Contents
Redirection of benefit payment : Contents

Decision guidelines for redirection

When a client applies for part or all of their benefit to be paid to another party as a redirection of benefit payment, MSD should follow the steps below.

Step 1 - Client to look at other options

Are there other options (alternatives) to redirection available to clients to avoid having to redirect part or all of their benefit payments?

The client needs to explain what other options to redirection they have looked at - if MSD feels the client has not explored any good alternatives, MSD can request they do this before considering their application for redirection.

Exceptions

Social Housing clients and clients in accommodation funded by an Emergency Housing Grant will generally have a redirection from their main benefit, New Zealand Superannuation or Veteran's Pension to pay their Income Related Rent or emergency housing contribution. These clients do not need to look at other options.

Step 2 - Is it practical?

Is it practical to redirect the benefit payment? For example, a client's benefit payment may fluctuate too frequently to enable a regular redirection to occur.

Step 3 - Good cause

There must be good cause to approve a redirection of benefit. This means the individual circumstances of the client must be able to justify the payment of benefit to the other party.

Each case must be judged on its own merits. Generally, there is no routine approval of redirection of benefit, for example the approval of all benefit redirections to a particular organisation.

There are some specific situations where MSD can consider there is good cause, and MSD can redirect a person's benefit.

For more information see:

Before making a decision, MSD can discuss the application with the capability developer or manager Client Service Delivery.

Good cause is considered to have been met in most cases when redirecting a client's benefit for:

  • Income Related Rent paid to a social housing provider or
  • emergency housing contributions paid to MSD’s designated account

For more information on redirection of benefit payment for Income Related Rent or for emergency housing contribution see:

Step 4 - Client's consent

In most cases the client must agree to the redirection of their benefit, however in certain circumstances it may occur without the client's consent.

Step 5 - Use discretion

Even where good cause exists, MSD can use discretion to decline a request for a redirection of benefit.