Politics Blog 12/08
Government announces range of benefit changes
The Government has announced a range of reforms to the benefit system, which they say will shift more people off Jobseeker Support into employment and introduce tougher consequences for those who repeatedly do not meet their benefit obligations.
Social Development and Employment Minister Louise Upston has announced a new Traffic Light System to inform people what is required of them to continue receiving a benefit under the current system and warn them when they are not meeting those expectations.
“There are responsibilities that come with receiving a benefit, and there will be no more excuses for job seekers not knowing what those responsibilities are," Upston said.
Cabinet has also agreed to progress a suite of new initiatives that will increase obligations and consequences for job seekers from early next year, including:
- Extending the period over which an obligation failure counts against a beneficiary from 12 months to two years
- Requiring Jobseeker Support recipients to reapply every six months
- Making it mandatory for all beneficiaries with work obligations to have a jobseeker profile before their benefit is granted
- A new money management sanction that will see half a person’s benefit go onto a payment card that can only be used for a limited range of essential products and services (fulfilling a National-ACT coalition commitment)
- A new community work experience sanction that will require beneficiaries to build their skills and confidence to help them get a job
“These changes come with increased support in the form of a new phone-based case management service for 4000 job seekers aged 18 to 24, and 2100 extra places for young people to get community job coaching,” Upston said.
“Our welfare system will always be a safety net that catches people if they fall. But in the past few years it has become a drag net that has captured too many people who can work and allowed them to languish on Jobseeker Support for too long," she added.