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 | |
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 | |
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 |
For more information see:
Legislation
- How benefits are paid section 337 Social Security Act 2018
- Apportionment regulation 191 Social Security Regulations 2018
