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

These Regulations make provision for the recovery of lump sum payments being payments to which section 1A(2) of the Social Security (Recovery of Benefits) Act 1997 (c. 27) (“the 1997 Act”) applies. Section 1A was inserted into the 1997 Act by section 54 of the Child Maintenance and Other Payments Act 2008 (c. 6) (“the 2008 Act”).

Regulation 2 sets out the provisions of the 1997 Act which apply for the purposes of these Regulations and introduces Schedule 1 which modifies certain of those provisions.

Regulation 3 makes consequential amendments to the Social Security and Child Support (Decisions and Appeals) Regulations 1999 (S.I. 1999/991).

Regulation 4 sets out the circumstances in which the Secretary of State may recover lump sum payments.

Regulation 5 provides for the application of these Regulations to the dependant of a person with a disease to which these Regulations apply where that dependant is the person to whom, or in respect of whom, a lump sum payment is made.

Regulation 6 provides that these Regulations apply to a compensation payment made on or after the day on which section 54 of the 2008 Act comes into force.

Regulation 7 sets out the trusts and payments which are prescribed for the purposes of paragraphs 4 and 8, respectively, of Schedule 1 to the 1997 Act as being exempted payments.

Regulation 8 sets out the procedure for applications by a compensator for a certificate, including the date on which an application for a certificate is to be treated as received by the Secretary of State and the 4 week time limit for the Secretary of State to issue the certificate.

Regulation 9 sets out the information which much be contained in a certificate, the person to whom information must be provided, the right of that person to require more detailed particulars of the information contained in the certificate and provides for the Secretary of State to estimate the amount of lump sum payments specified in the certificate.

Regulation 10 sets out the liability to pay the Secretary of State in respect of any recoverable lump sum payment.

Regulation 11 provides for the procedure to be followed where the compensator has not applied for a certificate and no payment has been made to the Secretary of State within the time limit set out in regulation 10.

Regulations 12 and 13 make provision for the reduction of a compensation payment by the amount of the lump sum payment or where the lump sum payment is equal to, or greater than, the compensation payment, reducing that payment to nil. This regulation also provides for the attribution of the reduction and reductions to be made in respect of compensation payments made where a lump sum payment has been made to a dependant.

Regulation 14 sets out the procedure for making a reduction in a case where two compensation payments are made at different times to the same person in consequence of the same disease.

Regulations 15 to 17 set out the requirements and time limits in respect of the provision of information by the person or dependant who has been paid a lump sum and the compensator.

Regulation 18 makes provision for the recovery of lump sum payments where the compensation payments are periodical payments. This regulation provides that where there is an agreement to make periodical payments, the whole of the compensation due to be paid under such an agreement is a compensation payment from which lump sum payments may be recovered under these Regulations.

Regulation 19 provides for the making of adjustments to the amount due to be paid to the Secretary of State by the compensator where in consequence of a review or an appeal that amount has either been increased or decreased.

An assessment of the impact of these Regulations on business and the voluntary sector is included in the impact assessment that accompanied the Child Maintenance and Other Payments Bill. Copies of that assessment are available in the libraries of both Houses of Parliament, and also may be obtained from the Better Regulations Unit of the Department for Work and Pensions, level 4, the Adelphi, 1-11 John Adam Street, London WC2N 6HT, or from the Department for Work and Pensions website:http://www.dwp.gov.uk/childmaintenance/pdfs/cm-bill-rial.pdf