New benefit sanctions ‘punish the poor’

Auckland Action Against Poverty (AAAP) coordinator Brooke Pao Stanley is not happy with new reforms the government has announced for the benefit system.

In an interview with Pacific Mornings’ William Terite yesterday, Stanley said, “it exacerbates existing harm in our community that's already caused by poverty … it already pushes people in communities beyond their threshold.”

On Monday, the government announced new changes for those receiving an unemployment benefit, including “tougher consequences” for those who repeatedly do not meet their work obligations.

The new changes include new sanctions that include putting half a person’s benefit onto a payment card that can only be used for a limited range of essential products and services.

Social Development and Employment Minister Louise Upston stated: “There are responsibilities that come with receiving a benefit, and there will be no more excuses for job seekers not knowing what those responsibilities are.

“Our Government will not tolerate people who accept the Jobseeker Support benefit but refuse to uphold their obligation to seek a job – it is not fair on hardworking Kiwis who pay their taxes that go towards those benefit payments.”

The new changes also introduce a traffic light system that informs people of their requirements to continue receiving a benefit under the current system and warn them when they are not meeting those expectations.

Stanley said, “I think introducing it as a sanction continues to punish people who are poor.

“There's research and evidence from the ministry itself to say that income management doesn't actually work.

“Sixteen and 17-year-olds who are on a youth payment are already having this done to them … parts of this already exist within New Zealand and from the ministry's own reports, evidence shows that they don't work. They often make it harder for people,” Stanley said.

Stanley argued it’s “lazy leadership” and a “callous move” by the government to repeatedly neglect the needs of the people and communities of Aotearoa.

“I think we need to be honest about that, we need to be real about that, and like I mentioned earlier, we need leaders that are brave and courageous, that can have these conversations with us.”

As of June 2024, the government’s Jobseeker Support Benefit Snapshot reports 196,434 individuals receiving Jobseeker support.

This marks an increase of 75,711 people since September 2017.

Out of this total, 113,931 are classified as work-ready, which is up by 47,816 since September 2017.

Additionally, the number of people who have received the Jobseeker benefit has risen to 114,099, an increase of 46,206 since September 2017.

“These changes are critical components of the Government's efforts to support people into work and have 50,000 fewer people on Jobseeker Support by 2030, which is forecast to save the country $2.3 billion in welfare payments,” said Louise Upston.

Watch the full video of the interview with AAAP Brooke Pao Stanley below.