Fewer people on benefits after December peak, more sanctions handed out

The number of people on benefits has dropped slightly, after hitting a peak in December last year of 12.4 per cent of people on a main benefit. 

That has decreased to 11.3 per cent at the end of the June 2021 quarter. However it was a 0.4 per cent rise from this time last year. 

Broken down to specific types of support, 6.1 per cent of the working population (190,257 people) were on the Jobseeker benefit, a decrease of 0.1 per cent from the previous year, while those receiving sole parent support payments increased from 2020, up to 65,967 people. 

The number of people sanctioned was in the thousands - after dropping to 162 in the June 2020 quarter due to Covid, it's now back up to 7,536 in the June 2021 quarter. 

Missing appointments was the main reason for benefit sanctions. 

The accommodation supplement, which helps people struggling with their rent, board or mortgage rose by more than 3000, to 351,912 from 348,753 in the June 2020 quarter. 

Hardship assistance worth $209 million in the June 2021 quarter fell to 578,000, from 790,000 in the June 2020 quarter. A large portion of the drop as due to a decrease in hardship grants for food. 

Social Development Minister Carmel Sepuloni said all up benefit numbers fell 11,193 over the June quarter.

"The statistics released today buck the seasonal trend which usually sees a rise in benefit numbers over the June quarter. The size of the fall over the June quarter is a significant milestone in our recovery from Covid-19," she said. 

National's social development spokesperson Louise Upston said the rise in those on Jobseeker benefits represented "New Zealanders who have been left behind by Labour to languish on a benefit".

"Billions of dollars have been poured into initiatives the Government claimed would rapidly save and create jobs. A year has passed now, plenty of time for these initiatives to get off the ground, but the jobs Kiwis are desperate for just aren’t there."

"Labour claimed its jobs plan would benefit those historically disadvantaged in the labour market, such as young people, Māori and Pasifika. However, those numbers on jobseeker have continued to climb."