1. What Is the Compensation Recovery Unit (CRU)?
The Compensation Recovery Unit (CRU) is a part of the UK’s Department for Work and Pensions (DWP). Its job is to recover certain state benefits paid to someone injured or ill due to another party’s fault, when that person later receives compensation.
2. Why Have I Got a Letter from the CRU?
You received a letter from the CRU because:
- You’ve made a personal injury, medical negligence, or accident claim
- The government is checking whether you received state benefits due to that injury
- They want to recover any applicable benefits from the compensation awarded
3. What Does the CRU Letter Include?
A typical CRU letter may contain:
- Confirmation of your injury claim
- Your CRU reference number
- A schedule of recoverable benefits (if applicable)
- An invitation to contact the DWP for more information
This doesn’t mean you did anything wrong—it’s a standard process.
4. What Are Recoverable Benefits?
Recoverable benefits include payments like:
- Employment and Support Allowance (ESA)
- Universal Credit
- Industrial Injuries Disablement Benefit
- Income Support
- Jobseeker’s Allowance
- Statutory Sick Pay (sometimes)
These may be recovered from your compensation, particularly for loss of earnings claims.
5. Does the CRU Take Money from My Compensation?
Not directly. If your compensation includes money for lost income or care, the CRU tells the compensator (usually an insurer) how much to repay to the DWP. That amount is deducted from the compensation total paid to you.
6. Does the CRU Affect All Parts of My Compensation?
No. It only affects the parts related to:
- Loss of earnings
- Cost of care or services
Pain and suffering (general damages) are not affected by CRU deductions.
7. What If I Didn’t Receive Any Benefits?
Then the CRU will confirm this in writing, and no deductions will be made from your compensation. The letter may simply be for verification purposes.
8. What Should I Do When I Get a CRU Letter?
- Keep the letter safe and note your reference number
- Inform your solicitor (if you have one)
- Check the details are correct—especially the injury and claim dates
- Respond promptly if they request further information
9. Can I Dispute CRU Deductions?
Yes, you or your solicitor can request a review or appeal if you believe the benefits listed are incorrect or unrelated to your injury. This must be done through the DWP.
10. Does the CRU Delay My Compensation?
Possibly. The insurer can’t finalise payment until the CRU confirms how much is owed (if any). However, most experienced solicitors handle this alongside your claim to avoid delays.
Frequently Asked Questions
Is a CRU letter bad news?
No. It’s a routine part of the claims process to check for benefits received and ensures public funds are recovered fairly.
What is a CRU certificate?
A CRU certificate outlines which benefits have been paid and are recoverable. It’s issued to your solicitor or the compensator.
Do I have to repay the benefits myself?
No. The compensator handles repayments directly with the CRU.
Can I ignore a CRU letter?
No. Always read and respond to it. Ignoring it may delay or complicate your compensation claim.
What happens if my details are wrong?
Inform the CRU or ask your solicitor to request a correction.
Will this affect my current benefits?
Receiving compensation might affect means-tested benefits in the future, so consult your solicitor or benefits adviser if unsure.
Conclusion
Receiving a letter from the Compensation Recovery Unit might seem confusing, but it’s a normal step in the personal injury claim process. It ensures that any state benefits paid due to your injury are accounted for fairly. Stay calm, inform your solicitor, and follow any instructions in the letter. You’re one step closer to receiving your rightful compensation.
Leave a Reply