2. Benefits that can be recovered
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2. Benefits that can be recovered
Compensation can be reduced to take account of benefits paid for the following:
    ■loss of earnings – employment and support allowance (ESA), industrial injuries disablement benefit, incapacity benefit, income support, jobseeker’s allowance, reduced earnings allowance, severe disablement allowance, unemployability supplement, universal credit;
    ■cost of care – attendance allowance, disability living allowance (DLA) care component, personal independence payment (PIP) daily living component, constant attendance allowance, exceptionally severe disablement allowance;
    ■loss of mobility – DLA and PIP mobility component.
In making an order for a compensation payment, the court must specify how much is to be awarded under each of these three headings.
Social Security (Recovery of Benefits) Act 1997, Sch 2
Example: offsetting
A compensation award is agreed, consisting of:
General damages
£40,000
Loss of earnings
£30,000
Loss of mobility
£30,000
Compensation award:
£100,000
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