In today's headlines with Wilhelmina Shrimpton, SH1 reopens after fatal crash, Uber ruling benefits all drivers and PM heads to Tonga.
New targets have been announced to ensure Jobseeker beneficiaries are prioritised when applying for the Government’s employment schemes.
Minister of Social Development and Employment Louise Upston says far too many people who are not on the Jobseeker benefit are accessing support through employment schemes.
These schemes include Manain Mahi and Flexi-wage, which provide wage subsidiaries and funding for training to employers who take on an eligible employee.
Upston described the targets as putting beneficiaries “first in the queue for help”. The targets would partly guide how the $1.1 billion available for the Ministry of Social Development’s employment support schemes would be spent.
“Non-beneficiaries will still qualify for employment support, but we don’t want those most at risk of long-term welfare dependency missing out.”
"We need to make sure these resources are being spent on those with the greatest need", says Social Development and Employment Minister Louise Upston. Photo / Mark Mitchell
Speaking to reporters at Parliament this afternoon, Upston conceded the targets “may” lead to more people ending up on the Jobseeker benefit who may have otherwise accessed the employment schemes.
“The focus for us is those who are on the Jobseeker benefit, who are receiving taxpayer support, deserve to be first in line.
“When Mana in Mahi was launched by the previous Government, it was aimed at people who had been on the Jobseeker benefit for six months or more.
“That’s not what has been happening in recent times, which is why we want to focus it on those who are currently on the Jobseeker benefit and at risk of being on it long term.”
Upston said the Mana in Mahi programme costs the Government around $17,000 per person and such resources should be spent on those with “the greatest need over those capable of obtaining work without it”.
Labour’s Willie Jackson, who oversaw Mana in Mahi when he was Employment Minister under the previous Government, said it was $17,000 well spent.
“It was one of our most successful programmes, I was proud to oversee it, alongside He Poutama Rangatahi [a Māori trade initiative]. It just seems that they [the Government] are going down the punitive track all the time.”
Labour's Willie Jackson, who was Employment Minister during the previous Government. Photo / Mark Mitchell
Jackson told reporters the information he received when he was Employment Minister indicated the programme was preventing people going onto the Jobseeker benefit.
“It takes time for some of these young people – sometimes they need a second, third or fourth chance.
“Mana in Mahi stands out for us, one of the most outstanding programmes we’ve put in. We always felt it was money well spent – it takes time. If you want instant results, then don’t roll the programmes out.”
Earlier this month, Upston unveiled a new traffic light system for beneficiaries. Under the scheme, people who receive a benefit with work or social obligations, such as Jobseeker Support, will be given a green, orange or red status depending on their compliance with their obligations.
Prime Minister Christopher Luxon and Social Development and Employment Minister Louise Upston during a post-Cabinet press conference earlier this year. Photo / Mark Mitchell
Once someone is classed as red, they are sanctioned. This could include their benefit being reduced or stopped. New sanctions are being introduced next year for certain benefit recipients.
At the time, Upston also announced new sanctions to come into force next year for some beneficiaries, such as those with dependent children or people under case management who are facing their first obligation failure.
Under the money management sanction, half of a person’s benefit goes on to an electronic payment card that can only be used at approved stores to purchase essentials.
Meanwhile, the new community work experience sanction will require 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.
