The new non-financial sanctions have been added following select committee hearings on the bill. They are:
Report job search – where job seekers will be required to perform a minimum of three job-search activities every week for four weeks and report back to the Ministry of Social Development (MSD).
Upskilling – where job seekers will be required to attend, participate, to MSD’s satisfaction, in one or more employment-related training courses or programmes for a minimum of five hours per week over a four-week period.
Social Development and Employment Minister Louise Upston says sanctions are about ensuring there is accountability in the welfare system.
“It’s important beneficiaries who can work are taking reasonable steps to re-enter the workforce or remain work-ready, and that consequences exist for those who don’t.
“These new sanctions will ensure there is accountability in the welfare system for those who aren’t taking reasonable steps to seek employment while also recognising that reducing benefits isn’t the answer for everyone.”
Prime Minister Christopher Luxon (left) and Social Development and Employment Minister Louise Upston. Photo / Mark Mitchell
The traffic light system applies to people who receive a benefit with work or social obligations, such as Jobseeker Support. They are given a green, orange or red status.
The orange category means the person is on their first or second obligation breach and does not have a good reason for the transgression. If they don’t comply within five working days, they will move to red. Once someone is classed as red, they are sanctioned.
Last year, when the Government introduced the traffic light system, it also unveiled new “money management” and “community work experience” sanctions that come into effect later this year.
At the time, it declared there would be “no more excuses” for beneficiaries not knowing what their responsibilities are, vowing to take a “harder line” with sanctions under a new traffic light system.
Labour leader Chris Hipkins said the harsher sanctions were “kicking people when they’re down” and benefit-bashing.
Green Party social development and employment spokesman Ricardo Menendez March said the Government was inflicting “pain and misery” on people in poverty with “cruel policies”.
The people the sanctions affected deserved to live in dignity with access to the support they needed, he said.
The financial sanctions are only targeted at some beneficiaries, such as those with dependent children or people under case management who are facing their first obligation failure.
Everyone else will continue to face financial sanctions.
Under the money management sanction, half of a person’s benefit goes onto an electronic payment card that can only be used at approved stores to purchase essentials.
The community work experience sanction requires the person to find and complete work experience at a community organisation before the sanction is lifted.
Julia Gabel is a Wellington-based political reporter. She joined the Herald in 2020 and has most recently focused on data journalism.
