Nick Mills: The rise in benefit sanctions shows the government is getting serious

OPINION

Well, Louise Upston did warn us. 

The Social Development minister told us she was going to get tough on beneficiaries who were not complying with the requirements set out for them.

There were going to be sanctions; and a lot of them. And now we're seeing it happen.

It's a new approach from the government, an approach some might call heavy-handed.

I call it completely reasonable.

The first thing you need to know is the number of people on the benefit has risen. The latest data from the Ministry of Social Development shows at the end of June 380,000 people were receiving a main benefit of some kind.

That's up 8.3 per cent, or roughly 29,000 people compared to June 2023. 

Of those, 114,000 were receiving job seeker support and are work ready. That was up 14.8 per cent year on year.

But the sanctions are the biggest part of this story, and the numbers don’t lie.

There were roughly 10,400 sanctions issued in the June quarter, up 3600 or 53% compared to June last year.

And the main reason for the sanctions was that these beneficaries didn't attend appointments, including seminars.

There were also about 1800 of what are called graduated sanctions - that's a sanction that involves things like cutting a portion of a person's benefit. Those sanctions have increased a whopping 81.5% from a year earlier.

It really shows you how little the last government was sanctioning people on the benefit for not complying with the simple thing we ask of them; try and find work. 

Obviously the Green Party are up in arms about this, saying Louise Upston is more interested in punishing the poor than actually supporting people into meaningful work.

Rubbish. 

I understand that with the state of the economy, the number of people on a benefit will rise, and I firmly believe people in that position should be treated with dignity and respect, and have enough to live on. It's also important to note that it's a small minority of beneficiaries facing these sanctions. 

But there should also be responsibilities. Every person on the benefit should be trying as hard as possible to find work, and if they aren’t making an effort, then it's completely reasonable to crack down on them with sanctions. 

In some cases, this will instil discipline in people who haven't worked for a while or simply don't want to work.

I would have thought that was a great way to push people into work and get them to understand that in the real world if you've got an appointment you've got to be there.

If you've got a commitment, you've got to commit to it.

And if you are on a benefit, it’s a hand to help you to do the right things. To show and prove that you are better than picking up a benefit every week. That you have potential.

And if you don't want to commit to doing the right things to make something of yourself, then it's going to cost you.

This is life in the real world. 

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Episode Transcript

Speaker 1 (00:07):
You're listening to the Wellington Mornings podcast with Nick Mills
from News Talks at b Well.

Speaker 2 (00:14):
Louise Upstein started playing the big game. The Social Development
Minister said and did warn us that she was going
to get tough on beneficiaries who were not complying with
the requirements set out for them. There was going to
be these things called sanctions issued, first and second sanctions
and a lot of them. It was a new approach

(00:35):
from the government. Some might call it heavy handed. I
call it completely reasonable. Well, all I can tell you
is she's acting on her words. The first thing you
need to know is that the number of people on
the benefits has risen. Latest data from the Ministry of
Social Development shows at the end of June three hundred
and eighty thousand people were receiving a main benefit of

(00:58):
some kind and that, by the way, is up eight
point three percent, or, if you want to put it
in numbers terms, twenty nine thoul people compared to June
twenty three, up twenty nine thousand. Of those, one hundred
and fourteen thousand were receiving job seeker support work ready
That was up fourteen point eight percent year on year.

(01:19):
Those are people that are perfectly able to be in
the workforst for workforce and right now tomorrow start Monday.
But the sanctions is a big part of the story
and the numbers don't lie. There were roughly ten four
hundred sanctions issued in June quarter and that's up three thousand,
six hundred or fifty three percent compared to June last year.

(01:44):
And the main reason for sanctions was that these people
beneficiaries didn't attend appointments, including seminar appointments. There's also about
eighteen hundred of what are called graduated sanctions. That's a
sanction that involves things like cutting a portion of the benefit.
Those sanctions have increased a whopping a ninety one point

(02:07):
five percent year on year from a year earlier. This
really shows you how little the last government was sanctioning beneficiaries.
These are big increases. Louise Upstince was asked about sanctions
by Mike Cosking this morning.

Speaker 3 (02:25):
But it also tells us that people who've been on
the job secer benefit have got use to being left
alone to their own devices. That's not what we're doing.
We have an active system. They have requirements, they need
to show up to appointments, they need to go into
MSD support is available to them, but job seekers need

(02:48):
to know that there are steps they have to take
in responsibilities they have to help themselves.

Speaker 2 (02:54):
Obviously, the green part of your up in arms about this,
saying louis ups and it's more interesting in punishing the
poor than actually supporting people into meaningful work. Rubbish. I say.
I understand with the state of the economy, the number
of beneficiaries will rise, and all people should be treated
with the dignity to have enough to live on, but

(03:17):
there should also be some responsibilities with that. Every time
you pick up a benefit, there should be things that
you have to do. Every bene fishery should be trying
as hard as possible to find work, and if they
aren't making an effort, then it's completely reasonable to crack
down on them, install some discipline to people that have worked,

(03:40):
haven't worked for a while, or don't want to work.
I would have thought this is a great way to
push people into work, to understand that in the real world,
you've got an appointment, you have to be there and
you have to be there on time. You've got a commitment,
you've got to commit to it. And if you're on
a benefit. It's a helping hand, so you have the

(04:03):
right to do the right thing. You have to do
the right thing and show and prove that you want
to do better. Then just pick up a benefit every
two weeks and if you want or don't want to
commit to try and to do the right thing, it's
going to cost you. Once again, it's just real life things.

Speaker 1 (04:22):
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