National's new welfare policy 'completely out of touch', shows 'depressingly familiar side', opposing politicians say

National's new welfare policy faces criticism from opposing politicians that it's "completely out of touch" and the party is showing "a depressingly familiar side".

Earlier on Sunday, National Party leader Christopher Luxon proposed giving under-25s who have been on the Jobseeker benefit for more than three months a job coach and an individualised plan to help them get back into work. National would also pay $1000 to anyone under 25 years old who stays in work for more than one year after having been on a benefit for at least 12 months.

He said young people "who don't want to work" have had a "free ride" under Labour, but this would end under National.

"If you're a young person and you're trying to find work, I want you to know that there's support coming. We want to be able to have a dedicated jobs coach, a really good assessment of what the barriers are for you to get to work, and then a really individualised job plan. We're here to help connect you to work, and that's really important," Luxon told media.

"If you're a young person and you don't want to work, I'm sorry, there are consequences for that and there'll be sanctions around that as well."

But the party's plan has been criticised by opposing politicians. The Green Party's spokesperson for social development, Ricardo Menéndez March, said thousands of families will go hungry and cold under National.

"The leadership may be different but this year's conference shows a depressingly familiar side of the National Party. Much like his predecessors, Christopher Luxon is advocating for policies that will make it much harder for thousands of families to make ends meet, all while benefiting a wealthy few," Menéndez March said.

"Forcing people into employment, no matter how unsuitable, isn't the answer. Increasing benefit sanctions will simply push people into hardship and criminalise families who need support. And National continues to wilfully ignore the reality that many people on jobseeker benefits have health conditions and already do critical work such as caregiving and in the community."

Menéndez March said the Greens are focused on enabling people to fully participate in their communities and meet their aspirations.

"By ensuring people have liveable incomes we ensure they have the opportunities to go into training, to look after their families and pursue education," he said.

"The changes the Greens will make will lift people out of poverty and unlock what everyone needs to live a good life. We have a track record of advocating for liveable wages and good working conditions that would help build a fairer, more equitable Aotearoa where everyone has what they need to provide for their families, a roof over their heads, and food on the table."

National's plan was also panned by Minister of Social Development and Employment Carmel Sepuloni, who said the whole announcement was "political and predictable".

"They've oversimplified it a little bit with their incentive payment and certainly no evidence to suggest that something like that would work," she said.

Carmel Sepuloni.
Carmel Sepuloni. Photo credit: Newshub.

Sepuloni said young people aren't getting a "free ride" under the current Government - something that Luxon asserted was happening.

"How we view young people is as a group of people that have potential. If they're on welfare and they're in the welfare system, then we want to make sure that they get access to the support that they need to be able to realise that potential," she said.

"Things like 49,000 people getting an apprenticeship boost, over 5000 now in Mana in Mahi, and one-third of the nearly 18,000 on flexi-wage are young people as well. Those are the types of investments that actually help young people get ahead."

Sepuloni said she doesn't believe there's any merit in what National announced.

"They've oversimplified what can be a very complex issue and they've ignored the fact that we've made record investments into things like upskilling and training, and we're seeing the results for it," she said.

"What I see with National's policy is they're completely out of touch with what is happening for young people and what works for young people."

Luxon did admit earlier that it is complex, especially given the different lengths of time people have been on the Jobseeker benefit.

"We just feel like after three months, we've got to be starting to make some interventions and that's why [the policy] captures someone who's been on for longer than three months," he said.

"But obviously, someone who's been on for three months or six months is different than someone who's been on for four or five years, and so there's different levels of complexity or barriers that we have to deal with."

Meanwhile, ACT leader David Seymour said his party welcomes National's move.

"Requiring case management for long-term and young beneficiaries is good policy," he said.

"ACT has long said welfare should inspire people to be the best that they can be. Welfare policy has to stop constantly telling people they can't achieve and giving them an easy out from what could be an amazing life."

Seymour said National's proposal is similar to ACT's policy of requiring electronic income management for long-term dependents, but there are two differences.

"ACT would apply sanctions to beneficiaries of all ages if they're capable of working, not only those who are under 25. It is good to focus on the young, that's where the best long-term payoff comes from, but you haven't earned the right to languish on a benefit by turning 25. Obligations should continue regardless of age," he said.

"Secondly, ACT would use technology. ACT would back up sanctions with electronic income management. We need to stop giving people money for nothing. If you haven't found a job after 17 weeks, your benefit comes in the form of a payment card."

He said electronic income management gives case managers "real teeth" since they can see how the person is spending their money in real-time on a Government-issued card. 

"It allows honest conversations between case managers and beneficiaries."