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Scoop
28-05-2025
- Politics
- Scoop
Youth Homelessness Advocate Says Budget Fails Most Vulnerable
A youth homelessness advocate says this year's Budget delivered no support for young people, calling proposed changes to benefit access "cold" and "harsh". Manaaki Rangatahi Pou Arahi (chief executive) Bianca Johanson told RNZ she was hopeful the Budget would offer targeted relief for Māori and unemployed rangatahi (young people) - but that hope quickly faded. "We knew there wasn't going to be a lot for Māori," she said. "But we were hopeful there'd be something for rangatahi, seeing that such a high rate of them are unemployed... but we didn't see any alleviation." Johanson said, "Māori were ignored in this budget." "That has been disheartening." Manaaki Rangatahi is a national youth homelessness collective dedicated to ending youth homelessness in Aotearoa. It was established in 2018 as a way of consolidating the mahi of different organisations who are also trying to tackle youth homelessness. Johanson said the sector was seeing the impact of the cost of living crisis, particularly on youth facing housing insecurity - the majority of them Māori. "For us at Manaaki Rangatahi, we see homelessness, we see a lot of the struggle. People are really hurting." A call for Manaakitanga Minister for Social Development Louise Upston announced in this year's Budget that from July 2027, 18 and 19-year-olds would now have their Jobseeker and emergency benefits tested against their parents' incomes. The policy is forecast to save the government about $163 million over four years, but the income levels parents would be tested against have not yet been decided by Cabinet. Johanson said the proposed changes were likely to make things harder for the already most vulnerable. "If the rangatahi is the one that has to do all that advocacy for themselves, go and get their parents' details - this is a very complex situation. "There are so many people who are the 'working poor' having to support an 18 or 19-year-old on top of all their other expenses. It could actually drive rangatahi out of home." She fears the proposed changes could create more tension within households and push some youth into harm's way - such as crime and violence. "I see a lot of these decisions as causing more harm and putting rangatahi and whānau into stressful situations which can create harm. There's no way that this is going to create any kind of unity in the whānau, or support whānau to be together." "[Māori] are the head of really terrible statistics in Aotearoa - so this Budget and many of the policies that the government have brought forward, aren't exactly addressing them." She believed kaupapa Māori principles, like manaakitanga, should be at the forefront of decisions made by the government. "If we're looking at this government and the manaaki that they've shown to Māori, and to rangatahi, it's very absent," Johanson said. "We see culture as a solution and as a tool of healing. It is what heals our rangatahi in a lot of our youth housing programmes." 'Rangatahi are our future' Johanson said as it stood, New Zealand did not have a strategy dedicated to support those that were the most vulnerable - rangatahi impacted by homelessness. "Rangatahi are our future and we're not investing in the future," she said. "We are damning our children and our rangatahi, the most vital, important people for our future as a country to what? Living on the streets? To be without work? To have really high mental health and suicide stats? I don't understand the logic." Upston previously said the purpose of the welfare system was to support those who needed it the most. "With this announcement, we're clearly saying that 18- and 19-year-olds who don't study or work and can't support themselves financially, should be supported by their parents or guardians, not by the taxpayer." Johanson believed this response was out of touch. "It's harsh, it's cold, "she said. "Most people in Aotearoa want to give others a fair go. But we've got kaumātua and kuia working into their 70s and 80s to survive. We've got rangatahi who've been born into homelessness, who don't know what it's like to have their own bedroom - and now we expect their parents to provide support too?" In response, Upston said the government was "taking steps to make sure work, training or study is the focus for all young people". "This government recognises that the welfare system should be available for those who most need it. However, we aren't willing to watch any young New Zealanders get stuck on the benefit," she said. "Recent forecasts show that people under the age of 25 on Jobseeker Support will spend an average of 18 or more years on a benefit over their lifetimes - 49 percent longer than in 2017. That's why I prioritised Welfare that Works in Budget 2025." Upston said the "Welfare that Works" package included secure funding for two years of Community Coaches and bonus payments - "giving Jobseekers under 25 years more coaching, an assessment of their needs, an individual plan and holding them accountable for achieving that plan." In terms of the specific policy settings for the 18-19-year-old initiative, final decisions on the parental assistance test will be made later this year, including settings for access to hardship and supplementary assistance. "The design of the test is likely to take into account a range of considerations including (but not limited to) parents' income level, nature of relationship with the 18- or 19-year-old and circumstances such as whether the parent or guardian are in hospital or in prison." Minister for Māori Development and Associate Minister of Housing Tama Potaka said the government was investing in rangatahi Māori through education and housing initiatives. "The government is investing in rangatahi Māori through the overall increase in education funding as well as the extra investment in Māori education specifically, which includes additional funding for kura, te reo Māori proficiency and training for kaiako [teachers]. "Our aspirations are the same as those shared by many parents across the motu: we want to see all rangatahi make the most of their talents. That's why we're saying 18 and 19-year-olds who aren't working or studying should be supported by their parents or guardians, not the taxpayer." He said it was "wrong" to say the government did not care about housing for vulnerable young people. "Our housing policy has lifted hundreds of Māori whānau and tamariki out of dire emergency housing and into better homes. That can mean a world of difference for young people in terms of better health, regular school attendance or maintaining employment." 'Talk to us' Johanson was calling for the government to engage with those directly affected. "We always ask the government to come talk to us before they make some of these quite strange sanctions and expectations on whānau," she said. "We are the sector experts. Rangatahi are the experts. Come and talk to us."
Scoop
26-05-2025
- Business
- Scoop
Jobseeker Sanctions: ‘Forcing People To Volunteer Is A Contradiction In Terms'
The government is better off using its resources to help people find work, rather than punishing those who can not, says the Salvation Army. Lauren Crimp, Reporter The government is better off using its resources to help people find work, rather than punishing those who can not, says the Salvation Army. Two new 'non-financial' sanctions come into force on Monday for beneficiaries who do not meet their obligations. Some people may have half their weekly benefit put on to a payment card for four weeks, that can only be spent on essential items at approved shops. They may also have to find volunteer work for at least five hours each week, again for four weeks. Social Development Minister Louise Upston said the sanctions would encourage people off welfare and into work. 'These very fair and reasonable sanctions will allow clients to continue receiving their full benefit, instead of the 50 per cent reduction they would have experienced with a financial sanction,' she said. But Salvation Army principal social policy analyst Paul Barber said it was not the most helpful approach. 'We would really like to see Work and Income resources applied to increasing the amount of training and employment pathways, working with employers who are willing to take people on and really creating a constructive space for people to find employment,' he said. 'That's a stronger way to reduce the number of people on the Jobseeker benefit.' Barber said the Salvation Army did not support mandatory work experience for beneficiaries. He expected organisations like his would have more people knocking on their door seeking volunteer opportunities as part of the new rules, but they were not resourced to respond. 'We welcome opportunities to provide some work experience, but this needs to be done in a way that respects the experience of the person, and forcing people to volunteer is pretty much a contradiction in terms,' he said. Barber was concerned community organisations would have to turn away vulnerable people who don't need any more rejection in their lives. With unemployment and Jobseeker numbers projected to rise, it was not the time to add more punishments for beneficiaries, he said. Money management risks people struggling to pay for essentials Ringfencing a portion of someone's benefit for specific spending risked them falling deeper into financial hardship, said Pakuranga and Howick Budgeting Service manager Megan Dangen. It could mean people struggle with other important costs like rent and loans, she said. 'We find with a lot of our clients, that rent is a major contributor to their weekly financial situation,' she said. 'It could cause a lot of stress in the household if they just can't make ends meet… we also have a lot of clients, I would say 90 percent of our clients, that are in huge amounts of debt.' Official statistics from the Ministry of Social Development showed the average beneficiary spent more than 53 percent of their income on housing costs. Many people were not financially literate and would struggle to manage the restriction on their benefit, said Dangen. Upston said 98 percent of beneficiaries were complying with their obligations, so they would not be subject to the sanctions.
Scoop
26-05-2025
- Business
- Scoop
Jobseeker Sanctions: 'Forcing People To Volunteer Is A Contradiction In Terms'
The government is better off using its resources to help people find work, rather than punishing those who can not, says the Salvation Army. Two new 'non-financial' sanctions come into force on Monday for beneficiaries who do not meet their obligations. Some people may have half their weekly benefit put on to a payment card for four weeks, that can only be spent on essential items at approved shops. They may also have to find volunteer work for at least five hours each week, again for four weeks. Social Development Minister Louise Upston said the sanctions would encourage people off welfare and into work. "These very fair and reasonable sanctions will allow clients to continue receiving their full benefit, instead of the 50 per cent reduction they would have experienced with a financial sanction," she said. But Salvation Army principal social policy analyst Paul Barber said it was not the most helpful approach. "We would really like to see Work and Income resources applied to increasing the amount of training and employment pathways, working with employers who are willing to take people on and really creating a constructive space for people to find employment," he said. "That's a stronger way to reduce the number of people on the Jobseeker benefit." Barber said the Salvation Army did not support mandatory work experience for beneficiaries. He expected organisations like his would have more people knocking on their door seeking volunteer opportunities as part of the new rules, but they were not resourced to respond. "We welcome opportunities to provide some work experience, but this needs to be done in a way that respects the experience of the person, and forcing people to volunteer is pretty much a contradiction in terms," he said. Barber was concerned community organisations would have to turn away vulnerable people who don't need any more rejection in their lives. With unemployment and Jobseeker numbers projected to rise, it was not the time to add more punishments for beneficiaries, he said. Money management risks people struggling to pay for essentials Ringfencing a portion of someone's benefit for specific spending risked them falling deeper into financial hardship, said Pakuranga and Howick Budgeting Service manager Megan Dangen. It could mean people struggle with other important costs like rent and loans, she said. "We find with a lot of our clients, that rent is a major contributor to their weekly financial situation," she said. "It could cause a lot of stress in the household if they just can't make ends meet... we also have a lot of clients, I would say 90 percent of our clients, that are in huge amounts of debt." Official statistics from the Ministry of Social Development showed the average beneficiary spent more than 53 percent of their income on housing costs. Many people were not financially literate and would struggle to manage the restriction on their benefit, said Dangen. Upston said 98 percent of beneficiaries were complying with their obligations, so they would not be subject to the sanctions.
NZ Herald
25-05-2025
- Business
- NZ Herald
Minister defends money management and community work benefit sanctions coming into force
Upston welcomed the sanctions as a 'sensible move' while Act leader David Seymour lauded the money management sanction as an Act policy since 2017. '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.'
Scoop
23-05-2025
- Business
- Scoop
Oranga Whenua, Oranga Tangata: Hāpai Te Hauora Responds To Budget 2025
Press Release – Hapai Te Hauora Finance Minister Nicola Willis promised no lolly scramble; but somehow, the sweet stuff still landed in boardrooms and business accounts, while the pantry stayed locked for whnau. Hāpai Te Hauora says Budget 2025 is not a Budget for whānau – it is a Budget for landlords, corporates, and cuts. Finance Minister Nicola Willis promised no lolly scramble; but somehow, the sweet stuff still landed in boardrooms and business accounts, while the pantry stayed locked for whānau. 'This Budget is a choice – and that choice is clear,' says Jacqui Harema, CEO of Hāpai Te Hauora. 'A choice to gut pay equity. A choice to ask rangatahi to prove their poverty. A choice to back the boardroom while gutting community support.' Businesses receive a 20% tax write-off on new assets. Meanwhile, whānau get 25-cent KiwiSaver contributions, tighter benefit rules, and income-tested child payments. 'A baby's best start now depends on a parent's payslip – that's not equity,' Harema says. The wealthy retain their capital gains. Yet rangatahi on Jobseeker now face new restrictions based on their parents' income. 'We're means-testing the vulnerable while letting privilege off the hook.' Health receives funding, but only just. Emergency departments remain overwhelmed. Nurses are still burning out. And while primary care sees a modest boost, there is no targeted investment in Māori health – and prevention is notably missing. 'If we want to reduce long-term costs and create better outcomes, we must fund prevention,' says Jason Alexander, COO of Hāpai. 'That means backing kaupapa Māori solutions before harm happens – not waiting until our people are in crisis.' Education receives $2.5 billion, but $614 million of that comes from scrapped initiatives. Programmes like Kāhui Ako are axed, and school lunches (Ka Ora, Ka Ako) are set to expire in 2026. 'You do not build brighter futures by cutting kai from classrooms,' says Harema. Tax cuts favour business, while low- to middle-income families receive just $14 more a fortnight under Working for Families tweaks – roughly the cost of a pack of nappies. This Budget did not prioritise Māori health, wellbeing, or equity. It disestablished Te Aka Whai Ora, clawed back unspent Māori housing funds, and continued the short-term funding cycle. Hāpai Te Hauora's Budget 2025 Wishlist included: Investment in Māori-led housing Protection of school lunch programmes Long-term contracts for Māori health services Increased income support and kaupapa Māori employment pathways Serious investment in prevention What we got instead were cuts, exclusions, and short-term gains. 'This is not the Budget for tamariki. Not for our mokopuna. Not for our taiao,' Harema says. 'Whānau deserve better.'
