In a major overhaul of Inland Revenue, the Government intends to change how social payments like Working for Families are distributed.

It wants IRD to introduce a Pay-As-You-Go system based on up-to-date financial information.

The current yearly estimates has led to around 65 percent of recipients either underpaid or overpaid.

Geof Nightingale of PricewaterhouseCoopers told Larry Williams it's designed to try to deliver the entitlements on time, and avoid people getting into debt.

"It'll get direct feeds from your employer, from any bank account. There will be what they call 'non-observable income' where you'll have to provide estimates, but then the system will automatically calculate and adjust your entitlement and deliver it to you by direct credit."

Nightingale said students will also be caught in the net the overhaul.

"Student loans, same thing - so more collection, particularly students with variable incomes, and students with self-employed incomes will be required to pay more often throughout the year, again trying to avoid getting this issue of getting into debt."

LISTEN TO GEOF NIGHTINGALE SPEAK WITH LARRY WILLIAMS ABOVE