Mother-of-three Hilary is facing a $38,000 bill for overpayment of Working for Families credits after being caught out in the same way as other parents whose stories RNZ has covered recently.
The women had all inadvertently declared they did not have a partner for Working for Families purposes, while going through the process of registering the birth of their children.
Megan Hunt and Jess Henwood both said they missed or misread the box that they were required to tick to say they had a partner.
They assumed information they shared with the Department of Internal Affairs would have been shared with Inland Revenue.
Hilary, who did not want her last name used, said the situation was the same for her when she registered the birth of her son during the April 2020 Covid lockdown.
“A time of immense stress and worry, with two school-aged children at home, a new-born and a husband who was a essential worker, naturally I wasn’t in a headspace to ensure I ticked every small box and fine print when I registered my son’s birth online via the DIA website.”
When she applied for the childcare subsidy scheme Family Boost in September, she had a phone call from IR asking about her husband.
“I confirmed we have been married 17 years, living together and raising our three children as per the information supplied to IRD open and honestly, as I have nothing to hide. The tone of the conversation then took a very accusatory tone, I was told that due to my failure to declare my relationship with my husband when I applied for WFF in 2020, I had been potentially overpaid and was liable to pay back what I had ‘fraudulently claimed’.
“IRD were unable to clearly and succulently explain to me how this had occurred, apparently due to the information supplied by DIA. I explained that I had never deliberately not disclosed my relationship status in order to claim benefits that I was not entitled to, I explained that my husband’s name is clearly on our son’s birth certificate and how did this information not flow through to IRD?”
She said she was referred back to letters from 2020 that said it was the customer’s responsibility to declare information.
“I questioned how can I be liable for a failure to disclose information which I thought I had already declared, again I was referred to the original application and letters received, which I was unable to review myself. The phone call ended with the IRD rep stating that they would open an investigation and get back to me.”
She said she then received a number of emails about the debt. Including penalties and interest, it amounted to $38,329.15. Of that, she was told almost $32,500 was due within two weeks.
“In 24 hours I had gone from being unaware of any potential issue to being over $38,000 owing to IRD with no clear explanation as to how this had happened and no recourse.
“Subsequent calls to the IRD left me none the wiser as to how to work to rectify the situation, I had no name or contact apart from the 0800 number and whomever answered to discuss this with, and I was advised by professionals I sought advice from that I was on a hiding to nothing and to either apply for a hardship review – unlikely to achieve anything apart from delay the matter – or pay the bill.
“I am angry that this has obviously happened to other people. I am angry that at no time the impact to my family, my mental health, or my financial status and stability of these punitive actions where taken in to account or considered by IRD. Angry that the good faith I had in openly answering those initial questions, came back to literally bite me and I was not afforded the same courtesy in return.”
She said it had been devastating.
“The swiftness from answering of one phone call to have such a hefty bill in such a short space of time, the only way I can describe it is gutting. What they were demanding was half of what I make in a year, how could I come up with that in two weeks and less than a month before Christmas?”
IR said it is aware of the issue but only a small number of people had been affected.
People who are working through the birth registration process need to tick “no” to have it recorded that they do not have a partner living with them.
IR said registering the father’s details on the birth certificate was not sufficient because it did not necessarily mean that the parents were in a relationship or living together.
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### Full Review
#### The Story So Far
In a heartbreaking turn of events, mother-of-three Hilary finds herself facing a daunting $38,000 bill for overpayment of Working for Families credits. Her story, echoing the struggles of others, reveals the complexities and challenges of navigating bureaucratic processes amidst personal upheavals.
#### Detailed Review
Hilary’s journey through the maze of paperwork and misunderstandings sheds light on the pitfalls that unsuspecting parents can encounter. The lack of clarity and communication between departments has led to a financial burden that threatens her family’s stability.
From missed checkboxes to accusations of fraudulent claims, Hilary’s experience serves as a cautionary tale for others navigating similar systems. The emotional toll, financial strain, and lack of support paint a grim picture of the repercussions faced by those caught in bureaucratic oversights.
#### Conclusion
Hilary’s ordeal highlights the need for greater transparency, communication, and empathy in government processes. Her story underscores the importance of advocating for individuals facing unjust financial burdens due to administrative errors. As we reflect on her journey, let us strive for a system that prioritizes fairness and compassion for all.
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### Frequently Asked Questions
#### 1. How did Hilary end up with a $38,000 bill?
Hilary inadvertently failed to declare her relationship status when applying for Working for Families credits, leading to a significant overpayment issue.
#### 2. What challenges did Hilary face in resolving the situation?
Hilary encountered difficulties in obtaining clear explanations from Inland Revenue regarding the overpayment and struggled to navigate the complex bureaucratic processes.
#### 3. How did the lack of communication between departments contribute to Hilary’s predicament?
The disconnect between the Department of Internal Affairs and Inland Revenue resulted in crucial information not being shared accurately, leading to misunderstandings and financial consequences for Hilary.
#### 4. What steps can individuals take to avoid similar issues with government benefits?
Ensuring accurate and complete disclosure of information when applying for benefits, seeking clarification on any unclear instructions, and maintaining records of communications can help prevent misunderstandings and overpayment issues.
#### 5. How can government agencies improve their processes to prevent such situations?
Government agencies should prioritize effective communication, streamlined data sharing between departments, and greater support for individuals navigating complex benefit systems to prevent undue financial burdens like the one faced by Hilary.
#### 6. What recourse did Hilary have in addressing the overpayment issue?
Hilary explored options such as hardship review but faced challenges in finding a resolution that would alleviate the immediate financial strain imposed by the overpayment demand.
#### 7. What impact did the situation have on Hilary and her family?
The sudden and substantial bill placed significant emotional and financial stress on Hilary and her family, highlighting the real-life consequences of administrative errors in benefit systems.
#### 8. Is Hilary’s experience unique, or have others faced similar challenges?
Hilary’s experience reflects a broader issue affecting individuals who inadvertently make errors in benefit applications, indicating a systemic problem that requires attention and reform.
#### 9. How can individuals advocate for change in benefit systems to prevent such hardships?
By sharing their stories, raising awareness of bureaucratic challenges, and advocating for policy changes that prioritize fairness and accountability, individuals like Hilary can drive positive reforms in benefit systems.
#### 10. What lessons can be learned from Hilary’s experience?
Hilary’s story underscores the importance of vigilance, clarity in communication, and seeking assistance when navigating benefit systems to avoid unintended consequences and financial hardships.