Insufficient income to cover emergency housing contribution

The client may not have enough income to cover their contribution when it is due to be redirected from their benefit or paid from their bank account.

If payment doesn't go through on the due date, MSD should contact the client and put an arrangement in place.

There are times when a client is not required to pay their contribution with a benefit redirection.

This is when the client has insufficient funds for the benefit redirection due to:

• reduction of their benefit because of declared income or
• required deductions from their benefit under a deduction notice or
• required reduction of their benefit under the Social Security Act 2018 (e.g. a reduction as they are getting an overseas pension)

In these circumstances, the client can pay their contribution by a different method (e.g. direct credit into MSD's account).

A client may have insufficient income as they are waiting for their application for a main benefit to be granted or their benefit has been suspended. In this case, MSD may recover the contribution from the client's benefit arrears.

MSD also needs to check the reason the benefit is suspended. Clients will not qualify for an Emergency Housing Grant if their benefit is reduced or suspended for a failure to meet their main benefit obligations.

MSD must explain to the client what they need to do to get their full benefit rate again. This includes explaining how the client can recomply if they have a 13 week non-entitlement period, so they can get a provisional benefit.

Sometimes a client tells MSD they won't agree to pay their contribution as they have no income and they:

• refuse to apply for a benefit or
• refuse to take the required steps to meet their benefit obligations (so that a sanction can be removed)

Depending on the client’s situation, MSD may consider the client has caused or contributed to their immediate emergency housing need.

This is because by choosing not to have an income, they are unlikely to be housed or able to pay for their housing costs.