New Benefit Rules To Encourage Job Seekers Into Employment

• New benefit reforms aim to move more people from Jobseeker Support into employment.
• Traffic Light System and tougher sanctions introduced to enforce job-seeking obligations.
• Government targets reducing Jobseeker Support recipients by 50,000 by 2030.

A comprehensive package of benefit reforms announced today seeks to encourage more Jobseeker Support recipients into employment by introducing stricter requirements and consequences for those failing to meet their obligations.

Social Development and Employment Minister Louise Upston revealed that the reforms include a new Traffic Light System, effective immediately, designed to clearly inform beneficiaries of their responsibilities under the current system and warn them if they are not meeting 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,” she stated.

Cabinet has also approved several new measures to be introduced early next year, which will further increase the obligations and consequences for Jobseeker Support recipients:

• Extending the period 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
• Introducing a new money management sanction, with half of the benefit placed on a restricted-use payment card
• Implementing a new community work experience sanction to help beneficiaries build skills and confidence for employment

One of the key changes is a new money management sanction, aligned with a National-ACT coalition promise, where half of a person’s benefit will be loaded onto a payment card that can only be used for essential products and services. Additionally, a new community work experience sanction will be introduced to help beneficiaries build their skills and confidence to secure employment.

“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,” Upston added.

She also pointed out that the number of people on Jobseeker Support had increased by 70,000 under the previous government, with nearly two-thirds of these beneficiaries receiving support for over a year. Upston emphasised that the government would not tolerate people who refuse to seek employment while receiving Jobseeker Support. “It is not fair on hardworking Kiwis who pay their taxes that go towards those benefit payments,” she said.

The government aims to reduce the number of Jobseeker Support recipients by 50,000 by 2030, which is expected to save the country $2.3 billion in welfare payments.