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Benefit Advances and Temporary Additional Support

When money runs out before the week does, Work and Income has several kinds of help. They sound similar, they are applied for in similar ways, and one crucial thing separates them.

Some of it you pay back. Some of it you do not. Knowing which is which, before you ask, is worth more than almost any other piece of information on this subject.

The three things to remember

An advance is a loan, repaid out of your benefit. Temporary Additional Support is not a loan, and it is weekly. Ask about both, because you will not always be offered both.

The four kinds of help, sorted by whether you repay

What it is Repaid? What it is for
Advance Payment of Benefit Yes, from your benefit An essential, immediate, one-off need
Recoverable Assistance Payment Yes The same, for people on low income not on a benefit
Special Needs Grant Usually not, but sometimes An essential immediate need, food being the common one
Temporary Additional Support No An ongoing weekly gap between essential costs and income

Read the last row again, because it is the one people most often miss. Temporary Additional Support is a weekly payment for a continuing shortfall, and it is not a debt.

The mismatch that costs the most

An advance is designed for a one-off need. A shortfall that returns every week is not a one-off need. Where an ongoing gap is met by repeated advances, each one adds a repayment that reduces next week's income, which widens the gap that prompted the advance. Temporary Additional Support exists precisely for that situation and does not have to be repaid at all.

How much Temporary Additional Support can be

It is capped at 30 percent of the net rate of your main benefit. Where you are not receiving a main benefit, the cap is 30 percent of the net rate of Jobseeker Support. Using an illustrative net benefit of $400.00 a week:

Net main benefit rate: $400.00 a week, used here as an illustration
Maximum Temporary Additional Support: $400.00 x 30% = $120.00 a week
Up to $120.00 a week, and none of it repayable.

The actual amount depends on your essential costs and your income, not on the cap. The cap is a ceiling rather than an entitlement, and it exists to stop the calculation running away rather than to describe what most people receive.

Why the advance arithmetic goes wrong

Take three advances over some months totalling $900.00, repaid at $20.00 a week from the same illustrative $400.00 benefit.

Total advanced: $900.00
Weekly repayment: $20.00
Weeks of repayment: $900.00 / $20.00 = 45 weeks
Income reduction: $20.00 / $400.00 = 5% less each week, for those 45 weeks
Nearly eleven months on 5 percent less, which is itself a reason to need help.

Now the same period met by Temporary Additional Support instead, at a modest $60.00 a week for one 13 week grant.

Weekly amount: $60.00
Over 13 weeks: $60.00 x 13 = $780.00
Repayable: $0.00
$780.00 you keep, against $900.00 you repay over 45 weeks.
This is not an argument against advances

An advance is the right tool for a genuine one-off: a car repair that gets you to work, a bond, a fridge that has died. It is fast, it is interest free, and it is far better than the alternatives people otherwise reach for. The point is narrower. Where the need repeats, an advance is the wrong instrument for it, and the right one is sitting alongside it unrequested.

Two rules that are worth money

The first concerns timing. Assistance can generally be granted from the date you first made contact, provided the application is completed within 20 working days of that date. So the phone call or the online start matters, even if you cannot finish it that day.

Make contact first, by phone or through MyMSD, before gathering anything.
Then complete the application within 20 working days of that contact.
Assistance can run from the contact date rather than from the day you finished.
Delaying the first call is the expensive part, not delaying the paperwork.

The second is reapplication. Temporary Additional Support runs for 13 weeks. It does not roll over. If the shortfall continues you have to apply again, and payments stop if you do not.

Diary the reapplication date

A 13 week grant that quietly ends is one of the most common ways a household's income drops without anything having changed. Nothing is done wrong and nobody is at fault. The clock simply runs out. Put the date in a calendar on the day the grant is approved, with a reminder two weeks before it, and reapply from the reminder rather than from the end.

If the answer is no

A decision can be reviewed, and asking for a review is a normal step rather than a complaint. You can ask for a review of decision, which goes first to a Benefits Review Committee and, if it remains unresolved, on to the Social Security Appeal Authority. There are time limits, so ask promptly.

Decisions turn on the figures held for your essential costs, and those figures are frequently out of date. Rent that has risen, a power bill that has changed, a new medical cost or a childcare arrangement that nobody has been told about will all change the calculation. Providing current figures often does more than an appeal does.

Free help, from people who do this daily

Community Law centres give free legal advice and will help with a review. MoneyTalks offers free budgeting support by phone, text or online and can often find entitlements that have gone unclaimed. A budgeting adviser can also attend a Work and Income appointment with you. None of these cost anything, and all of them see these decisions far more often than any individual will.

What this guide does not cover

Every figure above is an illustration built from stated assumptions rather than a current benefit rate, because rates change and your entitlement depends on your household, income, costs and circumstances. Special Needs Grants, Disability Allowance, Accommodation Supplement and hardship provisions each have their own tests not covered here. Check your own position with Work and Income. This is general information rather than advice on your circumstances.

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Test Your Knowledge

Ten questions on hardship assistance and what has to be paid back.

1. What is an Advance Payment of Benefit?
A grant you never have to repay at all
A loan, repaid out of your benefit each week
A weekly top-up for ongoing essential costs
A payment made only after a review is approved
2. Does Temporary Additional Support have to be repaid?
No, it is not a loan
Yes, at the same rate as an advance
Yes, but only amounts above $500
Only if your circumstances later improve
3. What is Temporary Additional Support capped at?
50 percent of the net main benefit rate
15 percent of the net main benefit rate
There is no cap on the weekly amount
30 percent of the net main benefit rate
4. On an illustrative $400 net weekly benefit, what is the TAS maximum?
$60 a week
$120 a week
$200 a week
$40 a week
5. How long does a grant of Temporary Additional Support run?
13 weeks, then you must reapply
52 weeks, renewed automatically each year
26 weeks, then it reduces by half
Indefinitely, while you remain on a benefit
6. Why do repeated advances make a weekly shortfall worse?
Each advance attracts interest at a compounding rate
Each advance reduces your main benefit entitlement
Each repayment reduces the income that caused the gap
Each advance cancels any grant already approved
7. Three advances totalling $900, repaid at $20 a week, take how long to clear?
18 weeks
45 weeks
90 weeks
12 weeks
8. What does the 20 working day rule mean for you?
Assistance can run from your first contact date
Applications are declined after 20 working days
You must wait 20 working days before applying
Payments are held for 20 working days before release
9. What can you do if an application is declined?
Nothing, as hardship decisions are final
Reapply only after a six month stand-down
Ask for a review of decision, which is a normal step
Take the matter directly to the District Court
10. What often changes a decision more than an appeal does?
Applying at a different Work and Income office
Asking a different case manager to reconsider
Waiting until the next benefit rate adjustment
Providing current figures for your essential costs

Sources: Work and Income on Temporary Additional Support, which is paid for up to 13 weeks before reapplication and is capped at 30 percent of the net rate of the main benefit, or of Jobseeker Support where no main benefit is paid; Work and Income on advance payments of benefit, recoverable assistance payments and special needs grants; and the rule that assistance may be granted from the date of first contact where the application is completed within 20 working days. Rates and rules change, so check your own entitlement with Work and Income. This is general information rather than advice on your circumstances.

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