Who pays: Parents or taxpayers? Govt draws the line at 20

Summarised by Centrist

The government is shifting responsibility for supporting unemployed 18- and 19-year-olds back to their parents, introducing a new income test that could make thousands ineligible for taxpayer-funded benefits.

Under rules that took effect on Monday, 2 November, young adults whose parents earn a combined income above $67,225 will generally no longer qualify for Jobseeker Support.

RNZ estimates that around 4,300 young people will become ineligible under the changes.

Social Development and Employment Minister Louise Upston says the policy reinforces the expectation that young people who are not working, studying or training should be "financially supported by their parents, not by taxpayers through the welfare system".

The government argues the change will reduce benefit dependency and encourage young people into employment or education.

Existing recipients will generally continue receiving payments until reassessment, while exemptions are available where young people cannot reasonably rely on parental support, including family breakdown or unsafe circumstances.

However, beneficiary advocate Kay Brereton described the $67,225 threshold as "outrageously low".

She highlighted the much higher parental income limits for Student Allowance, currently $131,670 for students living at home and $141,451 for those living away.

That means some students eligible for financial assistance during the academic year could be denied Jobseeker Student Hardship over summer if they cannot find holiday work.

Brereton also questioned why 18-year-olds should be treated as financially dependent when they are legally adults, pointing out that "they can vote, get married, go to war".

The changes arrive as unemployment stands at 5.6%, an 11-year high, with unemployment among 15- to 19-year-olds reaching 25.3%.

Read more at RNZ | Work and Income | 

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