English law

Social security payments

General observations

In England, the recovery and deduction of benefits is governed by the Social Security (Recovery of Benefits) Act 1997. That came into force on 6 October 1997 and applies to all cases concluded after that date irrespective of when the litigation began, the accident occurred or the condition complained of was contracted.

Major changes were instituted by the 1997 Act. First, general damages for pain, suffering and loss of amenities are not subject to any deduction. Secondly, loss of earnings, cost of care and damages for loss of mobility are subject to recoupment of certain specified benefits particularly applicable to each of those heads of damage. Thirdly, it is the defendant who is liable to make the repayment to the Compensation Recovery Unit, not the claimant. The full amount of all recoverable benefits must be paid irrespective of whether they have been claimed by the claimant or not. It is the responsibility of the defendants to obtain the relevant certificate from the Unit and to pay what is due. The payment which is made to a claimant must be, or is taken to be, net of repayable benefits. No interest is payable on the benefits so recouped.

That is equally applicable to any interim payments of damages agreed (or ordered to) be paid during the course of the proceedings.