Reducing benefit dependency

Reducing benefit dependency

National will do more to get unemployed people off the Jobseeker benefit and into suitable work, including introducing more sanctions for those who persistently do not meet their obligations.

For those who are able to work, employment is the best way out of hardship. It provides individuals and families with greater independence, choice and opportunity, and is also better for taxpayers.

However, under Labour, benefit dependency has surged. There are now almost 60,000 more people on a Jobseeker unemployment benefit compared with when National left office six years ago, and over 35,000 more people who have been on it for a year or longer.

One reason benefit dependency has grown substantially is that Labour have removed clear consequences for jobseekers who don't fulfil their obligations to prepare for or find work. In the 12 months to June this year, the number of sanctions applied to jobseekers who breached their obligations was around half the number applied in National’s last year in office, despite a 45 per cent increase in the number of jobseekers since then.

New Zealanders will always give a helping hand to those who need it, but taxpayers are rightly concerned about the number of people on the jobseeker benefit having grown while jobs were plentiful. Those who can work, should work.

National will introduce a traffic light system, making it crystal clear to unemployed people receiving a jobseeker benefit what their obligations are, and what consequences they will face if they refuse to do their bit.

Jobseeker Benefit Traffic Light System

• Green (compliant) – Meeting obligations to prepare for or find work. No change to benefit.
• Orange (some risk) – First or second breach of obligations to prepare for or find work will see additional requirements and targeted support applied, e.g. more regular check-ins and/or attendance at job workshops.
• Red (high risk) – A third breach of obligations will result in sanctions including benefit reductions, benefit suspension, money management and mandatory community work experience.

Read more about our plan

A National government will rebuild the economy so it works for all New Zealanders and ends the cost of living crisis. We will provide rax relief, restore law and order, and improve education and healthcare.

This plan builds on National’s Welfare that Works policy to use community providers, clear obligations, and targeted incentives to get young people off welfare and into work.