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National will help more young people become drug free, move off the benefit and get a job to help ensure they reach their potential.

“Most of our young people are doing incredibly well. There are more job opportunities and more support than ever in our country, as a result of our strong economic growth,” Social Development Spokesperson Anne Tolley says. 

“But some young people on a benefit need more support. National is committed to helping them into work to ensure they can stand on their own two feet.”

National will invest $72 million over the next four years to support beneficiaries under 25 years of age by:

  • Guaranteeing work experience or training for those who have been on a jobseekers benefit for six months or longer, and financial management training to help them develop financial responsibility
  • Providing rehabilitation services if drug use is identified as a barrier to employment
  • Ensuring all young people under 25 who are on a job seekers benefit receive intensive one-on-one case management to get a job.

“Only 10 per cent of young people who go on a jobseekers benefit stay for more than six months – but for those that do, their average time on benefit is almost 10 years,” Mrs Tolley says. “We want to invest early, and give them one on one support so they can develop the skills they need to move into the workforce.

“We will guarantee them access to work experience or training courses designed specifically to get them ready for work.

“In addition, one in five beneficiaries tell us that drug use is a barrier to them getting a job - so we are increasing the support we give them to kick drug use and get work ready.”

National will also place obligations on those who do not take up the significant opportunities available in New Zealand to start work or training.

Job seekers without children who refuse work experience or training or recreational drug rehabilitation will lose 50 per cent of their benefit entitlement after four weeks of not meeting their obligations, with further reductions if that continues. This will also apply to those who continue to fail recreational drug tests, where these are requested by prospective employers.

The lower benefit payments will only be able to be used for essential needs such as rent and food – like we currently do with our Money Management programme for 16 to 19 year olds.

“This significant extra support we are announcing today will come with obligations and personal responsibilities, so those who won’t take the opportunities available to them will lose all or part of their benefit until they take steps to turn their lives around.

“We know benefit sanctions are an effective tool to help people into work, as 95 per cent of people who receive a formal warning meet their obligations within four weeks.”

Any benefit reductions will be made at the discretion of WINZ staff, to take account of individual circumstances. And once individuals decide to meet their obligations, benefits will be reinstated.

“New Zealanders are creating real opportunities for themselves and for New Zealand, through hard work and a commitment to doing better. National supports those efforts and is focused on helping all New Zealanders get ahead, even our most vulnerable,” Mrs Tolley says. 

National will roll out the changes from 1 July next year

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