More sanctions for unemployed beneficiaries under National

September 26, 2023

Jobseekers will also have to reapply for the benefit every six months. (Source: 1News)

National has pledged to introduce more sanctions for unemployed beneficiaries who "persistently" do not meet benefit obligations.

The sanctions could include mandatory community work experience of up to three months, benefit suspensions or reductions, and Work and Income having a greater role in managing a beneficiary's money.

National would also require jobseekers to reapply for the benefit every six months, require documented proof of job applications and interview attendance to continue receiving the benefit, and impose a one-month benefit stand-down for people evading arrest warrants.

It would also index benefits to inflation to align them with the rising cost of living.

National's social development spokeswoman Louise Upston made the announcement today at a strawberry farm in Auckland's Kumeū, alongside leader Christopher Luxon.

Upston said for those able to work, employment was the best way out of hardship.

National leader Christopher Luxon and social development spokesperson Louise Upston.

"It provides individuals and families with greater independence, choice and opportunity, and is also better for taxpayers.

"However, under Labour, benefit dependency has surged. There are now almost 60,000 more people on a Jobseeker unemployment benefit compared with when National left office six years ago, and 35,000 more people who have spent a year or longer on a Jobseeker benefit."

She said the reason for that surge was because Labour removed "clear consequences for jobseekers who don't fulfil their obligations to prepare for or find work".

"In the 12 months to June this year, the number of sanctions applied to jobseekers who breached their obligations was around half the number applied in National’s last year in office, despite a 45% increase in the number of jobseekers since then."

She said while New Zealanders would always give a "helping hand to those who need it", taxpayers were "rightly concerned" about the number of people on the jobseeker benefit having grown while jobs were allegedly plentiful.

"Those who can work, should work. National will introduce a traffic light system, making it crystal clear to unemployed people receiving a jobseeker benefit what their obligations are, and what consequences they will face if they refuse to do their bit.

"At the red level, new sanctions include money management, with Work & Income New Zealand having a greater role in managing a beneficiary's money, mandatory community work experience of up to three months, as well as financial sanctions including benefit reductions or suspension."

There were three strikes of not meeting obligations to "prepare for or find work" to reach red level.

"We will retain the existing rule that jobseekers with children can receive no more than a maximum 50 per cent reduction of their benefit payment, if they are sanctioned," Upston said.

"The jobseeker benefit is designed to temporarily support people while they find work. WINZ will help them do that. Today's announcements will encourage jobseekers to meet their obligations to be actively seeking work while receiving the Jobseeker unemployment benefit.

"We want everyone who is able to work having the opportunity to do so with support, where necessary, from an employment-focused welfare system.

"A National government will rebuild the economy so it works for all New Zealanders and ends the cost of living crisis. We will provide tax relief, restore law and order, and improve education and healthcare.

"This plan builds on National's Welfare that Works policy to use community providers, clear obligations, and targeted incentives to get young people off welfare and into work."

National's Jobseeker benefit traffic light system

  • Green (compliant) – Meeting obligations to prepare for or find work. No change to benefit
  • Orange (some risk) – First or second breach of obligations to prepare for or find work will see additional requirements and targeted support applied, e.g. more regular check-ins and/or attendance at job workshops
  • Red (high risk) – A third breach of obligations will result in sanctions including benefit reductions, benefit suspension, money management and mandatory community work experience

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