Traffic light system for benefit obligations
12 August 2024.
To help you stay on track with your obligations, the Government is introducing a traffic light colour system. The colours will indicate how you’re doing in meeting your obligations.
The traffic light system is in place now. Further changes are planned for 2025.
This is for students on Jobseeker Support Student Hardship, or another benefit from Work and Income.
Background
The Government has set us a target of '50,000 fewer people on the Jobseeker Support benefit by 2030'.
We're working hard to enable all who can work, into work. This helps to reduce benefit dependency for the next generation.
One of the things we're doing is introducing a traffic light system. This gives you clarity about what you need to do while on a benefit.
We’re specifically focusing on clients with work and work preparation obligations, along with social obligations.
About the traffic light system
The traffic lights are an easy, helpful way for you to know if you're on track with meeting your obligations. If you get off track, we’ll explain your responsibilities, and support you to get back on track.
This helps to set clear expectations up front and empowers you to meet your obligations.
The rules around obligations haven’t changed. We're just making things easier and clearer.
What the lights mean
- Green: Green means you're on track as long as you continue meeting your obligations.
- Orange: Orange means you haven't met your obligations. You need to contact us straight away to either:
- let us know if you have a good reason for not meeting your obligations, or
- do an activity so you can meet your obligations again.
- Red: Red means your payments have reduced or stopped. You need to contact us immediately to get back on track.
Who the traffic light system is for
The traffic light system is for people who have:
- work-related obligations, including where you have to find or prepare for work, and/or
- social obligations (health and education), when you're taking care of dependent children.
Obligations can include doing things like completing a Work Ability Assessment to help us better understand what kind of work you can do. It can also include working with our providers to find a job or prepare for work.
You or your partner will be in the traffic light system if you get Jobseeker Support Student Hardship, or Sole Parent Support from Work and Income.
You or your partner may be in the traffic light system if you get one of these benefits:
- Supported Living Payment
- Emergency Benefit
- Emergency Maintenance Allowance.
You will have other obligations as well but they won't be part of the traffic light system.
Read the full obligations for these benefits
What's changing in 2025
Further changes to the traffic light system will come in 2025 and will include:
- Right now, if you don't meet your obligations without a good reason for the first, second or third time in 1 year, your benefit will reduce or stop. This is changing from 1 year to 2 years.
- Re-apply for Jobseeker Support every 6 months - if you get Jobseeker Support, you will have to re-apply for this benefit every 6 months.
- Create a Jobseeker profile - if you apply for a benefit with work or work preparation obligations, you will have to create a Jobseeker profile before your benefit is approved.
- Money Management using payment cards - if you don't meet your obligations, 50% of your benefit could go onto a payment card. You’ll be able to use that payment card at approved stores for essential products and services.
- Community work experience - if you don’t meet your obligations, you may have to do community work experience. This will build your skills and confidence to help you get a job.
Money management using payment cards and community work experience will only apply to some groups in some situations.
For more information visit the Beehive website - Green light for Welfare that Works
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