Navigating Financial Support: Your Guide to Work and Income Loans & Grants in NZ

1. Types of Work and Income Payments

Work and Income offers a broad spectrum of financial assistance, tailored to different needs and circumstances. These are broadly categorised into ongoing benefits and one-off payments or grants.

• Main Benefits: Regular payments for those who are unemployed, sick, disabled, caring for children, or elderly. Examples include Jobseeker Support, Sole Parent Support, and Supported Living Payment.
• Accommodation Supplement: Helps with rent, board, or home ownership costs if you’re not getting a main benefit.
• Temporary Additional Support (TAS): A weekly payment if your income and assets are not enough to meet your essential living costs.
• Emergency Housing: Assistance to help you find and pay for somewhere to stay if you have an urgent housing need.
• Advance Payments of Benefit (Loans): These are lump sum payments of future benefit entitlements for essential costs that you cannot pay for immediately. This is often what people refer to when they search for a work and income advance payment.
• Special Needs Grants (Hardship Grants): Non-recoverable payments for essential costs you can’t pay for through your normal income or assets, and for which an advance payment isn’t appropriate or sufficient. These are for specific, urgent needs.

Understanding the difference between an advance payment (a loan to be repaid) and a special needs grant (a non-repayable grant) is vital when seeking help for essential items like food, medical costs, or household appliances.

2. Eligibility for Advance Payments and Hardship Grants

Eligibility for Work and Income payments, especially advance payments and hardship grants, depends on your individual circumstances, income, assets, and the nature of your need. While specific criteria vary, the core principles revolve around genuine need and the ability to manage the assistance responsibly.

Eligibility for Work and Income Advance Payment

An advance payment of benefit is essentially a loan from your future benefit payments. To be eligible, you generally need to:

• Be receiving a main benefit or be eligible for one.
• Have an essential expense that you cannot pay for from your available income or assets. This could include dental work, car repairs, new whiteware, or furniture.
• Be able to repay the advance without undue hardship. Work and Income assesses your ability to repay based on your current benefit level.

Eligibility for Special Needs Grants (Hardship Grants)

Special Needs Grants are for urgent, essential costs that you cannot meet yourself. These are often non-recoverable. Eligibility factors include:

• Your income and assets: These are thoroughly assessed to determine if you truly cannot meet the cost yourself.
• The nature of the need: It must be for an essential item or service (e.g., food, heating, medical costs, emergency travel).
• Your living situation and family size.

“Work and Income’s role is to ensure no one in New Zealand goes without essential support. While the criteria are robust, they are designed to be fair and responsive to genuine hardship, offering a vital safety net for individuals and families.”

3. Application Process for Work and Income Aid

Applying for assistance from Work and Income follows a structured process designed to ensure that support reaches those who need it most efficiently. While it might seem daunting, breaking it down into steps makes it manageable.

Step 1: Check Online Eligibility and Information

Before contacting Work and Income, visit their official website (msd.govt.nz) to explore the different types of assistance and their general eligibility criteria. This helps you understand what you might be eligible for and what information you’ll need.

Step 2: Gather Necessary Documents

Prepare all relevant documentation. This typically includes:

• Proof of identity (e.g., passport, driver’s license).
• Proof of income and assets (e.g., bank statements, payslips, investment details).
• Details of your expenses (e.g., rent agreement, utility bills, quotes for items you need assistance with).
• Any medical certificates or professional referrals relevant to your situation.

Step 3: Contact Work and Income

You can contact Work and Income in several ways:

• Phone: Call their contact centre (0800 559 009) to discuss your situation and initiate an application.
• Online: For some benefits and payments, you can apply or manage your application through MyMSD, your personal online service.
• In-Person: Visit your local Work and Income service centre. It’s often advisable to call first to make an appointment.

Step 4: Attend Interview (If Required)

For some applications, particularly main benefits or complex hardship grants, you may need to attend an interview with a case manager. This is an opportunity to discuss your situation in detail and provide any further information.

Step 5: Decision and Payment

Work and Income will assess your application based on all the information provided. Once a decision is made, you will be informed. If approved, payments are typically made directly into your bank account or to the service provider (e.g., landlord, store for whiteware).

4. Repayment Terms for Loans

It’s crucial to understand that a work and income advance payment is a loan, not a grant. This means it must be repaid. The terms of repayment are designed to be manageable and are significantly different from commercial high-risk lending.

• No Interest: A major advantage of Work and Income advances is that they are interest-free. You only repay the amount you received.
• Automatic Deductions: Repayments are typically deducted automatically from your ongoing benefit payments. The deduction amount is agreed upon with your case manager, ensuring it doesn’t cause undue financial hardship.
• Flexible Repayment Plans: If your circumstances change and you find yourself struggling with repayments, it’s essential to contact Work and Income immediately. They can often adjust your repayment schedule to be more manageable.
• Clear Communication: You will be given a clear statement of your advance, the repayment schedule, and your remaining balance.

Compared to high-interest payday loans or other forms of high-risk lending, a work and income advance payment offers a responsible, affordable, and government-backed alternative for essential costs, protecting individuals from falling into cycles of debt.

5. Additional Support Services from Work and Income

Beyond direct financial payments, Work and Income offers a holistic range of support services aimed at improving overall well-being and long-term financial stability. These services can be invaluable, especially when navigating difficult financial periods.

• Budgeting Advice: Work and Income can refer you to free budgeting services that help you manage your money, create a budget, and plan for future expenses.
• Employment Support: For those looking for work or seeking to upskill, Work and Income provides job search assistance, CV writing workshops, interview coaching, and access to training and education subsidies.
• Social Workers: Dedicated social workers are available to provide support, advocacy, and connect you with other community services if you’re facing complex challenges beyond financial need.
• Childcare Assistance: Help with the costs of childcare for eligible families, supporting parents to work or participate in education/training.
• Referrals to Other Agencies: Work and Income staff can refer you to other government agencies or community organisations that might offer specialised support not directly provided by MSD.

These additional services underscore Work and Income’s commitment to not just provide temporary relief but to empower New Zealanders towards greater independence and stability. Engaging with these resources can make a significant difference in your journey to financial resilience.