Benefit Stats Show Urgent Need for Welfare Overhaul

  • Hon Louise Upston

The coalition Government is providing extra support for job seekers to ensure as many Kiwis as possible are in work or preparing for work, Social Development and Employment Minister Louise Upston says.

"While today's quarterly data showing a rise in the number of people on Jobseeker benefits has been long forecast, we aren't prepared to sit back and let Kiwis get trapped on welfare long-term.

"We are serious about supporting people into work and have an ambitious target to have 50,000 fewer people receiving the Jobseeker Support benefit by 2030.

"Our plan to achieve this now includes:

  • A new over-the-phone employment case management service that will extend this support to 4000 more job seekers under the age of 25.
  • New work seminars that job seekers attend within two weeks of coming onto Jobseeker Support to help them understand the help that is available, what is expected of them, and decide their next steps to find work.
  • New work check-ins that job seekers attend after six months to confirm they are taking sufficient steps to be work ready, are applying for jobs, and whether they need more support.
  • Continued investment of $1.1 billion in MSD's frontline employment programmes and financial supports through Budget 2024.
  • The Government making its view clear that benefit sanctions should be fully applied, rather than used sparingly, to incentivise job seekers to fulfil their work obligations.

"Our work is not done, and with Jobseeker numbers forecast to keep rising until the start of 2025, more changes are coming to support people into jobs as we rebuild the economy.

"We are focusing on under-25s because they tend to have less work experience and are at greater risk of getting stuck on welfare for longer. Supporting them now is crucial for enhancing their long-term job prospects.

"It's important that job seekers are also doing everything they can to be as work-ready as possible. The rise in those being sanctioned for not attending appointments and failing to prepare for work is concerning and demonstrates the need for our reset to ensure they know what is expected of them.

"This Government is focused on lifting families out of hardship and giving them more opportunities to get ahead by supporting all who can work into jobs."

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