Social Development and Employment Minister Louise Upston says she wants to be known as “compassionate” rather than kind in the role, while pushing back on the rhetoric the right engages in “beneficiary bashing”, calling the comments “absolute rot”.
Upston was destined to take on the role after the 2017 electionhad National emerged victorious but instead, Labour came into Government and Carmel Sepuloni spent six years at the helm.
Labour initially undid some of National’s approach of the previous nine years - particularly around sanctions - while undertaking a major review of the welfare system through the Welfare Expert Advisory Group. Sepuloni also introduced a culture change wanting to create a “friendlier, warmer” environment.
Upston said she was not promising any radical changes but wanted the social welfare system to have a stronger focus on getting people into work - something she relayed to top officials in her first day on the job.
“If you look at the principles of the Social Security Act, it is about a focus on work, or if you can’t work at the moment, preparing for work. And that’s not a left or right issue, because that’s been the same for decades.”
The two terms of the Labour-led Government, and in particular the most recent, saw relatively low levels of unemployment but at times high levels of people on the Jobseeker benefit, with the obvious influence being the Covid-19 pandemic and subsequent economic impacts.
The number peaked in December 2020 at 212,466 people, before dipping in 2021 and 2022. There are currently just over 170,000, people which while down is still about 50,000 people higher than when Labour came into Government in 2017.
Louise Upston and Chris Luxon speak to media about the plan for Jobseeker beneficiaries. Photo / Michael Craig
This rise in benefit numbers alongside a significant decrease in sanctions, which was being applied at about half the rate as the previous National-led Government, had been a key source of criticism from Upston in Opposition. She had been particularly critical of the fact the number of people who had been on benefits for long periods of time was growing.
Labour responded that there were record numbers of people coming off benefits and into work and argued that there was no evidence sanctions were effective.
Upston said she thought the period of low unemployment was a “missed opportunity” to link employers desperate for workers with those on Jobseeker benefits.
“It’s a disgrace. There have been massive opportunities when there have been businesses everywhere desperate for staff.”
Upston said her view of the welfare state was that it should “always be a safety net”, but it was also about supporting people into a better set of circumstances.
“I want the word people describe me as to be compassionate, rather than kind. Because compassion indicates that actually... it takes something for people to move past the challenging circumstances [and into work], but it is not impossible.
“I accept there will be people supported by the welfare state who are never able to... But there are many who with the right support... can become less dependent. That’s the shift for me.”
It was that approach Upston said was behind National’s “Welfare that Works” policy and “traffic light system” to be applied to benefit sanctions.
“You can’t have rights without responsibilities. I want to make sure that people who are receiving the Jobseeker benefit, it’s easier for them to know what they need to do to help themselves.”
Under the traffic light system, after two breaches (orange) of benefit requirements there would be more regular check-ins and guidance while after three sanctions there could be benefit cuts or suspension, money management and mandatory community work experience introduced.
Upston pushed back on comments from the left that the right was “beneficiary bashing”.
“That is absolute rot. I will work harder, and try harder to make sure that people with challenges have greater opportunities in life. I’m not going to just let them stay stuck.”
Other policies include a bonus payment of $1000 for under-25-year-olds who have been on the Jobseeker benefit for longer than a year who find work and remain off a benefit for 12 months, alongside Act’s policy to have doctors confirm whether a person on a sickness-related benefit has the capacity to work.
Upston said they would also review all Ministry of Social Development initiatives, and those run in the community, around encouraging people into work, along with introducing targets to see which are most successful and can be replicated.
On Labour’s legacy, Upston said the work of the Welfare Expert Advisory Group was not totally dead, as she would be taking advice on policies that met their objectives around work.
Upston said there was common ground among the three coalition parties in concern about long terms on benefits and more focus on supporting people into work.
The Government was committed to child poverty reduction targets, for which Upston is responsible, but she said there would also be a greater focus on those around having parents in work and off benefits.
Upston said the same was true of the Working for Families review and she would seek advice on aspects related to work.
On the campaign trail, first Labour, followed by National, pledged to raise the abatement rate from $42,700 (set in 2018) to $50,000 in 2026, which was still well below inflation.
Upston said scrapping that policy was a consequence of the coalition negotiations, but she was still interested in looking at it.
