redirection of benefit payment

Redirection of benefit payment is where part or all of a young person’s benefit is paid to another person or organisation by MSD. Young people on money management must have their payments redirected to pay for their everyday living costs and any lawful debts.

on money management

Young people subject to Money Management will need their benefit payment and any ongoing extra help redirected to pay for:

The young person's accommodation and service costs, for example rent, board, power, phone
The young person's lawful debts or other liabilities, for example Child Support payments, Work and Income debts.

not on money management

Young people not subject to Money Management, can ask to have a redirection in place when:

other alternatives have been considered
the request meets the good cause criteria and has been recorded.

In most cases the young person must agree to the redirection of part or all of their benefit, however, in certain situations it may be required without the young person's consent.

evidence required for redirection of benefit requests

If a young person needs to have part or all of their benefit paid to another person or organisation, they need to provide:

the Redirection of Benefit Payment application form
all required evidence to support their request
bank account evidence for the person or organisation who will receive the redirection
if the redirection is occurring without the young person's consent, evidence supporting this (eg an Enduring Power of Attorney, written advice from a registered medical practitioner or a court order).

If the person or organisation being setup to receive payments is not on our system, they must complete the Retailer/Supplier/Payee details form. YSSU will notify you if the are not on our system.

All evidence relating to the redirection should be scanned and recorded into the young person's ART profile. We can receive the form and supporting documents electronically.

when a person or organisation needs to sign the ‘redirection of benefit payment’ form

If the person or organisation has not registered to receive payment from MSD before, they will need to sign the ‘Redirection of benefit payment’ form.

Most large companies have received payments from MSD in the past and will not be required to sign the Redirection of benefit payment form.

If you’re unsure, phone YSSU.

specific circumstances

Some young people may need to have a redirection from their benefit as part of their specific circumstances including:

social housing tenants, to pay their Income Related Rent (IRR)
when they receive Residential Care Subsidy (RCS)
when they receive Residential Support Subsidy (RSS)
emergency housing tenants, to pay their emergency housing contribution.

legislation

Payments generally to, or on account of, beneficiary personally section 339 Social Security Act 2018
Good cause and exercise of discretion clause 5 Ministerial Direction of Redirection of Benefit.