Two new ‘non-financial’ benefit sanctions have come into effect: “Money Management” and “Community Work Experience.”
Under Money Management, half of a person’s benefit is loaded onto a payment card that can only be used for essentials like groceries and transport.
ACT leader David Seymour, who championed the changes, said “If you want the freedom to spend cash as if it’s your own, then you should earn it yourself.
Social development minister Louise Upston said the policy is only used for first-time breaches involving case-managed clients or those with children, calling it a “very fair and reasonable” alternative to traditional cuts.
“If you have 100 percent of your benefit, with 50 percent on a card, that’s still better than only getting half your benefit or no benefit,” she said.
The second sanction, Community Work Experience, requires five hours per week of unpaid work with community or voluntary organisations for four weeks.
“At the end of the day, we want fewer people on welfare and more people in work,” Upston said
Labour leader Chris Hipkins called the policy “mean and petty,” arguing the government should focus on job creation instead.
Upston rejected the criticism, noting that fewer than 1.2 percent of beneficiaries were non-compliant and only 288 children were affected. “I want them to realise we’re serious about them taking the steps to find a job,” she said.
Centrist Ltd.