Thousands of New Zealanders receiving Jobseeker Support could face random drug testing, reduced benefit payments and tougher sanctions under a sweeping new welfare policy announced by the National Party ahead of the 7 November general election.
National’s social development and employment spokesperson, Louise Upston, has unveiled a five-point welfare package aimed at reducing long-term benefit dependency, strengthening work obligations and delivering hundreds of millions of dollars in savings.
Under the proposal, the Ministry of Social Development would introduce random drug testing for work-ready Jobseeker Support recipients, beginning with 10,000 tests in the first year before expanding the programme.
The testing regime would operate separately from existing arrangements, where beneficiaries may already be required to undergo drug testing when applying for jobs that specifically require it.
A first failed random test would be recorded, while a second failure would trigger a clinical alcohol and drug assessment. Beneficiaries who subsequently failed to meet their obligations could face sanctions, including reductions to their payments.
National estimates the testing programme would cost approximately $1.5 million annually, funded from existing Ministry of Social Development budgets.
However, the most significant financial change would come from 1 April 2028, when people who had received Jobseeker Support for at least two of the previous three years would move to a lower payment rate.
Based on current benefit rates, the proposed reductions would mean a single person without children losing approximately $48.05 a week, while a couple without children would lose $81.76 a week.
Households with dependent children would face a smaller reduction of approximately $24.02 a week.
National estimates the lower long-term Jobseeker rate alone would save around $572 million over four years.
The party is also proposing to double the non-entitlement period for people who repeatedly leave employment without a good and sufficient reason, increasing the stand-down from 13 weeks to 26 weeks.
Another change would extend the minimum residency requirement for new residents seeking access to main benefits from two years to five years, beginning in April 2028. Refugees and protected persons would remain exempt, while existing beneficiaries would not lose their payments because of the change.
Alongside the tougher requirements, National is promising more intensive employment support for 30,000 work-ready beneficiaries who have been receiving Jobseeker Support for more than a year.
At least 5,000 places would be reserved for young people aged 18 to 24, with an additional $12 million annually proposed for the He Poutama Rangatahi youth employment programme.
Upston maintains the package is designed to ensure beneficiaries are ready to take up employment opportunities, particularly in industries where passing a drug test is a condition of employment.
But the announcement has sparked criticism from opposition parties and public sector unions, which question whether additional testing and reduced financial support will actually help people find sustainable employment.
The Public Service Association argues the random testing programme would place further pressure on already stretched Ministry of Social Development staff while diverting resources away from employment assistance.
PSA National Secretary Fleur Fitzsimons has also questioned the cost of administering the tests, the availability of addiction treatment services and whether the proposed funding would be sufficient.
For Māori communities, the policy raises important questions about the potential impact on whānau already experiencing financial hardship, particularly those facing barriers to employment, housing insecurity and limited access to health and addiction services.
The proposed reductions also bring renewed attention to whether reducing benefit payments will encourage employment or place greater pressure on households already struggling with the cost of living.
National argues that stronger expectations, combined with employment assistance, will help people move into work and reduce long-term welfare dependency.
Critics maintain that stable employment depends on the availability of jobs, appropriate training, health support and adequate household income, rather than sanctions alone.
With less than a month until election day, welfare policy is emerging as another major dividing line between the political parties.
The central question for voters is whether tougher obligations and reduced payments will create genuine pathways into employment or increase hardship for some of the country’s most vulnerable households.
The proposals remain election commitments and would require further government decisions before taking effect.
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