Redirection of benefit payment
Redirection of benefit payment is when part or all a client's benefit payment is paid directly to another person or organisation, instead of to the client.
Redirection of benefit can only be done when there is good cause.
In specific situations you can redirect a person's benefit if you consider there is 'good cause'.
For more information see:
Generally, you cannot pay any part of a client's benefit to another party.
The exceptions to this rule are:
- when MSD is legally required to pay the benefit or a portion of the benefit to another party, for example Court deduction notices or attachment orders
For more information see: Deductions - when the benefit is being paid at a couple rate and the benefit is split between the client and their partner (apportionment of benefit) or
- a redirection of benefit payment for good cause
Note even when good cause exists, MSD is not always required to approve the redirection payment.
For more information see:
Redirecting a benefit payment
In certain circumstances, part or all a client's benefit can be paid to another person or organisation as a redirection of benefit. This:
- can only be done if there is good cause and
- will generally only be a last resort - the client should have explored alternatives and
- is discretionary
Note the granting of a redirection of benefit does not give the recipient of the payments any other decision-making powers over the client's affairs, or grant them access to personal information about the client. They are not considered an agent.
For more information see:
- Processing standards Redirection of benefit payment [no link find out why]
Legislation
- Good cause and exercise of discretion clause 5 Ministerial Direction on Redirection of Benefit
- Offence of demanding or accepting acknowledgement or undertaking section 293 Social Security Act 2018
- How benefits are paid section 337 Social Security Act 2018
- Payment generally to, or on account of, beneficiary personally section 339 Social Security Act 2018
- Benefits cannot, in general, be assigned or charged, or pass by operation of law section 417 Social Security Act 2018
- Apportionment regulation 191 Social Security Regulations 2018
