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Home / New Zealand

Benefit sanctions rising across New Zealand

NZ Herald
27 Jul, 2017 09:52 PM3 mins to read

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Green Party co-leader Metiria Turei is questioned by the media at Parliament this week after her surprise admission of lying to WINZ in the 1990s. Photo/Mark Mitchell

Green Party co-leader Metiria Turei is questioned by the media at Parliament this week after her surprise admission of lying to WINZ in the 1990s. Photo/Mark Mitchell

Work and Income is imposing an increasing number of sanctions on beneficiaries.

The total number of sanctions - including cuts and cancellation of benefits - increased by 8 per cent across the country in the last year alone.

Sanctions were imposed on beneficiaries for a number of reasons, including missing appointments, not participating in work or not providing all necessary information.

Beneficiary fraud has been under scrutiny in recent weeks after Greens co-leader Metiria Turei admitted she lied to Winz when she was a beneficiary in the 1990s.

Ministry of Social Development spokesman Mike Bryant said the rising number of sanctions was likely due to an increased focus on getting clients into work.

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"In the last quarter, there has been a slight increase in the number of benefit sanctions imposed across the country.

"Part of this increase is because our staff are spending more time having work focused conversations with people."

MSD spokesman Mike Bryant
MSD spokesman Mike Bryant

Sanctions could result in benefits being cut, suspended or cancelled entirely.

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The most common reason for a sanction was missing appointments, followed by failure to prepare for work, and failure to participate in work.

Beneficiary advocate Jeremy Roundill said he believed Work and Income staff were given targets to impose a certain number of sanctions.

"I have been told both that it is a national target, that it's set at a regional level and that it's set at a service-centre level.

"MSD isn't forthcoming with information, so it's difficult to know for sure, but I'd suspect that there's a nationwide number set at the ministry level, and the regional offices are the ones who set the KPIs for case managers in each office.

"In my experience, Work and Income cut benefits unlawfully more often than not."

Bryant said there were no sanction-related targets for Work and Income staff and the process for imposing them was the same across the country.

"Sanctions are just one way we work with clients to engage with us. They are not designed to be punitive and there are no targets for applying sanctions.

"We always try to ensure it's appropriate and that we adhere to all the relevant guidelines when doing so."

The number of sanctions imposed differed hugely in different parts of the country.

In the Bay of Plenty, about 2000 of the region's 20-25,000 beneficiaries received sanctions each quarter for the last two years.

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"We work positively with clients and have very few issues with the sanction process," Bryant said.

"[Bay of Plenty] sanction numbers are in line with other regions such as Waikato, who have a similar number and proportion of clients on the different benefit types."

Fewer than 1000 beneficiaries in Northland were sanctioned in each of the first two quarters of 2016, but the number increased by 50 per cent in just one year.

The total number of beneficiaries in New Zealand has fallen over the last three years, from 293,586 in mid-2014 to 276,331.

There were 4000 fewer people receiving main benefits in New Zealand in the June quarter than one year earlier.

Main benefits include Jobseeker Support, Sole Parent Support and the Supported Living Payment.

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Sanctions increased by 12 per cent over the last year for those receiving Jobseeker Support.

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