More than half of 189,000 New Zealanders on the Jobseeker听benefit听have received it for at least a year, data from the听Ministry of Social Development听(MSD) shows.听听
Prime Minister听Christopher Luxon听said in his state of the nation speech last weekend听that the 鈥渇ree ride鈥 was over for beneficiaries who had not adhering to their obligations, vowing to 鈥渂reak the shackles鈥 of听welfare dependency.听听
鈥淲e鈥檒l do everything we can to help people into work, but if they don鈥檛 play ball, the free ride is over,鈥 Luxon said.听听
He said he鈥檇听seen enough evidence to prove the use of sanctions should be used more often听up to encourage people to get off the benefit.听
But Labour and the Greens argue the opposite, echoing findings from a group of experts who deemed sanctions to be 鈥減roblematic鈥 and ineffective at getting beneficiaries into work.听
The latest MSD data from last year shows there are 378,711 people in New Zealand receiving a 鈥渕ain benefit鈥 (an emergency, Jobseeker, sole parent, youth or supported living payment).听
Of these, 189,798 people were on a Jobseeker benefit. Each of these main benefit payments has specific obligations recipients need to adhere to.听
The number of people receiving a main benefit has declined since its Covid-19 peak at the end of 2020 but has been increasing since early 2023.听
There were 108,957, or 57 per cent of the 189,798 people receiving Jobseeker support, who had been receiving it for at least one year, the MSD data showed.听
Most of the people receiving this payment were male (107,130) and the most common age of the recipients was 25-39 (60,561).听
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By region, Northland had the most on a Jobseeker support for more than a year (63 per cent), followed by those living on the West Coast (61 per cent) and Waikato (60 per cent).听
The Jobseeker payment has two sub-categories: 鈥渨ork-ready鈥 - people who are looking or preparing for work; and those with a current medical condition or disability affecting their ability to work.听
Most people who receive the Jobseeker payment for a medical condition or disability were receiving it because they were experiencing a psychological or psychiatric condition (40,479). Similar to the overall main benefit figures, the number of people receiving financial support for this reason has steadily tracked up since mid-2022.听
Modelling听obtained by the听Herald听revealed听earlier this month that expected time on Jobseeker and other main benefits has risen sharply in the past four years.听
Government estimates of the time beneficiaries will spend on听income support听have risen sharply, with recipients of the main Jobseeker payment now expected to spend an average of 13 years on a benefit, according to the modelling.听听
The estimated time that work-ready听Jobseeker听recipients will spend on income support until they reach retirement age has jumped by 23 per cent since 2019, amid a slowdown of the benefits system that could strain government finances and trap thousands of people in poverty.听听
Long-term estimates for people on听youth benefits听and sole-parent support have increased even more starkly. Hundreds of disadvantaged teens are now expected to spend virtually their entire working lives on a main benefit, at a cost of nearly $1 million each in future payments, according to modelling by actuaries Taylor Fry for the MSD.听
In total, Taylor Fry estimated that 626,000 New Zealanders who received a benefit in the last year will collectively spend another 6.43 million years on income support.听
Julia Gabel is an Auckland-based reporter with a focus on data journalism. She joined the听Herald听in 2020.听
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