The 2008 Diffuse Mesothelioma Scheme: information for personal injury claims managers
Updated 19 March 2019
Applies to England, Scotland and Wales
1. Background
From 1 October 2008 a new scheme was introduced through the Child Maintenance and Other Payments Act 2008, which allows for the recovery of all lump sum payments made under the Pneumoconiosis etc (Workers’ Compensation) Act 1979 and the 2008 Diffuse Mesothelioma Scheme.
2. Child Maintenance and Other Payments Act
The 2008 Diffuse Mesothelioma Scheme (known as the 2008 scheme) was introduced through the Child Maintenance and Other Payments Act 2008.
The scheme will enable lump sum payments to be made to people who suffer from diffuse mesothelioma, where they were exposed to asbestos in the UK and do not currently qualify for help from the government.
The 2008 scheme will operate alongside the Pneumoconiosis etc. (Workers’ Compensation) Act 1979 (known as the 1979 Act), which currently pays lump sum payments to sufferers of various dust related diseases.
3. Compensation Recovery Scheme
Any lump sums paid under the 2008 scheme or the 1979 Act will be recoverable under the Social Security (Recovery of Benefits) Act 1997.
Lump sums (including lump sums paid before the 2008 scheme commenced) will be recovered from compensation awards that are paid on or after 1 October 2008.
4. Important changes
The new legislation allows for a certificate to be increased at any time to include a lump sum payment paid under the 2008 Scheme or the 1979 Act. The current arrangements for increasing certificates, to include Social Security benefits, remains unchanged, in that these can only be added once the certificate has expired.
The Compensation Recovery Unit (CRU) will review all certificates where a lump sum payment has been identified and a certificate is in issue on the 1 October 2008. The revised certificate will supersede all previous certificates.
Where a compensation award is reduced to take account of lump sum recoveries, the compensator must reduce the general damages element of the compensation award before reducing any of the special damages element of the award. (Social Security (Recovery of Benefits) (Lump Sum Payments) Regulations 2008 (Reg 12(6)).
The amount of lump sum recovered cannot exceed the total amount of compensation paid.
Certain exemptions which apply to the recovery of benefits will not apply to the recovery of lump sums. Read more information on exemptions for lump sum payments.
5. What these changes mean to you
The ‘Certificate of Recoverable Benefits’ will be renamed ‘Certificate’ and will provide details of both lump sum payments and recoverable benefits, which have been or are likely to have been paid.
Lump sum payments made under the 2008 Scheme will be shown on the certificate as ‘MESO’.
Lump sum payments made under the 1979 Act will be shown on the certificate as ‘PWCA’.
Where lump sum payments are recorded on the certificate the relevant legislation will be shown.
6. Further information
Recovery of benefits, lump sum payments and NHS charges: technical guidance (Reference: ZI)
Compensation, social security benefits and lump sum payments (Reference: CRU27)
If you have any policy queries, please contact:
CRU Feedback Manager
Debt Centre Washington
Compensation Recovery Unit
Post Handling Site B
Wolverhampton
WV99 2FR