Rules for emergency grants tightened up

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Families that repeatedly seek emergency grants from Work and Income to help pay their bills will have to take a budgeting course and could be refused help if they cannot show they have taken steps to improve their situation.

From September 27, anyone who applies for a grant, emergency loan or benefit advance more than three times a year will be directed to budgeting advice. The grants can be refused if someone has not tried to reduce costs or increase income or to get the money from other sources, or has refused to do a budgeting course.

Social Development Minister Paula Bennett introduced the change to the rules for special needs grants and emergency benefit advances this week.

She asked the ministry to review the special needs grants last year after it was revealed Christchurch-based gang couple Darryl and Marcia Harris had got more than $30,000 since 2000 – including for fencing a pool and new tyres for their 2007 Chrysler.

Ms Bennett was "incredulous" about the use of the grants and called for the review to ensure the system was not being abused.