Young people are being punished for an economic crisis they did not create, says a youth advocate, as the government gears up to means-test parents before their 18 or 19-year old can get a benefit.
From November next year, young people wanting to get Jobseeker support or the equivalent Emergency Benefit will have to take a parental income test, to see whether their parents can support them instead of the taxpayer.
About 4300 18- and 19-year-olds were estimated to become ineligible for support, with 4700 remaining eligible in the 2027-28 financial year.
As at June 2025, 15,045 18 and 19-year-olds were on Jobseeker Support.
The prime minister said benefit dependency was a "tragedy" and the tightened criteria reset expectations of young people and parents.
"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.
"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."
Thousands of young people could lose access to Jobseeker Support under new parental income rules, while others may qualify for a $1000 bonus for staying in work for a year. (Source: 1News)
The $65,529 cut-off is in line with the threshold for the Supported Living Payment, for people who cannot work due to a health condition or disability, or who care for someone full-time.
But the Green Party's social development spokesperson Ricardo Menéndez March said that was barely enough for a family to live on as it is right now.
"Christopher Luxon needs to get out more and realise that families earning $65,000 a year, they will be feeling the pinch. It's simply not feasible to have a young adult in a household earning $65,000 that is unable to receive income support at a time of high unemployment and huge job cuts that have been led by this government."
Unemployment was at 5.2% in the June 2025 quarter, with Treasury forecasting the rate will be 5% in June 2026 and then 4.8% in June 2027
Menéndez March said there were simply not enough jobs for young people seeking employment.
"When we know that young people are some of the most affected by unemployment, and that this is largely in part due to the fact that the government has cut jobs and there are not enough jobs available out there for young people, this seems like a terrible time to further restrict income support for young people," he said.
"When we prevent young people from accessing income support, all that we are doing is pushing young people deeper into poverty, which in and of itself makes it harder for young people to have the space to find employment, to enter education, to have suitable housing, and the things that they need to lead good lives into their late adulthood."
Asked where the jobs were for these young people, the prime minister pointed to the kūmara industry, which he had recently visited in Dargaville.
"[They're] desperate to get young people into it, find out that young people show up for a work for a little bit and then bugger off and don't show up the rest of the week. That's what we're trying to get, we're trying to get those young people connected with work so they can actually learn to show up on time, have a work ethic, join a team, work hard, and get some self-worth from it."
The moves were in line with National's coalition agreement with New Zealand First, but also found favour with ACT.
Leader David Seymour said many businesses could not find staff and were relying on migrants to fill jobs New Zealand teenagers could be doing.
"It's shameful that people from overseas are showing more willingness to work than too many young New Zealanders born here," he said.
'What they lack is the support'
Kick Back founder Aaron Hendry said young people are motivated but lack the opportunity to overcome barriers they face. (Source: Breakfast)
But Aaron Hendry, who runs youth development organisation Kick Back, said the young people he works with were motivated to find employment, but they were not getting any calls back.
"I've never met a young person that doesn't want to find work. Often that's their first goal, that's the thing they're striving for. And what they lack is the support and the care that they require to be able to meet their dreams," he said.
"So instead of punishing young people, making it harder for young people to survive, the government should be focusing on how they can provide the care and support our rangatahi require."
Hendry believed it would put more pressure on families, and increase the risk of more youth homelessness.
"Poverty is a driving factor to homelessness, and the more challenges you put on the whānau, the more pressure you put on them, the harder things get at home. We think our young people are being punished for an economic crisis that they did not create. They did not participate in creating this crisis, and yet they are the ones bearing the brunt of it."
The government has stressed support will remain available for those that need it, including for young people from "very low-income" families.
Applicants could take a parental support gap test to demonstrate they could not reasonably be expected to rely on their parents for support, similar to the Youth Payment.
They would have to demonstrate a severe breakdown from their parents, which would need to be verified by a doctor or counsellor.
There is also an incentive for those already on Jobseeker: $1000 for any 18- to 24-year-olds who have been through Community Job Coaching, got a job, and stayed off the benefit for a year.
The government said 4000 coaching slots were available.
But Hendry said from his experience, the extra bureaucracy would make it harder for young people to leave unsafe situations and convince a doctor or counsellor the harm or trauma they were experiencing was legitimate, and questioned the effectiveness of the coaching services.
"Our rangatahi are telling us that they do not find those services are helpful, and actually Work and Income and MSD as a system actually inhibits them from getting into employment rather than helps them."
Despite the implementation being brought forward to November 2026 from July 2027, social development and employment minister Louise Upston said there was still time for parents and young people to prepare.
She encouraged young people to start thinking about what study and training opportunities there were, and the steps they would need to take to get ready for employment.
By Giles Dexter and Kim Baker-Wilson of rnz.co.nz
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