Minister defends money management and community work benefit sanctions coming into force

Social Development Minister Louise Upston is defending the introduction of more sanctions for beneficiaries who don’t meet their obligations, despite uncertainty about their efficacy.

From today, people on a main benefit like Jobseeker Support could be hit with money management and community work sanctions if they fail to meet one of their obligations, which involve preparing for or looking for work.

The money management sanction would mean half of a person’s benefit would be put on a payment card for four weeks and could only be used at approved shops for groceries, transport, health, and education-related items.

The other sanction introduced today would require people to complete at least five hours of community work experience per week for four weeks.

Upston welcomed the sanctions as a “sensible move” while Act leader David Seymour lauded the money management sanction as an Act policy since 2017.

Social Development Minister Louise Upston is welcoming the new sanctions. Photo / Michael Craig

“If you don’t like the sound of having your benefit payments managed, then you’ll need to put the work in. Apply for jobs, show up for interviews, attend employment expos,” he said.

Earlier this month, RNZ reported Ministry of Social Development couldn’t say whether increasing benefit sanctions led to more people going into work.

The coalition Government had put a greater emphasis on benefit sanctions since coming to power amid its target to reduce benefit numbers.

Reducing the number of people on the Jobseeker benefit by 50,000 to 140,000 by 2030 was one of the Government’s public sector targets.

As of December, the number of Jobseeker beneficiaries had increased to 213,300 with the overall target considered at risk.

Upston, speaking to the Herald last week, accepted the trajectory was “pretty grim” but argued the efficacy of sanctions was hard to quantify given the number of touchpoints beneficiaries had with the system.

“In terms of hard evidence about sanctions only leading to that person exiting a benefit and into work, yeah, it will be difficult to do that.”

Upston said she had been pleased by the 98% of beneficiaries who were complying with their obligations and said the almost 4000 who weren’t immediately fulfilling them was a lower total than she expected.

“I’m very sympathetic for people at the moment who are looking for work, it is tough out there, but I want to ensure that when the economy is growing stronger, those who are on the Jobseeker benefit have taken the steps they need to, so they are better positioned to get a job when they’re available.”

Adam Pearse is the Deputy Political Editor and part of the NZ Herald’s Press Gallery team based at Parliament in Wellington. He has worked for NZME since 2018, reporting for the Northern Advocate in Whangārei and the Herald in Auckland.