Written by Rick Gregory, Editorial Lead · Legal information checked in collaboration with Edward & Amaury Solicitors (SRA 800525) · September 2026 · ~4 min read
WorkClaim UK is a trading name of Edward and Amaury Limited (Edward & Amaury Solicitors), authorised and regulated by the Solicitors Regulation Authority (SRA 800525).
Quick Summary
- If you claim compensation for an accident at work, the person paying you must report the claim to the Compensation Recovery Unit (CRU) and repay certain benefits you received because of the injury
- The rules come from the Social Security (Recovery of Benefits) Act 1997
- Benefits are only taken from the parts of your award they match, such as loss of earnings, cost of care and loss of mobility, not from compensation for pain and suffering
- Recovery generally covers benefits paid over a period of up to five years from the accident, or until the claim settles if that is sooner
- This guide covers England and Wales. Scotland and Northern Ireland have their own courts and some different rules
What is the Compensation Recovery Unit?
The Compensation Recovery Unit is part of the Department for Work and Pensions. Its job is to recover from compensation payments certain state benefits paid to the injured person because of the accident or illness, so that you are not paid twice for the same loss.
Who deals with the CRU?
The party paying the compensation, usually your employer's insurer, must notify the CRU when a claim is made, and GOV.UK guidance sets a 14-day deadline for that. The CRU then issues a certificate showing the recoverable benefits. The insurer repays those benefits to the government. Your solicitor will check the certificate and explain how it affects your settlement.
Which benefits can be recovered?
The list is set by the Social Security (Recovery of Benefits) Act 1997. Examples of benefits that may be included are Universal Credit, Employment and Support Allowance and Personal Independence Payment. Ask your solicitor to confirm which of your own benefits are on the list, because not all benefits are recoverable.
Which parts of my compensation are affected?
Recoverable benefits are set against the matching type of loss only:
- benefits linked to lost earnings are set against your compensation for loss of earnings
- benefits linked to care needs are set against compensation for the cost of care
- benefits linked to mobility are set against compensation for loss of mobility
Compensation for pain, suffering and loss of amenity is not reduced by these recoveries.
How long does recovery cover?
Recovery normally covers benefits paid over up to five years from the date of the accident, or until the claim is settled, whichever comes first. After a settlement, the certificate is used to calculate what the insurer repays.
Will my benefits stop because I claimed?
Making a claim does not by itself stop your benefits. You should continue to tell the benefit office about changes as you normally would. A settlement can affect means-tested benefits in the future, so ask for advice before agreeing to a final sum. Our guide to loss of earnings claims explains how lost income is calculated.
What about NHS treatment costs?
The CRU also recovers certain NHS treatment charges from the compensator. These are normally paid by the insurer rather than deducted from your award.
Frequently asked questions
Do I have to contact the CRU myself?
Normally not. The person or insurer paying the compensation reports the claim. Your solicitor will handle the paperwork and check the figures.
Can I keep all of my compensation for pain and suffering?
Yes. Recovery of benefits does not reduce compensation for pain, suffering and loss of amenity.
Does Statutory Sick Pay from my employer count as a benefit for recovery?
Sick pay from your employer is a separate issue and is dealt with as part of your loss of earnings. See our guide to full pay if injured at work.
Does this apply to Industrial Injuries Disablement Benefit?
Ask your solicitor to check how any Industrial Injuries Disablement Benefit interacts with your claim. Our guide to Industrial Injuries Disablement Benefit explains the benefit itself.
Will a benefits deduction reduce the settlement I receive?
The compensation payer may have to repay specified benefits to the Compensation Recovery Unit. Your solicitor should explain the calculation and make sure the settlement reflects the correct heads of loss.
Want to know how benefits could affect your settlement?
A specialist solicitor can check your benefits and explain how they fit with your compensation claim.
Or call 01228 272395 to speak to Edward & Amaury Solicitors (SRA number: 800525). No upfront cost and nothing to pay if your claim does not succeed.