Prime Minister Christopher Luxon and Minister for Social Development and Employment Louise Upston. Photo / Dean Purcell
Prime Minister Christopher Luxon and Minister for Social Development and Employment Louise Upston. Photo / Dean Purcell
Prime Minister Christopher Luxon says the salary limit of parents with teenagers currently on a benefit has been capped at a low threshold to put pressure back on them.
It comes after Luxon announced a $1000 incentive to keep young people on their new job coaching service off thebenefit, an addition to a previously-announced plan to cut the dole for 18- and 19-year-olds who could be supported by their parents.
Those plans have also been fast tracked to next year, with Luxon saying he wants to tackle the “trap” of starting on welfare at a young age.
He told Newstalk ZB’s Mike Hosking that if parents are earning a little over $65,000 they will be required to support their unemployed 18 and 19-year-olds.
He acknowledged this number meant only people from “very low-income” families would be exempt from the Government’s crackdown.
“But we know it’s quite low, but the reality is it puts the pressure back on parents to say get those young people into work or education.
“I’m trying to get this notion of rights and responsibilities understood... it’s the principle of there are rights to being Kiwi and there are responsibilities as well.”
Prime Minister Christopher Luxon and Minister for Social Development and Employment Louise Upston during an announcement on Jobseeker in Ellerslie. Photo / Dean Purcell
Yesterday, the Prime Minister, alongside Social Development and Employment Minister Louise Upston, announced a $1000 incentive to keep young people on their new job coaching service off the dole.
“Young people participating in the Ministry of Social Development’s new Community Job Coaching service can apply for a $1000 bonus payment if they get a job and stay off the benefit for 12 months,” Upston said.
“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.”
It was also revealed how much money parents can make before they are expected to support them.
If parents are earning a little over $65,000 they will be required to support their unemployed 18 and 19-year-olds, rather than the teens receiving the benefit.
Upston outlined the details further yesterday and said young people would stop being eligible for the benefit if their parents could support them.
“Today, I can confirm that we are bringing our Budget initiative forward for implementation to November 2026. From then, 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,” she said.
“This targets welfare assistance to those who need it the most, as young people will be expected to first be supported by their parents.”
As of June this year, 15,045 18 and 19-year-olds were on Jobseeker Support, and more than 4000 are expected to become ineligible when the changes kick in.
The change was originally planned to happen in July 2027.
Budget documents showed that it was forecast to save the Government $84 million a year from 2027.
