Child leaves care
When a dependent child leaves the client's care, the child should be excluded from the start of the pay period following the date the child leaves care. The client's benefit rate and the rates of any extra help the client gets should be reassessed to the appropriate rate where applicable.
If the child is the client's last dependent child Young Parent Payment must be cancelled. MSD will need to determine if the client qualifies for another benefit.
Note different rules apply 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.
Example
A sole parent client getting Young Parent Payment with one dependent child included in their benefit.
The child leaves care to start living with another caregiver as planned and is excluded from the start of the pay period so the client does not incur a debt.
The client no longer meets the qualification for Young Parent Payment and MSD must determine if the client qualifies for another benefit.
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 of event to avoid an overpayment with Inland Revenue for the client.
For more information see:
Legislation
- General rule if person's entitlement to benefit ceases section 325 Social Security Act 2018
- Benefits payable to sole parent who stops caring for dependent child due to sudden and uncontrollable circumstances section 327 Social Security Act 2018
