Recompliance when subjected to Money Management
When a client fails an obligation and has Money Management imposed, they still need to recomply with their obligation. They can do this at any point during the 4-week Money Management period, but they need to complete their recompliance activity before their Money Management period ends.
Client recomplies
When a client completes their recompliance activity during their Money Management period, they will be recomplied at the end of the 4 weeks. Any benefit payments they are entitled to from the day after Money Management ends will go into their bank account.
Money Management will last 4 weeks regardless of when a client completes their activity.
Client does not recomply
Clients who do not complete their recompliance activity while on Money Management will have their benefit suspended at the end of the 4-week period.
Their benefit can only be resumed when a client has completed their recompliance activity. If a client’s benefit has been suspended following Money Management, their benefit will be automatically cancelled after 9 weeks (13 weeks total). For more information on how non-compliance affects assistance, see:
Clients who have had their benefit cancelled will need to reapply for benefit if they need further support.
Client with dependent children does not recomply
If a client has children, they will have 50% payment protection and continue to receive 50% of their benefit.
Their benefit can only return to the full rate payable when a client has completed their recompliance activity.
For more information see:
Legislation
- Sanction for first failure: reduction of rate of main benefit section 236(1)(b) Social Security Act 2018
- Cancellation of main benefit for continuing failure to comply section 233A Social Security Act 2018
