Sanctions for single people
Grade 1 and 2 sanctions
A first or second failure means suspension of the in-hand allowance (or $50 for those who are not subject to youth money management before the failure) and any incentive payments, until the young person recomplies with the obligation they have failed (or obligations if they have failed to comply with one or more of their obligations).
The young person can continue to get any Accommodation Supplement and Temporary Additional Support to which they are entitled. Winter Energy Payment can continue to be paid as the client is still getting a qualifying benefit.
If the young person has not recomplied within four weeks the whole of their Youth Payment and any incentive payments is suspended along with any Accommodation Supplement, Temporary Additional Support or Winter Energy Payment the young person gets. Winter Energy Payment cannot continue to be paid as the client is not receiving a qualifying benefit.
Their benefit will remain suspended until they recomply or the payment is automatically cancelled after 13 weeks.
For more information see:
Grade 3
A third activity failure means:
- the Youth Payment, and any incentive payments, is cancelled immediately
- Accommodation Supplement, Temporary Additional Support and Winter Energy Payment is cancelled and
- the young person is subject to a non-entitlement period for 13 weeks from the date of cancellation
The young person may get a provisional benefit if they start a six-week approved activity.
If the young person does not start a six-week approved activity, they must reapply at the end of their non-entitlement period to get a benefit.
Note Disability Allowance can continue to be paid during a non-entitlement period however these may need to be granted as a non-beneficiary.
For more information see:
Legislation
- Sanction for first or second failure: suspension of in-hand allowance and incentive payments section 270 Social Security Act 2018
- Sanction for third failure: cancellation of youth payment and incentive payments section 271 Social Security Act 2018
- Enforcement: sanctions and offences sections 236-239 Social Security Act 2018
- Variation for failure to comply with work-test obligation to accept offer of suitable employment section 244 Social Security Act 2018
- Notice relates to single failure section 253 Social Security Act 2018
