Welfare Benefits
If you find yourself injured and unable to work following an accident you may be eligible for benefits, which will provide you with some income until you are fit enough to return to work.
If these benefits are paid at the same time as you make a claim for personal injuries then the sums paid may be deducted from the damages that you ultimately recover to compensate you for your financial losses associated with the accident and subsequent injury.
This is because If such sums were not repaid the claimant would receive a windfall known as “double recovery”, because you would recover sums to compensate you for lost income as part of the claim and retain the sums paid to you as a result of the benefits paid to you while you could not earn that income.
The Department of Work and Pension’s Compensation Recovery Unit (CRU) endeavours to stop this “double recovery”. Lawyers who act for claimants are obliged to notify the defendant’s insurer of your full name, date of birth and National Insurance number. They will then register the claim with the CRU.
The CRU will advise both sides of the amount of benefit that has been received by the claimant, if any. At the conclusion of the claim, if you have claimed a benefit and also sought to recover a financial loss that is associated with the benefit then sums paid by way of benefit will be deducted from the damages that you recover and repaid to the CRU department direct.
To put this into context, an example would be if you have claimed for loss of earnings, in the sum of £5,000.00, for three months from the date of your accident, and for the same period of time you received benefits of £1,000.00. The defendant will pay you £4,000.00 for your lost earnings and £1,000.00 to the CRU.
What Benefits am I obliged to account for?
Whether or not the benefit that you have received will require repayment is determined by schedule 2 of the Social Security (recovery of benefits) Act 1997. The benefits are directly offset against the heads of financial loss that you claim. For example if you claim lost earnings and are in receipt of benefits for incapacity or loss of income then the sums paid will be repaid from the sums recovered for lost earnings. Should you claim that you have relied upon carers, while at the same time you are in receipt of care allowance or any other benefit with a care element attached then the sums paid, in respect of these benefits, will be deducted from the sums recovered in respect of the care claim. There is the same provision if you claim loss of mobility and are in receipt of mobility allowance.
The benefits that can be recouped are for a maximum of five years or until the claim is settled; whichever is sooner.
Further, the sums you receive to compensate you for the pain suffering and loss of amenity caused by the accident, known as general damages, are ring fenced from recoupment and, as such, the sums paid to you in any benefit cannot be recovered from general damages.
Types of Benefit
Below is a brief outline of the current benefits available. If you think you might be entitled to any of those detailed you should contact your local benefits agency who will, in the first instance, send you a form to complete.
All benefit forms can be requested by telephone from your local Benefits Office or Job Centre Plus Office. You can find the number in the telephone directory or local library. Alternatively you can request benefit forms from the free phone Benefit Enquiry Line 0800 88 22 00.
All benefit forms can be requested by telephone and it is advisable to use the telephone because the allowance will be backdated to at least the date of the call if it is awarded.
Statutory Sick Pay (SSP)
If you were employment at the time of the accident you will be entitled to SSP for the first 28 weeks of sick leave. SSP is not means tested. It is paid to you by your employer in the normal way your wages were paid.
Employment and Support Allowance
This is replacing Incapacity Benefit. It is available to those who are self employed, and is not means tested.
The rates vary depending upon the period you are out of work, and the effect your injuries have on your ability to work.
Industrial Injuries Disablement Benefit
Available to employees who have suffered injury or illness/disease in the course of employment. It is not means tested.
Income Support
Paid to those who work less than 16 hours per week and have limited savings. This may become relevant if your injuries mean you can return to work on reduced hours.
Disability Living Allowance (DLA)
If you’ve been seriously injured you may qualify for the Care and/or Mobility aspect of this allowance. Where there is a serious injury with long-term ill health effects you may qualify for DLA. The rate of benefit varies depending upon the dependence on others for care and mobility and it is possible to qualify for one aspect of the benefit, but not the other.
Other Benefits
Other benefits you may potentially be entitled to include working tax credit, reduced earnings allowance, bereavement allowance and carers’ allowance. For further details of these benefits and more, including rates of benefit, contact your local benefits office or search on line at www.dwp.gov.uk. Millions of pounds of benefits go unclaimed every year because people don’t know what they’re entitled to. If you’re in any doubts as to your entitlements, it is better to make the claim.
If you want to enquire about making a claim, please contact a member of our team on 01895 207 835 or 01895 207 295. Alternatively, you can send an email with your name and contact information and brief details as to the nature of the accident/clinical negligence and the injuries sustained to PI@ibblaw.co.uk and one of our team will be able to help you.
