Effect of Money Management on assistance
The tables below give examples of the effect on the benefit and extra help rates when a client or their partner has had Money Management imposed due to an obligations failure.
Note Non-financial sanctions can only be imposed as an alternative to a Grade 1 financial sanction.
Example 1 - Single client, Money Management imposed
Main benefit | Extra help | |
Grade 1 non-financial sanction (Money Management) | 50% payment into bank account 50% payment on payment card | Not affected |
Example 2 - Couple, primary fails, Money Management imposed
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 Money Management | Extra help | Winter Energy Payment | Main benefit | Extra help | Winter Energy Payment | |
Grade 1 sanction | 50% portion is money managed. Client gets 25% in bank account, 25% on a payment card | Not affected | Not affected | No change - partner continues to get their 50% portion | Not affected | Not affected |
Couple gets a maximum rate of 100% of the main benefit (25% on payment card + 25% in bank account + 50%). Extra help is not affected. Winter Energy Payment is not affected as each person is getting their portion of the qualifying benefit. | ||||||
Example 3 - Couple, partner fails, Money Management imposed
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 Money Management | Extra help | Winter Energy Payment | |
Grade 1 sanction | No change - client continues to get their 50% portion | Not affected | Not affected | 50% portion is money managed. Partner gets 25% in bank account, 25% on a payment card | Not affected | Not affected |
Couple gets a maximum rate of 100% of the main benefit (50% + 25% on payment card + 25% in bank account). Extra help is not affected. Winter Energy Payment is not affected as each person is getting their portion of the qualifying benefit. | ||||||
Example 4 - Couple, both fail, Money Management imposed on primary
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 Money Management | Extra help | Winter Energy Payment | Main benefit Grade 1 financial sanction | Extra help | Winter Energy Payment | |
Grade 1 sanction | 50% portion is money managed. Client gets 25% in bank account, 25% on a payment card | Not affected | Not affected | 50% portion is reduced to 25% | Not affected | Not affected |
Couple gets a maximum rate of 75% of the main benefit (25% on payment card + 25% in bank account + 25%). Extra help is not affected. Winter Energy Payment is not affected as each person is getting their portion of the qualifying benefit. | ||||||
Example 5 - Couple, both fail, Money Management imposed on partner
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 Grade 1 financial sanction | Extra help | Winter Energy Payment | Main benefit Money Management | Extra help | Winter Energy Payment | |
Grade 1 sanction | 50% portion is reduced to 25% | Not affected | Not affected | 50% portion is money managed. Client gets 25% in bank account, 25% on a payment card | Not affected | Not affected |
Couple gets a maximum rate of 75% of the main benefit (25% + 25% on payment card + 25% in bank account). Extra help is not affected. Winter Energy Payment is not affected as each person is getting their portion of the qualifying benefit. | ||||||
Example 6 - Couple, both fail, Money Management imposed on both
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 Money Management | Extra help | Winter Energy Payment | Main benefit Money Management | Extra help | Winter Energy Payment | |
Grade 1 sanction | 50% portion is money managed. Client gets 25% in bank account, 25% on a payment card | Not affected | Not affected | 50% portion is money managed. Partner gets 25% in bank account, 25% on a payment card | Not affected | Not affected |
Couple gets a maximum rate of 100% of the main benefit (25% on payment card + 25% in bank account + 25% on payment card + 25% in-hand). Extra help is not affected. Winter Energy Payment is not affected as each person is getting their portion of the qualifying benefit. | ||||||
For more information see:
Legislation
- Sanction for first failure: money management section 236A Social Security Act 2018
- How benefits are paid section 337 Social Security Act 2018
- Apportionment regulation 191 Social Security Regulations 2018
