Housing payment issues

Processing issues have meant about

1000 Kiwis have been missing out on their full entitlements under new accommodation supplement rates.

However, the error is expected to be rectified by the end of the week and those affected will be repaid.

Ministry of Social Development client service support group general manager Dwina Dickinson said the ministry, through Work and Income, provided the supplement to about

290,000 clients.

Of these, about 135,000 saw an automatic increase when changes to the weekly payment took effect from April 1.

‘‘More than 99 per cent of these payments have gone through with absolutely no problem . . . ,’’ Dickinson said.

‘‘We’re double-checking about

1000 records that didn’t process as expected.

‘‘We’ll have this work completed by the end of this week and we’ll get in touch with any clients whose rates are corrected.’’

Processing issues could include incomplete recording of addresses and change of type of dwelling, the ministry explained.

Changes to the accommodation supplement were first announced last year by the then-National Government as part of its family incomes package.

The changes – to increase the maximum amounts paid under the supplement to better reflect the cost of housing – were incorporated by the Labour-led Government in its own families package.

The amount paid out under the supplement is determined by accommodation costs, income, assets, family status and area.

As part of the changes, somes areas were recategorised to higher paid brackets.

Christchurch, for example, changed from area three to area two, resulting in an increase in the new maximum rate from $160 a week for a family of three people or more to

$220 a week.