DSP Changes introduced for the Recovery of Welfare Benefits

by | Aug 1, 2014

A new scheme has been introduced today for the recovery of welfare benefits from successful personal injury claims.

The “Recovery of Certain Benefits and Assistance Scheme” comes into force today (Friday August 1) enabling the Department of Social Protection (DSP) to recover welfare benefits paid to recipients of personal injury compensation.

The scheme – which is a result of the Social Welfare and Pensions Act 2013 – replaces the current practice of deducting welfare benefits from compensation for loss of earnings, and operates in a similar way to the Compensation Recovery Unit in the UK.

From today, a compensator – usually the negligent party´s insurance provider – will be required to request a statement from the DSP outlining the value of certain welfare benefits that the plaintiff has received in the previous five years which relate directly to the accident or injury for which their compensation claim was made.

Copies of the statement will also be sent to the plaintiff and the Injuries Board (in cases where they have been responsible for completing an accepted assessment) detailing the deductions that are to be made from compensation settlements for the recovery of welfare benefits.

The benefits which apply under the new scheme are confined to:

  • Injury Benefit
  • Illness Benefit
  • Partial Capacity Benefit
  • Incapacity Supplement
  • Disability Allowance
  • Invalidity Pension

In the past welfare benefits have usually been deducted from a plaintiff´s loss of earnings settlement, and therefore there will be no difference in how much personal injury compensation they receive. However, due to the new process, it is likely to take several weeks longer for a compensation settlement to be received.

It is important to note that the recovery of welfare benefits is not the responsibility of the plaintiff, nor does the receipt of welfare benefits exclude a plaintiff from making a claim for personal injury compensation.

It is also important that plaintiffs check their copy of the benefits statement to ensure that it is accurate, and reflects only to welfare benefits they have received in respect of their injury. An appeals procedure exists in the event that the value of welfare payments contained in the DSP´s statement is considered to be incorrect.

For professional legal advice about how to check the recovery of welfare benefits – and what to do if you consider the DSP´s figures to be incorrect – it is recommended that you consult with a personal injury solicitor.

Need Help?

If you have any legal questions arising from an injury then please call us now on our 24-Hour helpline on 1800-989 900

This is a free-to-call line to book a call with a Coleman Legal solicitor. There are no charges or obligations for using this service and you will NOT be pressured into making a claim or using our services. We always respect your privacy and comply with GDPR regulations.