Period of Money Management

When a client fails their obligations, they have 5 working days to dispute the failure before a sanction is imposed.

Money Management when imposed, starts the day after the 5 working day notice period. Clients are money managed for 4 weeks (28 days). This period includes weekends and public holidays.

Money Management will end after 4 weeks, and a client’s payments will be made in full to their bank account if they have recomplied with their obligation failure during this time.

Money Management will be applied on any weekday, including public holidays.

This means that Money Management is likely to begin in the middle of a client's pay period and will result in partial payments.

For more information see:

A client's benefit may stop while they are being money managed, e.g. one week their income was over the income limit. The length of Money Management is not impacted by any breaks in payment, and will always end 4 weeks after it was imposed.

Example

Kale fails their obligation and Money Management starts on 14 August. Their last day of Money Management will be 10 September.

Kale travels to Australia from 18 August to 25 August for a holiday. They do not inform MSD before their travel and their benefit is stopped from the day after they left New Zealand.

Kale's benefit is resumed from the date they return to New Zealand. Their Money Management continues from 25 August, and will still end on 10 September.

If a client is entitled to arrears when their benefit is resumed, any money owed to them for the period Money Management was imposed will be money managed.

Example

Rahool is getting Emergency Maintenance Allowance and fails a social obligation on 3 March.

He is placed onto Money Management on 10 March and his Money Management period will end on 6 April.

He advises MSD that he is helping to set up an event for two weeks from 31 March to 13 April and will be paid over the income limit. MSD stops his benefit for this period due to his income.

On 14 April Rahool contacts MSD to advise that the concert set up didn't go ahead and he forgot to inform MSD in time. He did not receive any income, so he is owed arrears, and MSD issues arrears of his Emergency Maintenance Allowance from 31 March to 13 April.

Rahool's arrears for the period of 31 March to 6 April are subject to Money Management. 50% of those arrears are paid onto his payment card and the remainder to his bank account.

The arrears owed after his Money Management ends, from 7 April to 13 April, are also paid directly into Rahool's bank account.