Dear John,

 

Over the weekend, the Prime Minister and I announced details of two initiatives to move young people out of benefit dependency, into education or jobs, and incentivise them to stay in work. 
 
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. This is a human tragedy, and one I am determined to fix. 
 
From November 2026 onwards, all young people aged 18 and 19 without dependent children will have to pass a Parental Assistance Test in order to access Jobseeker Support or the equivalent Emergency Benefit. This targets welfare assistance to those who need it the most, as young people will be expected to first be supported by their parents. 
 
Currently 15,045, 18–19-year-olds are on the Jobseeker benefit, and I have far greater hopes and aspirations for those young Kiwis than a life on welfare.  
 
We also announced that young people participating in the Ministry of Social Development’s new Community Job Coaching service can apply for a $1,000 bonus payment if they get a job and stay off the benefit for 12 months.
 
This will incentivise our young people to get off welfare and into work. We want the best for our young people, we want them to be ambitious, find jobs and stay in work. We do not want to see them tracking back onto welfare dependency.  

 

Hon Louise Upston

Spokesperson for Social Development and Employment