Traffic light system for Work and Income clients

To help Work and Income clients stay on track with their obligations, the Government has introduced a traffic light colour system. The colours indicate how clients are doing in meeting their obligations.

---

14 August 2024

Changes introduced in August 2024

The traffic light colour system indicates how clients are tracking with meeting their obligations. The new system helps clients understand what they need to do while on a benefit, and to make sure they get their full payments.

Government targets

The Government has set MSD a target of ‘50,000 fewer people on the Jobseeker Support benefit by 2030’. One of the ways we’re helping clients is to introduce the traffic light system. It will give clients clarity about what they need to do while on a benefit.

Who the traffic light system is for

Clients who have:

• work obligations, where they have to find or prepare for work, and/or

• social obligations (health and education), when they’re taking care of dependent children.

What the traffic light colours mean

• Green – clients are on track as long as they continue meeting their obligations.

• Orange – clients haven’t met their obligations. They need to contact us straight away to either: o let us know they have a good reason for not meeting their obligations, or o do an activity so they can meet their obligations again.

• Red – clients payments have reduced or stopped. They need to contact us immediately to get back on track.

Which Work and Income payments the traffic light system affects

Clients or their partner will be in the traffic light system if they get one of these benefits:

• Jobseeker Support

• Jobseeker Support Student Hardship (paid by StudyLink)

• Sole Parent Support

• Supported Living Payment – only if they have work preparation or social obligations, or their partner has work obligations.

Clients or their partner may be in the traffic light system if they get one of these benefits:

• Emergency Benefit

• Emergency Maintenance Allowance Clients will have other obligations as well but these won’t be part of the traffic light system.

Changes coming in 2025
This phase requires legislative change:

• Right now, if clients don’t meet their obligations without a good reason for the first, second or third time in one year, their benefit will reduce or stop. This is changing from 1 year to 2 years.

• Re-apply for Jobseeker Support every 26 weeks – If clients get Jobseeker Support, they will have to re-apply for this benefit every 26 weeks.

• Create a Jobseeker profile – If clients apply for a benefit with work or work preparation obligations, they will have to create a Jobseeker profile before their benefit is approved.

• Money Management using payment cards – if clients don’t meet their obligations, 50% of their benefit could go onto a payment card. Clients will be able to use that payment card at approved stores for essential products and services.

• Community work experience – If clients don’t meet their obligations, they may have to do community work experience. This will build their skills and confidence to help them get a job.

Money management using payment cards and community work experience will only apply to some groups in some situations.

More information check the Work and Income Website or the Government announcements at Beehive.govt.nz

Article type: