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Emergency Housing: Contents

Calculating the emergency housing contribution

Clients who qualify for an Emergency Housing Grant must pay an emergency housing contribution. This is an amount they pay, based on their income, towards their emergency housing costs.

The emergency housing contribution will be calculated using the higher of:

  • 25% of the net weekly income of the client and their partner (if any) or
  • 25% of the net rate of Jobseeker Support that would be appropriate, if the client or their partner (if any) were getting this assistance. This is referred to as the appropriate net rate of Jobseeker Support.

The contribution must be worked out using both methods, and the higher amount must be selected. Clients with no income will pay an emergency housing contribution based on the appropriate net rate of Jobseeker Support.

The emergency housing contribution also includes 25% of the clients (and their partner's, if any) weekly family tax credit entitlement.

The contribution cannot be more than the actual cost of emergency housing.

No discretion for client to contribute less than 25% of income under either calculation

MSD has no discretion to change, suspend, or reduce the amount of emergency housing contribution calculated for the client. This is because everyone must contribute to their emergency housing costs.

If a client says they cannot afford to pay their contribution, MSD can:

  • make sure the client and their partner (if any) are getting all the assistance they qualify for and
  • refer them to a budget advisor or other social service where appropriate
  • review any existing deductions being taken from their benefit to see if some may be reduced (if they are lower priority than the emergency housing contribution)
  • discuss and set agreed activities to help the client pay the emergency housing contribution

If a client believes MSD has incorrectly calculated their emergency housing contribution, they can ask for a review of decision.

When emergency housing contribution may become a debt

If a client does not pay their contribution in full by the date or dates determined by MSD, MSD will need to find out why.

There may be an issue with the client's benefit redirection that can be sorted out in the system. Alternatively, MSD may need to contact the client to discuss the reasons for non-payment and set up a new payment date.

If any part of the contribution remains unpaid, it will generally become an emergency housing debt. The emergency housing debt amount will be recovered from the client using existing debt recovery processes.

Legislation