New Parental Income Tests Cut Thousands of Youth From Jobseeker Support
New parental income rules strip Jobseeker support from thousands of 18 and 19-year-olds, shifting financial responsibility to families amid high youth unemployment.
At a glance
- Jobseeker payments have ended for youths aged 18 and 19 if their household brings in a joint parental income exceeding $67,225.
- The government previously estimated about 4,300 young people would lose access to this welfare support.
- Social Development and Employment Minister Louise Upston stated the policy encourages young people to be supported by parents rather than taxpayers.
- Advocates warn the threshold is too low and leaves students searching for summer work without a safety net.
Thousands of 18 and 19-year-olds across New Zealand are losing access to Jobseeker unemployment payments following the introduction of new parental income testing.
The policy, which took effect on Monday, blocks youth from receiving the benefit if their parents earn a combined annual income exceeding $67,225.
Impact on Young People
Estimates from last October indicated that about 4,300 individuals would become ineligible for financial support under the updated criteria. The adjustment leaves young adults dependent on familial backing unless they can demonstrate an inability or unwillingness of their parents to provide it.
Beneficiary advocate Kay Brereton criticized the income cutoff as excessively low, noting it sits well below the limits allowed for student allowances, which reach a combined parental income of $131,670 for those living at home or $141,451 for those living away. Brereton warned that university students hunting for summer holiday jobs might find themselves without a safety net if they fail to secure employment.
Government Position
Social Development and Employment Minister Louise Upston defended the legislative change, explaining it aligns with the administration's goal to curb benefit dependency and foster employment.
Upston stated that the rules reinforce the expectation that individuals not engaged in work, education, or training ought to rely on parental backing instead of taxpayer funding.
Background
The policy lands during a period of strained economic conditions, with national unemployment resting at an 11-year high of 5.6 percent and youth unemployment among 15 to 19-year-olds reaching 25.3 percent. With seasonal student job hunting underway, the removal of hardship benefits introduces significant financial vulnerability for young adults living independently in rental housing.
The reported statistics show high rates of joblessness among young people coinciding with new restrictions on welfare eligibility. These rules require parents to financially support adults aged 18 and 19 if parental income exceeds the established threshold.
What to watch: Monitor employment data and benefit uptake numbers to see how many young people successfully transition into work versus those requiring family support.
Reporting from: RNZ. Spotted an error? Tell us.
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