National is promising to introduce sanctions for beneficiaries who "persistently do not meet their benefit obligations".
The party revealed on Tuesday that it would introduce a traffic light system to make it "crystal clear" to beneficiaries what their obligations are.
The party's social development spokesperson Louise Upston said people in the Green (compliant) category would be meeting their obligations to prepare for or find work. There would be no change to their benefit.
People in the Orange (some risk) category would have one or two breaches of their obligations and would face additional requirements and targeted support, e.g. more regular check-ins and/or attendance at job workshops.
People in the Red (high-risk) category have breached their obligations three times and will face sanctions such as benefit reductions, benefit suspension, money management and mandatory community work experience.
Upston said employment is the best way to get out of hardship and the party wants to make sure everyone who can work is.
"It [employment] provides individuals and families with greater independence, choice and opportunity, and is also better for taxpayers," she said.
"However, under Labour, benefit dependency has surged. There are now almost 60,000 more people on a Jobseeker unemployment benefit compared with when National left office six years ago, and 35,000 more people who have spent a year or longer on a Jobseeker benefit.
"One reason benefit dependency has grown substantially is that Labour removed clear consequences for jobseekers who don't fulfil their obligations to prepare for or find work. In the 12 months to June this year, the number of sanctions applied to jobseekers who breached their obligations was around half the number applied in National's last year in office, despite a 45 per cent increase in the number of jobseekers since then."
She said New Zealanders will always "give a helping hand to those who need it, but taxpayers are rightly concerned about the number of people" on the benefit growing while there is high demand for workers.
Along with the traffic light system, National would also require jobseekers to reapply for the benefit every six months, provide documented proof of job applications and interview attendance as a condition for continuing to receive the jobseeker benefit, impose a one-month benefit stand-down for people who are evading arrest warrants and index benefits to inflation to align benefits with the rising cost of living
"We will retain the existing rule that jobseekers with children can receive no more than a maximum 50 per cent reduction of their benefit payment, if they are sanctioned.
"The jobseeker benefit is designed to temporarily support people while they find work. WINZ will help them do that. Today's announcements will encourage jobseekers to meet their obligations to be actively seeking work while receiving the Jobseeker unemployment benefit.
"We want everyone who is able to work having the opportunity to do so with support, where necessary, from an employment-focussed welfare system.
"A National government will rebuild the economy so it works for all New Zealanders and ends the cost of living crisis. We will provide tax relief, restore law and order, and improve education and healthcare.
"This plan builds on National's Welfare that Works policy to use community providers, clear obligations, and targeted incentives to get young people off welfare and into work."
The Green Party is criticising the policy, calling it "cruel" and "heartless".
Greens' social development spokesperson Ricardo Menéndez March accused National of deliberately choosing to make life harder for thousands of people.
"A National Government would literally leave children to go hungry and punish families. It is cruel, ill-thought-out and will endanger the wellbeing of thousands of people. The policy goes against our shared values of caring for each other," Menéndez March said.
"The Green Party's plan will treat people with respect and dignity ensuring that no matter what, everyone will always have enough to cover life's essentials. All [would be] paid for by a simple and fair tax on the wealthiest few.
"That is in stark contrast to a National, ACT, NZ First Government that will cause misery and hardship for those who need our support the most. Evidence shows that benefit sanctions do not help people to work - and yet National is making the choice to use them, knowing full well it will cause harm."
He claims the National Party has a long history of "dehumanising people who struggle to get by on a day-to-day basis".
"Today is just the latest example of how out of touch they are with the reality of daily life for many of the people they say they want to represent. When times are tough, people need support - not punitive hoops to jump through right when they're already struggling.
"Punishing people who are out of work will not magically create jobs.
"The Green Party's Income Guarantee will ensure that no matter what happens, your income will never fall below $385 per week, after tax. For couples, our Income Guarantee will be at least $770 and a single parent will always have an income of at least $735.
"Poverty is a political choice - and the Green Party is the only party choosing to end it. Our plan will provide lasting solutions that will guarantee everyone has what they need to live a good life and cover the essentials - even when times are tough," he said.
