Counting previous obligations failures
The sanction imposed depends on how often the client has failed to comply with their obligations in the previous 24 months while getting a benefit.
Previous failures are only counted if the failure occurred within the last 24 months while continuously getting a benefit.
The 24-month count starts from the day the obligation failure is imposed. Each obligation failure has its own 24-month count.
Example
A client fails their first obligation on 1 June 2025. They fail another obligation on 1 October 2025, and have an obligation failure count of two. Their obligation failure count is reset to one on 1 June 2027, 24 months after they failed their first obligation.
Their obligation failure count is reset to zero on 1 October 2027, 24 months after the second obligation failure.
Transfer between benefits
If a client transfers between benefits, any obligations failures within the previous 24 months are still counted.
Failures on a previous benefit type will count toward the failure count on the new benefit, even if the same obligations do not apply.
Failure of different obligations add to failure count
The failure count includes all obligation failures. If a client fails a work obligation and then a later failure related to social obligations in a 24-month period, this would be counted as 2 failures.
Youth clients
When a client transfers from Young Parent Payment or Youth Payment to a benefit without youth activity obligations the count will be zero. This is because the sanction regime is different for young people getting these payments.
Calculating continuous receipt of benefit
To calculate continuous receipt of benefit any employment for less than 10 working days is disregarded.
Transitional arrangements ended on 26 May 2026
From 26 May 2025, the obligations failure count period increased from 12 months to 24 months for working age clients.
Any obligation failures that were initiated before 26 May 2025 were only counted for 12 months.
Note youth activity obligation failures are still counted for 12 months only.
For more information see:
Legislation
- How number of failures is counted sections 240-242 Social Security Act 2018
- Sanctions that may be imposed sections 236-239 Social Security Act 2018
- Variation for failure to comply with work-test obligation to accept offer of suitable employment 244 Social Security Act 2018
- Notice relates to single failure 253 Social Security Act 2018
