Death of a child
When a dependent child dies, the child should be excluded from Young Parent Payment 28 days following the date of the child's death.
Payment of the benefit should continue at the existing rate for 28 days following the date the child died.
This provides a transition period for the client to adjust to their change in circumstances.
Childcare assistance
Childcare assistance, including Guaranteed Childcare Assistance Payment paid for the child must be stopped on the day after the child died.
Family tax credit
Family tax credits should be stopped from the start of the pay period following the date the child dies, to avoid an overpayment with Inland Revenue for the client.
Best Start tax credit
Best Start tax credit differs from family tax credit and is continued for 28 days from the date of death of the child.
Note If the child's third birthday falls due in the 28-day period payment will stop from the deceased's child's third birthday.
Cost of funeral
The person responsible for the cost of the child's funeral may be able to get a Funeral Grant.
For more information see:
- Effect on benefit
- Childcare assistance Death of client or child
- Best Start tax credit Child dies
Legislation
- Funeral grant: eligibility if deceased person is child section 93 Social Security Act 2018
- Funeral grants regulations 53-55 Social Security Regulations 2018
- Benefits payable to sole parent who stops caring for dependent child due to sudden and uncontrollable circumstances section 327 Social Security Act 2018
- Review of entitlement to, or rate of, benefit granted sections 304-308 Social Security Act 2018
- exception (definition) section 103A Social Security Act 2018
