The proposed change would waive the existing requirement under the Privacy Act 2020 for MSD to give clients 10 working days’ notice to dispute the accuracy of their personal information when an adverse action is taken (such as reducing or stopping a benefit) based on shared information. This change would help avoid overpayments of benefits and reduce the likelihood of client debt.
The Government has agreed that, from July 2028, MSD can use PAYE information to assess eligibility and automatically calculate payment rates for clients’ benefits and other income-tested assistance. These changes will improve payment accuracy and reduce the compliance burden on clients to declare their PAYE income to MSD. Removing the notice period would further reduce the likelihood of overpayments and client debt.
No new information will be disclosed to MSD as a result of this change.
You can access further consultation information and the discussion document here:
Enabling MSD to more quickly use PAYE income information provided by Inland Revenue