This article was first published by RNZ
An accountant who has been on a JobSeeker benefit for more than a year was shocked to be told yesterday that his payments will be cut by half next week, for being a no-show at a meeting for which he had no record.
The government has introduced a traffic light system for beneficiaries, with tougher sanctions for those out of work who do not meet obligations to prepare for or find work.
The system ranks beneficiaries as green, orange or red, with the high risk category indicating a third breach of obligations. The consequences include benefit reductions, benefit suspension, money management and/or mandatory community work experience.
Next year JobSeekers will have to reapply every six months, and face sanctions like community work and money management cards.
The man - who wishes to remain anonymous - said he received an email from Work and Income (WINZ) stating his benefit would be halved because he did not attend an appointment on Friday.
“We’re getting in touch to let you know we have to reduce your payments by 50 percent on 20 August 2024,” the letter stated.
“We’re doing this because you didn’t do what you need to do when you get payments from us, or give us a good reason why not.
“In this case, on 9 August 2024 you didn’t meet your Work obligations, because you didn’t attend the appointment we arranged.”
But the man said there was no planned meeting and he will dispute the matter.
“I never had an appointment for 9 August, I never received any information even going back through emails and text messages,” he said.
“It’s completely unfair because there’s been no communication whatsoever on their end. I will have the courage to stand up for myself and fight, at the end of the day I’m not in such a bad position as other people. I can always sell possessions to make ends meet for a limited time.”
He said the letter was dated 9 August, but the government had announced the traffic light system three days later.
“It’s rather concerning because the government only came out with this a couple of days ago so how far they can back date these sorts of penalties is kind of concerning.”
He said he was actively looking for an accounting job.
“I struggle weekly and I don’t want to be on a benefit, but I know that there are a lot more vulnerable people out there and my concern goes out to them.”
The man had a meeting arranged with WINZ on Wednesday to discuss the cut to his benefit.
In the letter, WINZ said beneficiaries could ask for the decision to be reviewed within three months.
“If you disagree with this decision, or have a good reason why you didn’t do what you need to, let us know. Come and see us or call us on 0800 559 009 in the next five days. We’ll take another look at our decision,” the letter said.
“In most cases, you’ll need to talk with a case manager. The sooner you see us the sooner we can sort this out.
“Please get in touch even if you don’t have a good reason. We’ll talk you through the things you need to do to get your full payment. You can also ask us to review this decision.”
The government is defending its “tough love” approach for beneficiaries not meeting their obligations, but some advocacy groups said the changes are nothing more than beneficiary bashing and will do more harm than good.
The government in February revealed increased use of sanctions with “work check-ins” ramping up.
Compulsory work seminars for job-seeking beneficiaries were announced in May, and in June changes took effect requiring jobseekers to attend a seminar after six months.
The government also launched a new phone-based case management system in July, estimating it would support 4000 more Jobseekers.
When announcing the traffic light system ahead of the election, current Social Development Minister Louise Upston said it would make obligations under the benefit clearer to unemployed people and the consequences they would face if they failed to meet them.
The scheme included three levels:
- Green (compliant) - Meeting obligations to prepare or find work. No change to benefit
- Orange (some risk) - First or second breach of obligations, resulting in additional requirements and support like more regular check-ins or attendance at job workshops
- Red (high risk) - A third breach of obligations, with consequences including benefit reductions, benefit suspension, money management and/or mandatory community work experience
Upston at the time promised a rule preventing sanctions from cutting benefit pay by more than 50 percent if jobseekers had children would also remain in place. Beneficiaries who remained off the benefit for more than a year would also become eligible for a $1000 bonus.
By Amy Williams of RNZ