Non-financial sanctions

Non-financial sanctions are an alternative to a financial sanction that can be imposed on eligible clients in some cases.

Non-financial sanctions should only be imposed when it would be more appropriate based on a client’s circumstances than a financial sanction.

A client or partner can only get a non-financial sanction if:

• they have no other current obligation failures (i.e. this is their first obligation failure), and
• they meet with MSD within the 5 working day notice period, and
• the obligation failure decision is not disputed and overturned, and
• a non-financial sanction would be appropriate for them based on their circumstances, and
• they are in active case management or they have dependent children

MSD must assess a client’s circumstances and determine which non-financial sanction, if any, is most appropriate for the client. Each non-financial sanction has different factors to consider.

A non-financial sanction can only be imposed if a client meets with MSD within the 5 working day notice period. This is because a financial sanction will be automatically applied after 5 working days unless MSD has decided to impose a non-financial sanction instead.

If a client meets with MSD after 5 working days, they are not eligible for a non-financial sanction. MSD cannot change a financial sanction to a non-financial sanction after it has been applied.

A client may have a change in circumstances that means they are no longer required to comply with an obligation they have failed.

In this case, the non-financial sanction no longer applies from the day that a client’s circumstances change.

For more information see:

Clients who have a non-financial sanction imposed cannot get an Emergency Housing Grant or a Special Needs Grant. MSD should take this into consideration before choosing to impose a non-financial sanction.

For more information see: