Louise Upston: Social Development Minister on the new sanctions for people on the Jobseeker benefit

The Social Development Minister says new sanctions will give beneficiaries less choice for spending money.

The Government is ramping up obligations for those on Jobseeker benefits, and a Traffic Light System of punishments when they aren't met.

People hitting 'Red' can expect half their benefit income to be put on a payment card, used only for accessing essential items.

Louise Upston says the card is already in use for young parents and people on Youth Payment.

"They can still spend it on clothes, on petrol, on grocery items - but there will be restrictions. So people can't buy cigarettes, for example." 

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Episode Transcript

Speaker 1 (00:00):
Afternoon. The government is getting tougher on beneficiaries. It's been
announced that job seekers will have to reapply for the
benefit every six months. A new traffic light system will
be used to show whether a beneficiary is complying with
all the rules, and there will also be new sanctions,
including money management, where half a person's benefit goes onto
an electronic payment card that can only be used on
essential items. Louise Upston is the Minister for Social Development

(00:22):
and Employment highluiz Hi Heather, what's the thinking behind six
months reapplication at six months rather than a year?

Speaker 2 (00:30):
What? We want to make sure that we're getting more
people into work and means a far more active system.
And so if they don't need to be on a benefit,
noar longer they shouldn't, so it's shortening the reapplication date
to six months.

Speaker 1 (00:43):
Are there people who are on a benefit who don't
need to be on it?

Speaker 2 (00:47):
Yes? There are. What we know from the last time
we reduced it to six months as there was a
significant number of people who didn't reapply for a variety
of reasons. Some of them may well have found a job,
which is great.

Speaker 1 (01:00):
So is it possible that there were some people who
were running both a job and the benefit at the
same time.

Speaker 2 (01:06):
Possible. Look, at the end of the day, we have
announced a number of measures today because we want to
see more people in work. We want to break the
cycles of welfare tendency that we've seen balloon under the
previous government. So these are some simple practical measures that
help help more people into work.

Speaker 1 (01:26):
Okay, so what will they do, Like, what is going
to be the thing that lands them on that money
management card?

Speaker 2 (01:33):
Yeah, So the traffic light system green, you're complying, Orange,
you've got a warning red, there's a finnction. So at
the moment, the sanctions are either a fifty percent reduction
in the benefit or a cancelation completely. We want to
introduce for parents in particular, the maximum reduction is fifty percent,

(01:54):
but instead of going to that straight away, we could
then use a non financial measure like money management, so
they still get the same amount of money, but less
choice over how they use.

Speaker 1 (02:05):
It, right, and then they're able to still provide the
basics for their kids. That's the thinking, right absolutely, Okay.

Speaker 2 (02:10):
Yeah, because people have expressed concern about that, so we've
decided to bring in this additional measure, which will mean
you know, we want those on benefit to comply with
their obligations first and foremost that's their responsibility. But will
mean that there's a step before the reduction to fifty
percent is a maximum.

Speaker 1 (02:30):
What are they able to spend that money on that's
on the card.

Speaker 2 (02:34):
Yeah, so the payment card is use at the moment
with young parents and those on the youth payment. It's
basically set up with restriction on what you can spend
it on. So obviously you can't go to the supermarket
and buy alcohol and cigarette. There are rules set around it.
When a person would be going on to money management

(02:56):
that's done well for beneficiary and.

Speaker 1 (02:58):
MSD, Well can they spend it on, Well, they can.

Speaker 2 (03:02):
Still spend it on cloaths, on petrol, on grocery items,
but there will be restrictions so you know, people can't
buy cigarettes for example, and they can't buy alcohol. But
again we want people to comply and so that will
be lifted after a month if somebody then complies with

(03:24):
their obligations to be looking for a job.

Speaker 1 (03:27):
Now you also are making it mandatory for all beneficiaries
with work obligations to have a job seeker profile before
they get the benefit. What is that.

Speaker 2 (03:35):
Yeah. So basically we want to ensure that MSD are
having early work conversations with those going on to the
jobs that can benefit. So before signing on to the benefit,
a person will have to complete a profile that this
is their work experience, these are their qualifications, these are
the sorts of jobs they're looking for, and this is

(03:57):
their drivers driver license DATUS. So it helps MSD work
more quickly to help that person find a job, which
is exactly what we want to do. You want to
cur an ambitious target to reduce the number of people
on the jobs you could benefit by fifty thousand. So
this is all about how do we help more people
get off welfare and into work.

Speaker 1 (04:18):
All right, Louise listen, thank you very much, really appreciate
your time. That's Louise Eupston, the Minister for Social Development
and Employment.

Speaker 2 (04:24):
For more from Heather Duplessy Allen Drive listen live to
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Speaker 1 (04:28):
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