More benefit exits into work as sanctions increase

The Government's relentless focus on welfare that works and holding job seekers accountable through sanctions saw a year-on-year increase in the number of people moving from benefits into work in the September quarter, Social Development and Employment Minister Louise Upston says.

"Despite the economic gloom the Government inherited, 16,071 people cancelled their Jobseeker Support benefits because they found work between July and September, an increase of 2457 people, or 18 per cent, on a year ago.

"This coincided with a 133.3 per cent increase in the number of benefit sanctions being issued. It's clear that returning consequences for job seekers who don't fulfil their obligations to prepare for or find work is having an impact.

"All up, 18,516 people cancelled a main benefit because they found workin the September quarter, an increase of 12.7 per cent, and I congratulate all of them.

"There is more to do as the lingering effects of the cost-of-living crisis continue to increase overall benefit numbers. But I'm pleased the greater focus on frontline case management, community job coaching, and more regular work seminars that our Welfare that Works reforms have delivered is helping job seekers.

"It is encouraging to see the amount of hardship assistance handed out by MSD reduce by 10.4 per cent, saving taxpayers $55.2 million, with fewer grants for food and emergency housing the main reason.

"The Government has worked hard to get inflation under control, return discipline to public spending, and get families out of emergency housing. Coupled with tax relief, falling interest rates and our FamilyBoost childcare payments, large numbers of New Zealanders are better off than they were a year ago.

"More work is needed to fix the damage that years of low growth has had on our employment market, but there are green shoots of change in these latest figures."

Benefit Fact Sheets for the September 2024 quarter can be found here