Relationship status and Givealittle funds hit pair’s welfare payments
A couple who shared their story of financial hardship following a terminal cancer diagnosis have had their benefits reduced following the revelation they were in a relationship and may lose more once they access $42,000 in Givealittle donations.
Two weeks ago New Plymouth woman Nykala Garrett said she had quit her job as a nurse at Taranaki Base Hospital in January to care for her partner Rikki Tako, who was diagnosed with terminal brain cancer following a workplace accident last year.
He could have just weeks or months to live.
With a blended family of five children and rent of $700 a week, Garrett went public about their financial struggles, resulting in more than $42,000 donated through funding site Givealittle.
On Friday, after another story was published about a celebrant, photographer and florist donating time and services so the couple could get married, Garrett was called to a meeting at Ministry of Social Development in New Plymouth.
There Garrett was told the couple’s sole parent benefits would be cut to reflect they were in a relationship.
Garrett said she believed she had told the ministry she was living with Tako, and accepted she might have to pay some money back, an issue she “would deal with later”.
She said the change would reduce their weekly income from about $1200 to $980.
The bigger problem was the uncertainty around how they could use the Givealittle money donated by Kiwis over the last 16 days. She said she was warned by the ministry that the donated money could be considered an asset once it was paid to them, meaning it could see their benefits cut.
“They were acting like it was a cash asset at the meeting. They said the moment it comes into my account I need to have another meeting,” Garrett said.
She said the money, which she had not accessed, would be used to pay for Tako’s funeral, a new hospital-style bed, and to cover associated medical costs.
However, she was now anxious about accessing the money and felt the ministry was adding unnecessary stress to her family’s last days with Tako.
“Just leave us alone, deal with me later. Do me for fraud, or whatever you want to call it, but leave me and Rikki and the kids alone for now.”
In a written response to questions, Gloria Campbell, ministry regional commissioner for Taranaki, King Country and Whanganui, said funds raised through Givealittle and paid to a person receiving a benefit were likely to be considered a gift or capital payment.
“A one-off gift or capital payment is considered an asset rather than income, however, any money earned from the asset (e.g. interest) is considered income. The asset may also affect entitlement to asset-tested assistance such as Accommodation Supplement.”
Campbell said at Friday’s meeting they had reassured Garrett the Givealittle funds would not affect their main benefit, unsupported child’s benefit, Working for Families tax credits, child disability allowance and disability allowance.
However, it could affect their accommodation supplement and temporary additional support payments.
She said the Social Security Act 2018 set out the definition of income, and specified types of payments that must be included and excluded as income for benefit purposes. “Whether an amount of money is income is a factual determination. There is no discretion to include or exclude an amount of money on compassionate grounds,” she said.
She said the couple’s benefits had been adjusted to reflect they were not sole parents, but in a relationship.
“We are required to do this by legislation, and we did not want them to incur any debt due to overpayments.”
She said Garrett had not received benefits she was not entitled to before and the ministry would not be seeking to be refunded the difference from when the couple were receiving sole parent payments.
Campbell said the ministry would continue to work with the couple to ensure they received the support they were entitled to during this “very difficult and stressful time.”