Changes to how we estimate benefit income

From 1 April 2026, we’re changing how benefit income is estimated for clients receiving Working for Families payments.

Changes apply for the FAM rollover in February 2026 for entitlements beginning 1 April 2026.

These changes will give clients greater certainty and help reduce overpayment risk. 

Here are the key points. 

• Benefit income will be calculated like PAYE income. 
• When a benefit starts, we’ll use the first MSD exchange rate, then update using MSD employment information. 
• Benefit income will appear in the income estimate tab on the FAM account.
• Clients can view benefit details in myIR (but cannot edit them).
• Early interventions will include clients on benefits if income looks ‘off track’.