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Innocent overpayment debt - Ministry of Social Development

Innocent overpayment debt - Ministry of Social Development 2025

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The report titled 'The Causes of Innocent Overpayment Debt' by Anne Heynes analyzes the increasing trend of innocent overpayment debt (IOD) within New Zealand's social welfare system. It identifies key factors contributing to IOD, including employment changes, late income notifications, benefit transfers, and backdated reviews. The report highlights that approximately 47% of new IOD is linked to employment-related issues. It also notes a seasonal pattern in debt establishment, peaking in February and March. The findings suggest a need for policy changes to mitigate the establishment of small debts, particularly those arising from client deaths. Overall, the report aims to inform strategies for preventing future innocent overpayment debts.

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