Benefit Sanctions

There was a 133.3% increase in the number of benefit sanctions being issued over the last year. 

The September quarter saw 18,516 people cancel a main benefit, an increase of 12.7% on last year.

At the end of September, the benefit snapshot shows 391,224 people were receiving a main benefit. This is 12% of the working age population. 204,765 of those people are on a jobseeker benefit. This is 6.3% of the working age population and is an increase of 0.6% points from September 2023. 87,861 people on the jobseeker benefit are classified as having a health condition or disability.

The other benefits include sole parent support, supported living payments and other.

There were 14,409 benefit sanctions in the September 2024 quarter. The majority of sanctions (9,366) relate to people not attending appointments or seminars. Failing to prepare for work was the other major reason (3,681).

MSD has reduced the hardship assistance being handed out by $55.2m (10.4%). The reduction is due to fewer grants for food and emergency housing. 

$32.6m was spent on food Grants in the September quarter with 322,395 Grants. The average cost per Grant was $101.12.

You do not need to be on a benefit to qualify for a food Grant and you do not have to pay it back. The MSD site explains the criteria and income limits that apply. https://www.workandincome.govt.nz/eligibility/urgent-costs/food.html

Links to the announcement and datasheet

https://www.beehive.govt.nz/release/more-benefit-exits-work-sanctions-increase

https://www.msd.govt.nz/documents/about-msd-and-our-work/publications-resources/statistics/benefit/2024/benefit-fact-sheets-snapshot-september-2024.pdf


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