Existing debt level
In determining whether an Advance Payment of Benefit would best meet the immediate need of a client you must consider:
- the client's existing level of debt, and whether the rate of repayment of the proposed Advance of Benefit would be manageable considering
- whether the reduction of the amount of benefit payable will leave enough for the client's living expenses and any other debt repayments and
- the likelihood it would cause the client to seek further advances or other Extra Help
If a client (and their partner, if any) has Work and Income debt equal to, or greater than the Advance limits, they would not generally qualify for payment.
Assess the existing debt balance by combining Work and Income debt totals for both the client and partner (if any).
For the purpose of determining entitlement to an advance, Work and Income debt includes the following: Special Needs Grants, Advances, Liable Parent Contribution, Major Repairs Advance and Overpayments of benefit.
Reduce the client's advance limit by their existing Work and Income debt level. For more information see:
The client's total debt level needs to also be considered, and this includes amounts owed outside Work and Income as well (eg hire purchases, personal loans, court fines etc).
Consideration must be given to the client's circumstances and the impact of yet another loan on the net benefit. Bear in mind the client's current income/expenses and ability to live within the reduced income and the likelihood they may need further assistance if the payment is approved.
