In a statement released last month, Minister for Social Development and Employment Louise Upston signalled greater benefit sanctions as "an incentive to fulfil work obligations".
From June, MSD will begin work check-ins for job seekers who have been on a benefit for six months, particularly young people.
A wider reset of the welfare system was also on the way, including mandatory reapplication for Jobseeker Support every six months, "proper needs assessments", new non-financial sanctions, and action being taken for those who "repeatedly fail to comply with their work obligations", the minister said.
CCS Disability Action has "strongly condemned" the government’s benefit reforms, saying disabled people would be unfairly impacted. It urged the government to reconsider the reforms and engage in meaningful dialogue with the disability community.
Chief executive Mel Smith identified potential harm to communities already proven to be disadvantaged by New Zealand’s existing welfare systems.
"It is clear that these benefit sanctions have been designed without meaningful input from people with lived experience of disability and demonstrate a lack of understanding of the realities disabled people and their families face," Ms Smith said.
The reforms failed to address the significant barriers preventing disabled people from accessing the Supported Living Payment (SLP).
Securing eligibility was a long and difficult process, and the SLP did not have the flexibility to work well for people whose ability to work may change over time due to their impairment.
Instead, many disabled people found themselves on Jobseeker Support with medical exceptions, despite being medically assessed as unable to work.
Dunedin-based Disabled Persons Assembly central and southern policy adviser Chris Ford shared the concern raised by CCS Disability Action around the harmful impact of benefit sanctions on disabled people.
"We are in the midst of a huge cost-of-living crisis, and this is a group that faces significant barriers to accessing employment, while facing higher day-to-day costs," Mr Ford said.
Disabled people faced discrimination and found it much harder, and took longer, to find work than the general population.
With more than 3000 disabled people in Dunedin on benefits, the benefit reforms could have a wide impact on many people on Jobseeker Support with medical exceptions, he said.
"It is already stressful for people with disabilities to live on benefits, let alone to have that support come under threat.
"I agree with CCS Disability Action that all of these plans need to be discussed with people with disabilities, their families and whanau."
Dunedin disability advocate John Marrable said the benefit reforms announcement was frustrating and very concerning for those in the disabled sector.
"One of the biggest health issues for people with disabilities is going to the dentist, as they can’t afford the bills," he said.
Mr Marrable facilitated a public meeting before the general election with a focus on disability issues, and at that time people were worried about what might happen around benefits.
"So, it is disappointing to see this come to pass."
Mr Marrable highlighted the importance of the government consulting with disabled people, and to seek a broad range of perspectives.
"It is so important that people with disabilities have a chance to be heard."
Mr Ford said the DPA and other non-government organisations in the disability space were keeping a close eye on the situation and stood ready to respond to the situation as required.