Other options available to clients

Redirection of benefit will generally be considered as a last resort.

MSD is committed to actively encouraging all clients to become more independent. Clients should be encouraged to take responsibility for managing their own financial affairs.

However there are certain situations where MSD can consider if there is good cause to redirect a person's benefit. In these circumstances, MSD may decide to redirect the client's benefit.

Note even where good cause exists, MSD is not always required to approve the redirection payment.

For more information see:

Generally clients will have a redirection from their main benefit, New Zealand Superannuation, or Veteran's Pension for Income Related Rent to be paid to their social housing provider. The client does not need to look for other options in this situation.

For more information see:

Generally clients will have a redirection from their main benefit, New Zealand Superannuation or Veteran's Pension for their emergency housing contribution to be paid to MSD's designated account. The client does not need to look at other options in this situation.

Non-beneficiary clients (including students getting Student Allowance, Student Loan, or people getting only extra help), will need to pay their emergency housing contribution, by bank transfer or wage deduction, to MSD’s designated account.

For more information see:

A client applying for a redirection of benefit (other than for Income Related Rent to be paid to a social housing provider or an emergency housing contribution to be paid to MSD's designated account) must have first investigated viable alternatives. MSD should discuss with the client other ways to arrange payments such as:

• referring the client to a budget advisory service
• direct debit

allows for bills to be paid automatically and regularly from the client's bank account. Direct debit costs are paid for by the organisation receiving the payment - not the client. This is suitable for bills that vary, such as telephone or electricity bills.

• automatic payment

differs from direct debit in that each regular payment is for a fixed amount, therefore ideal for unvarying bills such as rent. Established and paid for by the client. Can also be used for telephone and electricity bills, if regular set payments have been negotiated with the company.

• telephone banking, internet banking

clients can arrange for most bill payments, including those to private landlords, to be set up as 'bill payees', enabling bills to be paid over the telephone or the internet.

• choosing more appropriate banking services

the client may want to 'shop around' for the best banking deal available to them; this may mean opening a different bank account with a better fee structure (e.g. a student account), or even changing banks.