Parents earning more than $65,000 will soon have to financially support their teens, with the government limiting Jobseeker benefit access.
Prime Minister Christopher Luxon and Social Development Minister Louise Upston announced the changes yesterday, confirming that from November 2026, young people won’t be eligible for Jobseeker payments if their parents earn above the threshold.
“Young people aged 18 and 19 will no longer be eligible for Jobseeker payments if their parents can support them,” Upston said in a press conference.
Upston also shared that young people involved in MSD’s new Community Job Coaching service can score a $1,000 bonus if they secure a job and stay off the benefit for 12 months.
“Going on welfare as a young person is a trap,” she said, adding that modelling shows young people who go on a benefit before 25 would likely spend another 18 years of their life on welfare.
That’s a human tragedy and one I am committed to changing.
The prime minister told TVNZ’s Breakfast this morning that benefit dependency is a "tragedy" and the new criteria are to "reset expectations" for young people to join the work force, study or look at training options.
When questioned on whether this is a money-saving scheme for the government, Luxon denied the claim, outlining $39-40 million in savings, but it’s not their focus.
"We care about these young people. We love these young people, but the best thing for them is to make sure that they are either in work, or study, or employment, you know, or in training," he said.
Comments made by Luxon during Sunday’s announcements were mentioned, where he said: “The world doesn’t owe you a living”.
The PM backs his claim, highlighting how he believes it’s an “exciting world, a world of huge opportunities out there”, and it’s a “reality of life”.
"It's not just a government responsibility. That's a parental responsibility and an individual responsibility as well. So all of us have some responsibility about it, but I want to make sure that that is shared amongst everybody."
