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- By Parmjeet Parmar, Pakuranga-based ACT List MP
According to the latest Ministry of Social Development figures, 6.5 per cent of the working-age population – 213,000 New Zealanders – are on a Jobseeker Support benefit.
Prior to Covid-19, this figure was just 4.8 per cent. This reflects the state of the economy.
Unemployment has been rising since 2022, and despite inflation being back in the normal range, we still see the lagging effect of Labour’s reckless spending with high interest rates.
But as interest rates continue to drop and loans come up for renewal, households and businesses will face lower borrowing costs.
This relief will flow through to the rest of the economy and give employers greater confidence to hire.
So, the question then becomes, will those New Zealanders currently on benefits take up new employment opportunities when they arise?
This will be crucial to New Zealand’s recovery from a period of recession.
But just as importantly, a return to employment is beneficial to the welfare and dignity of the individual and their family.
Shifting people off lifestyles of dependency and back onto the path of productive work is how we build better lives, boost economic growth, and break generational cycles of crime and deprivation.
Most Jobseeker Support beneficiaries want to work, and do not need any special incentive to apply for jobs and attend interviews.
But ACT is concerned about a persistent minority who refuse to take basic steps to support themselves despite being in a position to work.
If you can work, you should work. That is why, with ACT in Government, we’re seeing the introduction of new benefit sanctions to encourage New Zealanders back to work, as soon as opportunities arise.
First, there are non-financial sanctions. If a beneficiary fails to take steps to find a job, they can be given new obligations to undertake job-search activities or upskill.
If they fail to meet these obligations, stronger sanctions can then kick in.
That is where an ACT idea comes into effect – a beneficiary can have their spending limited to household essentials via electronic money management.
This is real change that will make it far harder to exploit the benefit system.
Both electronic management and non-financial sanctions are being introduced as part of the Social Security Amendment Bill currently before Parliament.
Finally, we’re respecting the honest efforts of Kiwis who pay tax and fund benefits as a safety net, not a lifestyle option.
