‘The world doesn’t owe you a living’: PM says 4300 teens will lose Jobseeker benefit next year

Some 4300 teenagers could have their Jobseeker benefit cut next year, as the Government restricts the payments to “very low income” families.

But along with a crackdown on unemployed youth, the Government is also providing a $1000 incentive for 18 to 24-year-olds who stay off welfare for more than 12 months.

Prime Minister Christopher Luxon and Social Development Minister Louise Upston made the policy announcement, expected to save the Government $39 million a year, on Sunday.

“The world doesn’t owe you a living and nor, except in limited circumstances, do taxpayers,” Luxon said.

“We love these young people, but the best thing for them is to make sure that they are either in work, in study or ... in training.”

The policy was unveiled by the Government as part of this year’s Budget but, at the time, it had not determined the household income threshold above which teenagers would not receive the financial support.The threshold will be set at $65,529, regardless of whether the teenager is supported by two parents or a single parent.

This is the same as a “cut-out point” for the Supported Living Payment for people unable to work due to a health condition or disability, or for full-time carers of such people. The threshold will lift as this cut-out point lifts with the annual adjustment for benefit rates.

“We want to be clear with young people, 18 and 19-year-olds and their parents – our expectation is that they are in further education, training or a job,” Upston said.“Welfare should be a long way away from their first option. So it’s about having much higher expectations for young people and their families.”

Setting the benefit threshold at this rate would mean teenagers from “very low income families” could still get support, according to Upston. Teenagers would still be able to receive the Jobseeker benefit if they could demonstrate their parents did not support them through a “severe breakdown” in their relationship, Upston said, verified by a doctor or a counsellor.

There were 15,045 teenagers on the Jobseeker benefit as of June, and the Government expected 4300 teenagers will become ineligible when the change comes into effect. Upston said the policy was also being brought forward to November 2026 from July 2027, when it had originally meant to come in.

The Government has also decided that from October 2026, young people aged 18 to 24, who take up a job in coaching to get off benefit and stay in employment for 12 months will receive a $1000 incentive payment.

Labour Party social development spokesperson Willie Jackson said the Government was “shutting young people out of the future they deserve”.

“His decisions have driven record numbers overseas, sent the economy into reverse, and pushed unemployment up. It’s time the Government fixed the mess it’s made.”