New Zealand welfare changes to end benefits for certain 18 and 19-year-olds

New Zealand legislation passed under urgency will end Jobseeker Support payments for 18 and 19-year-olds whose parents earn more than $67,225 combined. The policy, set to take effect in November 2026, is expected to impact approximately 4,300 young people.

Social Development and Employment Minister Louise Upston stated the law reflects a commitment to reduce benefit dependency, asserting that young people not in employment, education, or training should be supported by their parents rather than taxpayers.

However, economist Shamubeel Eaqub and the Child Poverty Action Group (CPAG) have criticized the move. Eaqub warned that the policy could lead to long-term negative consequences, including increased pressure on mental health services, emergency housing, and the justice system. CPAG Chief Executive Lyn Amos argued the change removes a vital safety net during a period of high youth unemployment, noting that affected families may also lose the Family Tax Credit for these individuals.