance Care Component of Disability Living Allowance (DLA Care) Disablement Pension increase for Constant Attendance Allowance Exceptionally Severe Disablement Allowance Nursing care and attendance (including Holiday/Respite care) and the inability to cook may fall within Schedule 2. Compensation in respect of Loss of Mobility may be reduced where the following benefits have been paid during the relevant period Mobility Allowance Mobility Component of Disability Living Allowance (DLA Mobility) Travel to hospital for treatment and additional costs of travel including; Vehicle/Powered wheelchair/adaptations to transport/taxi bus fares (where paid as a result of accident, injury or disease)/increased cost of car/additional travel for holiday may fall within Schedule 2. NB: Payment into court forms require the compensator to list the benefits which have been offset against the above heads of damages. Damages not within Schedule 2 Pain and suffering Loss of future earnings Cost of future care Loss of future mobility Loss of expectation of life and bereavement Loss of amenities of life Loss of society Loss of leisure Loss of specific enjoyment Loss of congenial employment Loss of benefits associated with injured person's work Loss of use of motor car Hospital visits other than for treatment Medical expenses (not included in cost of respite or nursing care and attendance) Special appliances (except as mentioned in

9 Loss of deprivation of privacy loss of mobility) Loss of marriage prospects Special diet Breakdown of marriage Special accommodation Second home on breakdown of marriage Paid help, gardener/cleaner Loss of carrying out DIY Guide dog Loss of housekeeping capacity Court protection fees Loss on the labour market Actuarial evidence and related matters (Smith v Manchester) Investment/management advice Loss of financial interest Loss of pension rights It is stressed that the above list is not definitive, nor does it purport to be an interpretation of the law. It is for general guidance only, and should be treated as such. Where the amount of compensation in respect of a particular head of compensation is less than the amount of a listed benefit to be recovered, the compensator is liable to pay the difference. He may not reduce payment against any other head of compensation to take account of the recovery of a listed benefit. Examples of Offsetting: Example 1 - Benefit recovery only An award of compensation totalling 100,000 is agreed and broken down as follows: general damages of 40,000, 30,000 in respect of loss of earnings and 30,000 in respect of loss of mobility. The CRU certificate lists Incapacity Benefit totalling 5,000, Income Support totalling 10,000 and Disability Living Allowance (Mobility Component) totalling 10,000. The compensator may not under any circumstances offset against the general damages element of the award. He may however offset the Incapacity Benefit and Income Support against the loss of earnings head of damage, as set out in section 8 and Schedule 2 of the Recovery of Benefits Act. He therefore deducts a total of 15,000 from the loss of earnings sum, leaving 15,000 to be paid to the injured person. Similarly, the compensator may offset the 10,000 DLA (Mobility) against the loss of mobility head of damage, leaving 20,000 to be paid to the injured person. The injured person has settled his claim for a total of 100,000. Following offsetting, he receives 75,000 from the compensator in addition to the 25,000 he has already received from the state benefits system. Double compensation is thereby avoided. Example 2 - Benefit recovery only An award of compensation totalling 100,000 is agreed and broken down as follows: general damages of 40,000, 30,000 in respect of loss of earnings and 30,000 in respect of loss of mobility.

10 The CRU certificate lists Incapacity Benefit totalling 20,000, Income Support totalling 50,000 and Disability Living Allowance (Mobility Component) totalling 30,000. The compensator may not under any circumstances offset against the general damages element of the award. He may however offset the Incapacity Benefit and Income Support against the loss of earnings head of damage, as set out in section 8 and Schedule 2 of the Recovery of Benefits Act. He therefore deducts a total of 30,000 from the loss of earnings sum, leaving Nil to be paid to the injured person, but the CRU certificate shows that 70,000 should be repaid to the Secretary of State. As the compensator can only offset 30,000 he is liable to pay the difference ( 40,000) himself. The compensator may offset the 30,000 DLA (Mobility) against the loss of mobility head of damage, again leaving Nil to be paid to the injured person. The injured person has settled his claim for a total of 100,000. Following offsetting, he receives only the award for general damages amounting to 40,000. Double compensation is thereby avoided. 1.3 Lump Sum payments covered by the scheme Lump sum payments made under the Pneumoconiosis etc. (Workers Compensation) Act 1979, the 2008 Diffuse Mesothelioma Scheme any ex-statutory payment that was paid because the person didn t qualify for a payment under the 1979 Act. Example of Offsetting - Lump sum and benefit recovery An award of compensation totalling 60,000 is agreed and broken down as follows: general damages of 15,000, 25,000 in respect of loss of earnings and 20,000 in respect of loss of mobility. The CRU certificate lists Lump Sums totalling 20,000, Income Support totalling 15,000, and Disability Living Allowance (Mobility Component) totalling 10,000. The compensator must offset the 20,000 Lump sum payment from the General Damages first, which would leave an outstanding balance of 5,000. He may then offset from any of the remaining heads of damage, i.e. the compensator may offset the outstanding balance of 5,000 plus the 15,000 Income Support from the loss of earnings head of damage and the 10,000 DLA (Mobility) from the loss of mobility head of damage. The injured person has settled his claim for a total of 60,000. Following offsetting, he receives 15,000 from the compensator in addition to the 45,000 he has already received from the state benefits system. Double compensation is thereby avoided.

11 Please note: Heads of Compensation are defined in Schedule 2 of the Social Security (Recovery of Benefits) Act NOTES 1. If the claim is settled for general damages only, the compensator is still liable to repay the full amount of listed benefits and or lump sum payments as shown on the Certificate. 2. The compensator cannot deduct any amount in respect of a listed benefit from the compensation awarded for general damages (pain and suffering). However they can deduct any amount in respect of a lump sum from any part of the compensation award. 3. Lump Sum Payments must be offsett against pain and suffering first. 4. Attendance Allowance was replaced by the care component of Disability Living Allowance (DLAC) from 6 April Mobility Allowance was replaced by the mobility component of Disability Living Allowance (DLAM) from 6 April Unemployment Benefit and Income Support for unemployed people was replaced by Jobseeker s Allowance on 7 October Incapacity Benefit replaced Sickness and Invalidity Benefit from 13 April Statutory Sick Pay 100 per cent of SSP paid before 6 April 1991 and 80 per cent of SSP paid from 6 April 1991 to 5 April 1994 is recoverable. Payments made after 6 April 1994 are no longer subject to recovery. 9. Disabled Persons Tax Credit, now Working Tax Credit, replaced Disability Working Allowance from 5 October No new or non-linking claims to Severe Disablement Allowance (SDA) may be accepted with an entitlement date after 6 April Customers currently in receipt of SDA will remain entitled as long as they continue to satisfy the qualifying conditions. 11. Employment and Support Allowance replaces Incapacity Benefit, and Income Support on the grounds of incapacity, for all new claims from 27 October Retirement Pension is not a recoverable benefit. However any of the benefits listed on the previous two pages which continue to be paid after retirement age will be subject to recovery. 13. Where a lump sum payment has been made to a dependant(s) of P and the compensator is making a compensation payment in respect of P under the Fatal Accidents Act, to that dependant(s), CRU will recover the lump sum amount equal to the amount of compensation paid to that dependant(s).

12 14. Pensions awarded by the Service Personnel and Veterans Agency are not a recoverable benefit, but may be adjusted to take account of a compensation payment. 15. Bereavement benefits are not recoverable; however any other benefits listed in Schedule 2 to the Social Security (Recovery of Benefits) Act 1997 which have been paid to the bereaved person may be recoverable. 1.4 Exempt payments in respect of the recovery of listed benefits and lump sum payments. Recovery will not be made from the following types of payments as listed in Schedule 1 of the 1997 Act. 1. Any small payment (defined in Part II of this Schedule). 2. Any payment made to or for the injured person under Section 35 of the Powers of Criminal Courts Act 1973 or Section 249 of the Criminal Procedure (Scotland) Act 1995 (compensation orders against convicted persons). 3. Any payment made in the exercise of a discretion out of property held subject to a trust in a case where no more than 50 per cent by value of the capital contributed to the trust was directly or indirectly provided by persons who are, or are alleged to be, liable in respect of: a. the accident, injury or disease suffered by the injured person, or b. the same or any connected accident, injury or disease suffered by another. 4. Any payment made out of property held for the purpose of any prescribed trust (whether the payment also falls within para. 3 above or not). 5. Any payment made to the injured person by an insurance company within the meaning of the Insurance Companies Act 1982 under the terms of any contract of insurance entered into between the injured person and the company before: a. the date on which the injured person first claims a listed benefit in consequence of the disease in question, or b. the occurrence of the accident or injury in question. 6. Any redundancy payment failing to be taken into account in the assessment of damages in respect of an accident, injury or disease. 7. So much of any payment as is referable to costs. 8. Any prescribed payment.

13 The following trusts are prescribed for the purpose of paragraph 4 of Schedule 1: and may be found in Regulation 2.1 of the Social Security (Recovery of Benefits) Regulations 1997, and Regulation 7 of the Social Security (Recovery of Benefits) (Lump Sum Payments) Regulations a. the Macfarlane Trust established on 10th March 1988 partly out of funds provided by the Secretary of State to the Haemophilia Society for the relief of poverty or distress among those suffering from haemophilia; b. the Macfarlane (Special Payments) Trust established on 29 January 1990 partly out of funds provided by the Secretary of State for the benefit of certain persons suffering from haemophilia; c. the Macfarlane (Special Payments) (No. 2) Trust established on 3 May 1991 partly out of funds provided by the Secretary of State for the benefit of certain persons suffering from haemophilia and other beneficiaries; d. the Eileen Trust established on 29 March 1993 out of funds provided by the Secretary of State for the benefit of persons eligible for payment in accordance with its provisions; e. a trust established out of funds provided by the Secretary of State in respect of persons who suffered, or who are suffering, from variant Creutzfeldt-Jakob disease for the benefit of persons eligible for interim payments in accordance with its provisions; (Statutory Instrument 2001 No. 1118, which amends the 1997 Regulations). f. a trust established out of funds provided by the Secretary of State in respect of persons who suffered, or who are suffering, from variant Creutzfeldt-Jakob disease for the benefit of persons eligible for payments, other than interim payments, in accordance with its provisions. (Statutory Instrument 2001 No. 1118, which amends the 1997 Regulations). o The following payments are prescribed for the purposes of paragraph 8 of Schedule 1 of the 1997 Act, and Regulation 7 of the Social Security (Recovery of Benefits) (Lump Sum Payments) Regulations o o o any payment made under the Vaccine Damage Payments Act 1979(c) to or in respect of the injured person; any award of compensation made to or in respect of the injured person under the Criminal Injuries Compensation Act 1995(d) or by the Criminal Injuries Compensation Board under the Criminal Injuries Compensation Scheme 1990 or any earlier scheme; any payment made to the injured person in respect of sensorineural hearing loss where the loss is less than 50 db in one or both ears;

14 o o o o o any contractual amount paid to an employee by an employer of his or hers in respect of a period of incapacity for work; any payment made under the National Health Service (Injury Benefits) Regulations 1995(e) or the National Health service (Scotland) (Injury Benefits) Regulations 1974(f); any payment made by or on behalf of the Secretary of State for the benefit of persons eligible for payment in accordance with the provisions of a scheme established by him on 24th April 1992 or, in Scotland, on 10th April 1992 any payment made from the Skipton Fund, the ex-gratia payment scheme administered by the Skipton Fund Limited, incorporated on 25 March 2004, for the benefit of certain persons suffering from hepatitis C and other persons eligible for payments in accordance with the scheme's provisions. any payment made from the London Bombings Relief Charitable Fund, the company limited by guarantee (number ) and registered charity of that name established on 11th July for the purpose of (amongst other things) relieving sickness, disability or financial need of victims (including families or dependants of victims) of the terrorist attacks carried out in London on 7th July NB. For Northern Ireland only: any payment made to or for the injured person under Article 14 of the Criminal Justice (Northern Ireland) Order 1994 (compensation orders against convicted persons). Please note: Where it is clear that the compensation claim falls into one of the above categories, you do not need to send form CRU1 to us. 1.5 Exempt trusts and payments, which only apply to the recovery of listed benefits any payment to the extent that it is made - i. in consequence of an accident under the Fatal Accidents Act 1976(a) or ii. in circumsatances where had an action been brought, it would have been brought under that Act any payment to the extent that it is made in respect of a liability arising by virtue of Section 1 of the Damages (Scotland) Act 1976(b); any payment made under the Fatal Accidents (Northern Ireland) Order 1977(c) any compensation payment made by British Coal in accordance with the NCB Pneumoconiosis Compensation Scheme set out in the Schedule to an agreement made on the 13 September 1974 between the National Coal Board, the National Union of Mine Workers, the National Association of Colliery Over-men Deputies and Shot-firers and the British Association of Colliery Management;

15 the UK Asbestos Trust established on 10 October 2006, for the benefit of certain persons suffering from asbestos-related diseases or the EL Scheme Trust established on 23 November 2006, for the benefit of certain persons suffering from asbestos-related diseases. Where compensation is paid under any of the above, for any of the following diseases; Mesothelioma Pneumoconiosis (including silicosis, asbestosis, kaolinosis) Diffuse pleural thickening Primary carcinoma of the lung Byssinosis a form CRU1 must be completed to enable a Certificate to be issued which will provide details of any Lump sums paid. Please note: The Social Security (Recovery of Benefits) Act 1997 Schedule 1 Part 1, the Social Security (Recovery of Benefits) Regulations 1997 Regulation 2 and Regulation 7 of the Social Security (Recovery of Benefits) (Lump Sum Payments) Regulations 2008 lists all exempt payments and trusts. 1.6 DWP right to inspect records The Social Security Administration Act 1992 Section 110, gives DWP inspectors the right to examine the records of compensators and employers to verify that they are complying fully with the provisions of the Social Security (Recovery of Benefits) Act How the recovery scheme works The main procedures for compensators 1. compensation claim received; 2. check the details to be given to CRU (name, address, date of birth, National Insurance number etc); 3. notify CRU of the claim within 14 days. A form CRU1 is provided for this purpose (also available electronically see Section 13 ); 4. receive acknowledgement of notification (form CRU4); 5. when ready to make an offer of compensation, return form CRU4 to apply for a Certificate; 6. receive acknowledgement of application, CRU 5 (if not received within 14 days check with CRU);

16 7. receive Certificate (if not received by date given on acknowledgement check with CRU). A copy will be sent to the injured person or his representative; 8. pay compensation and, if any deductions have been made in accordance with either the 1997 Act, or the Social Security (Recovery of Benefits) (Lump Sum Payments) Regulations 2008 you must inform the injured person; 9. notify CRU of the result of the claim, even if it is unsuccessful, by returning the form CRU102 that accompanies the Certificate. Ensure that any changes to your reference number are clearly noted; 10. notify CRU of the date the compensation payment is made in final discharge of the claim, 11. the compensator becomes liable to pay the full amount of the recoverable benefits and or lump sum payments to the CRU immediately before making the compensation payment; 12. pay the total amount of recoverable benefits and or lump sum shown on the Certificate to the DWP. The CRU may enforce this debt through the courts at any point from the fifteenth day following the date the compensation was paid. Please note: Payment should not be sent to CRU if a compensation payment has not been made to the injured person. The CRU Process 1. Compensator receives a claim for compensation 2. Compensator completes a CRU1 form and sends to CRU 3. CRU4 form sent to Compensator by CRU 4. Compensator is ready to settle claim and returns CRU4 requesting a Certificate. 5. CRU gathers benefit and or lump sum payment information, relating to the injured person and his accident, injury or disease 6. Certificate of benefit and or lump sum payment issued to Compensator and copy to injured person or his representative 7. Compensator pays final compensation to the injured person 8. Compensator notifies the CRU of the date the compensation payment was made in final discharge of the claim and repays the total amount of benefits and or lump sums to the CRU. CRU may enforce this debt through the courts at any point from the 15th day following the date the compensation was paid. 2. Guidance for compensators

17 2.1 Recovery procedures When you receive a claim for compensation, send form CRU1 to CRU within 14 days. This does not mean that you have accepted any liability for the accident, injury or disease. We will send you form CRU4 to acknowledge that we have received the CRU1. You will need to return form CRU4 to us when applying for a Certificate, or a Certificate of NHS Charges. If you do not have a Certificate or a Certificate of NHS Charges when you are ready to settle the claim, you must apply for one by returning form CRU4. We will acknowledge receipt of your request. If you have not received the acknowledgement within 14 days, please let us know. We will issue the Certificate within 4 weeks of receiving a request (see also Section 2.10 Having a certificate renewed). The Certificate will specify the total amount of recoverable benefits and or lump sums or NHS Charges. In the case of recoverable benefits and lump sum payments, you become liable to pay CRU immediately before you pay any compensation payment. We will send a copy of the Certificate to the injured person or his representative. Help us to help you In order for us to provide a prompt and accurate service it is essential that you tell us about claims as early as possible. If you delay sending us the information on form CRU1 this may cause difficulties and further delay when you request a Certificate. We need to notify the Department's benefit paying offices that a compensation claim has been made as soon as possible. Failure to notify CRU at the early stage of a claim for compensation may mean archived records need to be retrieved from remote storage and you may have to wait longer for an urgently required Certificate. 2.2 Completing form CRU1 Please complete the form as fully as possible. It will save further enquiries later on. You must tell us the following information when someone claims compensation from you: the injured person's full name and address (if the injured person has previously been known by a different name, e.g. a maiden name, it would be helpful if you could tell us); their date of birth; National Insurance Number, if known; the date of the accident, incident or injury; a full description of the nature of the accident, incident, injury or disease;

18 whether the accident was a Road Traffic Accident (RTA) which occurred prior to 29 January 2007 only; if the person attended a NHS hospital because of the RTA, or the injury or incident which occurred on or after 29 January 2007 (at any time for any treatment, examination etc.); the full name and address of the hospital(s) or trust(s) the injured person attended or was admitted to (in order of attendance); if you are claiming an exemption under the Road Traffic Act 1988 (section 144) you must state the category of exemption (See Para. 7.5) for RTA's prior to 29 January whether or not the injured person was employed at the date of incident; details of the injured person s employment if known (only where the date of incident is before 6 April 1994); the reference number you use to identify the case. If your reference number changes before the claim is settled, you should inform us of the new reference number; in order to help us process the claim, please tell us whether the claim is public liability (P), motor (M), employer (E), clinical negligence (C) or other (O); if a claim is registered as 'M' liability but the accident occurred during a person's employment you must notify CRU of that fact. The injured person may have claimed Industrial Injuries Disablement Benefit; if the claim is "P", "M", "O" or "C" and the date of incident is before 6 April 1994 you should give us the name and address of the injured person s employers at the time of the accident, injury or disease. We may then obtain information about Statutory Sick Pay (SSP); in "E" liability cases the compensator must provide the SSP information when applying for a Certificate, if SSP was paid prior to 6 April 1994; if a solicitor is acting on your behalf you must show his name, address and reference number on form CRU1. This will ensure that correspondence is sent to the correct address. If you take over a claim from another compensator, please notify us in writing and if form CRU 1 has not previously been submitted, attach a completed form CRU1 to your letter Failure to provide the essential information listed above could delay the issue of the Certificates. Additional supplies of form CRU1 may be obtained by completing an ion order form and returning it by either or Fax as shown on the order form.

19 A Word template version of the CRU1 can also be obtained from: Tel: Fax: Obtaining a Certificate When we receive form CRU1 we will send you a form CRU4 which you may use to apply for a Certificate. Please do not ask for a Certificate until you are ready to settle the claim. Important: Only return form CRU4 to us when you are ready to settle the claim. Statutory Sick Pay (SSP) Employer liability cases only In all employer liability cases where the date of incident is prior to 6 April 1994 (or in disease cases where SSP may have been paid before that date) you should ask the relevant employer for details of any SSP that the injured person was paid as a direct result of the accident, injury or disease. Complete form CRU4 to show the gross amount of SSP. Make sure you do not include any Occupational Sick Pay that may have been paid together with the SSP. The amount shown on the Certificate will include 100 per cent of SSP paid before 6 April 1991 and 80 per cent of SSP paid from 6 April 1991 to 5 April SSP information for periods on or after 6 April 1994 is not required, as the benefit is not recoverable after that date. 2.4 Urgent requests for Certificates If you need a Certificate urgently (e.g. because of an imminent court hearing) we will do our best to issue one as soon as possible. It may not be possible to issue the certificate immediatley but we will send it as quickly as possible. 2.5 The Certificate The Certificate will include: details of the injured person's identity and where appropriate the date of the incident which gave rise to the compensation claim; the total of each recoverable benefit paid up to a specified date; the total amount of each recoverable lump sum paid the rate expected to be paid for a short future period if benefit is still in payment; the date the Certificate ceases to be valid; the total amount we require to be repaid;

20 a note to say whether any of the above amounts or dates have been estimated. Where there was no valid Certificate in issue at the time the claim was settled and compensation paid, a Certificate will be issued by CRU, but it will only be valid for the day the claim settled. The validity period of a Certificate varies according to circumstances. It is important to check each Certificate to establish how long it is valid for. 2.6 Powers to Estimate The law allows us to estimate any amount, date or period specified in the Certificate (Social Security (Recovery of Benefits) Act 1997, Section 5(4)) also Reg 4(1)(a) and 9(3) of the The Social Security (Recovery of Benefits) (Lump Sum Payments) Regulations Issue of the Certificate We will send the Certificate to you and at the same time we will send a copy to the injured person or his representative. Write to us if you have any queries about the Certificate. We will issue a further Certificate if necessary (see also Section 6, Reviews and appeals). 2.8 Increase of recoverable benefits included on Certificates After a Certificate has been issued we may become aware that further recoverable benefits have been paid. These benefits would have been included in the Certificate had we been aware of them at the time it was issued. During the validity of a Certificate the amount of recoverable benefit shown cannot be increased, except where the compensator has provided us with incorrect or insufficient information. If recoverable benefits are inadvertently omitted from a Certificate, and a compensation payment is not made during the period of validity of that Certificate, the additional benefits will be shown on any later Certificate. In order to give as much notice as possible of this, we will notify you in writing if we become aware that a future Certificate will be affected in this way. 2.9 Increase of lump sums included on Certificates If we become aware that recoverable lump sums have been paid after a Certificate has been issued, we will issue a revised Certificate to include the lump sum amount and the revised Certificate will supercede any previous certificate Having the Certificate renewed The compensator should only request renewal Certificates when he is ready to settle the claim. Persistent requests for renewal Certificates when the claim is not ready to be settled generates extra work and expense for everyone and may cause delays.

21 We cannot issue a new Certificate until the current one expires. Where it is clear that the case is very near settlement and that the current Certificate will expire before the settlement takes place you may request a renewal Certificate. Renewal Certificates will be issued within four weeks of the expiry of the current Certificate What to do after the Certificate is issued Please tell us as soon as possible when you know the outcome of the claim even if it is unsuccessful. Form CRU102 should be used for this purpose. Failure to do this may result in you incurring costs for the retrieval of files from storage. CRU will not pay the retrieval costs where a compensator has not informed us of the date the compensation payment was made in final discharge of the claim. If no notification has been received about the outcome of a compensation claim after two years, automatic follow up action will be taken to obtain the result of the claim. A form CRU250 will be issued and should be completed and returned immediately. When compensation has been paid you MUST send us the form CRU102, together with a cheque for the amount specified on the Certificate. Cheques should be crossed and made payable to "Department for Work and Pensions only" (in Northern Ireland "Social Security Agency only"). Do not send a cheque before sending form CRU102. Please ensure the correct CRU reference number is shown on the remittance advice note, along with your claim reference number and if possible the incident/accident date or the name of the injured person. You may send one cheque in respect of any number of claims. In order that we may allocate a bulk payment correctly to each case, the cheque MUST be accompanied by a schedule detailing ALL the CRU reference numbers and the AMOUNT DUE for each individual case. The total amount on the schedule should be checked to ensure the cheque is for the correct amount. If you choose this option you should bear in mind that the liability to pay DWP arises immediately before making the compensation payment, and the CRU may enforce this debt through the courts at any point from the fifteenth day following the date the compensation was paid Penalty for default The DWP may take action against you to secure payment of the recoverable amount if: you make a compensation payment but do not apply for a Certificate; and/or you fail to repay us the specified amount. If you obtain a Certificate and make the appropriate compensation payment but fail to pay the DWP, we will send you a reminder. Payment must be made immediately you receive the reminder. If your records show that you have already sent us a payment, then you should provide us with the details, e.g. the cheque number and the date it was cashed. If you have not sent us a payment because you do not agree with the amount on the Certificate, then you may request a review (see also Section 6).

22 In accordance with Section 7-(3)(4)(5) of the 1997 Act, and Regulation 11 of the Social Security (Recovery of Benefits) (Lump Sum Payments) Regulations 2008, failure to pay DWP the amount shown on the Certificate may result in legal action being taken against you. Please refer to the Social Security (Recovery of Benefits) Act 1997, Section 6 - Liability to pay the Secretary of State amount of benefits, and Section 7 - Recovery of payments due under section 6. Also Regulation 10 - Liability to pay Secretary of State amount of lump sum payments and Regulation 11 - Recovery of payment due under Regulation Requests and notifications not appropriate for CRU 3.1 Professional negligence Form CRU1 need not be submitted for a compensation claim arising from alleged professional negligence. CRU does not pursue this type of case and cannot issue a Certificate. If details of benefits paid are required, a request should be made to the relevant DWP benefit paying office. If you have already sent us a CRU1 for such a case please let us know as soon as possible. The claim can be settled without further reference to CRU. However, if compensation is also to be paid as a result of the original accident, injury or disease, form CRU1 must be submitted by the compensator. 3.2 Compensation for criminal injuries The Compensation Recovery Scheme does not apply to criminal injuries cases. If details of benefit are required they should be obtained from the relevant DWP benefit paying office. For information go to the Criminal Injuries Compensation Scheme website 3.3 Requests for details of benefits paid prior to the date of accident, injury or disease We cannot provide details of benefits paid before the date of incident, or give any estimate of which benefits might have been payable had the incident not occurred. CRU can only provide details of benefits paid as a result of an accident, injury or disease for which compensation has been claimed. 4. Complex Cases 4.1 Interim Payments When a compensator makes an interim compensation payment, he will be liable to repay to the DWP all recoverable benefits paid during the relevant period and all lump sum payments paid up to the date of the interim payment. If the compensator makes any further payments, or an agreement that a previous payment was in final settlement of the claim, he will be liable to repay any further benefits and or lump sums paid.

23 However, before making any further payment, or reaching an agreement that a previous payment was in final settlement of the claim, the compensator: should apply for a fresh Certificate. This Certificate will show details of all recoverable benefits and or lump sums and the balance to be paid by the compensator. In cases where there are recoverable benefits and a further compensation payment is made, the compensator: may aggregate the payments already made with the payments about to be made to CRU and the injured person; and use these aggregate amounts when calculating the reductions that may be made under Section 8 of the 1997 Act, see also Regulation 9 of the Social Security (Recovery of Benefits) Regulations In cases where there are recoverable lump sums and a further compensation payment is made, the compensator: may aggregate the payments already made with the payments about to be made to CRU and to P, and use these aggregate amounts when calculating the reductions that may be made under Regulations 10 and 14 of the Social Security (Recovery of Benefits) (Lump Sum Payments) Regulations Multiple compensators Normally when there is more than one compensator involved in a claim for compensation they will act together so that only one compensation payment is made to the injured person and the DWP. However, where this does not happen compensators will be liable to repay any benefits and or lump sums, which have not already been repaid. Each compensator may make only those reductions to the injured person's compensation allowed by Section 8 of the 1997 Act and Regulations 10 and 11 of the Social Security (Recovery of Benefits) (Lump Sum Payments) Regulations 2008 in relation to the compensation he is paying to the injured person and the benefits and or lump sum he is repaying to DWP. The Health and Social Care (Community Health and Standards) Act 2003, gives provision for apportionment of liability to pay NHS charges where more than one compensator is involved. If evidence is provided to enable the CRU to determine the liability, of each compensator, we can apportion the amount of relevant NHS charges that would be payable if there were only one compensator. NOTE