Anti-poverty groups are concerned about the proposed amendments to the Social Security Act, arguing that the changes will negatively impact job seekers and their dependents, especially during a period of high unemployment. They believe the amendments will make it harder for whānau to afford basic necessities like food and rent.
Concerns include sanctions, which will have financial consequences, particularly affecting families with children. A money management system will allocate 50% of a person’s benefit to a restricted payment card, potentially leading to homelessness as many beneficiaries spend more than half their income on rent. The bill advocates for a community work experience scheme with participants who would be ineligible for emergency housing or special needs grants, despite benefits often being insufficient to cover living costs.
Additional worries include more frequent benefit reapplications and extended periods for obligation failures, increasing the risk of benefit cuts or cancellations. The groups argue that these changes undermine the purpose of the social security system, which is to protect basic human rights and ensure a dignified life.
They are calling for the Bill to be dropped and for the government to take steps such as increasing benefit levels, raising the minimum wage, and removing sanctions to alleviate poverty. The deadline for submissions on the Bill is 11.59pm today (January 10, 2025).
