If you need money for an essential cost such as a power bill, car repair, glasses or a fridge, Work and Income (MSD) can often help before you turn to a lender. On a benefit, that help is usually an advance payment of your benefit; if you work on a low income, it is a Recoverable Assistance Payment. Both are repaid, but without interest.
Use the calculator below to see how long it takes to repay Work and Income help compared with a loan, and what that loan would cost you in interest. Further down you’ll find who qualifies, the income limits, what is covered and how to check what you owe.
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How much do you need for the essential cost?
How much could you repay each week?
Work and Income help or a loan?
Example only. Work and Income decides whether you qualify, how much you get and how much you repay; the debt is interest free and repayments are usually no more than $40 a week. The loan comparison uses example rates with weekly repayments and no fees, not offers from any lender.
Advance payment or Recoverable Assistance: which one applies to you?
| Advance Payment of Benefit | Recoverable Assistance Payment | |
|---|---|---|
| For | People getting a main benefit (such as Jobseeker Support), NZ Super, a Veteran’s Pension, or an Orphan’s or Unsupported Child’s Benefit | People not on a benefit, for example working on a low income |
| Purpose | An essential or emergency cost you can’t pay another way | An essential or emergency cost you can’t pay another way |
| Interest | None | None |
| Repaid? | Yes, usually deducted from your benefit | Yes, by arrangement with Work and Income |
| Paid as | Usually a payment card or directly to the supplier | Usually a payment card or directly to the supplier |
| Residency | You already meet it through your benefit | NZ citizen or permanent resident, normally living in NZ |
Recoverable Assistance is usually limited to six times your weekly main benefit, or six times the weekly Supported Living Payment rate if you are not on a benefit. Any amount you still owe from earlier help counts towards that limit. Work and Income sees it as a last resort, for example after a disconnection or eviction notice.
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Income and asset limits
Advance Payment of Benefit: weekly income before tax
| Your situation | Weekly income must be under |
|---|---|
| Single, 16–17 | $879.17 |
| Single, 18 or over | $1,010.41 |
| Couple | $1,467.61 |
| Sole parent, 1 child | $1,226.09 |
| Sole parent, 2 or more children | $1,291.75 |
Recoverable Assistance Payment: yearly income before tax
| Your situation | Yearly income must be under |
|---|---|
| Single, 16–17 | $45,716.84 |
| Single, 18 or over | $52,541.32 |
| Couple, with or without children | $76,315.72 |
| Sole parent, 1 child | $63,756.68 |
| Sole parent, 2 or more children | $67,171.00 |
Asset limits for both: $1,411.22 for a single person, $2,351.46 for a couple or sole parent. Assets include money in the bank or a second property, but not your home, your car or everyday belongings. Work and Income updates these figures from time to time, so check the current limits when you call.
What it can and can’t cover
| Often covered | Usually not covered |
|---|---|
| Power, gas or water bills | Repaying loans, credit cards or buy now pay later |
| Car repairs (generally up to $400) when you need the car for work, health or because there is no public transport | Fuel, WOF, registration, car insurance, regular servicing |
| Fridge, washing machine, bedding, essential furniture | Non-essential purchases |
| School uniforms and stationery | Costs you can pay yourself or another way |
| Glasses, dental treatment, dentures, hearing aids | |
| Rent or bond for new accommodation, Tenancy Tribunal fees | |
| Travel if you’re stranded, or to attend a funeral or tangi |
Work and Income can consider other costs depending on your situation. If debt repayments are the problem, a financial mentor through MoneyTalks (0800 345 123) can negotiate with your creditors, and debt consolidation may lower your payments.
How to apply: step by step
- Get a quote or bill for the cost, for example the power bill, the garage quote or the dentist’s estimate.
- Call Work and Income on 0800 559 009. They’ll discuss your situation and tell you what information they need.
- Have your details ready: income, bank balance, rent and other regular costs, and your partner’s details if you have one.
- Explain why it’s urgent, for example a disconnection notice or needing the car to get to work.
- If approved, the money is usually loaded onto a payment card or paid straight to the supplier.
- Spend the card within 7 days, or it expires. Keep the card: it can be reused if you need help again.
How to check your WINZ debt balance and payment card
| What you want to check | Where |
|---|---|
| How much you owe (debts from 2018 on), if you get a benefit | MyMSD (my.msd.govt.nz), debt breakdown |
| Debts from before 2018 | Call Work and Income |
| Your debt if you’re not getting payments | Client Support Debt Management Team (phone numbers on the Work and Income website) |
| Payment card balance and expiry date | MyMSD |
| A detailed written breakdown | Ask for it in writing; a complex breakdown can take a few days |
If you think the amount is wrong, contact the Client Support Debt Management Team. They can explain the debt, look at new information and start a review if you ask.
Repayments: how much a week and what if you can’t pay
| Amount owed | $10 a week | $20 a week | $40 a week |
|---|---|---|---|
| $300 | 30 weeks | 15 weeks | 8 weeks |
| $800 | 80 weeks | 40 weeks | 20 weeks |
| $1,200 | 120 weeks | 60 weeks | 30 weeks |
For comparison, $800 from a high-cost lender at 79% repaid at $20 a week takes 63 weeks and costs $441.16 in interest. At $10 a week it takes 160 weeks and the interest reaches the legal cap of $800.
- On a benefit: repayments are usually taken from your weekly payment.
- Typical rate: generally no more than $40 a week, usually aiming to repay within two years. You can negotiate a lower amount.
- If repayments cause hardship: tell Work and Income and ask for a lower rate. Bring a budget; a free financial mentor can help you prepare one.
- If you come off a benefit: you still owe the balance and arrange repayments with Work and Income.
Declined? Reviews and other options
| Reason | What you can do |
|---|---|
| You think the decision is wrong | Ask for the reasons in writing and apply for a review of the decision. A local Community Law Centre gives free initial advice. |
| You already owe Work and Income a lot | Ask whether repaying some of it first, or a lower amount, would be approved |
| You applied for the same cost in the last year | Explain what has changed; exceptions can be made in serious hardship |
| The cost isn’t covered | A community no-interest loan or a payment plan with the supplier |
| You still need to borrow | Compare costs first in loans for beneficiaries NZ and cash loans NZ |
In serious hardship, a KiwiSaver hardship withdrawal may also be possible.
Frequently asked questions
How much can I get as a WINZ advance?
It depends on your situation and the cost. Recoverable Assistance is usually limited to six times your weekly main benefit, including anything you still owe.
Do I pay interest on a WINZ advance?
No. You repay only the amount you received.
Can WINZ pay off my loan or credit card?
Usually not. The help is for essential costs, such as power, car repairs for work or health, glasses or a fridge.
Can I get help if I’m working?
Yes, through a Recoverable Assistance Payment, if your income and assets are under the limits.
How do I check how much I owe WINZ?
In MyMSD for debts from 2018 on, or by calling 0800 559 009.
Conclusion
For essential costs, a Work and Income advance or Recoverable Assistance Payment is usually the cheapest help in New Zealand: no interest, and repayments you can negotiate. Check the income and asset limits, call 0800 559 009 with your quote or bill, and spend the payment card within 7 days. Only consider a loan if Work and Income can’t help, and compare the total cost first.
