Labour leader Chris Hipkins is clear in his view of the Government's plan to apply sanctions more strictly for people on the job seeker benefit: It won't help.
Prime Minister Christopher Luxon yesterday hit out at the work of previous Labour governments in that area, defending his government's plan to "reset" the job seeker welfare system.
The Government this week announced an additional 2500 beneficiaries a month will receive "work check-ins" from June. Officials have also been urged to apply "obligations and sanctions" that already exist in beneficiary cases.
"We know that sanctions don't work," Hipkins said.
"Yes, we had fewer sanctions than the previous National government — because actually, when the previous National government were applying sanctions willy-nilly as they did, they didn't actually work in reducing welfare dependence."
He said that "simply beating them with a stick" won't make persistently unemployed job seekers find sustainable employment.
"That's not the outcome we should be looking for," Hipkins continued.
"The vast majority of people who are on job seeker benefit, it's a very short-term measure.
"They've got a good work ethic, they're very conscientious New Zealanders, and they don't want to ultimately be on a benefit any longer than they need to be."
'It's broken' - Youth support worker on job seeker system
Aaron Hendry from Kick Back said more investment in support services is needed. Thanks both (Source: Breakfast)
A 21-year-old man who was jobless and homeless for more than two years told Breakfast: "It really makes you feel like there's no point to anything. It makes you feel very hopeless.
"Even if I had been given an interview and been employed, I don't think I would've been able to keep the job, just because it's not practical — like, you know, the things that I was having to do day-to-day because I was homeless and because I was struggling.
"If you're homeless while you're young, honestly, it impacts your identity forever."
He said the Government's plan isn't going to help people in that situation.
Aaron Hendry, the founder of youth support organisation Kick Back, said more investment in support services is needed.
"We're hearing a lot about sanctions, how they're gonna punish people if they don't do what we think they need to do.
"But as we've just heard there, there's some real basic needs around housing, around mental health support, around just having the basics you need to survive, that aren't being provided for right now.
"And I haven't heard any plans around how we're gonna address those really important issues."
He said the system hasn't been working: "It's broken. It is harming people more than it is helping them.
"When you're experiencing homelessness, you're in survival mode.
"Sanctions are a very, very blunt instrument to deal with a whole range of really complex problems."
'A huge contribution' - Hipkins on Robertson
Hipkins also paid tribute to former finance minister Grant Robertson, who announced yesterday his resignation from politics.
"Grant is not just a valued colleague for me, he's also one of my closest friends," Hipkins said.
"He's made a huge contribution to New Zealand."
Hipkins reflected on his work alongside "big softie" Robertson: "He really does sweat the small stuff.
"Fundamentally, when we're talking about the economy, he knows we're talking about people.
"He always puts people at the heart of his decision making."
The former prime minister also heaped praise on Barbara Edmonds, Robertson's replacement as the party's finance spokesperson.
"The thing about Barb that's actually going to make her an outstanding minister of finance in the next Labour government is very similar to what I just said about Grant Robertson, she puts people at the heart of the economy.
"She understands what the economy is, she's probably the most qualified in that regard of any person who's auditioned for the role of Minister of Finance in New Zealand's recent history.
"But actually, as the sole breadwinner in a family of 10, I think she can see the economy from the other side as well."
Hipkins said that puts Edmonds in a "unique" position.
"She understands, having been at the highest levels of economic management, what that's all about — but she also understands on a day-to-day basis what it means for families."
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