Effect of financial sanctions on assistance
The tables below give examples of the effect on the benefit and supplementary assistance rates when a client's benefit has been sanctioned due to an obligations failure.
MSD will need to manually make payments to the non-sanctioned client or partner.
Note if a non-financial sanction is imposed for a grade 1 obligation failure, the client's rate of payment will not be affected.
For more information about how Money Management changes the way payments are made see:
Example 1 - Single client with no dependent children
Main Benefit | Supplementary Assistance | |
Grade 1 financial sanction | 50% reduction | Not affected |
Grade 2 financial sanction | 100% suspension | 100% suspension |
Grade 3 financial sanction | 100% cancellation | 100% cancellation |
Example 2 - Sole parent client with dependent children
Main Benefit | Supplementary Assistance | |
Grade 1 financial sanction | 50% reduction | Not affected |
Grade 2 financial sanction | 50% reduction | Not affected |
Grade 3 financial sanction | 50% cancellation | Not affected |
Example 3 - Couple, no dependent children, primary fails
Couples get a total main benefit; this benefit is then divided between the primary client and their partner so that each client gets a 50% portion of the main benefit.
Primary client | Partner | |||
Main Benefit | Supplementary Assistance | Main Benefit | Supplementary Assistance | |
Grade 1 financial sanction | 50% portion is reduced to 25% | Not affected | No change - partner continues to get their 50% portion | Not affected |
Couple gets a maximum rate of 75% (25% + 50%) of the main benefit. Supplementary assistance is not affected | ||||
Grade 2 financial sanction | 100% suspension | 100% suspension | Partner continues to get their 50% portion | Partner continues to get their 50% portion of Supplementary Assistance |
Couple gets a maximum rate of 50% (0% + 50%) of the main benefit. Partner continues to get their 50% portion of Supplementary Assistance | ||||
Grade 3 financial sanction | 100% cancellation | 100% cancellation | Partner continues to get their 50% portion | Partner continues to get their 50% portion of Supplementary Assistance |
Couple get a maximum rate of 50% (0% + 50%) of the main benefit. Partner continues to get their 50% portion of Supplementary Assistance | ||||
For more information see:
Example 4 - Couple, no dependent children, both fail
Couples get a total main benefit; this benefit is then divided between the primary client and their partner so that each client and partner gets a 50% portion of the main benefit.
Primary client | Partner | |||
Main Benefit | Supplementary Assistance | Main Benefit | Supplementary Assistance | |
Grade 1 financial sanction | 50% portion is reduced to 25% | Not affected | 50% portion is reduced to 25% | Not affected |
Couple gets a maximum rate of 50% (25% + 25%) of the main benefit. Supplementary Assistance not affected. | ||||
Grade 2 financial sanction | 100% suspension of all assistance | |||
Grade 3 financial sanction | 100% cancellation of all assistance | |||
Example 5 - Couple, dependent children, primary fails
Couples get a total main benefit; this benefit is then divided between the primary client and their partner so that each client and partner gets a 50% portion of the main benefit.
Primary client | Partner | |||
Main Benefit | Supplementary Assistance | Main Benefit | Supplementary Assistance | |
Grade 1 financial sanction | 50% portion is reduced to 25% | Not affected | Partner continues to get their 50% portion | Not affected |
Couple receive a maximum rate of 75% (25% + 50%) of the main benefit. Supplementary Assistance not affected. | ||||
Grade 2 financial sanction | 100% suspension | 100% suspension | Partner continues to receive their 50% portion | Partner continues to receive their 50% portion of Supplementary Assistance |
Couple gets a maximum rate of 50% (0% + 50%) of the main benefit. Partner continues to get their 50% portion of Supplementary Assistance | ||||
Grade 3 financial sanction | 100% cancellation | 100% cancellation | Partner continues to get their 50% portion | Partner continues to get their 50% portion of Supplementary Assistance |
Couple gets a maximum rate of 50% (0% + 50%) of the main benefit. Partner continues to get their 50% portion of Supplementary Assistance | ||||
For more information see:
Example 6 - Couple, dependent children, both fail
Couples get a total main benefit; this benefit is then divided between the primary client and their partner so that each client and partner gets a 50% portion of the main benefit.
Primary client | Partner | |||
Main Benefit | Supplementary Assistance | Main Benefit | Supplementary Assistance | |
Grade 1 financial sanction | 50% portion is reduced to 25% | Not affected | 50% portion is reduced to 25% | Not affected |
Couple gets a maximum rate of 50% (25% + 25%) of the main benefit. Supplementary Assistance not affected. | ||||
Grade 2 financial sanction | Couple gets a maximum rate of 50% of the main benefit and 50% of Supplementary Assistance. | |||
Grade 3 financial sanction | Couple gets a maximum rate of 50% of the main benefit and 50% of Supplementary Assistance. | |||
Example 7 - Single client, no children, refuses offer of suitable employment
A single client without children refuses an offer of suitable employment and so is subject to a 13 week non-entitlement period.
Main benefit | Supplementary assistance |
100% cancellation | 100% cancellation |
Example 8 - Sole parent, refuses offer of suitable employment
A sole parent refuses an offer of suitable employment and is subject to a 13 week non-entitlement period
Main benefit | Supplementary assistance |
50% cancellation | Not affected |
For more information see:
Legislation
- Hierarchy of sanctions section 236-239 Social Security Act 2018
- How number of failures is counted sections 240-242 Social Security Act 2018
- Special cases: variations on ordinary sanctions rules sections 245-248 Social Security Act 2018
- Notice relates to single failure section 253 Social Security Act 2018
- Recompliance sections 261-266 Social Security Act 2018
- Restoration of entitlement after suspension, reduction, cancellation, or non-entitlement sections 320-324 Social Security Act 2018
- How benefits are paid section 337 Social Security Act 2018
- Regulations: payments section 442 Social Security Act 2018
- Apportionment regulation 191 Social Security Regulations 2018
