Benefit sanctions increase more than 50%

Social Development Minister Louise Upston. Photo: RNZ
Social Development Minister Louise Upston. Photo: RNZ
By Susan Edmunds of RNZ

Beneficiaries are feeling the impact of the government's tougher stance - with the number of sanctions issued in the June quarter this year up more than 50 percent on the same time a year ago.

The latest data from the Ministry of Social Development shows that at the end of June, 380,889 people were receiving a main benefit of some kind, up 8.3 percent, or 29,130 people compared to June 2023.

Of those, 113,931 were receiving Jobseeker Support - Work Ready, up 14.8 percent year-on-year.

Northland had the largest proportion of its population on Jobseeker of anywhere in the country, at 10.5 percent.

The data also shows an increase in the number of sanctions being applied to benefits.

The government had warned it planned to take a tougher stance on beneficiaries who did not fulfil their work qualifications.

Social Development Minister Louise Upston said from June there would be "work check-ins" for jobseekers who have been on a benefit for at least six months, "particularly young people" to "make sure job seeker beneficiaries are taking appropriate steps to find employment and are receiving the right help".

There were 10,389 sanctions issued in the June quarter, up 3630 or 53.7 percent compared to June 2023.

The main reason for beneficiaries not meeting their work qualifications was not attending appointments including seminar appointments - for 6069 people - and failing to prepare for work, for 3360.

There were also 1797 graduated sanctions, such as a percentage reduction of a benefit, in place in June, an 81.5 percent increase from a year earlier.

Green Party spokesperson for Social Development and Employment Ricardo Menéndez March said benefit sanctions would hurt people already struggling to make ends meet and limit their chances of getting out of poverty.

"This is the result of the Minister for Social Development's directive to sanction more beneficiaries. Louise Upston is more interested in punishing the poor than actually supporting people into meaningful work.

"There is no evidence that benefit sanctions help people get jobs or result in positive outcomes for families struggling to make ends meet. Worse still, the work seminars and meetings that beneficiaries are forced to comply with have not been shown to directly translate into people finding meaningful employment."