The Government will add two new non-financial sanctions to its beneficiary traffic light scheme after feedback at the select committee stage.
The sanctions were added after select committee hearings on the bill.
- Report Job Search – where job seekers will be required to perform a minimum of three job-search activities every week for four weeks and report back to MSD on this. This sanction will support increased accountability for beneficiaries who are meant to be looking for work.
- Upskilling – where job seekers will be required to attend and participate, to MSD’s satisfaction, in one or more employment-related training courses or programmes for a minimum of five hours per week over a four-week period. This sanction will support beneficiaries with building the skills they need to get into work.
Non-financial sanctions provide an alternative to financial penalties for first-time obligation failures for some job seekers, allowing them to continue receiving their full benefit while under sanction.
Social Development and Employment Minister Louise Upston said the new sanctions were to ensure accountability in the welfare system.
“It’s important that beneficiaries who can work are taking reasonable steps to re-enter the workforce or remain work-ready, and that consequences exist for those who don’t.
“These new sanctions will ensure there is accountability in the welfare system for those who aren’t taking reasonable steps to seek employment, while also recognising that reducing benefits isn’t the answer for everyone.”
The legislative change required for these new sanctions will be included in the Social Security Amendment Bill, which is currently before Parliament.
The traffic light system was introduced last year as well as money management and community work experience sanctions.
Those on a benefit with work or social obligations sees people given a green, orange or red status. Once someone is moved to red, they are sanctioned.
If at the end of a sanction they can provide evidence of their activities, they can return to green.
Opposition parties strongly criticised the policy.
Labour leader Chris Hipkins said it showed the Government’s “willingness to kick people when they’re down” rather than focusing on getting people back into work, and that the approach was “punitive”.
Green Party social development and employment spokesperson Ricardo Menéndez March said the Government was inflicting “pain and misery” on people in poverty.
Upston, however, said the system would move people into work and provide “tougher” consequences on those who repeatedly fail to meet obligations.
