Benefit sanctions surge by more than 50%

Social Development Minister Louise Upston. Photo: RNZ / Samuel Rillstone.

Beneficiaries are feeling the impact of the government's tougher stance - with the number of sanctions issued in the June quarter this year up more than 50 per cent on the same time a year ago.

The latest data from the Ministry of Social Development shows that at the end of June, 380,889 people are receiving a main benefit of some kind, up 8.3 per cent, or 29,130 people compared to June 2023.

Of those, 113,931 were receiving Jobseeker Support - Work Ready, up 14.8 per cent year-on-year.

Economist Shamubeel Eaqub says that's to be expected given the state of the economy and more increases are likely:

"It's only just begun."

Northland has the largest proportion of its population on Jobseeker of anywhere in the country, at 10.5 per cent.

NZ Council of Trade Unions policy director and economist Craig Renney says he expects numbers to increase steadily from here.

Treasury had forecast a total of 47,000 people losing their jobs between when the new government took office and the peak.

Renney says that's likely to be an under-estimate. About a third of those people will be expected to end up on a benefit, he says.

The data also shows an increase in the number of sanctions being applied to benefits, reducing what people are paid.

The government has warned it plans to take a tougher stance on beneficiaries who don't fulfil their work qualifications.

Social Development Minister Louise Upston says from June, there will be "work check-ins" for jobseekers who have been on a benefit for at least six months, "particularly young people" to "make sure job seeker beneficiaries are taking appropriate steps to find employment and are receiving the right help".

There were 10,389 sanctions issued in the June quarter, up 3630 or 53.7 per cent compared to June 2023.

The main reason for beneficiaries not meeting their work qualifications is not attending appointments including seminar appointments - for 6069 people - and failing to prepare for work, for 3360.

There are also 1797 graduated sanctions, such as a percentage reduction of a benefit, in place in June, an 81.5 per cent increase from a year earlier.

Green Party spokesperson for Social Development and Employment Ricardo Menéndez March says benefit sanctions will hurt people already struggling to make ends meet and limit their chances of getting out of poverty.

"This is the result of the Minister for Social Development's directive to sanction more beneficiaries. Louise Upston is more interested in punishing the poor than actually supporting people into meaningful work.

"There is no evidence that benefit sanctions help people get jobs or result in positive outcomes for families struggling to make ends meet. Worse still, the work seminars and meetings that beneficiaries are forced to comply with have not been shown to directly translate into people finding meaningful employment."

Renney says it's a huge increase and can reflect a "new cohort" of beneficiaries who are unfamiliar with the system.

Upston says the government is serious about supporting people into work and wants to have 50,000 fewer people on Jobseeker Support by 2030.

"Our work is not done, and with Jobseeker numbers forecast to keep rising until the start of 2025, more changes are coming to support people into jobs as we rebuild the economy.

"We are focusing on under-25s because they tend to have less work experience and are at greater risk of getting stuck on welfare for longer. Supporting them now is crucial for enhancing their long-term job prospects.

"It's important that job seekers are also doing everything they can to be as work-ready as possible. The rise in those being sanctioned for not attending appointments and failing to prepare for work is concerning and demonstrates the need for our reset to ensure they know what is expected of them."

-RNZ.

6 comments

We can only hope....

Posted on 19-07-2024 09:56 | By groutby

...those defaulting on their agreed obligations when initially receiving such benefits will now step up and accept the 'hand up' and not 'hand out' mentality. Many are directly affected by job loss and will doubtless be keen to rejoin the workforce as soon as possible and contribute again, but many will not, be it perhaps due to lack of drive or morals sadly not installed in earlier years or simply finding survival is possible somehow on benefits received and the longer that goes on for the more embedded such behaviour becomes.
Covid is no longer an excuse now, however the behaviour lingers in many....'work ready' means exactly that....contributing to the country and workforce adds to self esteem and the entire future of those concerned....please....step up...!


A hard line.

Posted on 19-07-2024 14:24 | By morepork

There's a hard line between genuine need and "working the system". Benefits are not subject to the attitude of beneficiaries. Most of the current generation believes they will be "looked after" whether they deserve to be or not. There's no need to attend seminars because they have no intention of working anyway. The world (actually, the rest of us who pay tax) owes them a living.
I asked a taxi driver in Sri Lanka how hard it was for him to make a living. His reply: "I have two arms, two legs, and a brain. As long as I have those, my wife and kids will never starve."
An amazing attitude from a happy man.
Suppose we changed support for temporarily unemployed able-bodied people, so that, for every dollar they earned by their own effort we gave them another, and they did attend seminars... ?


@ morepork

Posted on 19-07-2024 18:55 | By Yadick

Absolutely BRILLIANT IDEA. Love your idea for temporarily, able-bodied people but personally I'd prefer to see .50c for every dollar earned plus attendance at required seminars, meetings etc. The savings for New Zealand would be absolutely millions of dollars.
You should send that to Louise Upston. The potential is massive, it's exciting, it's positive and it's motivational for the recipient/s.
That is without a doubt, the best benefit idea I have heard of. I love it.


@Yadick

Posted on 20-07-2024 13:33 | By morepork

Thanks, I am blushing :-) You realize that posts like that simply encourage me? :-)


@ morepork

Posted on 20-07-2024 20:23 | By Yadick

You're welcome. Now take the vision further. The potential is genuinely massive.


@Yadick - Louise Upston

Posted on 21-07-2024 21:25 | By morepork

I'm sure she's a very busy lady but I mailed her the link to this article and comments. Even if it stimulates some ideas for her department, I guess it will do no harm. I'm not expecting any reply... :-)


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