New Non-Financial Sanctions Launch in Traffic Light System for Job Seekers

The Traffic Light System expands from tomorrow with the launch of two more non-financial sanctions focused on job searches and upskilling, Social Development and Employment Minister Louise Upston says.

Starting from Monday, people failing an obligation for the first time will face two new alternatives to financial sanctions, Louise Upston says.

In addition to the Money Management and Community Work Experience non-financial sanctions launched earlier this year, we’re also introducing: Report Job Search: a requirement to undertake and report on a minimum of three job-search activities every week for four weeks. This sanction supports increased accountability for beneficiaries who are meant to be looking for work.

And Upskilling: a requirement to attend and participate in one or more employment-related training courses or programmes for a minimum of five hours per week over four weeks. This sanction supports beneficiaries to build the skills they need to get into work.

Job seekers will need to provide evidence of their activity at the end of their sanction period to return to the green setting of the Traffic Light System, Louise Upston says These obligations were passed by Parliament in May and they aren’t unduly onerous – 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.

It’s also important to reinforce that the vast majority of job seekers are fulfilling their obligations, with less than 2 per cent at the red or orange settings.  The 98.5 per cent of job seekers at green are committed to finding work, and MSD is fully committed to supporting them to do so.

If that’s the case, people won’t face sanctions, financial or otherwise.

Our Government is particularly focused on reducing benefit dependency in young people, and we’ve already introduced a number of initiatives such as a phone-based employment case management service. We’ve got 4,000 places for young people to get community job coaching. We’ve also got more regular work seminars, and a traffic light system to help them stay on track with their benefit obligations.

We have also announced that if parents can support their 18-19 years old they should, and a $1000 bonus for those who stay off the benefit for more than a year.

Overall, all these changes are about ensuring a welfare system which proactively supports those who can work to get off the benefit and into employment, contributing to the Government’s target to have 50,000 fewer people on Jobseeker Support by 2030.

From a wider perspective, we know economic times continue to be challenging but we want people to be ready when jobs come. The Traffic Light system reinforces that expectation.