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Social Security Act 2018

Enforcement: sanctions and offences - Sanctions for breach of obligations other than young person or young parent obligations - Hierarchy of sanctions

236: Sanction for first failure: reduction of rate of main benefit

You could also call this:

"What happens if you don't meet benefit requirements for the first time: your main benefit might be reduced."

Illustration for Social Security Act 2018

If you have a first failure, this section might apply to you. You are not eligible for a non-financial sanction if you do not meet the requirements in sections like section 236A(1)(b), section 236B(1)(b) to (e), section 236E(1)(b) to (e), or section 236H(1)(b) to (d). If this section applies to you, the Ministry of Social Development must reduce your main benefit by half until you comply again. If your benefit is reduced, the Ministry of Social Development cannot impose a non-financial sanction on you for your first failure. If you do not comply within four weeks, your benefit will be reduced to zero until you comply or your benefit is cancelled under section 233A. This section is also subject to other sections like sections 243AAA, 243, 245 to 248, and 320 to 322.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6783630.

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235: Failure, and first, second, and third failure, defined for obligations other than young person or young parent obligations, or

"What happens when you don't meet your responsibilities, and how failures are counted"

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236A: Sanction for first failure: money management, or

"What happens if you don't follow the rules: a special way to manage your benefit money"

Part 5Enforcement: sanctions and offences
Sanctions for breach of obligations other than young person or young parent obligations: Hierarchy of sanctions

236Sanction for first failure: reduction of rate of main benefit

  1. This section applies to a person (P) if P has a first failure, and either—

  2. P is ineligible for a non-financial sanction because P does not meet the eligibility requirements in any of the following provisions:
    1. section 236A(1)(b):
      1. section 236B(1)(b) to (e):
        1. section 236E(1)(b) to (e):
          1. section 236H(1)(b) to (d); or
          2. P is eligible for a non-financial sanction because P meets the eligibility requirements in all or any of the provisions specified in paragraph (a)(i) to (iv), and MSD does not impose a non-financial sanction for P’s first failure.

            1. If this section applies to P, MSD must, for the first failure of P, reduce the rate of P’s main benefit by half until P recomplies.

            2. If the rate of P’s main benefit is reduced by half under this section, MSD must not, for the first failure of P, impose a non-financial sanction.

            3. If P fails to recomply within 4 weeks after the initial reduction under this section takes effect, MSD must reduce the rate of P’s main benefit to zero until the earlier of the following events:

            4. P recomplies:
              1. MSD cancels P’s main benefit under section 233A.

                1. This section is subject to sections 243AAA, 243, 245 to 248, and 320 to 322.

                Notes
                • Section 236: replaced, on , by section 17 of the Social Security Amendment Act 2025 (2025 No 25).
                • Section 236(1)(a): replaced, on , by section 18(1) of the Social Security Amendment Act 2025 (2025 No 25).
                • Section 236(1)(b): replaced, on , by section 18(1) of the Social Security Amendment Act 2025 (2025 No 25).
                • Section 236(3): replaced, on , by section 18(2) of the Social Security Amendment Act 2025 (2025 No 25).