A firm, fair and affordable welfare system

National believes those who can work should work. Employment is the best way out of hardship, giving people more independence, choices and opportunities.

New Zealand needs a welfare system that is firm, fair and affordable. It should provide a safety net when people need it, support Kiwis to move back into employment, and remain affordable for taxpayers. The longer someone remains on welfare, the harder it can become to return to work, with consequences for individuals, families and taxpayers.

However, under Labour, the number of people receiving a Jobseeker unemployment benefit for more than two years surged by 60 per cent – from 49,000 to 78,000 – between 2017 and 2023, despite unemployment falling over that period. Too many New Zealanders became stuck on welfare for years, rather than getting the support and facing the clear expectations needed to move back into work.

Since coming into Government, National has put employment back at the centre of the welfare system, restoring the principle of rights and responsibilities through clearer expectations and consequences under the Traffic Light System.

But there is more to do.

A re-elected National Government will build on the progress already made by investing earlier to help people move into work, while strengthening expectations for those who remain on Jobseeker long term. With Treasury forecasting 220,000 more people in employment over the next four years, we want to ensure Kiwis are ready to take up those opportunities, particularly in growth areas such as primary industries, construction and infrastructure, tourism and hospitality.

What we'll do

Investing earlier to help long-term Jobseekers into work

National will provide more intensive, work focused support for 30,000 work-ready jobseekers who have been on a benefit for more than a year, supporting them move into employment before long-term dependency becomes entrenched, with greater funding for employment programmes that support young people into work

Stronger expectations after two years

From 1 April 2028, jobseekers who have received Jobseeker for two of the previous three years will move to a lower rate of payment, with a smaller reduction for households with dependent children

Introduce random drug testing for Jobseekers

National will introduce random drug testing as part of MSD’s work-readiness and employment planning, starting with 10,000 tests in the first year and expanding the programme once established. Those who fail a second test will be required to undertake an alcohol and drug assessment, with continued non-compliance resulting in sanctions

Double the stand-down for repeated voluntary unemployment

People who repeatedly leave employment without good and sufficient reason will face a 26-week non-entitlement period, up from 13 weeks

Extending the benefit residency requirement to five years

From 1 April 2028, the minimum residence period for main benefits will increase from two years to five years.