Two new non-financial sanctions focused on job searches and upskilling launch today under the Government’s beneficiary traffic light scheme.
The alternative sanctions, which would apply to some jobseekers, were added to the bill following feedback at the select committee stage.
The new sanctions were:
- Report Job Search: a requirement to undertake and report on a minimum of three job-search activities every week for four weeks. This sanction supports increased accountability for beneficiaries who are meant to be looking for work.
- Upskilling: a requirement to attend and participate in one or more employment-related training courses or programmes for a minimum of five hours per week over four weeks. This sanction supports beneficiaries to build the skills they need to get into work.
Beneficiaries on their first obligation failure would only be eligible for these non-financial sanctions if they were in active case management or had dependent children, and they must attend an MSD appointment.
They join existing “non-financial” sanctions, which include putting half a person’s benefit on a payment card for a limited range of “essential” products and services, and community work experience.
Social Development and Employment Minister Louise Upston said the obligations were passed by Parliament in May and that they were not “unduly onerous”.
“They’re basic expectations. They reinforce accountability for those failing to meet their obligations, while also recognising that reducing benefits isn’t the answer for everyone.”
Upston noted most job seekers were fulfilling obligations with less than 2% on the red or orange settings.
“The 98.5% of job seekers at green are committed to finding work, and MSD is fully committed to supporting them to do so.”
The traffic light system, introduced in August last year, categorises beneficiaries with work or social obligations into green, orange, or red status.
Those in orange have breached obligations without a valid reason. If they fail to comply within five working days, they move to red and face sanctions.
Opposition parties had previously 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.
