Deducting debt from the funds
When a young person applies for the money left on their payment card, the money must first be used to pay any debts to the Ministry established while the young person was required to have their money managed. Except when the young person has their debt recovery suspended because they are cancelling their benefit for employment, in these instances no debt deduction will be made.
In some cases, the amount of debt owing could be more than the remaining money on the payment card, meaning the young person won’t get any money paid to them.
Debt after youth money management has ended
Debts created before the young person was required to have their money managed or after youth money management has ended, must not be deducted from the funds. However, a young person may choose to use the money to reduce any outstanding debt.
Young person requests debt recovery suspension and applies for funds on payment card
If a young person requests debt recovery suspension and applies for the money left on their payment card at the same time, the Ministry must manage the debt recovery suspension first before making the payment to the young person.
For more information see:
Legislation
- Credit on payment card, etc, at end of youth money management section 345 Social Security Act 2018
- Debt recovery suspension Part 6, Subpart 11 Social Security Regulations 2018
