21 Aug 2024

Benefit cut after one missed appointment, former public servant says

8:06 am on 21 August 2024
Composite image of letters from the Ministry of Social Development & Work & Income, with a benefit payment card and a community service card

Photo: RNZ / Quin Tauetau

One missed appointment is all it took for one former public servant to completely lose his benefit, taking weeks to be reinstated after he contacted WINZ.

The former public servant was on the JobSeeker benefit after losing his job in December said he missed an appointment at his local WINZ office two months ago.

He was surprised when the cuts to his benefit began shortly afterwards

"My benefit was reduced over an 8-week period, starting at 80 percent, then 50 percent for 4 weeks, and finally to zero for 3 weeks."

He contacted WINZ as soon as the cuts started, but had to wait two weeks for an appointment, at which point he said WINZ assured him the payments would be resumed.

"When it dropped to zero, especially after I had been told it would resume to normal, I wasn't just worried for my own livelihood, I felt like I'd been betrayed, told one thing then the entire opposite thing happened. I was pissed off about it I felt like they weren't treating me like a human."

The two text messages WINZ sent reminding him about the June appointment did not say what would happen if he missed the meeting.

"I admit I missed one appointment, but they never explained why it was so important or that I'd lose my whole benefit over it."

He was eventually repaid, and his benefit was reinstated - that was before the traffic light system began last week.

The Ministry of Social Development said the system would make it easier for beneficiaries to understand their obligations and the consequences of not meeting them.

The ministry's Jayne Russell said "the traffic lights are a helpful way for clients to know if they are on track with meeting their obligations".

Work & Income letters sitting on top of traffic lights

The traffic light system for beneficiaries started last week. Photo: RNZ / Quin Tauetau

She said the obligations had not changed, nor had the fact WINZ contacted those who failed to meet them.

"The obligations for those on benefit haven't changed. We have introduced a traffic light system in order to make things easier for clients to understand," she said.

"If clients get off track, we'll explain their responsibilities, and support them to get back on track."

Russell said there were two ways to get back to green - recomply by carrying out the activity they missed or, if they had a good reason why they did not carry out the activity, then the obligation failure was also removed.

"This decision is usually immediate, as a result of the conversation with the case manager," she said.

"If a client disagrees with the decision MSD has made, a review of decision can also be requested through our website up to three months after a decision has been made."

From next year, the sanctions system would be extended.

Another man, an accountant who missed an appointment he knew nothing about, received a week's warning that his benefit would be halved.

He met his case manager at WINZ last week, within the five-day window before the cut was due to kick in.

"He said that he'd already looked into it and that he's put me back on green and that my benefit won't be reduced."

He said knowing his benefit would not be cut was a relief - but it caused unnecessary worry.

"National will save millions of dollars but at the cost of, potentially, human lives. Whether it's directly from people no being able to afford food or indirectly from mental health issues."

Sanctions have risen under this government - the latest data showed the number of people whose benefits were halved rose 34 percent to 8754 in the June quarter, compared to the same time year, while the number of people whose benefits were cancelled rose 35 percent to 1635.

Auckland-based Lifewise offers community and emergency housing and runs a social enterprise cafe in the city.

Its chief executive Haehaetu Barrett said cutting benefits for minor misdemeanours, including a missed appointment, would hurt the most vulnerable.

"We're already seeing a level of heightened anxiety from families going through this now which will turn to alternative options of survival. What's coming for us is that there will be heightened areas of crime."

She was inviting politicians to come and see the work Lifewise and others do, so they can advocate for beneficiaries.

"You have to come out and see us and speak with us. We acknowledge that there are a minority of whānau that must have the obligations of the traffic light system and that will be helpful but the majority of the vulnerable community we're going to see heightened crime, heightened requirement for mental health and addiction support.

"It's going to be a tough time out there."

Get the RNZ app

for ad-free news and current affairs