Counting previous obligations failures
The sanction imposed depends on how often the client or partner has failed to comply with their obligations in the previous 24 months while getting a benefit.
Previous failures are only counted if the failure occurred within the last 24 months while continuously getting a benefit.
Note this does not apply to young partners who fail their youth activity obligations. These failures are counted for 12 months.
The 24-month count starts from the day the obligation failure is imposed. Each obligation failure has its own 24-month count.
Example
A client fails their first obligation on 1 June 2025. They fail another obligation on 1 October 2025, and have an obligation failure count of two. Their obligation failure count is reset to one on 1 June 2027, 24 months after they failed their first obligation.
Their obligation failure count will be reset to zero on 1 October 2027, 24 months after the second obligation failure.
Transfer between benefits
If a client transfers between benefits, any obligations failures within the previous 24 months are still counted. Failures on a previous benefit type will count toward the failure count on the new benefit, even if the same obligations do not apply.
Failure of different obligations add to failure count
The failure count includes all obligation failures. If a client or partner fails a work obligation and then a later failure related to social obligations in a 24-month period, this would be counted as two failures.
Young person transfers between benefits
When a client transfers from Young Parent Payment or Youth Payment to a benefit without youth activity obligations the count will be reset to zero. This is because the sanction regime is different for young people getting these payments.
The count does not return to zero when young partners of main beneficiaries with youth activity obligations move to having different obligations.
Examples of transfers between benefits
The following table outlines what happens to the failure count and sanction when a youth client transfers between benefit types.
From | To | Failure count | Sanction |
Jobseeker Support | Young Parent Payment | Re-sets to zero | Re-sets to zero |
Young partner aged 16 or 17 years getting Jobseeker Support | Jobseeker Support (work obligations) | Carries over | Re-set to zero |
Young partner aged 16 or 17 years getting Jobseeker Support | Young partner aged 16 or 17 years getting Supported Living Payment | Carries over | Carries over |
Calculating continuous receipt of benefit
To determine whether a client has been in continuous receipt of a main benefit, MSD must disregard any period that their benefit was suspended or cancelled because:
- the client was in employment, and
- that employment was less than 10 working days.
Transitional arrangements
From 26 May 2025, the obligations failure count period increased from 12 months to 24 months for working age clients.
Any obligation failures that were initiated before 26 May 2025 will only be counted for 12 months.
Obligation failures (except youth activity obligation failures) initiated from 26 May 2025 onwards will be counted for 24 months.
For more information see:
Legislation
- Sanction for first failure: reduction in main benefit section 236 Social Security Act 2018
- Sanction for second failure: suspension of main benefit section 237 Social Security Act 2018
- Sanction for third failure: cancellation of main benefit section 238 Social Security Act 2018
- Reduction or suspension of reduced benefit section 239 Social Security Act 2018
- How number of failures is counted sections 240-242 Social Security Act 2018
- Variation for failure to comply with work-test obligation to accept offer of suitable employment section 244 Social Security Act 2018
- Notice relates to single failure section 253 Social Security Act 2018
