What is the Traffic Light System?
Work and Income has a traffic light system to help them track if you are meeting your work or social obligations for your benefit. ‘Obligation’ means something you have to do to keep your benefit.
If Work and Income thinks you aren’t doing the right things to keep your benefit, they can give you a ‘sanction’. For more information, see “Trouble with Work and Income: Penalties, investigations and overpayments” If you are at Green, it means Work and Income thinks you are doing the things you have to do to keep your benefit.
You will be moved to Orange if you miss one of your obligations. For example, if you don’t go to a job interview without a good reason. You will get a ‘Obligation Failure’ if you don’t have what Work and Income thinks is a good reason for missing your obligation. The obligation failure will show on your record for 2 years.
If you’re at Orange, you have 5 working days to contact Work and Income and meet the obligation that you missed. If you meet your obligations within the 5 working days, you’ll be moved back to Green. Otherwise, you will be moved to Red.
If you’re at Red, your benefit will be reduced (you won’t get as much money) or stopped. However, you could be put on Money Management or Community Work Experience instead.
Who does the Traffic Light System apply to?
You will be under the Traffic Light System if your benefit has work or social obligations, like the Jobseeker Support or Sole Parent Support benefits. You might also be under the Traffic Light System if you get the Emergency Benefit or Emergency Maintenance Allowance and have work-related or social obligations as part of your benefit.
If you get the Supported Living Payment (SLP), you probably won’t be under the Traffic Light System as you probably won’t have work obligations. But you might be under the Traffic Light System while getting the Supported Living Payment if:
- You look after dependent children (because of your social obligations, like making sure children go to school and the doctor)
- Work and Income thinks you can prepare for work and has told you about this
- Work and Income has asked you to complete a Work Ability Assessment or work with a “contracted service provider”
What is Money Management?
Social Security Act 2018, s 236A
Work and Income might decide to put you on Money Management when you move to Red if:
- You meet with Work and Income within the 5 working days that you’re in Orange on the traffic light system, and
- You only have 1 ‘obligation failure’ on your record, and
- You have dependent children or a case manager
How does Money Management work?
When Work and Income puts you on Money Management, half of your benefit will be paid to your regular bank account but the other half will go onto a payment card. You can only use the payment card at places like supermarkets, petrol stations, doctors or dentists to buy things like food, transport or for school or health needs.
Work and Income won’t put you on Money Management if the half of your benefit paid into your bank account is not enough to cover things like your rent, or there’s no approved stores in your area where you can use the payment card.
You’ll be paid weekly to your payment card for 4 weeks on your normal payment day while you’re on Money Management. If you don’t spend all the money on your payment card within 4 weeks, you can continue using the money as there’s no expiry date. Work and Income will also arrange for you to do an activity within the 4 weeks before they move you back to Green and you get your full benefit in your bank account again. Your benefit will stop if you don’t do the activity and don’t have dependent children. If you don’t do the activity and you have dependent children, you will only get 50% of your benefit paid to your bank account.
What is Community Work Experience?
Social Security Act 2018, s 236B
Community Work Experience is another option when Work and Income moves you to Red, instead of having your benefit reduced or stopped. You need to find a charity or community organisation to volunteer at for 5 hours a week for 4 weeks.
Work and Income will keep paying you your full benefit amount for the 4 weeks. Work and Income will move you back to Green once you have shown Work and Income a form signed by the organisation or charity you worked with.
Who can get put on Community Work Experience?
You may be put on Community Work Experience if:
- You meet with Work and Income during the five working days you’re at Orange on the traffic light system, and
- You only have 1 obligation failure on your record, and
- It’s the first time in the last year that you haven’t met the work or social obligations for the last year, and
- You have dependent children or a case manager.
How does Community Work Experience work?
You have two weeks to find a volunteer job at a charity or community organisation – like a sports club or a marae. You need to get the organisation to sign the Community Work Experience form that Work and Income will give you when you get put on Community Work Experience. You then need to show that signed form to Work and Income. If Work and Income says you can do Community Work Experience, you need to work at the organisation for 5 hours a week for 4 weeks. At the end of the 4 weeks, you’ll need to get the organisation to sign the Community Work Experience form again to show they are happy with the work you’ve done.
Work and Income will move you back to Green once you show them the signed form that shows you’ve completed the Community Work Experience.
What if I don’t do Community Work Experience?
Social Security Act 2018, s 236C
You will only get half of your benefit if you don’t complete the steps above, even if you have a good reason or Work and Income thinks the volunteer job you found isn’t suitable. They also arrange for you to do another activity before you can move back to Green and get your full benefit again.
If Work and Income thinks you don’t have a good reason for not doing Community Work Experience, they will only pay half of your benefit if you have dependent children. If you don’t have dependent children, Work and Income will stop paying your benefit.
Work and Income will reduce or stop your benefit from the day you stopped doing Community Work Experience. This means you could end up with a debt to Work and Income, if they kept paying your benefit for a bit before they found out you stopped doing Community Work Experience.
You’ll have to do another activity that Work and Income arranges for you so you can move back to Green and get your full benefit again.
