A comprehensive package of reforms to the benefit system unveiled today will shift more people off Jobseeker Support into employment and introduce tougher consequences for those who repeatedly do not meet their benefit obligations.
Social Development and Employment Minister Louise Upston says a new Traffic Light System comes into effect today to inform people what is required of them to continue receiving a benefit under the current system and warn them when they are not meeting those expectations.
“There are responsibilities that come with receiving a benefit, and there will be no more excuses for job seekers not knowing what those responsibilities are.”
Cabinet has also agreed to progress a suite of new initiatives that will increase obligations and consequences for job seekers from early next year, including:
- Extending the period over which an obligation failure counts against a beneficiary from 12 months to two years
- Requiring Jobseeker Support recipients to reapply every six months
- Making it mandatory for all beneficiaries with work obligations to have a jobseeker profile before their benefit is granted
- A new money management sanction that will see half a person’s benefit go onto a payment card that can only be used for a limited range of essential products and services (fulfilling a National-ACT coalition commitment)
- A new community work experience sanction that will require beneficiaries to build their skills and confidence to help them get a job
“These changes come with increased support in the form of a new phone-based case management service for 4000 job seekers aged 18 to 24, and 2100 extra places for young people to get community job coaching,” said Upston.
“Our welfare system will always be a safety net that catches people if they fall. But in the past few years it has become a drag net that has captured too many people who can work and allowed them to languish on Jobseeker Support for too long.
“The number of people on Jobseeker Support increased by 70,000 under the previous government as the use of sanctions significantly decreased, and almost two-thirds of the people receiving this benefit have been for over a year.
“Our Government will not tolerate people who accept the Jobseeker Support benefit but refuse to uphold their obligation to seek a job – it is not fair on hardworking Kiwis who pay their taxes that go towards those benefit payments.
“We will continue supporting those who permanently or temporarily cannot work. But our expectation will be that those who can work should be taking reasonable steps to find a job, and those who don’t will face consequences.
“The use of sanctions has risen notably since we came into Government. The June quarter saw about 3700 sanctions of either reduced or suspended benefits compared to the same period in 2023. About 97 per cent of sanctions were applied to Jobseeker Support recipients with the main reasons being people not attending appointments or failing to prepare for work.
“Our Welfare that Works approach will increase obligations for job seekers and ensure they are being actively supported rather than getting stuck in the system.
“A harder line will be taken against those who repeatedly fail their obligations by counting past failures for twice as long, making it more likely their benefits will be cancelled if they continue this behaviour for longer than 12 months.
“Our new money management and community work experience sanctions will provide an alternative to financial penalties for first-time obligation failures in situations where this will help a job seeker onto a more productive pathway.
“Reapplying for Jobseeker Support every six months will allow MSD to check on job seekers more often and provide a greater level of support to overcome their barriers to work, while also ensuring they are still eligible for benefit.
“Having job seekers provide their work experience, qualifications and job preferences before their benefit can be granted will allow MSD to have earlier work conversations and connect people to its job vacancies straight away.
“These changes are critical components of the Government’s efforts to support people into work and have 50,000 fewer people on Jobseeker Support by 2030, which is forecast to save the country $2.3 billion in welfare payments.”
Image credit: Jametlene Reskp
Far canal what a mess.
Why? Don’t you think if people are going to receive money for nothing there should be some obligation to do something productive in return?
I know some losers who have been on a benefit for over 10 years, both under the age of 50, both have skills and could work but would rather not. One spends all her money on drugs and alcohol. Why should they be allowed to continue this grift?
Hopefully this will apply to sickness benefits as well.
Nz borrows 250 million per week.
The whole country is on the dole.
Has been since keys.
Why would anyone obey those who commit murder?
We see the dead. We know the jab did it.
Why would you support your country that just tried to kill you?
Response to first paragraph;
‘Money ain’t for nothing, chics for free’= Dire Straits
The Sickness Benefit should be bolstered and not be touched, as those using the same are sick!
What jobs?
Ghost jobs data harvesting
It’s only just beginning
Here we go, the old Tories are nothing if not predictable. They can hand millions of our tax payer dollars to the Kiev regime, who are loaded down with Neo Nazi’s and attack civilians, tacitly support Israel, again at our expense but the poor, homeless and unemployed, “let them eat gorse!”.
Yes make sure you sharpen your job seeking skills for work that “doesn’t exist” unless you leave and go to Australia. Maybe the family can lend you the money for the flight? That way you let the wasteful political mismanagers here in NZ off the hook and they can go on being wasteful.
Suffice to say anyone voting mainstream, in my view, is a fool.
No doubt it will be the same corporations which were open during lockdown which will be dolecard agents.
Another attack on small business.
$100 on a card only represents $40 food.
Half is profir and then taxed.
This is merely funnelling govt funds directly into the corporations using the vulnerable and debased as posties.
Typical kind of assault we would expect from a treasonous murderous infestation such as we have.
I want accountability from them.
I want them vetted.
I want their benefits cut.
Where is this?
Exactly
The only idea that is feasible in this is contained in the fourth ‘bullet point’…
The fifth ‘bullet point’ basically relates to a beneficiary providing free labour as a ‘volunteer’. The rest of the world has a name for this- SLAVERY!
Government should adopt the 99 Week program as in North America, as during that time frame, one has to look for a job twice a week, OR-
Be enrolled in re-training into another profession or skill during those 99 weeks, where Grant Money, Scholarships and Student Loans are available.
Veterans use their G.I. Bill for the cost to re-train, while getting the Unemployment Benefit.
Even after you complete the re-training, there is no guarantee of getting and finding a job in the ‘Gig Economy’ that preceeds a Klaus Schwab-style of living under the ‘Great Reset’ of ‘owning nothing and being happy’..
The streets of major cities in the U.S. are lined with tents, tarps, pallets and worn-out caravans inhabited by those who ‘re-trained’ and / or ran out of their 99 Week benefit.
The related article in the DT titled ‘You Might Own Nothing Sooner Than You Think’ has a direct bearing on the above article.
Just wait until the Force Majeurs happen when mortgages are called in or the security is NOT released on your property where the mortgage was paid off some time ago.
Until you release the ‘security’ that the Bank holds on your paid-in-full’ property, you will still lose your property!
Watch the crime rate jump now…
Young people dont want to be slaves to the system anymore…they have clicked they will never afford housing..now they work they will just be time poor also
They’re lazy. There are still opportunities for those prepared to work and make sacrifices. There’s no doubt houses are overpriced BUT there are ways if someone is determined.
I have been at stages in my life where I have worked 2 jobs. Cooking your own food, getting flatmates, having a side hustle, having a fire instead of a heatpump, buy a house with someone else, live with your parents, buy a house and rent it out……it’s doable IF people can rein in their lifestyle.
There is plenty of work in NZ. Those who have next to no qualifications cannot expect to have the salary of a surgeon. I am well over 50 and have had the same employment for the last 16 years since returning to NZ. I see jobs everywhere. Just look on TradeMe for example. If one applies themselves anything is possible. There is no reason to turn to crime. Cannot blame any particular race for their successes.
I agree there are still jobs however people have closed their wallets so many low skilled jobs may be cut however there still are plenty of jobs if we stop employing foreigners.