# The Social Security (Recovery of Benefits) (Lump Sum Payments) (Amendment) Regulations 2014, Note: Explanatory note


(This note is not part of the Regulations)
These Regulations amend the Social Security (Recovery of Benefits) (Lump Sum Payments) Regulations 2008 (“the 2008 Regulations”).
First they amend the 2008 Regulations for the purpose, of enabling recovery of lump sum payments made under the Pneumoconiosis etc. (Workers’ Compensation) Act 1979 (“the 1979 Act”), the Child Maintenance and Other Payments Act 2008 (“the 2008 Act”) and any extra statutory payments related to the 1979 Act from scheme payments made under the Diffuse Mesothelioma Payment Scheme set up by the Mesothelioma Act 2014 (“the 2014 Scheme”).
Secondly, they make amendments to the 2008 Regulations to make provision for the recovery of Diffuse Mesothelioma Payment Scheme payments from any later paid compensation: for example damages awarded by a court where a compensator comes to light after a 2014 Scheme payment has been made .
Regulation 2 introduces the Schedule to the Regulations where the amendments are detailed.
Paragraph 2 of the Schedule inserts a number of new definitions in regulation 1(2) of the 2008 Regulations. In particular paragraph 2 amends the definition of a “compensator” to take account of the scheme administrator of the 2014 Scheme being a compensator. It amends (sub-paragraph (d)) the definition of a “lump sum payment” and inserts (sub-paragraph (f)) a new definition of “specified lump sum payment”; this helps to distinguish between a payment made under the 2014 Scheme when it is recoverable in the same way as any other lump sum payment from later paid compensation and where the 2014 Scheme payment is itself the compensation payment and where the other specified lump sum payments are liable to be recovered from it.
Paragraph 3 makes a number of consequential amendments to regulation 4 of the 2008 Regulations and in particular inserts a new paragraph (1A) into regulation 4. This new paragraph enables the Secretary of State to recover the value of a 2014 Scheme payment from later paid compensation where the compensation is paid to a dependant who has declined a payment under the 2014 Scheme.
Paragraph 4 inserts a new regulation 4A into the 2008 Regulations. This new regulation enables the Secretary of State to recover lump sum payments paid under the 1979 Act, the 2008 Act or those payments made on an extra statutory basis from 2014 Scheme payments.
Paragraph 5 makes amendments to regulation 6 of the 2008 Regulations to make it clear that the 2008 Regulations only apply to 2014 Scheme payments made on or after the relevant provisions of the Mesothelioma Act 2014 came into force.
Paragraph 6 makes an amendment to regulation 7(1)(g) so as to provide that a payment made from the UK Asbestos Trust is not exempt from recovery if it is made following a payment under the 2014 Scheme .
Paragraph 7 inserts a new paragraph (2A) into regulation 9 of the 2008 Regulations to provide that the certificate of recoverable benefit may contain information which might assist the scheme administrator of the Diffuse Mesothelioma Payment Scheme in reaching a determination under the Mesothelioma Act 2014 Act.
Paragraph 8 makes consequential amendments to regulation 10 of the 2008 Regulations. In particular a new paragraph (4A) is inserted into regulation 10 which has the effect of giving priority to the recovery of payments under the 2014 Scheme over the recovery of other lump sum payments. An additional paragraph (paragraph 8) is also added to regulation 10 which makes clear that the recovery of a 2014 Scheme payment can be made from compensation paid to a dependant who opted not to receive a 2014 Scheme payment under section 3(3) of the 2014 Act. An equivalent amendment is made to regulation 12 of the 2008 Regulations by paragraph 9.
Paragraph 10 inserts a new regulation 12A into the 2008 Regulations. This new regulation makes provision for the Secretary of State to recover recoverable lump sum payments from a 2014 Scheme payment. It also makes provision for the reduction to be effected before any payment is divided between two or more eligible dependants under the 2014 Scheme.
Paragraphs 11-14 make a number of consequential amendments to regulations 13, 14, 16, 17 and 19 of the 2008 Regulations.
Paragraph 15 makes amendments to regulation 19 of the 2008 Regulations to deal with cases where the compensation payment is a payment under the 2014 Scheme and adjustments need to be made to the amount of benefit recovery after a payment has been made under that scheme.
Paragraph 16 makes a number of amendments to Schedule 1 to the 2008 Regulations. That Schedule modifies the Social Security (Recovery of Benefits) Act 1997 in respect of the recovery of lump sum payments. Paragraph 16 amends those modifications to take account of the amendments made by these Regulations.
A full impact assessment has not been produced for the instrument as it has no impact on the private sector or on civil society organisations.

---
Source: https://www.legislation.gov.uk/uksi/2014/1456/note (the official version)
Page: https://openlegislation.uk/social-security-recovery-of-benefits-lump-sum-payments-amendment-regulations-2014/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.