Social welfare changes: Government reveals tough new traffic light system for beneficiaries
The Government has announced a new traffic light sanction system for beneficiaries who do not meet their obligations.
Some of the harshest penalties under the traffic light system include the beneficiary having half their benefit put on a payment card that can only be used to purchase a limited range of essentials.
Prime Minister Christopher Luxon and Social Development and Employment Minister Louise Upston announced the changes from Auckland following the Government’s Cabinet meeting.
STORY CONTINUES AFTER LIVE BLOG
Benefit losses
Scott Palmer
In the last quarter, around 1500 people had lost their benefit.
Upston was not sure where they had gone, or what had happened to them in terms of support once they had lost their benefit.
Olympics welcome
Scott Palmer
On the Olympics and whether there would be a special welcome to those returning home, Luxon said that was difficult as they don't all come back together at the same time.
Gun law changes
Scott Palmer
On the Police Association's open letter to Luxon over Minister Nicole McKee's proposed gun law changes, Luxon said he thought she was doing a good job and she "balanced safety incredibly well".
"She has a deep firearms background."
Money management sanction
Scott Palmer
Upston said the money management sanction was the same amount of money but with less freedoms.
The money management tool will be introduced next year.
"It is a sanction, it's a consequence of not complying with their actions," Upston said about the money management tool.
Jobseeker support crackdown
Scott Palmer
Those on Jobseeker support will need to re-apply every six months.
It will be mandatory for new Jobseekers to create a profile, which includes details such as their job preferences, before getting their benefit.
Upston said the welfare system would based on the "clear expectation" that those who can work, should work.
On the electronic management plan, this would be applicable across other benefit types beyond the Jobseeker benefit.
The focus was Jobseekers, she said.
Luxon said the vast majority of people were fully compliant.
'Harder line' on jobseeker failures
Scott Palmer
Social Development Minister Louise Upston said the Government would be taking a "harder line" for people who repeatedly fail their obligations by extending the period over which an obligation failure counts against a beneficiary from 12 months to two years.
Traffic light system in force
Scott Palmer
The vast majority of Kiwis on Jobseeker benefits were trying hard to find a job and meet their obligations, Luxon says.
From today, a new traffic light system will be in force. All beneficiaries required to be looking for work will be categorised under the green, yellow or red sections of the system.
Luxon says measures will combat welfare dependency
Scott Palmer
Prime Minister Christopher Luxon says today's announcement would be a step towards breaking "the shackles" of welfare dependency.
"Employment is always going to offer people and their families more opportunities ... than welfare will."
"We will do everything we can to support people off welfare and into work."
Cabinet agrees to increase consequences for job seekers
Scott Palmer
Cabinet has also agreed to progress a suite of new initiatives to increase obligations and consequences for job seekers from early next year. These include:
- 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
Legislation enabling the changes is expected to be introduced by November and start coming into force from early next year.
Louise Upston says 'responsibilities' come with receiving benefit
Scott Palmer
Social Development and Employment Minister Louise Upston said the system would inform people what was 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.”
Government announces new traffic light sanction system
Scott Palmer
The Government has announced a new traffic light sanction system for beneficiaries who do not meet their benefit obligations.
Some of the harshest penalties under the traffic light system include the beneficiary having half their benefit put on a payment card that can only be used to purchase a limited range of essentials.
There is also a new community work experience sanction requiring certain sanctioned beneficiaries to find and complete work experience with a community organisation.
The traffic light system is effective from today.
Luxon, Upston make social welfare announcement
Scott Palmer
Prime Minister Christopher Luxon is expected to make a social welfare announcement this afternoon from Auckland following the Government’s Cabinet meeting.
Luxon will be joined by Social Development and Employment Minister Louise Upston.
Upston has recently announced several reforms and changes to the social welfare system, including ramping up the threat of sanctions for Jobseeker beneficiaries not fulfilling their obligations. In May, Upston announced a new requirement for these beneficiaries to attend a seminar within a fortnight of their benefit starting.
Those who didn’t comply could be sanctioned – have their benefit cut – unless they had a good reason. The Government has made its stance on sanctions clear, saying they should be applied “fully” rather than used sparingly.
While the Government says it has seen enough evidence more sanctions will be effective in getting people into work, Greens and Labour have argued the opposite, echoing findings from the Welfare Expert Advisory Group who deemed sanctions to be “problematic” and ineffective at getting beneficiaries into work.
Green Party social development spokesman Ricardo Menéndez March said the Government was quickly building a legacy of cruelty.
“We have yet another measure to penalise the poorest people. It is a symptom of the politics of cruelty that is driving this coalition’s policies and steering New Zealand backwards.”
Earlier this month, Upston also announced an increase in the number of places available for young people in community-led programmes that provide job coaches. Upston said just under $10 million will be spent on expanding the number of places in these community-led employment programmes from 5400 to 7500.
