incentive payments

incentive payments for YP, YPP and young partners

A young person may be eligible to receive incentive payments, if they have met and continue to meet their youth activity obligations.

What young people need to do to receive the different incentive payments

Education Incentive Payment – complete six months of active participation in education, training or work-based learning
Budgeting Incentive Payment – complete an approved budgeting programme and engage in three months of regular budgeting discussions with their youth coach
Parenting Education Incentive Payment – complete an approved parenting programme and:
- enrol their child with a Primary Health Organisation (PHO)
- keep their children under 5 years up to date with WellChild checks
- ensure their child attends Early Childhood Education or other suitable childcare while they are in education, training, work-based learning or part-time work
- have engaged in three months of regular parenting discussions with their assigned Provider.

Incentive payments are:

non-taxable
not considered as chargeable income for the purposes of supplementary and hardship assistance
paid at $10.00 per week for each payment
- Paid with YP, YPP, or the main benefit (young partners) to be redirected or flow onto the young person’s payment card as part of Money Management.

how to calculate the education incentive payment six-month period

Continued enrolment over six months

The month a young person starts an education programme is deemed as the first month. If the young person continues in that education programme, they can apply for the education incentive payment after six months.

For example, if they start an education programme in March, they can get the education incentive payment from 1 September.

Multiple courses completed

If the young person completes multiple education, training or work-based learning programmes, MSD can combine the duration of the programmes when calculating the six-month period.

For example, if the young person completes two three-month programmes, the young person can apply for the education incentive payment.

If the young person doesn’t complete the programme without good and sufficient reason, MSD will not include this with the calculation.

Note: each course of study will need to be 12 weeks or longer.

Break in tuition (study breaks)

If the young person is on a study break and is not actively participating due to a break in tuition, MSD may be able to include the study break.

For example, if the young person is attending college, MSD can include the summer break between Year 12 and Year 13.

MSD can also include the summer break between Year 13 and the first year of higher education (university/polytechnic).

MSD will not include the break in tuition if the young person finishes an education programme and is not enrolled in another programme.

how can a taiohi receive their incentive payment?

Notify YSSU once the young person is eligible for incentive payments by update the activity in ART and send a task to YSSU.

If the young person is eligible, YSSU will send you a notification via ART to confirm that the young person will receive the incentive payment and to formally let you know that the young person’s payments have been revised.

reasons incentive payments can stop

A young person will continue to receive their incentive payments until:

they are no longer eligible for YP, YPP or their payments are cancelled
their payments are sanctioned because they have failed to comply with their activity obligations, or
YSSU stops an incentive payment because the young person is intentionally acting in a way that is inconsistent with the purpose for which the incentive payment was granted.

when you should recommend an incentive payment is stopped

You must advise YSSU if it is no longer appropriate for the young person to receive their incentive payment because they have intentionally acted in a way that is inconsistent with the purpose for which the incentive payment was granted.

YSSU can exercise discretion to stop the incentive payment.

Examples of when an incentive payment may be stopped include, but are not limited to:

if the young person is attending but not ‘actively participating’ in school, training or work-based learning.
if Oranga Tamariki advise they have taken action in relation to young parent whose child may be at risk.
the young person is no longer managing their budget and no longer demonstrates they are financially responsible.

When you are recommending that an incentive payment stop, you must:

ensure sufficient information is recorded in ART, and
send a notification to YSSU detailing your recommendation to stop the incentive payment.

sanction has been imposed

If the young person has their payments or benefit sanctioned, any incentive payments will be stopped from the day their payment or benefit is sanctioned.

Each incentive payment paid will cease. This will occur automatically when YSSU applies the sanction.

once a a young person recomplies with their obligations you can apply for them to receive the incentive payments that they are still eligible for.

For example, if a young person's sanction is related to engagement with you, but they have remained in education and their budgeting is still on track you can recommend they receive the budgeting and education incentive payments again.