The Social Security (Recovery of Benefits) (Lump Sum Payments) Regulations 2008

Liability to pay Secretary of State amount of lump sum payments

10.—(1) A person who makes a compensation payment in any case is liable to pay the Secretary of State an amount equal to the total amount of—

(a) in a case to which paragraph (2) applies, the recoverable lump sum payments; or

(b) in a case to which paragraph (3) applies, the compensation payment.

(2) Paragraph (1)(a) applies to a case where—

(a) the compensation payment is equal to, or more than, any recoverable lump sum payments; or

(b) a dependant is a beneficiary of part of a compensation payment made in respect of P, that part of the compensation payment is equal to, or more than, any recoverable lump sum payments which have been made to that dependant.

(3) Paragraph 1(b) applies to a case where—

(a) the compensation payment; or

(b) a dependant is a beneficiary of part of a compensation payment made in respect of P, and recoverable lump sum payments have been made to that dependant, the share of the compensation payment,

is less than the lump sum payments.

(4) The liability referred to in paragraph (1) arises—

(a) immediately before the compensation payment or, if there is more than one, the first of them is made;

(b) prior to any liability to pay the Secretary of State an amount equal to the total amount of the recoverable benefits payable under section 6 of the Act.

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

(6) Subject to paragraph (4), an amount becomes payable under this regulation at the end of the period of 14 days beginning with the day on which a certificate is first issued showing that the amount of recoverable lump sum payment to which it relates has been or is likely to have been paid.

(7) In the case of a lump sum payment which has been made to a dependant of P, this regulation applies only to the extent to which the compensator is making any payment—

(a) (i) under the Fatal Accidents Act 1976(1);

(ii) to the extent that it is made in respect of a liability arising by virtue of section 1 of the Damages (Scotland) Act 1976(2); or

(iii) under the Fatal Accidents (Northern Ireland) Order 1977(3),

to that dependant; or

(b) in respect of P, and that dependant is an intended beneficiary of part or all of that payment.

(1)

1976 c. 30.

(2)

1976 c. 13. Section 1 was amended by the Administration of Justice Act 1982 (c. 53), section 14(1), the International Transport Conventions Act 1983 (c. 14), section 3(6) and paragraph 2 of Schedule 1 and the Damages (Scotland) Act 1993 (c. 5), section 1.

(3)

S.I. 1977/1251 (N.I. 18).