When a personal injury claim is made the Defendants must register the claim with the Secretary of State. They will then issue a certificate called the Certificate of Recoverable Benefits or CRU.
This certificate sets out the benefits the Claimant has received since the accident and they require the Defendants, if the claim is settled, to repay those benefits to the State.
Some benefits received will be set off against the Claimants damages. For example; if a Claimant receives £10,000 for past loss of earnings, but during the time they were off work they received £2,000 Incapacity Benefit, then that £2,000 would need to be repaid to the State and the Claimant would receive £8,000. This ensures that the State is not out of pocket and that the Claimant does not have a double recovery.
The set off only applies to damages and benefits on a like for like basis.