³Ô¹ÏÍøÕ¾ will do more to get unemployed people off the Jobseeker benefit and into suitable work, including introducing more sanctions for those who persistently do not meet their benefit obligations, ³Ô¹ÏÍøÕ¾’s Social Development spokesperson Louise Upston says.
“For those who are able to work, employment is the best way out of hardship. 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 ³Ô¹ÏÍøÕ¾ left office six years ago, and 35,000 more people who have spent a year or longer on a Jobseeker benefit.
“One reason benefit dependency has grown substantially is that 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 ³Ô¹ÏÍøÕ¾’s last year in office, despite a 45 per cent increase in the number of jobseekers since then.
“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. ³Ô¹ÏÍøÕ¾ 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.”
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
³Ô¹ÏÍøÕ¾ will also:
- Require jobseekers to reapply for the benefit every six months
- Require documented proof of job applications and interview attendance a condition for continuing to receive the jobseeker benefit
- Impose a one-month benefit stand-down for people who are evading arrest warrants,
- Index benefits to inflation to align benefits with the rising cost of living
“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.
“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-focussed welfare system.
“A ³Ô¹ÏÍøÕ¾ 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 ³Ô¹ÏÍøÕ¾’s policy to use community providers, clear obligations, and targeted incentives to get young people off welfare and into work.”
