Returning incentive payments after a sanction
Grade 1 and 2 sanctions
Incentive payments can be returned from the date MSD is satisfied the young person has started their recompliance activity.
For more information see:
Grade 3 sanction
Failure to comply with education obligation
Where the failure that led to the cancellation of the Young Parent Payment was due to failing to comply with their obligation to be in education, training or work-based learning, the education incentive cannot be regranted if Young Parent Payment is regranted.
The young person must earn this incentive again by completing another 6 months commitment to education, training or work-based learning.
Example
A young person fails their activity obligations for a third time because they did not go to school. They are getting incentive payments for education and budgeting. When they undertake a 6-week approved activity their Young Parent Payment is restarted and their budgeting incentive is returned at the same time. The education incentive is not returned and the young person must re-earn this incentive by completing a further 6 months of education or training.
Failure for other reason
For any other failure reason, the incentive payment for budgeting, parenting and education can be regranted when the young person recomplies.
Example
A young person has earned the budgeting, parenting and education incentives. They fail activity obligations for a third time for refusing to attend their budgeting discussions with their service provider. The young person undertakes a six-week approved activity and their Young Parent Payment is restarted and all of their incentives are returned at the same time.
For more information see:
Legislation
- Sanctions generally: regranting incentives section 268 and sections 286-288 Social Security Act 2018
