Discretion to decline redirection

Generally, benefit payments should be made directly to the client. You must be satisfied that good cause exists before recommending the approval of a redirection of benefit.

Even when good cause exists, MSD is not always required to approve the redirection payment. MSD has discretion to approve a redirection of benefit, and this should only be used in appropriate circumstances.

You need to look at all the impacts of approving a redirection of benefit.

You can decline to redirect a client's benefit payment even if they meet the criteria for good cause where it would be impractical to redirect the payment due to the level of payment. This might be due to the benefit level being reduced because of:

• income
• any required deductions from the client's benefit through a deduction notice or attachment order
• overseas pension payable
• direct deduction due to weekly accident compensation

Redirection of benefit must not occur:

• for reasons of convenience or simply to reduce the client's bank fees
• to provide security of payment to outside organisations or companies (other than where 'good cause' is established)
• in response to a request from an outside party, such as landlord or power company (other than where 'good cause' is established)

All requests for redirection of benefit must be:

• generally made as a last resort
• the best option for, and in the best interests of, the client