Money Management

If you move to red in the traffic light system, we may put 50% of your benefit onto a payment card, instead of reducing your benefit. This is called Money Management.

If we put you on Money Management, it means that for 4 weeks:

  • 50% of your benefit will go onto a payment card that you can use at approved stores, and
  • 50% of your benefit will keep being paid into your bank account.

We'll also arrange for you to do an activity in that 4 weeks so you can move back to green. If you do the activity, you'll move back to green once Money Management is finished. Then you'll get your full payment into your bank account again.

If you move to orange in the traffic light system, you need to meet with us while you're at orange. At that meeting we may decide to put you on Money Management when you move to red, instead of reducing your benefit.

We may put you on Money Management if:

  • this is the first time you haven't met your obligations without a good reason in the last year
  • you met with us while you were at orange in the traffic light system, and
  • you have dependent children or a 'dedicated case manager'.

We'll also make sure Money Management is suitable for you. We may not put you on Money Management if, for example:

  • the 50% of your benefit in your bank account won't cover things like your accommodation costs, debts or redirections, or
  • there are no approved stores in your area.

When you move to red, 50% of your benefit will go onto a payment card. This will be paid onto your payment card every week for 4 weeks, on your usual pay day. 

You can spend this at approved stores for:

  • groceries
  • health needs
  • transport, and
  • education needs.

The other 50% of your benefit will keep being paid into your bank account each week on your usual pay day. We'll also keep paying you any other payments you normally get, e.g. Accommodation Supplement, into your bank account.

Any debts, offsets or redirections will come out of the money paid into your bank account. 

Money Management may start in the middle of your pay week. This means you may get more money in your bank account at the start and end of Money Management. This is because it will be a partial payment.

Example

For example, Money Management starts on a Thursday. This means the total payment for the first week will be:

  • 3 days (Monday-Wednesday) of your benefit paid at 100% into your bank account, and
  • 4 days (Thursday-Sunday) of your benefit paid at 50% into your bank account and 50% onto a payment card.

This will be the same for the last week, as Money Management will finish on a Wednesday. This means the total payment for the last week will be:

  • 3 days (Monday-Wednesday) of your benefit paid at 50% into your bank account and 50% onto a payment card, and
  • 4 days (Thursday-Sunday) of your benefit paid at 100% into your bank account.

If there's any money left on the payment card when Money Management finishes, you can still spend it at the approved stores.

There's no expiry date on the payment card.

Once you've finished Money Management, if you:

  • don't have dependent children, your benefit will stop
  • have dependent children, your benefit will be reduced by 50%. This means you'll keep getting 50% of your benefit into your bank account but you won't get any money on a payment card.

You can still contact us and arrange to do an activity to get back on track.

Once you've done the activity, you'll move back to green and get your full payment again.