Effect of changes in benefit level
If the amount of benefit the client receives is reduced (due to income, Child Support payments, Ministry debt repayments etc), there may be insufficient money for a redirection of benefit to be paid.
It is important that the client is aware that the Ministry is not responsible for the failure of redirection of benefit payments due to insufficient benefit levels.
New applications for redirection
If it is expected that a client's benefit level will fluctuate, it is likely that redirection of a large proportion of a client's benefit will not be appropriate. In such cases it may be appropriate to decline the client's redirection application, or suggest that they consider redirecting a lesser amount.
If a client's benefit level fluctuates and they need to pay an emergency housing contribution, a redirection of the contribution from their benefit may not be appropriate. We should not set up a redirection of benefit if the client's main benefit, New Zealand Superannuation or Veteran's Pension is insufficient to cover the full amount of emergency housing contribution they need to pay.
In these cases, you must advise the client to pay their emergency housing contribution by bank transfer or wage deduction to the Ministry's designated account.
Existing redirections
The client should be advised when an existing redirection is not made due to insufficient benefit funds being available they will have to make the payment themselves.
If the reduction in benefit level is on-going and will affect future redirection of benefit payments you should discuss with the client:
- the appropriateness of continuing the redirection
- reducing the amount that is redirected and
- whether good cause still exists
Where the benefit has been resumed, you can manually pay the redirection from any arrears. However, check with the client first - they may have already made the payment themselves.
