New legislation sets stricter rules for beneficiaries.
The New Zealand Government has passed a bill establishing a new beneficiary sanction regime, sparking concerns from the Green Party that more households will struggle to afford basic necessities. According to Ricardo Menéndez March, spokesperson for Social Development in the Green Party, this decision is "a political choice" that will push those in need further into hardship.
The proposed scheme involves compulsory money management using payment cards, which can only be used at specific retailers and may prevent beneficiaries from paying rent. The Government's own advice suggests that these measures could have unintended consequences, including increased poverty levels. Furthermore, Work for the Dole schemes are criticized for locking people in poverty rather than helping them transition into work.
The Green Party argues that these initiatives do not address the root causes of poverty, such as low incomes and lack of employment opportunities. In contrast, they propose a fully costed plan to end poverty through measures like a wealth tax, liveable incomes, and tailored support for job seekers. The new legislation is set to face further debate in the coming weeks.