Cabinet has agreed to progress a new money management sanction that will see half a person’s benefit go onto a payment card that can only be used for a limited range of essential products and services.

Welcoming the news, ACT Leader David Seymour says:

“ACT campaigned on electronic money management to discourage long-term benefit dependency and to ensure benefits get to the children of welfare recipients. Today’s announcement delivers on an ACT coalition commitment, and we hope it will eventually be expanded.

“ACT would like to see full cash benefits be time-limited. If someone who can work fails to enter work after a period of months, electronic money management could be used as a sanction.

“ACT would also like to see electronic money management used for those who keep having children while receiving a benefit. This policy would prevent benefits being spent on items that have zero benefit for child wellbeing.

“We are unwilling to give up on children in benefit-dependent households and accept the status quo that previous governments have fostered.

“Long-term benefit dependency is hugely damaging to the wellbeing of beneficiaries and especially children. When people who can work refuse to take steps to find a job, it disrespects the efforts of working New Zealanders who pay the bills."

Note to editors: A study of Australia's Cashless Debit Card found it was effective in reducing the consumption of alcohol and illegal drugs, violence and harm related to alcohol consumption, and gambling.

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