Welfare system reset will benefit Southlanders
As Associate Social Development and Employment Minister, I support moves by the coalition Government to curb welfare dependency. Under the previous government, welfare dependency soared, and between 2017 and 2023, people on Jobseeker benefits increased by about 70,000, with about 40,000 extra people receiving a benefit for a year or more.
Work is about social connection. It’s about contributing to the economy and supporting your local community. It makes a difference to have a job.
Going to work is also about setting an example for our children and encouraging them to aspire to find employment in the future.
I’ve talked to young Southlanders who want to make their own living and gain the independence that this brings. I’ve also met those who have found their first job, and I’ve shared in their sense of satisfaction.
These Southlanders feel that they have earned their place in society, that they have purpose to their lives, and that they are valued. It is sad and wrong that some people do not get to experience this.
The coalition Government is taking early action to reduce welfare dependency by setting out expectations around employment and the use of benefit sanctions.
There are concerns that the previous minister set the tone for a lighter touch to benefit sanctions, by saying they needed to be used “sparingly” and as a “last resort”. This, in turn, dampened their effectiveness as an incentive to fulfil work obligations.
In 2017, 60,588 sanctions were applied to beneficiaries who did not comply with their obligations to prepare and look for work. That nosedived to 25,329 in 2023.
This Government’s view is clear – we want to see all obligations and sanctions applied.
If jobseekers fail to attend job interviews, to complete their pre-employment tasks, or to take work that is available, then there need to be consequences.
We are not prepared to accept the welfare system we inherited, where workready jobseekers are forecast to spend an average of 13 years on a benefit, and teenagers could become trapped on welfare for 24 years of their working lives.
This does nothing for our community, or our economy – but, most importantly, being out of work for an extended period does nothing for people’s sense of selfworth.
From June, MSD will also begin work check-ins for jobseekers who have been on a benefit for six months, particularly young people.
These check-ins will make sure Jobseeker beneficiaries are taking appropriate steps to find employment and are receiving the right help.
These actions are a precursor to the coalition Government’s wider reset of the welfare system, which will include mandatory reapplication for Jobseeker Support every six months, community-provided job coaching, and action being taken for those who repeatedly fail to comply with their work obligations.
I am confident that these actions will open pathways to employment for Southland people, and for all those across the country who have languished on welfare for far too long.