Child leaves sole parents care suddenly
When a child stops being a dependent child of a sole parent client because of a sudden change of circumstances beyond the control of the client, payment of the benefit may continue at the existing rate for 28 days following the date the child stopped being dependent.
This is to allow a period of transition for the client to adjust to their change in circumstances.
For example when a child suddenly goes into the care of Oranga Tamariki, payment may continue for 28 days from the date the child is no longer dependent on the client.
Extra help payments that can be continued for 28 days are:
- Accommodation Supplement
- Child Disability Allowance
- Disability Allowance
- Temporary Additional Support
- Winter Energy Payment
The exception is Childcare Assistance which must be stopped on the day after the client stopped caring for the dependent child.
During the 28 days continuation of payment, if the client has other changes of circumstances such as a change in income, the rate of main benefit and extra help will need to be reassessed using sole parent threshold rates.
Mandatory Reviews
Generally, clients getting Emergency Benefit must respond to the Mandatory Review before their review date or their payments will suspend.
If a child leaves a sole parent's care suddenly and the client qualifies for Emergency Benefit after the 28-day continuation period, they may be able to get an extension if they need more time to respond to the Mandatory Review.
If the client is unable to respond to the review (even if they had more time) based on their individual circumstances, they may qualify for an exemption.
Generally, when the Mandatory Review is only for Emergency Benefit and the benefit will stop at the end of the continuation period e.g. if they are over the income limit, and the review is due, an exemption will apply.
The client must contact MSD before their review date to discuss their situation if they need an extension or exemption.
Child turns 18
Generally, clients getting a discretionary benefit such as Emergency Benefit must respond to their notice before the child's 18th birthday or the child will be excluded from their payments. The client must also complete a review of circumstances to determine if they continue to qualify for Emergency Benefit and the rate payable, or their payments will suspend.
If Emergency Benefit and any extra help is continuing at the existing rate for up to 28 days because a child has left a sole parent's care suddenly, and that child turns 18 during that period, the client is not required to complete a review of circumstances.
However, if Emergency Benefit and any extra help is continuing at the existing rate for up to 28 days because a child has left a sole parent's care suddenly, and a different child in their care turns 18, the client must still complete the review of circumstances or their payments will suspend.
Family tax credit and Best Start tax credit
Family tax credit and Best Start tax credit should be stopped from the start of the pay period following the date the child left care (whether planned or suddenly) to avoid an overpayment with Inland Revenue for the client.
For more information see:
- Childcare assistance Child leaves care
- When an extension or exemption can be given
- Core policy Child turns 18
Legislation
- Other specified provisions not limited section 310M Social Security Act 2018
- Ending of benefits part 6, sections 325-330 Social Security Act 2018
- Childcare subsidy usually payable to service regulation 37 Social Security Regulations 2018
- exception (definition) section 103A Social Security Act 2018
