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Effect of financial sanctions on assistance

The tables below give examples of the effect on the benefit and extra help rates when a client'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 - Single client with no dependent children

Main benefit

Extra help
(including Winter Energy Payment)

Grade 1 financial sanction

50% reduction

Not affected

Grade 2 financial sanction

100% suspension

100% suspension

Grade 3 financial sanction

100% cancellation

100% cancellation

Example 2 - Sole parent client with dependent children

Main benefit

Extra help
(including Winter Energy Payment)

Grade 1  financial sanction

50% reduction

Not affected

Grade 2  financial sanction

50% reduction

Not affected

Grade 3  financial sanction

50% cancellation

Not affected

Note Winter Energy Payment continues when a portion of qualifying benefit is still paid. 

Example 3 - Couple, no dependent children, primary 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

50% portion is reduced to 25%

Not affected

 Not affected

No change - partner continues to get their 50% portion

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

100% suspension

100% suspension

100% suspension

Partner continues to get their 50% portion

Partner continues to get their 50% portion of Extra help

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 extra help 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 extra help

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 extra help but gets Winter Energy Payment at the full couple rate.

For more information see:

Example 4 - Couple, no dependent children, both fail

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

50% portion is reduced to 25%

Not affected

Not affected

Couple gets a maximum rate of 50% (25% + 25%) of the main benefit. Extra help not affected. Winter Energy Payment is not affected as both client and partner continue to get a qualifying benefit.

Grade 2 financial sanction

100% suspension of all assistance

Grade 3 financial sanction

100% cancellation of all assistance

Example 5 - Couple, dependent children, primary fails

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. Extra help not affected. Winter Energy Payment is not affected as both client and partner continue to get a qualifying benefit.

Grade 2 financial sanction

100% suspension

100% suspension

100% suspension of their portion

Partner continues to get their 50% portion

Partner continues to get their 50% portion of extra help

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 extra help but gets the full couple rate of Winter Energy Payment.

Grade 3 financial sanction

100% cancellation

100% cancellation

100% cancellation of their portion

Partner continues to get their 50% portion

Partner continues to get their 50% portion of extra help

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 extra help but gets full couple rate of Winter Energy Payment.

For more information see:

Example 6 - Couple, dependent children, both fail

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

50% portion is reduced to 25%

Not affected

Not affected

Couple gets a maximum rate of 50% (25% + 25%) of the main benefit. Extra help 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 extra help.

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 extra help.

Winter Energy Payment is paid at the full couple rate.

Example 7 - Single client, no children, refuses offer of suitable employment

A single client without children refuses an offer of suitable employment and so is subject to a 13 week non-entitlement period.

Main benefit

Extra help (including Winter Energy Payment)

100% cancellation

100% cancellation

Example 8 - Sole parent, refuses offer of suitable employment

A sole parent refuses an offer of suitable employment and is subject to a 13 week non-entitlement period.

Main benefit

Extra help (including Winter Energy Payment)

50% cancellation

Not affected

Legislation