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New Zealand law explained for everyone

Social Security Act 2018

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

270: Sanction for first or second failure: suspension of in-hand allowance and incentive payments

You could also call this:

“Stopping some money for young people who break rules once or twice”

If you’re a young person receiving a youth payment, you need to follow certain rules. These rules are called young person obligations. If you don’t follow these rules without a good reason, there are consequences.

The first time you don’t follow the rules, or the second time, the government will stop giving you your in-hand allowance. They will also stop any extra payments you might be getting for doing well. You won’t get these payments again until you start following the rules.

If you still haven’t followed the rules after four weeks, the government will stop all of your youth payment. They will also stop any extra payments. You won’t get any money until you start following the rules again.

Remember, these consequences only happen if you don’t have a good reason for not following the rules. The government will decide if your reason is good enough.

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269: Sanction for failure to comply with young person obligation, or

“What happens when young people don't follow the rules they're supposed to”

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271: Sanction for third failure: cancellation of youth payment and incentive payments, or

“Losing payments for young people who break rules three times”

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

270Sanction for first or second failure: suspension of in-hand allowance and incentive payments

  1. This section applies if MSD is satisfied that a young person (P) who is receiving a youth payment has, without good and sufficient reason, failed to comply with a young person obligation for a first or second time.

  2. For P’s first or second failure, MSD must first suspend P’s in-hand allowance and any incentive payments until P satisfies the obligation (or all the relevant obligations, if P has failed to comply with more than 1).

  3. If P has not satisfied the obligation or obligations within 4 weeks after the suspension takes effect, MSD must suspend the whole of P’s youth payment and any incentive payments until P satisfies the obligation or obligations.

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