Reasonable steps obligation
Clients who frequently access Special Needs Grants, Advance Payments of Benefit, and Recoverable Assistance Payments may have to meet a reasonable steps obligation. This obligation means clients need to take personal responsibility for managing their money and take steps to:
- reduce their costs
- increase their income or
- improve their financial management
Note you must make sure the client is getting their correct entitlement at every interaction with them.
Applying reasonable steps obligation
Generally, clients who have received Special Needs Grants, Advance Payments of Benefit, and/or Recoverable Assistance Payments on 3 or more grant dates during the past 12 months must take reasonable steps before they get any additional payments.
Reasonable steps are actions that increase their income, reduce their costs, or improve their financial management.
You should let clients know at their third grant date and each subsequent grant date that they must take reasonable steps before they can get further assistance.
Note in some circumstances partners must also take reasonable steps.
Applying reasonable steps obligation before third grant date
Generally clients are only required to take reasonable steps after they have received Special Needs Grants, Advance Payments of Benefit and/or Recoverable Assistance Payments on at least 3 grant dates during the past 12 months. However, you can apply the reasonable steps obligation before 3 grant dates.
When deciding whether to apply the reasonable steps obligation before their third grant date you must also consider if the client has:
- received repeated grants for the same costs
- a history of receiving multiple hardship payments
- a significant debt with the Ministry of Social Development
For more information see:
Legislation
- Exercise of Discretion clause 6.4 Direction on Advance Payments of Instalments of Benefit
