Hon Louise Upston
Minister for Social Development and Employment

Data from the first full calendar month of the Government’s welfare traffic light system shows more beneficiaries are doing what is required of them, Social Development and Employment Minister Louise Upston says.

A total of 331,530 people were in the system at the end of September due to having work-related or social obligations attached to their benefits. About 98 per cent had green lights for fulfilling those obligations, while about two per cent, or 5922 people, were idling at the orange and red lights for not taking the steps required to continue receiving payments, such as finding or preparing for work.

The total number of obligation failures recorded in September was 6975 and the total number of benefit sanctions applied was 4662. This compares to 7491 obligation failures and 5268 sanctions recorded in August.

“The traffic light system makes it easier for beneficiaries to understand their obligations and when they’re not meeting them. While it’s early days, it’s encouraging to see a drop in the number of people failing to uphold their benefit obligations with this new warning system in place,” Louise Upston says.

The numbers also showed about 98 per cent of those failing their obligations and receiving sanctions were work-ready job seekers.

“The Government has been clear that beneficiaries who are motivated to find work will get our full support, but we won’t tolerate those who are receiving a Jobseeker benefit and aren’t seeking a job,” Louise Upston says.

“There is responsibility that comes with receiving a benefit. These obligations aren’t difficult to comply with and reflect the expectations of most hardworking New Zealanders whose taxes go towards benefit payments.

"If someone can't find a job, their benefits will not be cut. We are merely asking people who can work to be available for jobs and out there looking.''

The traffic light system began on August 12 with the introduction of a new warning system for the existing benefit sanctions regime. Beneficiaries now see their colour status when they receive correspondence from MSD and log into their MyMSD.

The system will be expanded next year as part of the Government’s wider welfare reforms to include new non-financial sanctions and increased accountability for those who repeatedly fail to comply with their benefit obligations. This will occur alongside a new requirement for those on Jobseeker Support to reapply every six months to continue receiving payments.

“Our government has greater aspirations for New Zealanders than a life spent on welfare, which is why we have a plan to support people into work and have 50,000 fewer people on Jobseeker Support benefits by 2030.”

Traffic Light System numbers

Status of beneficiaries in traffic light system at end of September 2024

* Beneficiaries at red showing as 'Not currently on benefit' are those whose benefit was cancelled due to a sanction within the last 13 weeks but can still have this reinstated through a recompliance activity.

Work-test obligation failures for working-age clients (September 1 to 30)

Note: This is a count of obligation failures, not MSD clients. A client can have more than one obligation failure within the time period.

Work-test sanctions applied to working-age clients (September 1 to 30)

Note: This is a count of obligation failures, not MSD clients. A client can have more than one obligation failure within the time period.

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