Existing client debt or payees
When a client is granted Residential Care Subsidy any existing client debt recovery and payee links will need to be reviewed.
Payees
The following payee deductions are required by legislation or court order and should not be stopped:
- Child Support
- Court deductions
- Court fines
- Debt Repayment Orders
- Liable Parent Contribution
- Maintenance
If a client entering residential care has any of these payments to a payee, encourage the client (or their agent) to approach the relevant agency to review the amount they need to pay.
All other payee deductions should be stopped from the day the client enters long-term residential care or the first available date if the client entered care in the past pay period.
Kāinga Ora or community housing provider, and partner in the community
The Housing Processing Hub will be advised when a tenant goes into residential care. The Housing Processing Hub will delete the payee and reassess the Income Related Rent rate for the person remaining in the community.
For more information see:
- Child Support deducted from benefit
- New Zealand Superannuation Deductions
Client benefit debts
When a client is granted Residential Care Subsidy all client debt repayments are stopped from the date Residential Care Subsidy is granted or the first available date.
Clients who have been granted Residential Care Subsidy can continue to have their benefit debts recovered from their personal allowance if they have given permission. In this case the appropriate MSD Collections is then added as a payee on the client's record.
Note clients not eligible for Residential Care Subsidy, continue to have their benefit debt recovered.
Benefit debt includes overpayments, recoverable Special Needs Grants, Recoverable Assistance Payments and Advance Payment of Benefit, and Major Repairs Advances.
In the event of death, seek recovery of the benefit debt, Advance Payment of Benefit or Special Needs Grant debt from the client's estate.
