Welfare Reforms Drive More Kiwis Into Work: Minister Highlights Results and Future Plans

“Supporting families out of emergency housing is not just beneficial for them—it’s also saving taxpayers money,” Minister Upston said.

The Government’s welfare reforms are showing promising results, with a consistent rise in the number of people transitioning from benefits to employment over the past six months. Social Development and Employment Minister Louise Upston announced the positive trends, emphasizing the effectiveness of measures aimed at incentivizing job seekers and supporting them into work.

From July to December 2024, 33,147 individuals canceled their Jobseeker benefits after securing employment—a 22% increase compared to the same period in 2023 under the previous government’s system.

“This is a clear sign that our welfare reset is working,” said Minister Upston. “The return of consequences for job seekers who don’t fulfill their obligations to prepare for or find a job has made a real impact, despite the tough labour market we inherited.”

The reforms coincided with a 126% increase in benefit sanctions during the latter half of 2024, reinforcing the Government’s focus on accountability for job seekers.

Focus on Youth Employment

A significant portion of the reforms targets young job seekers, who are at higher risk of long-term benefit dependence. Under the previous government, the projected lifetime duration on benefits for individuals under 25 ballooned to over 20 years.

To address this, the Government implemented several initiatives in 2024:

• 10,000 additional job seekers placed under case management.
• 2,100 extra spots for young people in community-led job coaching programs.
• Introduction of a Traffic Light System to clarify benefit obligations.
• Increased frequency of work seminars to support job searches.
• Comprehensive needs assessments for up to 70,000 job seekers.
• Personalized job plans to address barriers to employment.
• Focused targets for Flexi-wage and Mana in Mahi programs.

Future Reforms to Drive Further Progress

Looking ahead, the Government plans to introduce new measures in 2025 to sustain this momentum, including:

• Non-financial sanctions for non-compliance with benefit obligations.
• Issuing Jobseeker Support grants in six-month intervals, ensuring regular engagement and accountability.

“These changes aim to support job seekers who are able to work while helping us achieve our target of 50,000 fewer people on Jobseeker Support by 2030,” Minister Upston stated. “This reduction is forecast to save taxpayers $2.3 billion in welfare payments.”

Reducing Emergency Housing Costs

The Government is also seeing results in efforts to transition families out of emergency housing. The cost of emergency housing grants decreased by $68 million in the December 2024 quarter compared to the same period the previous year.

“Supporting families out of emergency housing is not just beneficial for them—it’s also saving taxpayers money,” Minister Upston said.

Challenges Ahead but Optimism Prevails

While acknowledging that unemployment tends to lag behind other economic recovery indicators, Minister Upston remains optimistic about the long-term impact of these reforms.

“There’s much more work ahead to help Kiwis into jobs as our economy recovers from a prolonged cost-of-living crisis. But these early results show we’re on the right path,” she concluded.

The Government’s ongoing welfare reforms reflect a commitment to fostering independence, reducing benefit dependence, and building a robust, opportunity-filled future for all New Zealanders.