Income limit

A client cannot get a Recoverable Assistance Payment, if their income and the income of their partner (if any) exceeds the appropriate annual income limits.

This income includes the amount of any payment made under the New Employment Transition Grant Programme or the Seasonal Work Assistance Programme to the client or partner (if any).

Note if the client is applying for a Recoverable Assistance Payment on behalf of their dependent child, the income limit applies to the parent/caregivers income.

The client's relationship status, age and whether they have dependent children must be taken into account to assess the appropriate annual income limits.

To assess a client's income if they're self-employed see:

• Types of income

Note do not assume that clients getting non-beneficiary assistance will automatically meet the income test for a Recoverable Assistance Payment.

An income assessment must be completed for all clients, as it is possible that a client getting Extra help (for example Accommodation Supplement) may have income over the income limit.

For more information see:

• Deskfile rates Income limits

The estimated income of a client is any income they got in the previous 52 weeks from the date of application for a Recoverable Assistance Payment.

The Ministry can modify the estimate of the person's income and get a more accurate assessment of what the person's actual income is likely to be, by adding or removing income.

Example

A client was working full-time in a high paying position for the previous 52 weeks. However, the client has been diagnosed with a serious illness and will be working reduced hours for the next 52 weeks.

Their current income is restricted to part-time earnings, and their partner's income.

The income now taken into account is the part-time earnings and the partner's estimated income, not their income for the previous 52 weeks.