MSD doesn't know if benefit sanctions leading people into work, says aim is compliance
New data reveals the number of benefit sanctions for missed MSD appointments rose to 9042 in the March 2025 quarter - more than twice the 4356 in the same quarter last year.
Photo:
RNZ / Quin Tauetau
The Ministry of Social Development (MSD) cannot say whether an increased level of benefit sanctions is leading to more people going into work.
The agency says sanctions are designed to ensure compliance with benefit obligations, which then should help people find work, rather than directly helping people into employment.
The number of benefit sanctions for missed MSD appointments rose to 9042 in the March 2025 quarter - more than twice the 4356 in the same quarter last year. There were a total of 13,485 sanctions in the quarter this year, up 79.6 percent year-on-year.
Data released to RNZ after an Official Information Act request shows that in 2024, there were 3015 times that a client was sanctioned, then recomplied with their obligations and then left the benefit to work.
There were 210 times when a client was sanctioned and then left for work, then recomplied with their obligations. That could include people who found work and then ended up back on the benefit.
Graham Allpress, group general manager of client service delivery, said sanctions and obligations were one part of a broader picture that could contribute to a jobseeker finding work.
He said MSD could not provide data about sanctions that led to someone re-engaging and then finding work because they could not link the sanction and the person finding a job.
"People get jobs because they apply for them, and because they take steps to become ready for work.
"We use sanctions as a last resort if someone is not meeting their obligations, to encourage them to engage with us and get back on track by re-complying their obligations.
"In 2024, 92.8 percent of sanctions were lifted after the client re-complied with their obligations and got back on track. That is the purpose we use them for.
"If someone gets a benefit and they have work obligations, one of the main things they agree to do is regularly apply for suitable jobs. By meeting their obligations, they maximise their own opportunity to get a job and 'exit to work'.
"We are engaging with more jobseekers more frequently through proactive appointments and Kōrero Mahi seminars. Our support for jobseekers includes training, work assessments or work experience, and help with CVs and applying for jobs."
In 2018, the then-Labour government produced a paper on the effects of work-related sanctions.
It said that regimes less severe than New Zealand's were effective in increasing movement from benefits to work. But evidence from the UK and US was that very harsh sanctions could have adverse affects that drove people away from employment.
Isaac Gunson, spokesperson for the Child Poverty Action Group, said it was unlikely that so many more people had started missing appointments.
"What seems more likely is that MSD has become quicker to cut people off, despite the very real barriers many face in attending.
"These are people doing their best in tough circumstances. They may not have access to childcare, a working phone, or may simply be confused by the system.
"Pushing people off income support doesn't make the job market fairer or more accessible. It just assumes success is possible while unemployment rises and support systems become harder to navigate."
Shamubeel Eaqub said there should be clearer ways to determine whether sanctions were having the effect intended.
"How can we be confident they are doing their job?
"I have no problem with them pulling these levers if they're effective. If they're creating a better outcome then of course we should be doing it. But we shouldn't just punish people."
Sign up for Ngā Pitopito Kōrero
,
a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Scoop
10 hours ago
- Scoop
Call For CNMI Leaders To Fight Back On High Airfares
Article – RNZ The former representative shared his frustration after attempting to book a four-day roundtrip ticket from Guam to Saipan. Mark Rabago, RNZ Pacific Commonwealth of the Northern Marianas correspondent Former Northern Mariana Islands lawmaker Edwin K. Propst taken to social media to urge leaders to 'go to war' with United Airlines over what he claims are exorbitant airfares between Saipan and Guam. The call to action comes amid renewed efforts to reinstate the Essential Air Service program in the CNMI and push for a cabotage exemption. 'Attention all leaders of the Marianas in the public and private sector, it is time to go to war with this airline,' Propst wrote. The former representative, who now works at the CNMI broadband policy and development office, shared his frustration after attempting to book a four-day roundtrip ticket from Guam to Saipan in June – to find the lowest available fare was US$767. 'For a 25-minute flight?! 'They have just made record-breaking profits and instead of rewarding their customers, they increase their prices.' Propst called the airfares 'devastating' to the local economy and tourism. The CNMI is currently seeking exemption from federal cabotage restrictions, which bar foreign airlines from operating domestic routes between US territories such as Guam and the CNMI. Governor Arnold Palacios mentioned this effort during his State of the Commonwealth Address, saying he had 'actively advocated for potential cabotage waiver [and] essential air services' in recent talks with federal agencies and congressional leaders. Palacios emphasized the importance of improved regional connectivity to support the CNMI's tourism-dependent economy. Senate public utilities, transportation and communications committee chair, Senator Jude Hofschneider called Propst's complaints a 'sad reality of economic times,' adding that United's pricing is 'likely a business decision by the air carrier'. Still, Hofschneider said the moment calls for greater support of Congresswoman Kimberlyn King-Hinds' bill introduced in April to requalify CNMI airports for the Essential Air Service (EAS) program. If passed, the measure would allow federal subsidies to fund daily round-trip flights even if commercial carriers withdraw service. A quote from CWM Travel International showed a Saipan-Guam roundtrip departing 8 June 8 and returning 12 June costing $420 – significantly cheaper than Propst's booking but still high for an inter-island flight. The EAS program, created in 1978 and stripped from CNMI eligibility in 2012, was intended to preserve air access for small US communities. King-Hinds' bill seeks to restore eligibility to Saipan, Tinian, and Rota by placing CNMI alongside Alaska, Hawaii, and Puerto Rico in exemption status.
Scoop
13 hours ago
- Scoop
3G Shutdown: What Devices Are Affected, And How To Upgrade
Article – RNZ Consumers are being urged to get ready ahead of the shutdown of 3G mobile networks from the end of the are being urged to get ready ahead of the shutdown of 3G mobile networks from the end of the year. Telecommunications Forum chief executive Paul Brislen said most New Zealanders were already using 4G or 5G-compatible devices and would not need to take any action. However anyone with a 3G-reliant phone or device may be affected, including tablets, medical alarms, security alarms, business equipment, vehicle trackers and other devices connected to the internet. 'The 3G shutdown is a positive step for our digital future, but it's important that anyone with 3G-reliant phones or devices checks now so they can stay connected,' Brislen said. Consumers can text '3G' to 550, free of charge, to check if their device will work after the 3G network was switched off. Spark announced it would close off its 3G network on 31 March, 2026 and was upgrading 3G-only cell towers to 4G and 5G technology. While affected customers would be receiving direct communication from Spark, it issued a list of common devices likely to be affected. iPhone 6 Huawei Y5 HMD Global Nokia 3310 Mobiwire SAS Pocket 2 Oppo A5 (AX5) Samsung Galaxy J2 Pro iPhone 5S Alcatel 1B Brislen said consumers who need to upgrade to a 4G or 5G compatible device should recycle their old handsets through recycling service RE:MOBILE at 'Mobile phones contain valuable materials that can be reused, as well as components that are harmful to the environment if sent to landfill.'
Otago Daily Times
19 hours ago
- Otago Daily Times
Govt invests another $13.5 million in tourism
Prime Minister Christopher Luxon and Tourism and Hospitality Minister Louise Upston. Photo: RNZ The government has announced another multimillion-dollar funding boost for Tourism New Zealand in a bid to attract 72,000 more visitors to our shores. Tourism and Hospitality Minister Louise Upston said $13.5 million in funding would help to target the core markets of Australia, the United States and China over the next few years. "This investment is expected to generate around $300 million in spending, which is a very strong return on investment," she said. "International visitor numbers continue to climb and this boost will help drive further economic growth throughout the entire country." Less than two months ago, she announced a separate $13.5 million boost for Tourism New Zealand to fund marketing in the shorter term, with the aims of attracting an extra 23,000 international visitors by the end of March 2026 and bringing in an additional $100 million. The international visitor levy - which was nearly tripled last year - is covering the costs for both. "We know how important marketing is to attract visitors, with around 14 percent of international holiday visitors directly influenced by Tourism New Zealand's marketing activity," Upston said. "We want people to know New Zealand is open for business and we welcome visitors with open arms." She described the funding as the first investment in the government's Tourism Growth Roadmap, which outlines the initiatives to help the government and industry double the value of tourism exports by 2034. "We know how important marketing is to attract visitors, with around 14 percent of international holiday visitors directly influenced by Tourism New Zealand's marketing activity," Upston said. Last year, Tourism New Zealand unveiled an ambitious strategy to grow tourism by $5 billion by attracting more visitors outside of summer over four years. It aimed to grow international tourism spend by 8.7 percent, or an additional $900 million in the strategy's first year. February marked the largest number of US visitors that New Zealand had recorded in a month. At tourism conference TRENZ last month, Tourism New Zealand chief executive René de Monchy said that had been buoyed by airlines opening up new routes, a tailwind of a strong American dollar and focused marketing, and the outlook for US visitors remained really positive.
