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Scoop
26-05-2025
- Business
- Scoop
New Sanctions Drive Benefit Accountability
Press Release – New Zealand Government Social Development and Employment Minister Louise Upston says the Money Management and Community Work Experience sanctions can apply to a first obligation failure while getting a main benefit, such as Jobseeker Support. Hon Louise Upston Minister for Social Development and Employment From today, beneficiaries failing to meet the obligations they agreed to can expect two new measures to encourage people off welfare and into work. Social Development and Employment Minister Louise Upston says the Money Management and Community Work Experience sanctions can apply to a first obligation failure while getting a main benefit, such as Jobseeker Support. 'From today, Money Management means people who don't comply may have half their main benefit put on a payment card for four weeks. This is a sensible move,' Louise Upston says. 'The card can only be used at approved shops for groceries, transport, health, and education-related items. People will continue to get the remainder of their main benefit, as well as any supplementary assistance (such as for ongoing accommodation costs), directly into their bank accounts. 'Community Work Experience means people with work obligations who don't comply may have to find and participate in at least five hours of community work experience per week at one or more community or voluntary sector organisations, for four weeks. 'Also from today, it's now 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. '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,' Louise Upston says. The introduction marks the launch of the second phase of the Traffic Light System. The first phase was launched last year to help clients better understand their obligations and what they need to do to stay on track. '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. 'Around 98 per cent of beneficiaries are complying with their obligations – those who don't are the ones who need to consider the increased consequences. 'Overall, these changes will ensure we have a welfare system proactively supporting those who can work to get off the benefit and into employment. This will contribute to the Government's target to have 50,000 fewer people on Jobseeker Support by 2030,' Louise Upston says. The Minister again recognised the efforts of frontline MSD staff working with job seekers. 'I thank MSD staff who have undergone training to support clients around the Traffic Light changes. We know the faster we can help beneficiaries find suitable employment, the better the outcomes for them, their families, our communities, and our economy.' Two more non-financial sanctions, Report Job Search and Upskilling, will become available to some clients in October this year, further expanding the Traffic Light System. Notes: Non-financial sanctions will only be available to clients for a first obligation failure if they are in active case management or have dependent children. If they do not meet this criteria, they will have a financial sanction imposed as before. These clients will also need to have an appointment with MSD within 5 working days and meet any other eligibility criteria. MSD staff will consider a client's circumstances before imposing a non-financial sanction, to ensure it is the most appropriate option for the client. Young people getting Youth Payment or Young Parent Payment will be assigned a Traffic Light colour, so they can easily see if they're on track with their obligations. No other Traffic Light System-related changes will apply to these clients or young partners with youth activity obligations.
Scoop
25-05-2025
- Business
- Scoop
New Sanctions Drive Benefit Accountability
Press Release – New Zealand Government Social Development and Employment Minister Louise Upston says the Money Management and Community Work Experience sanctions can apply to a first obligation failure while getting a main benefit, such as Jobseeker Support. Hon Louise Upston Minister for Social Development and Employment From today, beneficiaries failing to meet the obligations they agreed to can expect two new measures to encourage people off welfare and into work. Social Development and Employment Minister Louise Upston says the Money Management and Community Work Experience sanctions can apply to a first obligation failure while getting a main benefit, such as Jobseeker Support. 'From today, Money Management means people who don't comply may have half their main benefit put on a payment card for four weeks. This is a sensible move,' Louise Upston says. 'The card can only be used at approved shops for groceries, transport, health, and education-related items. People will continue to get the remainder of their main benefit, as well as any supplementary assistance (such as for ongoing accommodation costs), directly into their bank accounts. 'Community Work Experience means people with work obligations who don't comply may have to find and participate in at least five hours of community work experience per week at one or more community or voluntary sector organisations, for four weeks. 'Also from today, it's now 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. '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,' Louise Upston says. The introduction marks the launch of the second phase of the Traffic Light System. The first phase was launched last year to help clients better understand their obligations and what they need to do to stay on track. '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. 'Around 98 per cent of beneficiaries are complying with their obligations – those who don't are the ones who need to consider the increased consequences. 'Overall, these changes will ensure we have a welfare system proactively supporting those who can work to get off the benefit and into employment. This will contribute to the Government's target to have 50,000 fewer people on Jobseeker Support by 2030,' Louise Upston says. The Minister again recognised the efforts of frontline MSD staff working with job seekers. 'I thank MSD staff who have undergone training to support clients around the Traffic Light changes. We know the faster we can help beneficiaries find suitable employment, the better the outcomes for them, their families, our communities, and our economy.' Two more non-financial sanctions, Report Job Search and Upskilling, will become available to some clients in October this year, further expanding the Traffic Light System. Notes: Non-financial sanctions will only be available to clients for a first obligation failure if they are in active case management or have dependent children. If they do not meet this criteria, they will have a financial sanction imposed as before. These clients will also need to have an appointment with MSD within 5 working days and meet any other eligibility criteria. MSD staff will consider a client's circumstances before imposing a non-financial sanction, to ensure it is the most appropriate option for the client. Young people getting Youth Payment or Young Parent Payment will be assigned a Traffic Light colour, so they can easily see if they're on track with their obligations. No other Traffic Light System-related changes will apply to these clients or young partners with youth activity obligations.
Scoop
25-05-2025
- Business
- Scoop
New Sanctions Drive Benefit Accountability
From today, beneficiaries failing to meet the obligations they agreed to can expect two new measures to encourage people off welfare and into work. Social Development and Employment Minister Louise Upston says the Money Management and Community Work Experience sanctions can apply to a first obligation failure while getting a main benefit, such as Jobseeker Support. 'From today, Money Management means people who don't comply may have half their main benefit put on a payment card for four weeks. This is a sensible move,' Louise Upston says. 'The card can only be used at approved shops for groceries, transport, health, and education-related items. People will continue to get the remainder of their main benefit, as well as any supplementary assistance (such as for ongoing accommodation costs), directly into their bank accounts. 'Community Work Experience means people with work obligations who don't comply may have to find and participate in at least five hours of community work experience per week at one or more community or voluntary sector organisations, for four weeks. 'Also from today, it's now 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. '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,' Louise Upston says. The introduction marks the launch of the second phase of the Traffic Light System. The first phase was launched last year to help clients better understand their obligations and what they need to do to stay on track. '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. 'Around 98 per cent of beneficiaries are complying with their obligations – those who don't are the ones who need to consider the increased consequences. 'Overall, these changes will ensure we have a welfare system proactively supporting those who can work to get off the benefit and into employment. This will contribute to the Government's target to have 50,000 fewer people on Jobseeker Support by 2030,' Louise Upston says. The Minister again recognised the efforts of frontline MSD staff working with job seekers. 'I thank MSD staff who have undergone training to support clients around the Traffic Light changes. We know the faster we can help beneficiaries find suitable employment, the better the outcomes for them, their families, our communities, and our economy.' Two more non-financial sanctions, Report Job Search and Upskilling, will become available to some clients in October this year, further expanding the Traffic Light System. Notes: Non-financial sanctions will only be available to clients for a first obligation failure if they are in active case management or have dependent children. If they do not meet this criteria, they will have a financial sanction imposed as before. These clients will also need to have an appointment with MSD within 5 working days and meet any other eligibility criteria. MSD staff will consider a client's circumstances before imposing a non-financial sanction, to ensure it is the most appropriate option for the client. Young people getting Youth Payment or Young Parent Payment will be assigned a Traffic Light colour, so they can easily see if they're on track with their obligations. No other Traffic Light System-related changes will apply to these clients or young partners with youth activity obligations.
Otago Daily Times
25-05-2025
- Business
- Otago Daily Times
Benefit sanctions ‘creating barriers' for the vulnerable
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.
Scoop
22-05-2025
- Business
- Scoop
Increased Support For Families
Minister for Social Development and Employment Hon Simon Watts Minister of Revenue Budget 2025 changes Working for Families to better target help to low and middle-income families with children. About 142,000 families will receive an average $14 a fortnight extra from Working for Families. The vast majority have an annual family income under $100,000. 'We want financial support to go to families that need it most. The changes in this Budget will help families with cost of living and support them to remain in work,' Social Development and Employment Minister Louise Upston says. These changes are being delivered through changes to the abatement threshold. The abatement threshold is the income level at which Working for Families entitlements begin to reduce. 'The current threshold has been unchanged since 2018, despite inflation and wage growth. This means the scheme has become less effective at supporting low and middle-income families,' Louise Upston says. 'Accordingly, the Government is lifting the Working for Families abatement threshold from $42,700 to $44,900 and raising the abatement rate from 27 per cent to 27.5 per cent. Families with incomes close to the new threshold will get greater additional payments – up to $23 a fortnight. 'The cost of the extra support will be met by income testing the first year of the Best Start tax credit in the same way the second and third years are, with payments starting to diminish above a family income of $79,000 and cutting off entirely when a family earns just over $97,000 a year.' Families of children born before 1 April 2026 won't have their Best Start payments income tested and will continue to receive the maximum amount until their child turns one. 'We are also concerned that families are getting into Working for Families debt just because their incomes or family circumstances change unexpectedly during the year,' Revenue Minister Simon Watts says. 'To address this, the Government is releasing a discussion document with proposals to make Working for Families payments more accurate, including using past income, over shorter periods, to calculate entitlements. We know that having debt with Inland Revenue can be distressing so we are interested in what people think of the proposals.' The changes will take effect from 1 April 2026, following legislation to be introduced on Budget Day today.
