1. What Is CRU?
CRU stands for Compensation Recovery Unit, a government body within the Department for Work and Pensions (DWP) in the UK. It ensures that if a person receives certain state benefits due to an injury or illness, and later gets compensation through a legal claim, those benefits are recovered from the final settlement.
The CRU’s primary purpose is to prevent double recovery—so a person doesn’t get state support and also full compensation for the same loss from a third party.
2. Why Does CRU Matter in Personal Injury Claims?
When someone is injured and unable to work, they may receive benefits like:
- Universal Credit
- Employment and Support Allowance (ESA)
- Income Support
- Jobseeker’s Allowance (JSA)
- Disability Living Allowance (DLA)
If they then win compensation, part of that money may have to be paid back to the government to cover those benefits—this is managed through the CRU.
3. How the CRU Process Works
Here’s what happens during a claim involving the CRU:
- Claim Notified: The insurer or solicitor tells the DWP that a claim is being made.
- Certificate Issued: The CRU issues a certificate of recoverable benefits—a record of all state benefits paid due to the accident or illness.
- Compensation Deducted: The liable party (often an insurer) deducts that amount from the total settlement and repays it to the CRU.
- Claimant Receives Balance: You receive the final amount, less any CRU deductions.
This ensures public funds are reclaimed if the injury was caused by someone else’s fault.
4. What Types of Claims Involve the CRU?
The CRU is involved in claims related to:
- Personal Injury
- Industrial Disease
- Road Traffic Accidents
- Medical Negligence
- Employer and Public Liability Claims
Any situation where compensation is awarded and state benefits were received may involve CRU deductions.
5. What Is a Certificate of Recoverable Benefits?
This is a document issued by the CRU that shows:
- The type of benefit received
- The time period covered
- The total amount the government wants repaid
Claimants and solicitors use this to calculate the net compensation payout.
6. Can You Dispute CRU Deductions?
Yes, you or your solicitor can challenge a CRU certificate if:
- Benefits listed are incorrect or unrelated
- The injury didn’t cause the need for the benefit
- The benefit was wrongly attributed to the claim
Disputes can be submitted to the DWP for review and amendment.
7. Does the Claimant Pay the CRU Directly?
No. The CRU amount is paid directly by the at-fault party’s insurer, not by the injured person. However, it reduces the compensation amount you ultimately receive.
Example:
- Total Compensation: £30,000
- CRU Deductions: £5,000
- Final Payout to You: £25,000
8. Does CRU Affect No Win No Fee Agreements?
Not directly. Your solicitor’s success fee is usually calculated after CRU deductions, based on your final compensation amount.
It’s important to ask your solicitor to explain how CRU might impact your payout so you have a clear picture of your net compensation.
Frequently Asked Questions
Q1: Do I have to apply to the CRU?
No. The solicitor or insurer notifies the CRU as part of the claims process.
Q2: Can CRU deduct from compensation for mental health issues?
Yes, if benefits were paid in relation to the psychological harm linked to the claim.
Q3: Will CRU reduce my pain and suffering compensation?
No. Deductions apply only to losses that overlap with state benefits (e.g., loss of earnings).
Q4: What if I haven’t claimed any benefits?
Then no deductions will be made and the CRU will issue a “nil certificate.”
Q5: How long does a CRU certificate last?
It’s typically valid for up to 12 months. After that, a new one may be requested.
Conclusion
CRU, or the Compensation Recovery Unit, ensures that state benefits paid due to an injury aren’t duplicated in compensation payouts. While it reduces the amount of money you receive from your claim, it plays a key role in maintaining fairness and public accountability. Understanding how CRU works helps you make informed decisions when pursuing a personal injury or illness claim.