Social Development and Employment Minister Louise Upston. Photo: RNZ / Samuel Rillstone
The number of benefit sanctions has increased by 27 percent compared to last year, the latest figures from Minister of Social Development (MSD) show .
The figures, released on Thursday, show the number of people receiving a main benefit is up 6.6 percent compared to the previous year.
It brings the proportion of the working-age population receiving a main benefit up to 12.5 percent, just over 400,000 people.
Jobseeker Support numbers are also up 10 percent to 216,000 people.
The number of working-age people receiving a Jobseeker Support increased across all regions, with Northland having the highest at 11.3 percent.
Main benefit cancellations had increased by 6.9 percent to just over 49,000, while 19,596 people exited into work, an increase of 8.1 percent.
Benefit sanctions increased 27.1 percent to 13,200. The Ministry's snapshot said the main reasons for unfulfilled work obligation sanctions were clients not attending appointments, like seminar appointments, or failing to prepare for work.
In the June 2025 Quarter, 52,698 main benefits were granted, an increase of 2.7 percent, while the number of Jobseeker benefits was 41,091, up 4.7 percent.
Social Development and Employment Minister Louise Upston said it meant more than 80,700 people moved off a main benefit and into work in the last financial year.
"Despite challenging economic conditions, the government has been relentlessly focused on getting New Zealanders into work. It's encouraging that 80,000 Kiwis were able to kick start new roles over the past 12 months and there will be more to come," she said.
Upston said over the last three years, MSD have seen a trend of more people coming onto benefit in the March to June period, because of less seasonal work available during the winter months.
"MSD is continuing to provide great support to job seekers on the frontline. Our Government has increased the number of people in case management at any one time from 60,000 to 70,000 people. 10,000 of those are getting help through a new phone-based case management service. That's more people getting more support," Upston said.
"People now also have to reapply for their benefit every six months, instead of just once a year. This gives MSD an extra opportunity to support them into a job."
Green Party Social Development spokesperson Ricardo Menéndez March said the figures showed the government was pushing people into unemployment while punishing them for being out of work.
"It's no wonder people are fleeing the country in droves with this Government punishing people for being unemployed at a time when there are little to no jobs," Menéndez March said.
"This is blatant cruelty dressed up as policy. People deserve to live in dignity and to be supported in times of need, not punished."
He said sanctions had doubled since the government took office.
"Sanctions strip people of the basics they need to live, with no proof that they help anyone find paid work. The Government increasing sanctions on the unemployed when there are little to no jobs is beyond cruel," Menéndez March said.
"Right now, Student Job Search data shows graduates are vying for a shrinking number of vacancies, leaving people stranded and increasingly without hope. Despite fewer job listings being available for a growing number of people on the benefit, the Government is hellbent on punishing the unemployed."
Upston told RNZ she "flatly refuted" the government was "punishing" people.
"The traffic light system means that New Zealanders now know what their obligations are when they are on welfare, and the great news is that 98.4 percent of those who are on a jobseeker benefit are complying with their work obligations," Upston said.
"No one is sanctioned if they can't find a job, they are sanctioned if they're not playing their part in fulfilling their work obligations and when we look at the 80,700 New Zealanders who've moved off welfare and into work, they know their obligations, they're taking steps that improve their chances to find a job. That's why we've seen high numbers of work exits."
Appointments with MSD were for the organisation to better understand the jobs people had been applying for, she said.
"If they haven't been applying for jobs and getting success, MSD can provide advice and guidance that will help job seekers improve their chances."
"It might be that somebody needs more training, it might be they need a driver's license, and those are the practical things that MSD can support people with. That's why we want more New Zealanders, who are on welfare, to be dealing with MSD on the front-line to get support that is available," Upston said.
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