
is planning to introduce fresh sanctions to its new
The new non-financial sanctions have been added following select committee hearings on the bill. They are:
- Report job search 鈥 where job seekers will be required to perform a minimum of three job-search activities every week for four weeks and report back to the (MSD).
- Upskilling 鈥 where job seekers will be required to attend, participate, to MSD鈥檚 satisfaction, in one or more employment-related training courses or programmes for a minimum of five hours per week over a four-week period.
and Employment Minister Louise Upston says sanctions are about ensuring there is accountability in the welfare system.
鈥淚t鈥檚 important 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鈥檛.
鈥淭hese new sanctions will ensure there is accountability in the welfare system for those who aren鈥檛 taking reasonable steps to seek employment while also recognising that reducing benefits isn鈥檛 the answer for everyone.鈥
Prime Minister Christopher Luxon (left) and Social Development and Employment Minister Louise Upston. Photo / Mark Mitchell
applies to people who receive a benefit with work or social obligations, such as Jobseeker Support. They are given a green, orange or red status.
The orange category means the person is on their first or second obligation breach and does not have a good reason for the transgression. If they don鈥檛 comply within five working days, they will move to red. Once someone is classed as red, they are sanctioned.
Last year, when the Government introduced the traffic light system, it also unveiled new 鈥渕oney management鈥 and 鈥渃ommunity work experience鈥 sanctions that come into effect later this year.
At the time, it declared there would be 鈥渘o more excuses鈥 for not knowing what their responsibilities are, vowing to take a 鈥渉arder line鈥 with sanctions under a new traffic light system.
The Government鈥檚 political opponents have .
Labour leader Chris Hipkins said the harsher sanctions were 鈥渒icking people when they鈥檙e down鈥 and benefit-bashing.
Green Party social development and employment spokesman Ricardo Menendez March said the Government was inflicting 鈥減ain and misery鈥 on people in poverty with 鈥渃ruel policies鈥.
The people the sanctions affected deserved to live in dignity with access to the support they needed, he said.
The financial sanctions are only targeted at some beneficiaries, such as those with dependent children or people under case management who are facing their first obligation failure.
Everyone else will continue to face financial sanctions.
Under the money management sanction, half of a person鈥檚 benefit goes onto an electronic payment card that can only be used at approved stores to purchase essentials.
The community work experience sanction requires the person to find and complete work experience at a community organisation before the sanction is lifted.
Julia Gabel is a Wellington-based political reporter. She joined the Herald in 2020 and has most recently focused on data journalism.
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