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Corporate report

Delivery of compensation recovery services: agency agreement

Agency agreement between the Secretary of State for Work and Pensions and Scottish minsters on delivery of Compensation Recovery services for Scotland.

Applies to England and Scotland

Documents

Details

This Agency Agreement sets out how the Department for Work and Pensions (DWP) will continue to provide Compensation Recovery services on behalf of the Scottish Ministers from 1 April 2026 to 31 March 2027. Following the expiry of agency agreements for Personal Independence Payment (PIP), Attendance Allowance (AA) and Disability Living Allowance (DLA), the agreement allows DWP’s Compensation Recovery Unit (CRU) to complete outstanding compensation recovery cases relating to Scottish recipients of those benefits. DWP will continue to administer these cases using its existing business-as-usual processes, ensuring that compensation payments are assessed correctly and that recoverable social security benefits are reclaimed where appropriate.

The agreement also establishes the governance arrangements between DWP and the Scottish Government, covering areas such as dispute resolution, litigation, business continuity, information sharing, audit, communications and data protection. DWP and the Scottish Ministers will act as joint data controllers, with DWP responsible for the operational delivery of the service. Unlike some other agency agreements, DWP will recharge the Scottish Ministers for an agreed share of the costs of delivering Compensation Recovery services during the relevant recovery period.

Updates to this page

Published 15 July 2026

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