The government has introduced stricter rules for people receiving benefits, with new measures to ensure they meet their work obligations. These changes were announced by Prime Minister Christopher Luxon and Social Development and Employment Minister Louise Upston after a Cabinet meeting in Auckland.
Thank you for reading this post, don't forget to subscribe!Key Changes Announced:
- Longer Penalty Periods: If someone fails to meet their obligations, it will now count against them for two years instead of one.
- Reapplication Requirement: Those receiving Jobseeker Support will need to reapply every six months.
- Jobseeker Profile Requirement: All beneficiaries with work obligations must have a jobseeker profile before receiving their benefit.
- Payment Card for Essentials: Half of the benefit will be loaded onto a card that can only be used for essential products and services.
- Community Work: A new sanction requiring beneficiaries to do community work to help build skills and confidence.
Traffic Light System
The traffic light system, first announced in September, comes into effect today. This system categorizes beneficiaries based on how well they are meeting their job-seeking obligations:
- Green (Compliant): Beneficiaries who are meeting their obligations will see no change to their benefits.
- Orange (Some Risk): Those who have breached their obligations once or twice will face additional requirements, like more frequent check-ins or job workshops.
- Red (High Risk): A third breach will lead to more serious consequences, such as a reduction in benefits, suspension of benefits, money management requirements, or mandatory community work experience.
Government’s Position
Minister Upston emphasized that the government will not tolerate people who receive Jobseeker Support but do not actively look for work. She said that the welfare system is meant to be a safety net, not a long-term dependency, and that it’s unfair for taxpayers to support those who aren’t trying to find employment.
Criticism from Labour Party
Labour Party Leader Chris Hipkins criticized the government’s approach, arguing that the new sanctions would make life harder for people on benefits, keeping them in poverty rather than helping them find work. He believes the government should focus on creating more jobs instead of punishing beneficiaries.
The Goal
According to Upston, the goal of these new measures is to encourage beneficiaries to take their work obligations seriously and to improve their chances of finding a job. She acknowledged that the job market is tougher now, but insisted that there are jobs available, and that people need to take steps to improve their job prospects, such as retraining or upskilling.
The government will introduce legislation to expand the traffic light system by November, with the changes expected to take full effect by early 2025. TIN Bureau