Compensation Recovery Unit (CRU)

The Compensation Recovery Unit (CRU) is part of the Department for Work and Pensions (DWP). The role of the CRU is to recover social security benefits paid to personal injury claimants when they receive compensation from a liable party. They also recover NHS costs related to the injury or illness being claimed for.

The CRU ensures that the state (i.e. the taxpayer) is reimbursed for any benefits paid or costs incurred as a result of the injury, illness, or accident that led to the personal injury claim. Doing this ensures that a claimant is not compensated twice for the same injury.

An example is if you cannot work because of your accident and are placed on statutory sick pay (SSP). When your compensation for loss of earnings is calculated as part of your claim, the state benefits you received as sick pay would be deducted.

Role and Functions of the Compensation Recovery Unit

Below are some further details about the role of the Compensation Recovery Unit in personal injury claims:

• Benefit recovery: When a claimant receives compensation for a personal injury, the CRU recovers the amount of certain social security benefits that the claimant received due to their injury, illness, or accident. This ensures the claimant does not receive double compensation – once through the benefits system and once through personal injury compensation.
• NHS cost recovery: The CRU also recovers the costs of any NHS treatment provided to the claimant for their injuries. This includes hospital treatments, ambulance services, and other medical expenses incurred due to the injury. The CRU ensures that the liable party, rather than the state, bears the cost of the healthcare services provided.
• Certificate of recoverable benefits and costs: When a personal injury claim is made, the claimant’s solicitor is required to notify the CRU. The CRU then issues a certificate of recoverable benefits and costs, which outlines the total amount of benefits and NHS costs that must be reimbursed from the compensation awarded to the claimant.
• Cooperation with insurers and solicitors: The CRU works closely with insurance companies and solicitors to facilitate the recovery process. Insurers and solicitors must provide the CRU with the necessary information regarding the claim and ensure that the recoverable benefits and costs are deducted from the compensation before it is paid to the claimant.
• Record keeping and updates: The CRU maintains records of recoverable benefits and costs and updates the relevant parties of any changes to the amounts recoverable during the course of the claim.

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Last edited on 17th Dec 2024

With over 15 years’ experience in the legal sector, Nicholas Tate (LLB Hons, LLM in Health Law) has extensive experience across all areas of personal injury and medical negligence claims.