The Government has announced a new traffic light sanction system for beneficiaries who do not meet their obligations.

Some of the harshest penalties under the traffic light system include the beneficiary having half their benefit put on a payment card that can only be used to purchase a limited range of essentials.

Prime Minister Christopher Luxon and Social Development and Employment Minister Louise Upston are announcing the changes from Auckland following the Government’s Cabinet meeting.

Upston has recently announced several reforms and changes to the social welfare system, including ramping up the threat of sanctions for Jobseeker beneficiaries not fulfilling their obligations. In May, Upston announced a new requirement for these beneficiaries to attend a seminar within a fortnight of their benefit starting.

Those who didn’t comply could be sanctioned - have their benefit cut - unless they had a good reason. The Government has made its stance on sanctions clear, saying they should be applied “fully” rather than used sparingly.

While the Government says it has seen enough evidence more sanctions will be effective in getting people into work, Greens and Labour have argued the opposite, echoing findings from the Welfare Expert Advisory Group who deemed sanctions to be “problematic” and ineffective at getting beneficiaries into work.

Green Party social development spokesman Ricardo Menéndez March said the Government was quickly building a legacy of cruelty.

“We have yet another measure to penalise the poorest people. It is a symptom of the politics of cruelty that is driving this coalition’s policies and steering New Zealand backwards.”

Earlier this month, Upston also announced an increase in the number of places available for young people in community-led programmes that provide job coaches. Upston said just under $10 million will be spent on expanding the number of places in these community-led employment programmes from 5400 to 7500.

Prime Minister Christopher Luxon and Social Development and Employment Minister Louise Upston. New Zealand Herald photograph by Mark Mitchell.