Benefit sanctions ‘creating barriers' for the vulnerable

Otago Daily Times

25-05-2025

Photo: file
New sanctions for people on benefits could create barriers for some of Dunedin's most vulnerable, a community ministries manager has said.
From today, beneficiaries failing to meet agreed obligations could be sanctioned under new measures intended to encourage people off welfare and into work.
Social Development and Employment Minister Louise Upston said the sanctions could apply to a "first obligation failure while getting a main benefit", such as Jobseeker Support.
From today, people who fail to meet obligations may have half their main benefit put on a payment card for four weeks — "a sensible move", Ms Upston said.
"The card can only be used at approved shops for groceries, transport, health and education-related items [and] people will continue to get the remainder of their main benefit, as well as any supplementary assistance, directly into their bank accounts."
However, Salvation Army Dunedin community ministries manager Captain Logan Bathurst said the changes were "creating barriers" for people.
"So in Dunedin, for example, we've had people whose payment cards haven't been set up properly," he said.
"And so if that's what the money's going into and it's not set up well, then that's going to cause them further problems."
Having a benefit divided between payment cards and bank accounts would be "just something else that [beneficiaries] have to manage", Capt Bathurst said.
"If you're talking about someone who's just been made redundant and is on JobSeeker for six months, they can probably manage it.
"But I think if you're dealing with vulnerable people that are struggling to manage the benefit, sanctioning them further is just going to make things worse for them."
Ms Upston also announced people who fail to meet work obligations may have to find and participate in at least five hours of community work experience per week for four weeks.
From today, it was also mandatory for some people, and their partners, to have a completed Jobseeker Profile before their benefit can be granted and an obligation failure will now count against a person for two years, instead of one.
"The new sanctions will ensure accountability in the welfare system for people who don't meet their obligations, while also recognising that reducing benefits isn't the answer for everyone," she said.