Source: New Zealand Government
Two initiatives to move young people out of benefit dependency and incentivise them to stay in work will be significant for thousands of young New Zealanders, Minister for Social Development and Employment Louise Upston says.
“Firstly, we’re outlining detail around our Budget announcement that young people aged 18 and 19 will no longer be eligible for Jobseeker payments if their parents can support them,” Louise Upston says.
“Also today, I’m announcing that young people participating in the Ministry of Social Development’s new Community Job Coaching service can apply for a $1,000 bonus payment if they get a job and stay off the benefit for 12 months.
“Going on welfare when you’re young is a trap, with recent modelling suggesting that people under the age of 25 on Jobseeker Support will spend an average of 18 or more years on a benefit over their lifetimes.
“Currently 15,045* 18–19-year-olds are on the Jobseeker benefit, and I have far greater hopes and aspirations for those young Kiwis than a life on welfare.
“Today I can confirm that we are bringing our Budget initiative forward for implementation to November 2026. From then, all young people aged 18 and 19 without dependent children will have to pass a Parental Assistance Test in order to access Jobseeker Support or the equivalent Emergency Benefit.
“This targets welfare assistance to those who need it the most, as young people will be expected to first be supported by their parents,” Louise Upston says.
The new Parental Assistance Test will kick in when young people apply for a benefit and comprises:
- a parental income test, demonstrating whether their parents earn income at or below the income limit, and/or
- a parental support gap test, demonstrating they cannot reasonably be expected to rely on their parents for support.
- the income limit will be set at an income cut-out point for a couple with children receiving the Supported Living Payment and will be adjusted annually.
- Currently this limit is $65,529 and it is expected to rise to reflect the Annual General Adjustment of benefit payments
- This limit will ensure that young people from very low-income families will still be able to access support if required.
Eligibility for the new bonus payment will apply to 18- to 24-year-olds on Jobseeker Support:
- who have worked with Community Job Coaching after being on benefit for at least 12 months
- who find work
- who stay off the benefit for 12 months
- who are in work at the time of their application
The payment will be available for eligible young people 12 months later, from October 2026 and is a key component of National’s Welfare that Works policy.
“Today’s announcements build on the work the Government has already undertaken to encourage young people into work and are in-line with the National-NZ First coalition agreement.
“Our Government is focused on reducing benefit dependency in young people, and we have already introduced a number of initiatives such as a new phone-based employment case management service.
“We’ve got 4000 places for young people to get community job coaching. We’ve also got more regular work seminars, and a traffic light system to help them stay on track with their benefit obligations.
“I am determined that young New Zealanders see education, work and training as their best options for the future,” Louise Upston says.
