Wednesday, February 27, 2008

Minimal sanctions imposed

In 2003 the Labour government introduced Personal Development and Employment Plans for DPB beneficiaries in place of work-testing. To increase the effectiveness of these plans case managers can use sanctions for non-compliance eg the beneficiary loses a percentage of their payment (although they are later recompensed the equivalent amount if they do comply). This table shows how many sanctions have been imposed.

The overall picture suggests to me that like any new regime, its administration progressively tapers off.

Last year there were only 32 sanctions imposed for a total of 98,000 beneficiaries. And in Auckland, where a third of beneficiaries live, there were zero. Auckland, coincidentally, is the worst performer in reducing benefit numbers. Nearly half of the Auckland region Work and Income Centres experienced a rise in DPB numbers during 2007. Clearly most people will by now have cottoned on that their PDE plans aren't worth the paper they are written on in terms of how diligently Work and Income will pursue them. No wonder a report written about their implementation found beneficiaries were binning them on the way out.

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