Thousands of young New Zealanders will soon face stricter rules for accessing Jobseeker Support while others could earn a $1000 bonus for staying in work under two new initiatives announced by the Government today.
The changes were aimed at reducing long-term benefit dependency among young people and incentivising sustained employment, Minister for Social Development and Employment Louise Upston said.
The initiatives formed part of the National-led Government’s Welfare that Works policy and reflect commitments made in the National–NZ First coalition agreement.
Stricter eligibility for Jobseeker Support
From November 2026, 18- and 19-year-olds without dependent children would need to pass a Parental Assistance Test to qualify for Jobseeker Support or the Emergency Benefit.
Upston said the changes, previously announced in May's Budget, were being brought forward from an initial implementation date of July 2027.
"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."
As of June 2025, 15,045 18-19-year-olds were receiving Jobseeker Support, she said.
The Government estimated around 4300 would become ineligible under the new rules, while 4700 would remain eligible.
The test would include:
- 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 was $65,529 and it was expected to rise to reflect the Annual General Adjustment of benefit payments.
Upston said: "This limit will ensure that young people from very low-income families will still be able to access support if required.
"This targets welfare assistance to those who need it the most, as young people will be expected to first be supported by their parents."
$1000 bonus for staying in work
In addition to tightening eligibility, the Government will introduce a $1000 bonus payment for young people who find work and stay off the benefit for a year.
The payment will be available from October 2026 to 18- to 24-year-olds who:
- Have worked with the Ministry of Social Development’s Community Job Coaching service after being on a benefit for at least 12 months,
- Find employment,
- Remain off the benefit for 12 months,
- Are in work at the time of applying.
Upston said the bonus was designed to reward young people who made the transition from welfare to work and stuck with it.
"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."
Full details of the Parental Assistance Test and bonus payment scheme would be released closer to their implementation dates.
Labour reacts
Reacting to the policy, Labour social development spokesperson Willie Jackson told 1News: Christopher Luxon is shutting young people out of the future they deserve."
"His decisions have driven record numbers overseas, sent the economy into reverse, and pushed unemployment up.
"It’s time the Government fixed the mess it’s made and backed good, well-paid jobs here in New Zealand."
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