EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations make provision for the recovery of lump sum payments to which Article 3A(2) of the Social Security (Recovery of Benefits) (Northern Ireland) Order 1997 (“the Order”) applies.

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

Regulation 3 and Schedule 2 make consequential amendments to the Social Security and Child Support (Decisions and Appeals) Regulations (Northern Ireland) 1999.

Regulation 4 sets out the circumstances in which the Department for Social Development (“the Department”) may recover lump sum payments.

Regulation 5 provides for the application of these Regulations to a 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 8 of the Mesothelioma, etc., Act (Northern Ireland) 2008 (“the Act”) comes into operation.

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 Order 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 Department and the 4 week time limit for the Department to issue the certificate.

Regulation 9 sets out the information which must 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 Department to estimate the amount of lump sum payments specified in the certificate.

Regulation 10 sets out the liability to pay the Department 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 Department 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 and 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 and 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 Department by the compensator where in consequence of a review or an appeal that amount has either been increased or decreased.

As these Regulations are made by virtue of, or consequential upon, section 8 of the Act which was brought into operation on 27th August 2008 for the purpose only of authorising the making of regulations and on 1st October 2008 for all other purposes by virtue of the Mesothelioma, etc., (2008 Act) (Commencement) Order (Northern Ireland) 2008 (S.R. 2008 No. 351 (C. 19)) and are made before the end of the period of 6 months from the commencement of that provision, they are, accordingly, exempt, by virtue of section 150(5)(b) of the Social Security Administration (Northern Ireland) Act 1992, from prior reference to the Social Security Advisory Committee.