ACT released two policy plans on 28 June 2026. One is about welfare payments. The other is about making the public service smaller. David Seymour, ACT's leader, says both will help bring down the cost of living by cutting what government spends.

The Welfare Plan

ACT's welfare policy, published on its website, says benefits should be temporary help, not permanent money. ACT wants people on Jobseeker Support to face tougher work requirements and harsher penalties if they do not comply. The full costs and timeline for getting this into law have not been released yet.

ACT uses the phrase "hand-up, not a way of life" — an idea that has been part of New Zealand welfare arguments for many years. The current government already moved this way in August 2024, tightening the rules for Jobseeker Support. ACT is saying it wants to go further and change how the benefit system works at a deeper level.

Why now? Seymour is an Associate Minister of Finance, but National — ACT's coalition partner — holds the welfare portfolio. Releasing this policy lets ACT show its supporters it wants more dramatic change than National is delivering.

In 2012, the government required sole parents with children five and older to look for part-time work. That was controversial at the time. ACT appears to be aiming for a similar fundamental shift in how welfare operates.

The Public Service Plan

ACT's second policy, about making government smaller and simpler, says the government has too many departments and too much overlap. Seymour says making New Zealand affordable has to start by shrinking the cost and complexity of government itself.

The current government is already moving on this — it is cutting the number of departments. Seymour has helped with that work. ACT's plan basically says: do this faster and cut harder.

National — ACT's partner — also has a record on public sector change. ACT is arguing it has not gone far enough.

Why Both Policies at Once?

Releasing two policies on the same day, both about spending, sends a clear message. Both aim to bring down the cost of living by cutting what government spends on itself and on welfare, expecting that a smaller state and stronger work incentives will help people's finances over time.

The details are not yet public — how much it would cost, how the law would work, when it would happen.

For people watching coalition politics, these two policies show where ACT wants to position itself. It is taking a harder line on welfare than National, and pushing harder on shrinking government than the current government has.

Seymour is both ACT's leader and a sitting minister, which means people will judge his new policies against his record in government. He has not held the welfare job, so his hand in welfare policy has been limited. On shrinking government, he has been more involved. In the coming weeks, how National responds to these ideas will tell us whether they become real points of negotiation between the coalition partners, or just campaign talking points.