Paula Bennett has overruled her department and ordered unemployment benefits to be continued over Christmas.
About 2000 unemployment benefits are due to expire over the holiday period - some on December 25.
Work and Income has sent computer-generated letters to beneficiaries saying if they don't reapply and undergo a work assessment they will get the chop.
One beneficiary told the Herald on Sunday it was a "terrible Christmas present". But Bennett says this will now not happen.
"I have told Work and Income that there will be a week's grace period at Christmas."
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