The Salvation Army do not support mandatory work experience for beneficiaries. File photo. Photo: RNZ / Cole Eastham-Farrelly
The government is better off using its resources to help people find work, rather than punishing those who can not, says the Salvation Army.
Two new 'non-financial' sanctions come into force on Monday for beneficiaries who do not meet their obligations.
Some people may have half their weekly benefit put on to a payment card for four weeks, that can only be spent on essential items at approved shops.
They may also have to find volunteer work for at least five hours each week, again for four weeks.
Social Development Minister Louise Upston said the sanctions would encourage people off welfare and into work.
"These very fair and reasonable sanctions will allow clients to continue receiving their full benefit, instead of the 50 per cent reduction they would have experienced with a financial sanction," she said.
But Salvation Army principal social policy analyst Paul Barber said it was not the most helpful approach.
"We would really like to see Work and Income resources applied to increasing the amount of training and employment pathways, working with employers who are willing to take people on and really creating a constructive space for people to find employment," he said.
"That's a stronger way to reduce the number of people on the Jobseeker benefit."
Barber said the Salvation Army did not support mandatory work experience for beneficiaries.
He expected organisations like his would have more people knocking on their door seeking volunteer opportunities as part of the new rules, but they were not resourced to respond.
"We welcome opportunities to provide some work experience, but this needs to be done in a way that respects the experience of the person, and forcing people to volunteer is pretty much a contradiction in terms," he said.
Barber was concerned community organisations would have to turn away vulnerable people who don't need any more rejection in their lives.
With unemployment and Jobseeker numbers projected to rise, it was not the time to add more punishments for beneficiaries, he said.
Money management risks people struggling to pay for essentials
Ringfencing a portion of someone's benefit for specific spending risked them falling deeper into financial hardship, said Pakuranga and Howick Budgeting Service manager Megan Dangen.
It could mean people struggle with other important costs like rent and loans, she said.
"We find with a lot of our clients, that rent is a major contributor to their weekly financial situation," she said.
"It could cause a lot of stress in the household if they just can't make ends meet... we also have a lot of clients, I would say 90 percent of our clients, that are in huge amounts of debt."
Official statistics from the Ministry of Social Development showed the average beneficiary spent more than 53 percent of their income on housing costs.
Many people were not financially literate and would struggle to manage the restriction on their benefit, said Dangen.
Upston said 98 percent of beneficiaries were complying with their obligations, so they would not be subject to the sanctions.
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