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 claims:

Income Support Employment and Support Allowance ("ESA") Jobseeker's Allowance ("JSA") The remaining three benefits to be integrated into Universal Credit are not recoverable against any head of loss:

Housing Benefit Working Tax Credit Child Tax Credit Under the current system, if a claimant was in receipt of both JSA and Housing Benefit for example, the JSA payment would be listed on the CRU certificate as recoverable (against a loss of earnings claim alone). If the claim was successful, the JSA payment would be repayable by the insurer client, by deducting that figure from the loss of earnings claim as appropriate. Where the amount of compensation in respect of the loss of earnings claim is less than the amount of JSA, it to be recovered, the insurer is also liable to pay the difference.

So far, so good.

However, under the new UC system, this single payment will be listed on the CRB. This figure will not indicate how any payments for those six benefits have been integrated into the single payment, presumably as those benefits are no longer deemed to exist.

Following enquiries with CRU regarding whether the UC payment can be broken down, the CRU have advised they have no access to a breakdown and the sum listed...