Effect of financial sanctions on assistance
The tables below give examples of the effect on the benefit and supplementary assistance rates when a partner's benefit has been sanctioned due to an obligations failure.
MSD will need to manually make payments to the non-sanctioned client or partner.
Note if a non-financial sanction is imposed for a grade 1 obligation failure, the client's rate of payment will not be affected.
For more information about how Money Management changes the way payments are made see:
Example 1 - Sole parent client with dependent children fails social obligation
Main Benefit | Extra help | |
Grade 1 financial sanction | 50% reduction | Not affected |
Grade 2 financial sanction | 50% reduction | Not affected |
Grade 3 financial sanction | 50% cancellation | Not affected |
Example 2 - Couple, no dependent children, partner fails
Couples get a total main benefit; this benefit is then divided between the primary client and their partner so that each client gets a 50% portion of the main benefit.
Primary client | Partner | |||||
Main Benefit | Extra help | Winter Energy Payment | Main Benefit | Extra help | Winter Energy Payment | |
Grade 1 financial sanction | No change - partner continues to get their 50% portion | Not affected | Not affected | 50% portion is reduced to 25% | Not affected | Not affected |
Couple gets a maximum rate of 75% (25% + 50%) of the main benefit. Extra help is not affected. Winter Energy Payment is not affected as each person is getting their portion of the qualifying benefit. | ||||||
Grade 2 financial sanction | Continues to get their 50% portion | Continues to get their 50% portion of Extra help | Paid at full couple rate | Partner 100% suspension | Partner 100% suspension | 100% suspension |
Couple gets a maximum rate of 50% (0% + 50%) of the main benefit. Primary continues to get their 50% portion of Extra help but gets Winter Energy Payment at the full couple rate. | ||||||
Grade 3 financial sanction | Continues to get their 50% cancellation | Continues to get their 50% portion of Extra help | Paid at full couple rate | Partner portion 100% | Partner portion 100% | 100% cancellation |
Couple gets a maximum rate of 50% (0% + 50%) of the main benefit. Primary continues to get their 50% portion of Extra help, but gets Winter Energy Payment at the full couple rate. | ||||||
For more information see:
Example 3 - Couple, dependent children, primary fails social obligation
Couples get a total main benefit; this benefit is then divided between the primary client and their partner so that each client and partner gets a 50% portion of the main benefit.
Primary client | Partner | |||||
Main Benefit | Extra help | Winter Energy Payment | Main Benefit | Extra help | Winter Energy Payment | |
Grade 1 financial sanction | 50% portion is reduced to 25% | Not affected | Not affected | Partner continues to get their 50% portion | Not affected | Not affected |
Couple gets a maximum rate of 75% (25% + 50%) of the main benefit. Supplementary assistance is not affected. Winter Energy Payment is not affected as each person is getting their portion of the qualifying benefit. | ||||||
Grade 2 financial sanction | 100% suspension | 100% suspension | 100% suspension | Partner continues to get their 50% portion | Partner continues to get their 50% portion of Supplementary Assistance | Paid at full couple rate |
Couple gets a maximum rate of 50% (0% + 50%) of the main benefit. Partner continues to get their 50% portion of Supplementary Assistance but gets Winter Energy Payment at the full couple rate. | ||||||
Grade 3 financial sanction | 100% cancellation | 100% cancellation | 100% cancellation | Partner continues to get their 50% portion | Partner continues to get their 50% portion of Supplementary Assistance | Paid at full couple rate |
Couple gets a maximum rate of 50% (0% + 50%) of the main benefit. Partner continues to get their 50% portion of Supplementary Assistance but gets Winter Energy Payment at the full couple rate. | ||||||
For more information see:
Example 4 - Couple, dependent children, both fail social obligations
Couples gets a total main benefit; this benefit is then divided between the primary client and their partner so that each client and partner gets a 50% portion of the main benefit.
Primary client | Partner | |||||
Main Benefit | Supplementary Assistance | Winter Energy Payment | Main Benefit | Supplementary Assistance | Winter Energy Payment | |
Grade 1 financial sanction | 50% portion is reduced to 25% | Not affected | Not affected | 50% portion is reduced to 25% | Not affected | Not affected |
Couple gets a maximum rate of 50% (25% + 25%) of the main benefit. Supplementary Assistance not affected. Winter Energy Payment is not affected as both client and partner continue to get a qualifying benefit. | ||||||
Grade 2 financial sanction | Couple gets a maximum rate of 50% of the main benefit and 50% of Supplementary Assistance. Winter Energy Payment is paid at the full couple rate. | |||||
Grade 3 financial sanction | Couple gets a maximum rate of 50% of the main benefit and 50% of Supplementary Assistance. Winter Energy Payment is paid at the full couple rate. | |||||
For more information see:
Legislation
- How benefits are paid section 337 Social Security Act 2018
- Apportionment regulation 191 Social Security Regulations 2018
