§ Mr. HinchliffeTo ask the Secretary of State for Social Security if he will make a statement on proposals to reform regulations governing compensation recovery; if there will still be a threshold for compensation payments below which recovery will not take place; if he will review cases affected by current rules backdated to 1990; how he will ensure that compensation components for pain and distress are properly identified; and when he intends to bring forward the proposed legislation. [1549]
§ Mr. Roger Evans[holding answer 5 November I996]: We have introduced a Bill into the House of Lords today to reform the compensation recovery scheme. We propose that, from October 1997, the compensator will become liable for the repayment of all benefits paid as a consequence of the accident, injury or disease. The compensator will be permitted to reduce relevant damages where a corresponding benefit is repaid to the Department. Damages for pain and suffering will not be reducible. We plan that the new rules should apply to all compensation claims determined on or after the point of change. The present small payments limit of £2,500 below which recoupment does not take place, will be removed. There will be no entitlement to reopen cases determined before the point of change.