Payments of arrears to Special Benefit clients better off on Temporary Additional Support

After 1 April 2006, when Temporary Additional Support was introduced, some clients who were receiving Special Benefit would have been better off receiving Temporary Additional Support, but were not given an opportunity to apply for this assistance. This was an error by the Ministry of Social Development.

Because of the error, a client may receive a back payment of Temporary Additional Support.

Qualifications

A client may receive Temporary Additional Support arrears due to the Ministry’s error if the client:

was receiving Special Benefit on 1 April 2006
would have received more assistance from Temporary Additional Support on or after 1 April 2006
was advised by the Ministry on or after 18 August 2017 that they would have been better off receiving Temporary Additional Support at any point on or after 1 April 2006
cancels Special Benefit from an earlier date
retrospectively applies for Temporary Additional Support for the period Special Benefit was cancelled

Note clients who cancelled their Special Benefit after 1 April 2006 and before 18 August 2017 may still receive Temporary Additional Support arrears if they were advised by the Ministry on or after 18 August 2017 that they would have would have received more assistance from Temporary Additional Support.

The Temporary Additional Support arrears is the net amount of the Temporary Additional Support payment a client would have received, less the Special Benefit paid for the same period.

Identifying affected clients

Affected clients were identified and notified by the Ministry through the Alignment implementation - Special Benefit clients better off on Temporary Additional Support. Some clients assessed as better off on Temporary Additional Support after 18 August 2017 but outside of the implementation may be eligible for arrears.

For more information see:

Special Benefit process [no link find out why]

Arrears payment is not income

Arrears paid on or after 18 August 2017 to Special Benefit clients who would have been better off receiving Temporary Additional Support are a lump sum payment. Generally, the arrears should not be treated as income for the period the payment represents.

Cash asset exemption

When determining entitlement to main benefits and other assistance paid under the Social Security Act 2018, Temporary Additional Support arrears paid to Special Benefit clients who would have been better off receiving Temporary Additional Support are not a cash asset for the first 12 months after the arrears payment is made.

Examples include:

Accommodation Supplement
Advance Payment of Benefit
Away from Home Allowance
Community Cost Programme
Course Participation Costs
Funeral Grant
Home Help
Seasonal Work Assistance
Special Benefit
Special Needs Grants
Special Transfer Allowance
Student Allowance Transfer Grant
Temporary Additional Support

This exemption only applies to Temporary Additional Support arrears paid on or after 18 August 2017 to Special Benefit clients who would have been better off receiving Temporary Additional Support.

Income exemption

Any income earned from the arrears is exempt as income for the first 12 months after the payment of the arrears is made.

End of exemption period

At the end of the first 12 months after the arrears are paid, any remaining amount that a client has is treated as a cash asset, and any income earned from investment of the remaining amount is treated as chargeable income.

Process

For information on the process, see: