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.
Criteria to receive a non-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.
Primary Supported Living Payment clients do not have work obligations, although they may have work preparation obligations in some circumstances.
This means it is unlikely they will have an obligation failure, so they would generally not have a sanction imposed.
Partners of a Supported Living Payment client who have work or work preparation obligations are able to have a non-financial sanction imposed if they meet the criteria.
Client meets with MSD after 5 working days
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 ta financial sanction to a non-financial sanction after it has been applied.
Change in circumstances while subject to a non-financial sanction
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:
Non-financial sanctions, Emergency Housing Grants and Special Needs Grants
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:
For more information see:
Legislation
- Sanctions for failure to comply with certain obligations under this Act section 232 Social Security Act 2018
- MSD must give notice of non-financial sanction section 252A Social Security Act 2018
