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 four 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 four weeks regardless of when a client completes their recompliance 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 four-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 the 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 in 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
