Pursuant to section 5 of the Social Security Act 1964, the Minister for Social Development gives the following direction.

D i r e c t i o n

1. Title—This direction is the Ministerial Direction on Redirection of Benefit Payments.

2. Commencement—This direction comes into force on the day after the date on which it is given.

3. Interpretation—(1) In this direction, unless the context otherwise requires:

Act means the Social Security Act 1964

dependant, in relation to a person, means:

1. a dependent child of the person; and
2. any other person who is wholly or primarily dependent on the person for financial support and who ordinarily resides with the person; and
3. any other person who is under the care of the person as a consequence of that other person’s inability to live independently for reasons of disability, illness, or advanced age

essential services, in relation to a person, means the supply of any of the following to the person for domestic use:

1. electricity:
2. gas:
3. water

redirect, in relation to a benefit, means to direct that payment of the whole or any part of an instalment of benefit, or any number of instalments of a benefit, be to a person other than the beneficiary personally; and redirection has a corresponding meaning

social housing, agency, and social housing provider have the same meanings as in section 2(1) of the Housing Restructuring and Tenancy Matters Act 1992

telecommunication services, in relation to a person, means any of the following supplied to the person for domestic use:

1. fixed-line telephone services:
2. mobile telephone services:
3. internet services

vulnerable tenant means:

1. a tenant or prospective tenant of any premises (not being social housing) who the chief executive considers at risk of eviction or homelessness; and
2. a person who has been assessed by the agency as eligible for social housing but has not yet been allocated social housing by a social housing provider; and
3. a person in social housing who has been assessed by the agency as continuing to be eligible for social housing and is awaiting allocation of other social housing.

(2) Terms otherwise defined in sections 3(1), 61E, and 136 of the Act have the same meanings in this direction.

4. Application—This direction:

1. applies when you are considering whether to exercise your discretion under the proviso to section 82(3) of the Act to redirect a person’s benefit; but
2. for the avoidance of doubt, does not apply to a requirement to deduct and pay money from a person’s benefit under any deduction notice or attachment order under any enactment.

5. Good cause and exercise of discretion—(1) For the purposes of the proviso to section 82(3) of the Act, you may, without limitation, consider there is good cause to redirect a person’s benefit, and may exercise your discretion to redirect the person’s benefit, if you are satisfied that the person is in any of the following situations:

1. the person is a tenant of any social housing and the redirection is required to ensure the person meets his or her rental commitments:
2. the person is a resident assessed as requiring care or a person receiving residential care services who is required to contribute, from the person’s benefit, to:
   1. the cost of contracted care services provided to the person; or
   2. the cost of the residential care services provided to the person:
3. the person is or has a history of being at risk of being disconnected from essential services or telecommunication services, or of incurring late payment penalties, reconnection charges, or both because of non-payment and the redirection is required to help prevent that risk:
4. the person is a vulnerable tenant and the redirection is required to reassure the person’s landlord, or prospective landlord, that the person will meet his or her rental commitments:
5. the person has been ordered to pay, or is in default of payment of, any fine (within the meaning of section 126A(1) of the Act) and the redirection is required to make payments towards that fine:
6. the person has money due under any judgment or order of any court or tribunal of New Zealand and the redirection is required to make payments towards the amount due:
7. the person is otherwise liable to pay any debt or other liability for goods or services that you consider are essential for the person or any of his or her dependants and the redirection is necessary to make payments towards the amount due:
8. the person has a history of poor financial management and the redirection is necessary to ensure the priority needs (including those relating to essential services, telecommunication costs, accommodation costs, medical care, or education) of the person and his or her dependants are met.

(2) Nothing in subclause (1) requires you to redirect a benefit or an instalment of a benefit if, in the circumstances of the case:

1. you exercise your discretion not to do so; or
2. you consider there would be insufficient funds for the redirection to operate having regard to:
   1. any abatement of the person’s benefit due to income:
   2. any required deductions from the person’s benefit under any deduction notice or attachment order under any enactment:
   3. any required reduction of the person’s benefit under any provision of the Act (for example, sections 70, 70A, or 71A).

Dated at Wellington this 17th day of March 2015.

Hon ANNE TOLLEY, Minister for Social Development.

Explanatory Note

This note is not part of this instrument, but is intended to indicate its general effect.

This direction by the Minister for Social Development sets out a number of circumstances in which the chief executive may consider there is good cause to exercise the discretion in the proviso to section 82(3) of the Act to direct that payment of the whole or any part of an instalment of benefit, or any number of instalments of a benefit be to a person other than the beneficiary personally.