Universal Credit And The CRU: Who Benefits?

The introduction of Universal Credit is likely to have consequences for both claimants and insurers when considering offers of settlement.

The introduction of Universal Credit will result in the consolidation of payments of six individual weekly benefits into one single monthly payment.

The Department of Works and Pensions has started moving benefit recipients over to Universal Credit, with the roll out expected to be completed in 2022.

Universal Credit and the Compensation Recovery Unit

The Compensation Recovery Unit ("CRU") recovers social security benefits in certain compensation cases and NHS costs in certain injury cases. On receipt of a claim, the insurer of the defendant notifies the CRU of the claim. CRU then issues a Certificate of Recoverable Benefit.

Throughout the claim up to settlement, a claimant's Certificate of Recoverable Benefit ("CRB") sets out those benefits deemed to be recoverable against a particular head of the claimant's damages. The DWP website sets out those benefits which are recoverable against certain heads of loss.

Of the six benefits being subsumed into the Universal Credit (UC) payment, there are currently three benefits - which can be recovered by the CRU specifically against loss of earnings...