Young people lose Jobseeker payments under parental income test

The New Zealand government has ended Jobseeker payments for 18 and 19-year-olds whose parents have a combined income of more than $67,225, RNZ reported. Jobseeker is the main benefit for people who are out of work and looking for a job.

Louise Upston, the Social Development and Employment Minister, has said 18 and 19-year-olds will no longer be eligible for Jobseeker payments if their parents can support them. The Beehive published her announcement of the change.

An estimate made in October 2025 put the number of young people who would become ineligible for support because of the parental income test at about 4,300.

The Child Poverty Action Group has warned that cutting benefits for 18 and 19-year-olds will cause more hardship for young people. The group's statement was published in August.

The parental income test is separate from the student allowance, which is financial support for people studying after school. For the student allowance, the parental income cutoff is $131,670 for students living at home with their parents, and $141,451 for students living away from them.

The wider labour market is also weaker. Stats NZ reported that the unemployment rate was 5.6 percent in the June 2026 quarter, up from 5.4 percent in the March quarter. That is the highest rate in 11 years.

Unemployment among 15 to 19-year-olds is 25.3 percent.