Unemployment Benefit Factsheet

Unemployment Benefit (UB) is a weekly payment for those temporarily unable to find work but actively looking for a job.

Why are we changing UB?

Future Focus places an unrelenting focus on work. Beneficiaries who have been on an UB for more than a year are at risk of long-term welfare dependency and more needs to be done to connect them to the labour market. 

These reforms are designed to make sure beneficiaries get the help they need to get back into work as quickly as possible.

What's new for people on UB?

• Unemployment Beneficiaries who haven't secured employment after 12 months will have to re-apply and undergo a comprehensive work assessment.
• Beneficiaries who do not re-apply on time will have their UB cancelled. They will then be treated like a new applicant.
• Job Seeker Agreements currently require work-tested beneficiaries to agree to the work-related activities they will undertake. This requirement will be removed to clearly signal that work test obligations are requirements that must be met in exchange for receiving a benefit.
• Beneficiaries will lose 50 percent of their main benefit the first time they do not comply with their work obligations such as failing to attend a scheduled job interview. If this happens, they will continue to receive supplementary assistance. On second failure the main benefit and supplementary assistance will be suspended and on the third time cancelled.
• The UB rate will increase in line with the Consumer Price Index each year. This will be enshrined in legislation, rather than occurring by convention, as it currently does.

Who's eligible for UB?

The eligibility criteria for UB remain the same. A person may be eligible for UB if they are not in full-time work. 

They must be:

• available, and looking, for full-time work
• 18 years old or over (or 16-17 if you are married or in a civil union or in a de facto relationship and have one or more children you support).

They must also:

• be a New Zealand citizen or permanent resident
• have lived in New Zealand for at least two years at any one time since becoming a New Zealand citizen or resident (unless a refugee).

A person may still qualify for UB if they are a full-time trainee on an approved work related course (usually less than 12 weeks) and are looking for work.

How much do people receive on UB?

The amount someone on UB receives depends on many factors, including their age and their living circumstances. The table below shows the base rates by age breakdown (from 1 April 2010):

In addition to the main rate beneficiaries may also qualify for additional assistance, for accommodation costs. These amounts vary based on locality and individual costs.

For example, a single person renting in Auckland on UB, with no children, could receive approximately $280 a week including Accommodation Supplement and other allowances.

A single person renting in the South Island on UB, with no children, could receive approximately $240 a week including Accommodation Supplement and other allowances.

Important statistics about UB

• There were 64,000 people receiving UB at the end of February 2010. This number is expected to decrease over the next few months as seasonal employment increases.
• Between 30 and 40 per cent of jobseekers who attend a Work for You seminar at Work and Income, which focuses on job-search skills and responsibilities prior to a benefit being granted, haven't needed a benefit 28 days later.
• There are about 12,000 people currently who have received UB continuously for more than a year.
• The vast majority (81 per cent) of people on UB have received it continuously for less than one year. Less than one percent of people had received UB continuously for 10 years or more.