End Benefit Sanctions to Give Families a Fair Chance

As the world turns its focus to social and institutional maltreatment, Child Poverty Action Group (CPAG) is joining with other community groups to demand an end to the harmful practice of benefit sanctions.

Today marks the International Day for the Eradication of Poverty, which this year highlights the need to end social and institutional maltreatment and ensure families living in poverty receive respect and effective support.

Right now, thousands of people in Aotearoa New Zealand are being sanctioned by the Ministry of Social Development. These sanctions reduce already inadequate incomes and punish families who are struggling to survive.

CPAG’s recent Below the Income Floor research shows that more and more households relying on income support are in deficit. That means their income is falling below the bare minimum needed to cover essentials, let alone to participate fully in society.

While the Government insists sanctions are about “compliance”, the facts tell a different story. Sanctions rose sharply in both the March and June 2025 quarters, even before the Social Security Amendment Act 2025 came into effect in May.

In reality, there are many reasons why someone might miss an MSD appointment, ranging from childcare, to health or transport issues, all made worse by the prolonged cost of living crisis. A Citizens Advice Bureau (CAB) client had their benefit halved after they missed their Work and Income meeting due to their child being unwell.

Instead of recognising these barriers, the Government continues to punish families who are already doing it tough, despite the Government restating its commitment in May to the legislated 2028 goal of halving child poverty.

Right now, government agencies are developing proposals for the 2026 Budget. We call on them to take bold, principled action by putting people at the centre of their advice.

The Government has pinned its hopes on economic growth lifting people out of poverty. But the latest Stats NZ data shows the economy is contracting, unemployment is rising, and poverty indicators are worsening. Their approach is failing.

Not only is the Government off-track to meet its 2028 target, its decisions are enabling worsening food insecurity among children, more avoidable hospitalisations, and higher rates of material hardship than when child poverty indicators were first introduced in 2019.

Two years on from the last election, New Zealanders should be seeing results. Instead, we are seeing increased hardship. It is time for the Government to change course, and a good start would be to end sanctions and treat families receiving support with dignity.

ENDS

Note for Editors: The Fairer Future collaboration has consistently called for the elimination of benefit sanctions since May 2022. It has campaigned for a fairer welfare system, including updated liveable income benchmarks based on the Welfare Expert Advisory Group’s 2019 recommendations.

Fairer Future groups supporting this release:

Auckland Action Against Poverty (AAAP)

ActionStation

Child Poverty Action Group (CPAG)

Citizens Advice Bureau NZ

Disabled Persons Assembly

Mental Health Foundation of New Zealand

Methodist Alliance

New Zealand Council of Christian Social Services (NZCCSS)

United Community Action Network (UCAN)