The Government has announced an additional 2500 beneficiaries a month will receive "work check-ins" from June, as it signals a wider "reset" of the welfare system with a stricter application of sanctions.
Additionally, Social Development Minister Louise Upston has told officials they should apply "obligations and sanctions" that already exist in beneficiary cases.
Upston announced the two changes alongside PM Christopher Luxon this afternoon. During her announcement, she also signalled a wider shake-up of the welfare system, including the introduction of a new traffic light system for beneficiaries.
She said: “From June, the Ministry of Social Development (MSD) will begin work check-ins for job seekers who have been on benefit for six months, particularly young people."
According to Upston, officials currently had only a "strong visibility over the 60,000" beneficiaries "who are receiving case management".
"MSD will proactively book the target cohort into work check-ins after 26 weeks, focusing on those who are work-ready, but do not have a dedicated Work and Income case manager.
Upston told media that the change would result in "an additional 2500 job seekers each month" reporting on their progress, with officials having a "check in on what they have been doing."
"These will be people who MSD currently has less visibility of In terms of whether they are regularly applying for jobs. These check-ins will make sure jobseekers are taking adequate steps to find employment and are getting the correct support".
Jobseeker Support recipients would be required to "attend as a work-testable activity in line with current legislation. Failure to attend will result in a breach of obligations and ultimately means a sanction could be applied," according to Upston.
"MSD will ensure attendees are advised of the requirement to attend these check-ins, and the consequences of non-attendance."
The work check-ins will cost $1.2 million each year and will be funded within the existing MSD budget, according to the Government.
Minister writes to MSD chief
The Social Development Minister has also written to the chief executive of MSD, outlining Cabinet expectations that the agency would be "actively using all levers available to encourage and support people off benefit and into work".
She told media: "I've made my expectations with the chief executive clear that we expect the graduated sanction regime, in place, to be fully utilised."
The Social Development Minister talks about the new government’s plans for welfare, with a rise in unemployment predicted in the coming months. (Source: 1News)
Upston said in a statement today: "I believe the previous minister set the tone for a lighter touch to benefit sanctions by saying they needed to be used ‘sparingly’ and as a ‘last resort’, dampening their effectiveness as an incentive to fulfil work obligations.
"I’ve written to the chief executive of MSD to make this Government’s view clear that we want to see all obligations and sanctions applied.
"If job seekers fail to attend job interviews, to complete their pre-employment tasks, or to take work that is available, then there needs to be consequences."
The Government says the changes so far are a precursor of a "wider reset of the welfare system" - based on pre-election National Party policy.
'Politics of cruelty' - Greens
Green Party social development spokesperson Ricardo Menéndez March called today's announcement "cruel".
“Sanctions do not work. They do not support people into meaningful employment, nor support them to participate fully in their communities. Taking away people’s incomes only makes it harder for people to get by."
He added: "For years, successive governments have been imposing requirements that make people’s lives harder - instead of the tailored support people need to find a job or retrain.
"After more than a decade of running work-readiness workshops, there is no decisive evidence to show they actually support people into good employment.
"Penalising people who are struggling does nothing to create decent jobs."
Meanwhile, Labour's social development spokesperson Carmel Sepuloni said: "The Prime Minister has spoken down to people on benefits before and today was no different.
"Unfairly assuming jobseekers are not wanting to embark on employment education or training pathways is unfair and out of touch.
"Rather than being stingy on the minimum wage and bashing beneficiaries, the coalition government should be focused on lifting incomes for the poorest New Zealanders.
"People deserve to be supported in to meaningful, long term employment, and sanctions will not do this."
ACT welcomes action on 'benefit exploitation'
ACT Party social development spokesperson Parmjeet Parmar welcomed the measures to target "benefit exploitation".
"Today the minister sent an important signal that if you can work, you should work. And if you rort the system, there will be consequences," she said in a media release.
“Greater use of existing sanctions is a first step toward a wider package of more substantial consequences for healthy long-term beneficiaries who evade work.
"ACT’s coalition agreement secured the commitment to implement sanctions, including electronic money management, for beneficiaries who can work but refuse to take agreed steps to find a job."
National's pre-election welfare policy
During the election, National 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.
Jobseekers will also have to reapply for the benefit every six months. (Source: 1News)
National also wanted to 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.
Upston said at the time: “New Zealanders will always give a helping hand to those who need it, but taxpayers are rightly concerned about the number of people on the jobseeker benefit having grown while jobs were 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."
National's Jobseeker benefit traffic light system plan
- 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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