Government benefit sanctions 'waging a war on the poor' - Greens

Opposition parties have slammed the government's move to crackdown on beneficiaries, saying work-for-dole type schemes are a "reheated, failed approach".

The long-signalled traffic-light warning system kicks into effect from today, setting out clear consequences for those who fail to meet certain requirements.

Cabinet has agreed to further bolster the regime from early 2025, meaning jobseekers will have to reapply for the benefit every six months - instead of annually - and any transgressions will remain on their record for two years, twice as long as they do now.

Prime Minister Christopher Luxon and Social Development and Employment Minister Louise Upston announced the changes in Auckland yesterday after the weekly Cabinet meeting.

The law change will also allow new sanctions, such as mandatory community work or money management payment cards.

Green Party social development and employment spokesperson Ricardo Menéndez March promised the party would repeal the interventions and overhaul the welfare system, so it treated people with respect and dignity.

He said the government was just "going off vibes", piling punishments on beneficiaries with one hand, while cutting benefit increases with the other.

"None of those interventions have shown to actually work to help people into employment, and the government at the same time has shown little ambition or interest into addressing things like child poverty.

"Compulsory money management has not been shown to work in Australia to get people into jobs, and the little research we have domestically also shows that young people do not benefit from it and experience poor outcomes."

He said Jobseeker obligations were not currently laid out in a way which could help people match their skills and aspirations, and adding more sanctions would not work.

"People have to go to Work and Income to sit down and complete a bunch of menial tasks, and I know this having worked on the front line myself for years, that the current systems don't actually meaningfully support people into employment.

"This is just a government determined to waging a war on the poor."

He rejected suggestions that things like the community work sanctions would give people a sense of purpose and help them build skills.

"Louise Upston's making a huge range of assumptions on people's lives and circumstances, and the work-for-dole type schemes are a reheated, failed approach that didn't work in the '90s and won't work now.

"It will actually cost money for those same beneficiaries, and we're better off redesigning our employment support services so they actually can get people into jobs that match their skills, their aspirations, and can guarantee secure hours as well."

He said the changes would just mean more hardship.

Labour leader Chris Hipkins said there were about 18,000 fewer jobs available than when the coalition took office, and they should be focusing on increasing employment.

"Sanctions don't get people off benefit and into work if there arent' jobs for them to go to, and at the moment there aren't jobs for them to go to," he said.

"Take, say, building and construction for example. In that sector alone there are 6000 fewer jobs than there were when National became the government.

"If people have found themselves out of work in the past nine months because of decisions this government's taken, to then be kicked around by this government and told to get back to work when they were the people who got rid of their jobs in the first place, that's a real kick in the guts."

The sanctions meant children in benefit-dependent households would be forced below the poverty line, and they would be more likely to continue to experience poverty into the next generation.

He said it was "classic National", and the government was "absolutely" bashing beneficiaries.

"They like to pick on people on benefits rather than actually focusing on creating jobs, growing the economy, and getting people into good, well-paid work. They don't have a plan for that so they've just resorted to kicking people when they're down."

He was not opposed to community work but said it was being used punitively, which he did not agree with.

"People should be actively looking for work, absolutely, but there's a difference between people having their benefits cut because there are barriers to them going back into employment which the government aren't doing anything to address, and them deliberately breaking rules."

The money management approach was taking away people's autonomy and independence, he said, and would end up doing the opposite of what the government wanted, driving them further towards dependency on the state. It was another example of the coalition governing by slogan rather than policy based on evidence, he said.

Changes restore balance - ACT

Money management was part of the National and ACT coalition agreement, and ACT leader David Seymour says they would have gone further.

"ACT would say, if you continue to have children while on a benefit, or if you stay on a benefit for a large amount of time, then the money should be received in the form of money management, an electronic card that can be used purposes to ensure the money actually goes to the children."

Seymour said these changes restore balance.

But Auckland Action Against Poverty Coordinator Brooke Pao Stanley said the changes lacked vision and leadership.

"It further punishes people for being poor and it will only exacerbate the issues.

"Research shows, and people with lived experience will telly ou, it's not supportive or encouraging. Sanctions don't actually work.

Pao Stanely said it would be better to introduce a high trust model at Work and Income, and livable incomes for all people.

"Continuing to punish communities that are already being punished, further stressing them out, communities that are already stressed, isn't helpful, it's actually harmful."