Social Security Amendment Bill Becomes Law
The Social Security Amendment Bill has passed its third reading in Parliament today expanding the welfare Traffic Light System that launched in August 2024.
“This bill brings new tools to ensure beneficiaries stay on track with their obligations to find or prepare for work if they are able”, Social Development and Employment Minister Louise Upston.
From 26 May 2025, two new non-financial sanctions can be imposed. Rather than reducing a benefit, these non-financial sanctions are:
From 20 October, two more non-financial sanctions will be implemented:
Also from 26 May 2025 new policy settings will be put in place:
From 1 July 2025, Jobseeker Support clients must reapply for their benefit every 26-weeks (currently 52-weeks). This will require clients to engage with MSD more frequently, allowing for more proactive support and a focus on moving people into employment where they can.
“These changes will support more people into work and help achieve the Government’s target of having 50,000 fewer people on Jobseeker Support by 2030, which is forecast to save the country over two billion dollars in welfare payments,” Louise Upston says.
“Because we believe having a job is the best way for people to lift themselves and their families out of hardship, the Government is setting a clear expectation that those who can work, should work.
“Our economy is stronger when more people are in work, and as we look to unleash economic growth, it’s important that as many Kiwis as possible share in the benefits of work.”
https://www.beehive.govt.nz/release/social-security-amendment-bill-passes-law