The Post

How the Government justifies crackdown on welfare recipients

- Thomas Manch

Prime Minister Christophe­r Luxon has launched an opening salvo in the Government’s promised war on welfare dependency – bringing the full weight of financial sanctions down on beneficiar­ies who don’t take obligatory steps to find work.

Cue the outrage, already predicted by the prime minister. In a speech to party faithful on Sunday, Luxon promised “tough love” and he sought to quickly deliver it this week, at once consuming media attention and giving the impression of a National-coalition Government getting things done. Expect more tough love to be doled out soon.

And in justifying the move, Luxon has deployed a two-fold strategy throughout press conference­s and interviews this week – talking up questionab­le data on benefit dependency, and emphasisin­g the classic centre-right principle that is rights and responsibi­lity: “The free ride is over.”

Luxon contends that Labour has let too many people linger on welfare. In explaining why sanctions are needed, he’s referred to a series of statistics that trouble the Government. But, intentiona­lly or otherwise, he’s conflated projection­s with actual statistics.

Repeatedly, Luxon has said the average time spent on the Jobseeker benefit has risen from 10.5 years to 13 years, and young people on the youth benefit “are now languishin­g” on welfare for an average of 24 years.

But these figures are not hard data about the current outcomes of the welfare system. In fact, they are misreprese­ntative of the actual average time spent on the Jobseeker.

Luxon is referring to figures from a Ministry of Social Developmen­t modelling report that shows a possible future, based on assumption­s including that current government policies remain, and economic projection­s (which are hardly set in stone) are true.

This possible future, according to report writers Taylor Fry, has been getting worse – as Luxon refers to. But this is not necessaril­y the current state of affairs.

Instead, the average time spent on the Jobseeker benefit, according to the Ministry of Social Developmen­t, is no more than three years, depending on how you cut the data.

There are different ways to cut the data, and two different types of Jobseeker support: the “work-ready” benefit, and the “health condition and disability” benefit.

The average time spent on the Jobseeker overall – combining the total days spent on the benefit, divided by the total number receiving it – is 1163 days or three years.

For just those on the “work ready” – those who are most ready for full time employment – it’s 848 days or more than two years.

This falls well short of Luxon’s claimed decade-long average.

Another measure provided by the Ministry of Social Developmen­t was the median duration spent on the Jobseeker. For work ready Jobseeker the median was 342 days, or less than a year. Meaning, as of December 2023, half the 109,698 people receiving this benefit had done so for less than 342 days.

For the 80,100 people receiving the health condition and disability Jobseeker – provided to people unable to look for work at the current time – the median was greater, 884 days or more than two years.

The number of people receiving the Jobseeker benefit did increase under the Labour government. Luxon has routinely spoken of 70,000 more people on the Jobseeker benefit in six years, and this 57% increase occurring alongside a 58% reduction in the use of sanctions.

However, no hard causation between this lessening of sanctions and rise in Jobseeker recipients has been establishe­d.

(Also, Luxon rounded up – there was an increase of 66,757 people on the Jobseeker between between December 2017 and December 2023, an increase of 54%. An alternativ­e way of looking at this: the percentage of the working population on Jobseeker grew from 4.2% to 5.9%.)

Whether sanctions push people into work is a matter of dispute, and amid a paucity of evidence there are two primary sources the Government and its critics look to: a 2010 MSD paper which says the threat of sanctions increases benefit exits, and a 2018 review that said “very harsh” sanctions could drive people away from work.

When questioned on the evidence earlier in the week, or asked about how many beneficiar­ies were not meeting their obligation­s, Luxon at times pivoted to the “very simple principle of rights and responsibi­lities”.

“The vast majority of beneficiar­ies are doing a great job, they’re holding up their end, they’re doing their obligation­s, but for those that refuse, I’m sorry but we’re not going to be apologetic about making sanctions come into play.”

For the Government the ratcheting up of sanctions is more a step toward a broader effort to curb the welfare state. A wider overhaul of the sanctions regime has been promised.

Labour and the Green Party politicall­y oppose the use of sanctions, which they consider a punishment that takes money from already impoverish­ed families on welfare. Yet the Labour government largely left the sanctions regime intact, instead directing the ministry to ease off somewhat. Already both parties have condemned the Government for “bashing beneficiar­ies” and penalising the poorest people.

The decades-old political debate between Labour’s emphasis on the welfare state, and National’s insistence on rights and responsibi­lities, won’t end here. The pendulum is just swinging right again.

 ?? THE POST ?? Prime Minister Christophe­r Luxon announces the Government is directing MSD to fully utilise sanctions for welfare recipients not meeting work obligation­s.
THE POST Prime Minister Christophe­r Luxon announces the Government is directing MSD to fully utilise sanctions for welfare recipients not meeting work obligation­s.

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