VP Issues Update

The recent government decision to increase sanctions for beneficiaries will put even more pressure on already stretched social service agencies. These are agencies that provide food parcels or supermarket vouchers, bedding during winter, help people pay their bills in a crisis, provide safe spaces for survivors of domestic abuse, and make sure children have clothing and school supplies.

In June 2024,10,389 people were sanctioned (reduction in benefit) for not fulfilling their benefit obligation. This is of a total 196,434 people receiving Jobseeker support – 5% of beneficiaries that aren’t meeting their benefit obligation. Is this going to be the lynchpin policy that addresses poverty, particularly during a time of high unemployment? Not meeting obligations may be because the person is unwell, supporting a family member during a crisis, or struggling to understand their obligations because of language barriers.

There is no evidence that sanctions are successful in supporting beneficiaries into jobs, particularly not in the long run (see reference below). The Welfare Expert Advisory Group 2019 review also looked at sanctions. They found that there needed to be a balanced and proportionate approach to obligations and sanctions to maximise intended outcomes and minimise unintended effects. The paper tells us:

“In some instances, obligations and sanctions may be able to be justified. Both OECD advice and the Watts and Fitzpatrick review emphasise the need to ask – what are the benefits and costs to society and to those affected? Are there cases where they do more harm than good? And in these cases, should they be removed, or the severity of their design or administration reduced?”

I am concerned about the additional burden these increased sanctions places on women and families, and the social service agencies that are already overburdened. Our welfare system needs wholesale change.

BPW New Zealand will continue to battle for better policy for women and families experiencing poverty. Thank you for standing alongside us. https://www.bpwnz.org.nz/join-us

Reference: https://thespinoff.co.nz/politics/15-08-2024/what-happened-last-time-we-had-a-beneficiary-crackdown

Kind regards,

Siobhan Dilly

VP Issues

BPWNZ