Thousands of youths set to lose access to unemployment benefits after welfare law change
New Zealand has passed legislation that will disqualify 18-19-year-olds from receiving unemployment benefits if their parents earn above a specific income threshold. The government states this policy aims to reduce benefit dependency and encourage youth to seek work or education.
Why it matters
This represents a significant shift in social welfare policy, sparking debate over government responsibility versus parental support for young adults.
Thousands of youths across the country are set to lose access to unemployment benefits, after a welfare bill passed into law under urgency on Friday night.
From November 2026, the government will end Jobseeker payments to 18-19-year-olds whose parents earn more than $67,225.
The limit was originally just over $65,000 when the policy was announced, but has since been adjusted .
In October last year, it was estimated that about 4300 young people would become ineligible for support as a result.
Social Development and Employment Minister Louise Upston said the legislation reflected the government's commitment to reduce benefit dependency and encourage people into work.
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