3 July 2023
Amanda Murtagh
[FYI request #22975 email]
Tēnā koe Amanda Murtagh
On 1 June 2023, you emailed the Ministry of Social Development (the
Ministry) requesting, under the Official Information Act 1982 (the Act), the
following information:
What is the standard operating procedure, when MSD (WINZ) approve
to pay a utility provider on behalf of a client.
On 30 June 2023, the Ministry notified you that we had decided to grant your
request, but we required more time to respond to you and to finalise the
information for release. We advised you that the information will be sent to
you by 7 July 2023.
The Ministry provides recoverable and non-recoverable financial assistance to
people who have an immediate need for emergency or essential items and
services, including utility costs (electricity, gas and water). Financial
assistance for these items is available to those who meet the relevant
qualifications, meet an income and asset test, and are unable to meet the
need from their own resources or through other sources. Utility costs are
paid as recoverable assistance.
The type of payment made by the Ministry depends on the client’s individual
circumstance.
An Advance Payment of Benefit (Advance) may be granted to clients
receiving a Main Benefit (e.g. Jobseeker Support), if they are in hardship,
have an immediate and essential need and meet an income and asset test.
Costs we can help with include:
• outstanding electricity, gas and water bills
• the cost of reconnecting electricity, gas and water supplies.
For more information about Advances, please see the following:
www.workandincome.govt.nz/products/a-z-benefits/advance-payment-of-
benefit.html.
Clients not receiving a Main Benefit may be able to get a Recoverable
Assistance Payment, subject to meeting specific eligibility criteria.
Further information on RAP assistance for electricity, gas, water assistance
can be found here:
www.workandincome.govt.nz/map/income-support/extra-
help/recoverable-assistance-payment/electricity-gas-or-water-01.html.
Please note that financial assistance for a water tank refill is non-recoverable.
Before approving any payments, Ministry staff are required to explore any
other alternative sources of payment that may be available to the client. For
example, Ministry staff must consider whether an arrangement can be made
between the client and their provider to pay off the outstanding amount or
reconnecting charges.
The client should also have discussed with their retailer, any alternative
payment options available to them, such as:
• payment arrangements to recover debt within a reasonable timeframe
• prepayment meters
• smoothed payments
• regular direct credits
Clients can also request for a redirection of benefit payment to be set up
where part of their benefit payment is paid directly to their supplier. In some
specific situations, staff may recommend this option to clients if they are
struggling to keep up with their utility bills. It is important to note that for a
redirection of benefit payment to be set up, there needs to be a good cause.
For more information about redirection of benefit payment, please see the
following:
www.workandincome.govt.nz/map/income-support/core-
policy/redirection-of-benefit-payment/redirection-of-benefit-payment-
01.html.
Specific payments for assistance with utility bills are made directly to the
providers, who are required to register as suppliers with the Ministry. Clients
need to provide staff with verification of the amount that needs to be paid,
either through their MyMSD account, or at their closest service centre.
If the client is not able to provide verification, Ministry staff may be able to
call their provider. If the client has called for assistance through our contact
centre, staff can ask for permission to speak to the provider on their behalf.
If this is not possible, the client may be required to ring ahead to provide
permission.
Once the payment has been approved, staff can confirm with the provider
that a payment has been made on behalf of the client, but only if the client
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consents to their information being shared. Alternatively, the client may
prefer to advise the provider themselves.
Depending on how the provider prefers to be paid, the Ministry will usually
direct credit payments to the supplier for utility costs. For some smaller
utility providers, or where power is pre-paid, the client will receive a payment
card with money loaded onto it, and clients have up to seven days to spend
the money before this expires.
The principles and purposes of the Official Information Act 1982 under which
you made your request are:
• to create greater openness and transparency about the plans, work
and activities of the Government,
• to increase the ability of the public to participate in the making and
administration of our laws and policies and
• to lead to greater accountability in the conduct of public affairs.
The Ministry fully supports those principles and purposes. The Ministry
therefore intends to make the information contained in this letter and any
attached documents available to the wider public. The Ministry will do this by
publishing this letter on the Ministry’s website. Your personal details will be
deleted, and the Ministry will not publish any information that would identify
you as the person who requested the information.
If you wish to discuss this response with us, please feel free to contact
[MSD request email].
If you are not satisfied with this response regarding utility providers, you
have the right to seek an investigation and review by the Ombudsman.
Information about how to make a complaint is available at
www.ombudsman.parliament.nz or 0800 802 602.
Ngā mihi nui
Bridget Saunders
Manager Issue Resolution
Service Delivery
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Document Outline
