Social Development Minister Louise Upston. Photo: RNZ / Samuel Rillstone
Tougher rules for benefits for unemployed young people has had a mixed response in some parts of the country.
As unveiled in Thursday's budget, Social Development Minister Louise Upston announced 18 and 19-year-olds would now have their Jobseeker and emergency benefits tested against their parents' incomes.
The policy is forecast to save the government about $163 million over four years, but the income levels parents would be tested against have not yet been decided by Cabinet.
Upston said the parental assistance test would come into force from July 2027.
"The purpose of the welfare system is to support those who need it the most," she said.
"Our government is taking steps to make sure work or study is the focus for young people, rather than being on welfare.
"With this announcement, we're clearly saying that 18- and 19-year-olds who don't study or work and can't support themselves financially, should be supported by their parents or guardians, not by the taxpayer."
Beneficiary advocate Kay Brereton said making it harder for young people to get a benefit was a "sad move" that infantilised young adults.
Brereton said youth unemployment was high, and those people needed help to move out of home and become independent.
"These young people need support and assistance, and to be treated like adults, if they're going to behave like adults," she said.
"They can drink, they can smoke, they can vote, they can get married and they can't get a benefit, so to me, it is damning the next generation not helping the next generation."
A lot for struggling parents
Brereton said the change also asked a lot of already struggling parents.
"There's already a self selection in place, where parents who can support their children who are 18-19 and not working already are.
"It's the parents who can't or won't, or think that it's time for that young person to be an adult, they're the the parents whose kids end up on benefit. Those young people should still be able to get a benefit."
On Thursday, locals in the Central Hawke's Bay town of Waipukurau reacted to the change.
One woman told RNZ the move was "absolutely wrong".
"The children are out there doing their own thing... they should be entitled to government to help them out," she said.
But one man said there was plenty of parents who could afford to support their children.
"They've been doing up to this stage until they have a job, so why not now," he said.
Another woman said it was "too easy for young ones to get on the dole now".
"They think the government will pay for them. Make the parents responsible if the kids don't get a job."
The change was also welcomed by another as it forced parents to be responsible for their kids.
But another woman felt young people were becoming too dependent on their parents.
"Parents are getting relied on for everything these days, they have to support them if they can't get a job, they have to support them if they can't get a house. What's next?"
The Minister said young people could not expect to go automatically onto a benefit, and that parents needed to be ready to help.
"This change strengthens financial incentives to enter employment, education or training," she said.
Social Development Minister Louise Upston says young people could not expect to go automatically onto a benefit. Photo: RNZ
Recent forecasts showed people under the age of 25 on Jobseeker Support would spend an average of 18 or more years on a benefit over their lifetimes.
This was 49 percent longer than in 2017, Upston said.
"This is a human tragedy. We need to focus on the potential of one of New Zealand's most powerful assets - our young people, and that's why we are taking action.
"Our government has already introduced more early intervention for young beneficiaries through a new phone-based employment case management service.
"We've got 2,100 more places for young people to get community job coaching, more regular work seminars, and a traffic light system to help them stay on track with their obligations.
"Young people who do require support from the Ministry of Social Development will still be able to access it. For instance, in some cases 18- or 19-year-olds may not be able to rely on parental support.
"If they meet all other relevant eligibility criteria, they will be able to access some supports."
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