Client has debts or payees
When a client is in residential care and getting Residential Support Subsidy any existing client benefit 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 Contributions
- 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.
Any payee deductions that are continuing will need to be deducted from the client's Personal Allowance.
For more information see:
- Supported Living Payment Deductions
Kāinga Ora or community housing provider, and partner in the community
The Housing Processing Hub will identify 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.
Existing client benefit debt
Benefit debt, Special Needs Grants, and Advance debt repayments are suspended for the duration of the residential care, unless the client gives their permission to continue recovery from their Personal Allowance. In this case the appropriate MSD Collections is then added as a payee on the client's record. In the event of death, seek recovery from the client's estate.
For more information see:
Client leaves residential support care
The client's original debt repayment should be resumed when the client moves back into the community and Residential Support Subsidy has been cancelled.
