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Personal Injuries

Volume 164: debated on Thursday 21 December 1989

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To ask the Secretary of State for Social Security from what date the recovery scheme in section 22 of the Social Security Act 1989 will apply to compensation payments made for personal injuries; what amount is to be set for the lower limit of compensation payments below which offsetting will apply instead of recovery; and if he will make a statement.

The scheme will apply to any compensation payment made on or after 3 September 1990 where the injury occurred on or after 1 January 1989. The lower limit of compensation payments to which recovery will apply is £2,500 gross—that is before benefits have been deducted. This amount is substantially more than the figure suggested by Touche Ross and will reduce the number of cases to be dealt with by around 37 per cent. It recognises the representations made by the Association of British Insurers, the CBI, TUC and others about the lower limit. We expect to lay affirmative regulations before Parliament soon setting out the administrative details of the scheme.