Two new non-financial sanctions are introduced under the government’s beneficiary traffic light scheme, focusing on job searches and upskilling.
The alternative sanctions, introduced following feedback during the select committee stage, will apply to certain jobseekers. These sanctions were:
Report Job Search
A requirement has been introduced for beneficiaries to complete and report at least three job-search activities each week over a four-week period. This sanction is designed to enhance accountability among beneficiaries who are expected to actively seek employment.
Upskilling
A new sanction requires beneficiaries to attend and actively participate in one or more employment-focused training courses or programmes for a minimum of five hours per week over a four-week period. This measure is designed to help beneficiaries develop essential skills needed for gaining employment.
Beneficiaries who fail an obligation for the first time will only qualify for these non-financial sanctions if they are either actively managed through case management or have dependent children. Additionally, they must attend an appointment with the Ministry of Social Development (MSD).
They add to the current “non-financial” sanctions, which involve placing half of a person’s benefit onto a special payment card that can only be used for a specific range of “essential” products and services, as well as requiring participation in community work experience.
Social Development and Employment Minister Louise Upston stated that the obligations were approved by Parliament in May and emphasised that they were not excessively burdensome.
“They’re basic expectations. They reinforce accountability for those failing to meet their obligations, while also recognising that reducing benefits isn’t the answer for everyone.”
Upston also highlighted that the majority of job seekers are meeting their obligations, with under 2% of them falling into the red or orange categories of the compliance system.
“The 98.5% of job seekers at green are committed to finding work, and MSD is fully committed to supporting them to do so.”
The traffic light system, introduced in August last year, classifies beneficiaries with work or social obligations into three categories: green, orange, or red. This colour-coded system helps individuals understand how well they are meeting their obligations while on a benefit.