[ad_1]
Social Development Minister Louise Upston.
photo: RNZ/Samuel Rillstone
Beneficiaries are feeling the effects of the government’s tough stance – the number of sanctions issued in the June quarter this year was more than 50% higher than the same period last year.
The latest Ministry of Social Development figures show there were 380,889 people receiving some type of main benefit at the end of June, an increase of 8.3 per cent, or 29,130 people, compared with June 2023.
Of these, 113,931 are receiving “work readiness” job seeker support, a year-on-year increase of 14.8%.
Economist Shamubeel Eaqub said that was to be expected given the current state of the economy, and that wages were likely to rise further: “This is just the beginning.”
Northland has the highest proportion of job seekers in the country, at 10.5 per cent.
NZ Council of Trade Unions policy director and economist Craig Renney said he expected the number of unemployed people to rise steadily. Treasury had forecast 47,000 job losses between the start of the new government and the peak of unemployment.
Rainey said that number was likely an underestimate, and he said he expected about a third of them would eventually receive benefits.
The data also showed an increase in the number of sanctions against benefits, resulting in people receiving less money in benefits.
The government has warned that it plans to take a tougher stance on beneficiaries who do not qualify for work.
Social Development Minister Louise Upston said from June Provide “work check-in” for job seekers people who have been receiving benefits for at least six months, “particularly young people”, to “ensure jobseeker beneficiaries take the appropriate steps to find employment and get the right help”.
A total of 10,389 sanctions orders were issued in the June quarter, an increase of 3,630 orders, or 53.7%, compared to June 2023.
The main reasons why recipients were not eligible for work were failure to attend appointments, including failure to attend workshop appointments (6,069 people) and failure to be ready for work (3,360 people).
There were also 1,797 graduated sanctions imposed in June, such as percentage reductions in benefits, an increase of 81.5% from the same period last year.
Ricardo Menéndez March, the Green Party’s social development and employment spokesman, said welfare sanctions would hurt people who are already struggling to make ends meet and limit their chances of escaping poverty.
“This is the result of the Social Development Minister directing that more beneficiaries be sanctioned. Louise Upston is more interested in punishing the poor than actually supporting people into meaningful work.
“There is no evidence that welfare sanctions help people find work or lead to positive outcomes for families struggling to make ends meet. Worse, the work workshops and conferences that beneficiaries are forced to comply with do not directly translate into people finding meaningful work.”
Rainey said that was a huge increase and likely reflected a group of beneficiaries who were unfamiliar with the system.
Mr Upston said the government was serious about supporting people into employment and wanted to reduce the number of people on jobseeker’s allowance by 50,000 by 2030.
“Our work is not done yet, with jobseeker numbers expected to continue to rise through to early 2025, we will be introducing further reforms to support people into employment as we rebuild our economy.
“We are focusing on those under 25 because they tend to have less work experience and are at greater risk of long-term welfare dependency. Supporting them now is vital to improving their long-term employment prospects.
“It’s important that job seekers also make every effort to be fully prepared for work. The increase in the number of people being penalised for not turning up for interviews and not being fully prepared for work is worrying and suggests we need to recalibrate to ensure they know what is expected of them.”
[ad_2]
Source link
