Money management for Youth clients

The following will be paid directly to your bank account:

• Disability Allowance
• Child Disability Allowance
• Unsupported Child's Benefit
• Orphan's Benefit
• Training Incentive Allowance - weekly ongoing costs.

The following will be subject to money management:

• Temporary Additional Support
• Family Tax Credit
• Accommodation Supplement

For example, an 18 year old sole parent with a one year old disabled child, renting in Kaitaia, would have her money managed as follows:

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If you are new to Youth Service, your provider will set this up for you when you meet with them. They will set up the payment of your rent and bills with you and give you a payment card.

You can manage your whole payment yourself if you show your Youth Service provider that you can do this responsibly. You should talk to them about how you can prove this.

Once you have proven you are capable of managing your money yourself, your payment will go straight into your bank account and you will be responsible for paying all of your own costs.

If you are doing all the things you need to with your education, training or work-based learning, budgeting and parenting you can get extra incentive payments.

If you are subject to money management, extra incentive payments will be added to the total amount that goes through money management. If you are not subject to money management and you earn an incentive payment, this will be paid straight to your bank account.

When you have been successfully in education, training or work-based learning for six months you can get an extra $10 a week.

If you finish a budgeting programme and have regular budget talks with your Youth Service provider for three months, you can get an extra $10 a week.

If you are receiving Young Parent Payment, you can get a further $10 a week if you have met all your parenting requirements and had regular talks with your Youth Service provider for three months.

This includes:

• completing an approved parenting programme
• enrolling your child with a doctor and keeping up to date with WellChild checks
• registering your child in an approved early childhood education programme or other suitable childcare while you are in education, training or work-based learning or part-time work.

Incentive payments are earned by each person separately. For example, if only one parent attends a parenting programme only they can get the extra payment. If both parents go, both can get the payment.

Once you are getting the extra payment you need to keep up the good work.

If you are away from education, training or work-based learning without a good reason, or don’t complete the required course work, or you get suspended, you will lose the education incentive payment.

If you get into trouble with your money and are not managing it properly you will lose the budgeting incentive payment.

If your child is not being well looked after, you will lose the parenting incentive payment.

Your provider must tell Work and Income if you have stopped doing what you need to do to get your incentive payments.

If you are on Youth Payment, a first or second failure to meet your obligations results in the in-hand allowance and any incentive payments being suspended. If you don’t recomply within four weeks your payment will be automatically cancelled and you will have to reapply. A third failure will result in Youth Payment, Temporary Additional Support, Accommodation Supplement and any incentive payments being cancelled immediately. Disability Allowance can continue to be paid if you still meet the eligibility criteria for it.

If you receive Young Parent Payment (YPP) a first or second sanction means your in hand allowance and any incentive payments are suspended until you recomply. For a third failure, 50% of your YPP is cancelled, but you can continue to receive the full rate of Accommodation Supplement and Temporary Additional Support. For couples, these payments are reduced by half and paid to the non-sanctioned partner. Disability Allowance, Child Disability Allowance, Guaranteed Childcare Assistance Payment & Childcare Assistance can continue to be paid if you continue to meet the eligibility criteria for these forms of assistance.

For more detail see: