OpenLegislation

Social Security (Recovery of Benefits) Act 1997 in Northern Ireland

1997 c. 27 · Enacted 19 March 1997 · Extends to United Kingdom

Not fully up to date. 2 changes made by later legislation have not yet been written into this text, which is revised to 31 December 2020.

See the changes not yet applied
ProvisionChangeMade by
Sch. 2words repealedWelfare Reform Act 2012 Sch. 14 Pt. 1
Sch. 2words repealedWelfare Reform Act 2012 Sch. 14 Pt. 9

Contents

  1. 2Compensation payments to which this Act applies.
  2. 3“The relevant period”.
  3. 4Applications for certificates of recoverable benefits.
  4. 5Information contained in certificates.
  5. 6Liability to pay Secretary of State amount of benefits.
  6. 8Reduction of compensation payment.
  7. 8AReduction of payment under Diffuse Mesothelioma Payment Scheme
  8. 15Court orders.
  9. 17Benefits irrelevant to assessment of damages.
  10. 18Lump sum and periodical payments.
  11. 22Liability of insurers.
  12. 24Power to amend Schedule 2.
  13. Provisions relating to Northern Ireland
  14. 25Corresponding provision for Northern Ireland.
  15. 26Residence of the injured person.
  16. 27Jurisdiction of courts.
  17. General
  18. 33Consequential amendments and repeals.
  19. 34Short title, commencement and extent.
  20. Part I: Exempted payments
  21. 1Paragraph 1
  22. 3Paragraph 3
  23. 4Paragraph 4
  24. 6Paragraph 6
  25. 7Paragraph 7
  26. 8Paragraph 8
  27. Part II: Power to disregard small payments
  28. 9Paragraph 9
  29. 1NOTES
  30. 2Paragraph 2
  31. 3Paragraph 3
  32. Schedule 3: Consequential amendments
  33. Law Reform (Personal Injuries) Act 1948 (c. 41)
  34. 1Paragraph 1
  35. Social Security Administration Act 1992 (c. 5)
  36. 2Paragraph 2
  37. 3Paragraph 3
  38. 5Paragraph 5
  39. 6Paragraph 6
  40. 7Paragraph 7
  41. 8Paragraph 8
  42. 9Paragraph 9
  43. 10Paragraph 10
  44. 11Paragraph 11
  45. 12Paragraph 12
  46. 13Paragraph 13
  47. Schedule 4Repeals

2Compensation payments to which this Act applies.

This Act applies in relation to compensation payments made on or after the day on which this section comes into force, unless they are made in pursuance of a court order or agreement made before that day.

3“The relevant period”.

(1)

In relation to a person (“the claimant”) who has suffered any accident, injury or disease, “the relevant period” has the meaning given by the following subsections.

(2)

Subject to subsection (4), if it is a case of accident or injury, the relevant period is the period of five years immediately following the day on which the accident or injury in question occurred.

(3)

Subject to subsection (4), if it is a case of disease, the relevant period is the period of five years beginning with the date on which the claimant first claims a listed benefit in consequence of the disease.

(4)

If at any time before the end of the period referred to in subsection (2) or (3)—

(a)

a person makes a compensation payment in final discharge of any claim made by or in respect of the claimant and arising out of the accident, injury or disease, or

(b)

an agreement is made under which an earlier compensation payment is treated as having been made in final discharge of any such claim,

the relevant period ends at that time.

4Applications for certificates of recoverable benefits.I1

(1)

Before a person (“the compensator”) makes a compensation payment he must apply to the Secretary of State for a certificate of recoverable benefits.

(2)

Where the compensator applies for a certificate of recoverable benefits, the Secretary of State must—

(a)

send to him a written acknowledgement of receipt of his application, and

(b)

subject to subsection (7), issue the certificate before the end of the following period.

(3)

The period is—

(a)

the prescribed period, or

(b)

if there is no prescribed period, the period of four weeks,

which begins with the day following the day on which the application is received.

(4)

The certificate is to remain in force until the date specified in it for that purpose.

(5)

The compensator may apply for fresh certificates from time to time.

(6)

Where a certificate of recoverable benefits ceases to be in force, the Secretary of State may issue a fresh certificate without an application for one being made.

(7)

Where the compensator applies for a fresh certificate while a certificate (“the existing certificate”) remains in force, the Secretary of State must issue the fresh certificate before the end of the following period.

(8)

The period is—

(a)

the prescribed period, or

(b)

if there is no prescribed period, the period of four weeks,

which begins with the day following the day on which the existing certificate ceases to be in force.

(9)

For the purposes of this Act, regulations may provide for the day on which an application for a certificate of recoverable benefits is to be treated as received.

5Information contained in certificates.

(1)

A certificate of recoverable benefits must specify, for each recoverable benefit—

(a)

the amount which has been or is likely to have been paid on or before a specified date, and

(b)

if the benefit is paid or likely to be paid after the specified date, the rate and period for which, and the intervals at which, it is or is likely to be so paid.

(2)

In a case where the relevant period has ended before the day on which the Secretary of State receives the application for the certificate, the date specified in the certificate for the purposes of subsection (1) must be the day on which the relevant period ended.

(3)

In any other case, the date specified for those purposes must not be earlier than the day on which the Secretary of State received the application.

(4)

The Secretary of State may estimate, in such manner as he thinks fit, any of the amounts, rates or periods specified in the certificate.

(5)

Where the Secretary of State issues a certificate of recoverable benefits, he must provide the information contained in the certificate to—

(a)

the person who appears to him to be the injured person, or

(b)

any person who he thinks will receive a compensation payment in respect of the injured person.

(6)

A person to whom a certificate of recoverable benefits is issued or who is provided with information under subsection (5) is entitled to particulars of the manner in which any amount, rate or period specified in the certificate has been determined, if he applies to the Secretary of State for those particulars.

6Liability to pay Secretary of State amount of benefits.

(1)

A person who makes a compensation payment in any case is liable to pay to the Secretary of State an amount equal to the total amount of the recoverable benefits.

(2)

The liability referred to in subsection (1) arises immediately before the compensation payment or, if there is more than one, the first of them is made.

(3)

No amount becomes payable under this section before the end of the period of 14 days following the day on which the liability arises.

(4)

Subject to subsection (3), an amount becomes payable under this section at the end of the period of 14 days beginning with the day on which a certificate of recoverable benefits is first issued showing that the amount of recoverable benefit to which it relates has been or is likely to have been paid before a specified date.

8Reduction of compensation payment.

(1)

This section applies in a case where, in relation to any head of compensation listed in column 1 of Schedule 2—

(a)

any of the compensation payment is attributable to that head, and

(b)

any recoverable benefit is shown against that head in column 2 of the Schedule.

(2)

In such a case, any claim of a person to receive the compensation payment is to be treated for all purposes as discharged if—

(a)

he is paid the amount (if any) of the compensation payment calculated in accordance with this section, and

(b)

if the amount of the compensation payment so calculated is nil, he is given a statement saying so by the person who (apart from this section) would have paid the gross amount of the compensation payment.

(3)

For each head of compensation listed in column 1 of the Schedule for which paragraphs (a) and (b) of subsection (1) are met, so much of the gross amount of the compensation payment as is attributable to that head is to be reduced (to nil, if necessary) by deducting the amount of the recoverable benefit or, as the case may be, the aggregate amount of the recoverable benefits shown against it.

(4)

Subsection (3) is to have effect as if a requirement to reduce a payment by deducting an amount which exceeds that payment were a requirement to reduce that payment to nil.

(5)

The amount of the compensation payment calculated in accordance with this section is—

(a)

the gross amount of the compensation payment,

less

(b)

the sum of the reductions made under subsection (3),

(and, accordingly, the amount may be nil).

8AReduction of payment under Diffuse Mesothelioma Payment SchemeF1

(1)

This section applies instead of section 8 in a case where the compensation payment is a payment under the Diffuse Mesothelioma Payment Scheme.

(2)

The gross amount of the compensation payment—

(a)

is to be reduced by the amount of the recoverable benefit, and

(b)

accordingly, is to be reduced to nil in any case where the amount of the recoverable benefit is equal to or greater than the gross amount of the compensation payment.

(3)

Any claim of a person to receive the compensation payment is to be treated for all purposes as discharged if—

(a)

the person is paid the gross amount of the compensation payment less the amount of the recoverable benefit, or

(b)

the amount of the recoverable benefit is equal to or greater than the gross amount of the compensation payment and the person is given a statement by the scheme administrator saying that the compensation payment has been reduced to nil.

15Court orders.C1

(1)

This section applies where a court makes an order for a compensation payment to be made in any case, unless the order is made with the consent of the injured person and the person by whom the payment is to be made.

(2)

The court must, in the case of each head of compensation listed in column 1 of Schedule 2 to which any of the compensation payment is attributable, specify in the order the amount of the compensation payment which is attributable to that head.

17Benefits irrelevant to assessment of damages.C1

In assessing damages in respect of any accident, injury or disease, the amount of any listed benefits paid or likely to be paid is to be disregarded.

18Lump sum and periodical payments.I1C1

(1)

Regulations may make provision (including provision modifying this Act) for any case in which two or more compensation payments in the form of lump sums are made by the same person to or in respect of the injured person in consequence of the same accident, injury or disease.

(2)

The regulations may (among other things) provide—

(a)

for the re-calculation in accordance with section 8 of the amount of any compensation payment,

(b)

for giving credit for amounts already paid, and

(c)

for the payment by any person of any balance or the recovery from any person of any excess.

(3)

For the purposes of subsection (2), the regulations may provide for the gross amounts of the compensation payments to be aggregated and for—

(a)

the aggregate amount to be taken to be the gross amount of the compensation payment for the purposes of section 8,

(b)

so much of the aggregate amount as is attributable to a head of compensation listed in column 1 of Schedule 2 to be taken to be the part of the gross amount which is attributable to that head;

and for the amount of any recoverable benefit shown against any head in column 2 of that Schedule to be taken to be the amount determined in accordance with the most recent certificate of recoverable benefits.

(4)

Regulations may make provision (including provision modifying this Act) for any case in which, in final settlement of the injured person’s claim, an agreement is entered into for the making of—

(a)

periodical compensation payments (whether of an income or capital nature), or

(b)

periodical compensation payments and lump sum compensation payments.

(5)

Regulations made by virtue of subsection (4) may (among other things) provide—

(a)

for the relevant period to be treated as ending at a prescribed time,

(b)

for the person who is to make the payments under the agreement to be treated for the purposes of this Act as if he had made a single compensation payment on a prescribed date.

(6)

A periodical payment may be a compensation payment for the purposes of this section even though it is a small payment (as defined in Part II of Schedule 1).

22Liability of insurers.C1

(1)

If a compensation payment is made in a case where—

(a)

a person is liable to any extent in respect of the accident, injury or disease, and

(b)

the liability is covered to any extent by a policy of insurance,

the policy is also to be treated as covering any liability of that person under section 6.

(2)

Liability imposed on the insurer by subsection (1) cannot be excluded or restricted.

(3)

For that purpose excluding or restricting liability includes—

(a)

making the liability or its enforcement subject to restrictive or onerous conditions,

(b)

excluding or restricting any right or remedy in respect of the liability, or subjecting a person to any prejudice in consequence of his pursuing any such right or remedy, or

(c)

excluding or restricting rules of evidence or procedure.

(4)

Regulations may in prescribed cases limit the amount of the liability imposed on the insurer by subsection (1).

(5)

This section applies to policies of insurance issued before (as well as those issued after) its coming into force.

(6)

References in this section to policies of insurance and their issue include references to contracts of insurance and their making.

24Power to amend Schedule 2.

(1)

The Secretary of State may by regulations amend Schedule 2.

(2)

A statutory instrument which contains such regulations shall not be made unless a draft of the instrument has been laid before and approved by resolution of each House of Parliament.

25Corresponding provision for Northern Ireland.

An Order in Council made under paragraph 1(1)(b) of Schedule 1 to the M1Northern Ireland Act 1974 which contains a statement that it is made only for purposes corresponding to those of the provisions of this Act—

(a)

shall not be subject to sub-paragraphs (4) and (5) of paragraph 1 of that Schedule (affirmative resolution of both Houses of Parliament), but

(b)

shall be subject to annulment in pursuance of a resolution of either House of Parliament.

26Residence of the injured person.C1

(1)

In a case where this Act applies, if the injured person’s address is in Northern Ireland—

(a)

the person making the compensation payment must apply for a certificate under the Northern Ireland provisions, and may not make any separate application for a certificate of recoverable benefits,

(b)

any certificate issued as a result under the Northern Ireland provisions—

(i)

is to be treated as including a certificate of recoverable benefits,

(ii)

must state that it is to be so treated, and

(iii)

must state that any payment required to be made to the Secretary of State under this Act is to be made to the Northern Ireland Department as his agent, and

(c)

any payment made pursuant to a certificate so issued is to be applied—

(i)

first towards discharging the liability of the person making the compensation payment under the Northern Ireland provisions, and

(ii)

then, as respects any remaining balance, towards discharging his liability under section 6.

(2)

In a case where the Northern Ireland provisions apply, if the injured person’s address is in any part of Great Britain—

(a)

the person making the compensation payment must apply for a certificate of recoverable benefits, and may not make any separate application for a certificate under the Northern Ireland provisions,

(b)

any certificate of recoverable benefits issued as a result—

(i)

is to be treated as including a certificate under the Northern Ireland provisions,

(ii)

must state that it is to be so treated, and

(iii)

must state that any payment required to be made to the Northern Ireland Department under the Northern Ireland provisions is to be made to the Secretary of State as its agent, and

(c)

any payment made pursuant to a certificate of recoverable benefits so issued is to be applied—

(i)

first towards discharging the liability of the person making the compensation payment under section 6, and

(ii)

then, as respects any remaining balance, towards discharging his liability under the Northern Ireland provisions.

(3)

In this section—

(a)

“the injured person’s address” is the address first notified in writing to the person making the payment by or on behalf of the injured person as his residence (or, if he has died, by or on behalf of the person entitled to receive the compensation payment as the injured person’s last residence),

(b)

“Northern Ireland Department” means the Department of Health and Social Services for Northern Ireland,

(c)

“the Northern Ireland provisions” means—

(i)

any legislation corresponding to this Act (other than this section and section 27) and having effect in Northern Ireland, and

(ii)

this section and section 27,

and

(d)

any reference in relation to the Northern Ireland provisions to—

(i)

the injured person, means the injured person within the meaning of those provisions,

(ii)

a certificate, means a certificate under those provisions corresponding to the certificate of recoverable benefits, and

(iii)

a compensation payment, means a compensation payment within the meaning of those provisions.

27Jurisdiction of courts.C1

(1)

In a case where this Act applies, if immediately before making a compensation payment a person—

(a)

is not resident and does not have a place of business in Great Britain, but

(b)

is resident or has a place of business in Northern Ireland,

subsections (4) and (5) of section 7 apply in relation to him as if at that time he were resident or had a place of business in the relevant part of Great Britain.

(2)

In a case where the Northern Ireland provisions apply, if immediately before making a compensation payment a person—

(a)

is not resident and does not have a place of business in Northern Ireland, but

(b)

is resident or has a place of business in any part of Great Britain,

any provision of the Northern Ireland provisions corresponding to subsection (4) or (5) of section 7 applies in relation to him as if at that time he were resident or had a place of business in Northern Ireland.

(3)

In this section—

(a)

“the relevant part of Great Britain” means—

(i)

the part of Great Britain in which the injured person is or was most recently resident (as determined by any written statement given to the person making the payment by or on behalf of the injured person or, if he has died, by or on behalf of the person entitled to receive the compensation payment), or

(ii)

if no such statement has been given, such part of Great Britain as may be prescribed, and

(b)

“the Northern Ireland provisions” and references to compensation payments in relation to such provisions have the same meaning as in section 26.

33Consequential amendments and repeals.C1

(1)

Schedule 3 (which makes consequential amendments) is to have effect.

(2)

The enactments shown in Schedule 4 are repealed to the extent specified in the third column.

34Short title, commencement and extent.

C1(1)

This Act may be cited as the Social Security (Recovery of Benefits) Act 1997.

P1(2)

Sections 1 to 24, 26 to 28 and 33 are to come into force on such day as the Secretary of State may by order appoint, and different days may be appointed for different purposes.

C2(3)

Apart from sections 25 to 27, section 33 so far as it relates to any enactment which extends to Northern Ireland, and this section this Act does not extend to Northern Ireland.

1

Any small payment (defined in Part II of this Schedule).

3

Any payment made in the exercise of a discretion out of property held subject to a trust in a case where no more than 50 per cent. by value of the capital contributed to the trust was directly or indirectly provided by persons who are, or are alleged to be, liable in respect of—

(a)

the accident, injury or disease suffered by the injured person, or

(b)

the same or any connected accident, injury or disease suffered by another.

4

Any payment made out of property held for the purposes of any prescribed trust (whether the payment also falls within paragraph 3 or not).

6

Any redundancy payment falling to be taken into account in the assessment of damages in respect of an accident, injury or disease.

7

So much of any payment as is referable to costs.

8

Any prescribed payment.

9

(1)

Regulations may make provision for compensation payments to be disregarded for the purposes of sections 6 and 8 in prescribed cases where the amount of the compensation payment, or the aggregate amount of two or more connected compensation payments, does not exceed the prescribed sum.

(2)

A compensation payment disregarded by virtue of this paragraph is referred to in paragraph 1 as a “small payment”.

(3)

For the purposes of this paragraph—

(a)

two or more compensation payments are “connected” if each is made to or in respect of the same injured person and in respect of the same accident, injury or disease, and

(b)

any reference to a compensation payment is a reference to a payment which would be such a payment apart from paragraph 1.

1NOTESF1F2

(1)

References to incapacity benefit, invalidity pension and allowance, severe disablement allowance, sickness benefit and unemployment benefit also include any income support paid with each of those benefits on the same instrument of payment or paid concurrently with each of those benefits by means of an instrument for benefit payment.

(2)

For the purpose of this Note, income support includes personal expenses addition, special transitional additions and transitional addition as defined in the M1Income Support (Transitional) Regulations 1987.

2

Any reference to statutory sick pay—

(a)

includes only 80 per cent. of payments made between 6th April 1991 and 5th April 1994, and

(b)

does not include payments made on or after 6th April 1994.

3

In this Schedule “the 1992 Act” means the M1Social Security Contributions and Benefits Act 1992.

1

In section 2 of the Law Reform (Personal Injuries) Act 1948 (assessment of damages in personal injuries actions) subsections (1), (1A), (3) and (6) are omitted.

2

The Social Security Administration Act 1992 is amended as follows.

3

Part IV is omitted.

5

In section 125(1) (regulations as to notification of deaths), after “1995” there is inserted “ the Social Security (Recovery of Benefits) Act 1997 ”.

6

In section 163 (general financial arrangements), subsections (1)(e) and (2)(i) are omitted.

7

In section 164(6) (destination of repayments), the words from “or paid” to “82 above” are omitted.

8

In section 170(5) (the Social Security Advisory Committee)—

(a)

in the definition of “the relevant enactments”, after paragraph (ab) there is inserted—

  1. (ac)

    “the provisions of the Social Security (Recovery of Benefits) Act 1997; and”, and

(b)

in the definition of “the relevant Northern Ireland enactments”, after paragraph (ab) there is inserted—

  1. (ac)

    “any provisions in Northern Ireland which correspond to provisions of the M1Social Security (Recovery of Benefits) Act 1997; and”.

9

In section 180 (payment of travelling expenses by the Secretary of State), after “1995” (in both places) there is inserted “ , the M1Social Security (Recovery of Benefits) Act 1997 ”.

10

In section 189(8) (Treasury approval to regulations and orders), the words from “and” to “85 above” are omitted.

11

In section 190 (parliamentary control of orders and regulations), in subsection (1)(b), “102(2) or” is omitted.

12

In section 191 (interpretation), the definitions of “compensation payment” and “compensator” are omitted.

13

In section 192(5) (extent), “section 101” is omitted.

Schedule 4RepealsE1

ChapterShort titleExtent of repeal
1948 c. 41.The Law Reform (Personal Injuries) Act 1948.In section 2, subsections (1), (1A), (3) and (6).
1985 c.66.The Bankruptcy (Scotland) Act 1985.In section 31(8), the words “and to section 89(2) of the Social Security Administration Act 1992”.
1992 c. 5.The Social Security Administration Act 1992.Part IV.
In section 110(8), the word “and” immediately preceding paragraph (e).
In section 163, subsections (1)(e) and (2)(i).
In section 164(6), the words from “or paid” to “82 above”.
In section 189(8), the words from “and” to “85 above”.
In section 190(1)(b), “102(2) or”.
In section 191, the definitions of “compensation payment” and “compensator”.
In section 192(5), “section 101”.
1995 c. 18.The Jobseekers Act 1995.In Schedule 2, paragraphs 52 and 54.