From next year, teens whose parents earn more than $65k won't be eligible for the dole
The Government is introducing a $1000 incentive to keep young people on their new job coaching service off the dole, amid efforts to tackle the “trap” of starting on welfare at a young age.
A previously-announced plan to cut the dole for 18- and 19-year-olds who could be supported by their parents is also being brought forward to the end of next year - and it has now been revealed how much money parents can make before they are expected to support them.
If parents are earning a little over $65,000 they will be required to support their unemployed 18 and 19-year-olds, rather than the teens receiving the benefit.
Social Development and Employment Minister Louise Upston has today announced a carrot on the stick alongside the stricter rules: a $1000 bonus for certain young people who stay off the benefit for long enough.
“Young people participating in the Ministry of Social Development’s new Community Job Coaching service can apply for a $1000 bonus payment if they get a job and stay off the benefit for 12 months,” Upston said.
“Going on welfare when you’re young is a trap, with recent modelling suggesting that people under the age of 25 on Jobseeker Support will spend an average of 18 or more years on a benefit over their lifetimes.
There are more than 15,000 people aged 18 and 19 who are on the Jobseeker benefit right now, she said.
“I have far greater hopes and aspirations for those young Kiwis than a life on welfare.”
Upston outlined further details around the earlier announcement that young people would stop being eligible for the benefit if their parents could support them.
“Today, I can confirm that we are bringing our Budget initiative forward for implementation to November 2026. From then, all young people aged 18 and 19 without dependent children will have to pass a Parental Assistance Test in order to access Jobseeker Support or the equivalent Emergency Benefit,” she said.
“This targets welfare assistance to those who need it the most, as young people will be expected to first be supported by their parents.”
The new Parental Assistance Test will kick in when young people apply for a benefit and comprises:
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A parental income test, demonstrating whether their parents earn income at or below the income limit, and/or;
A parental support gap test, demonstrating they cannot reasonably be expected to rely on their parents for support.
The income limit will be set at an income cut-out point for a couple with children receiving the Supported Living Payment and will be adjusted annually.
Currently this limit is $65,529 and it is expected to rise to reflect the Annual General Adjustment of benefit payments.
This limit will ensure that young people from very low-income families will still be able to access support if required.
Eligibility for the new $1000 bonus payment will apply to people aged from 18 to 24 on Jobseeker Support:
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who have worked with Community Job Coaching after being on the benefit for at least 12 months
who find work
who stay off the benefit for 12 months
who are in work at the time of their application
The payment will be available for eligible young people 12 months later, from October 2026, and is part of National’s Welfare that Works policy.
“Our Government is focused on reducing benefit dependency in young people, and we have already introduced a number of initiatives such as a new phone-based employment case management service,” Upston said.
“We’ve got 4000 places for young people to get community job coaching. We’ve also got more regular work seminars and a traffic light system to help them stay on track with their benefit obligations.
“I am determined that young New Zealanders see education, work and training as their best options for the future.”
As of June this year, 15,045 18- and 19-year-olds were on Jobseeker Support, and more than 4000 are expected to become ineligible when the changes kick in.
The change was originally planned to happen in July 2027.
“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,” Upston said at the time.
Budget documents showed that it was forecast to save the Government $84 million a year from 2027.
Green Party social development and employment spokesman Ricardo Menéndez March said at the time the Government was “pulling the rug” on young people receiving income support.
“The Government has just told teenagers doing it tough that they are on their own. A lot of teenagers having to rely on benefits for support do not have family to lean on – the Government knows this, it just doesn’t care.”
Treasury expects unemployment to worsen over the next few years.
The jobless rate was now expected to be 5% over the next year, up from a forecast in December of 4.8%.
In 2027, unemployment is expected to be 4.8% – up from earlier forecasts of 4.5%.
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Charities turning away high numbers of volunteer applications
Charities are turning away people wanting to volunteer amidst a flood of interest they say is linked to the high rate of unemployment.
It comes as some businesses receive thousands of applications for paid roles and people look for experience anywhere they can.
The advocacy organisation Volunteering NZ has been tracking the trend. Spokesperson Margaret McLachlan said there has been a considerable rise in applications for volunteer roles across a range of charities.
Many application forms asks people to divulge if they are job hunters.
"Over the last year or so, they are seeing more people coming in who are saying they are in that category. They are looking for work but doing volunteering while that process is taking place."
"As unemployment increases and the cost of living, times are tougher for everybody."
At the same time, she said community organisations supporting social services were busier and needed more helpers.
McLachlan said depending on the organisation, they might want to do a police check, a reference check and an interview.
"In some cases it can be a process to go through and not always, and that can take some time.
"It's actually the same barriers that a person might find in finding a job, can also apply to volunteering. It's not always a easy option."
SPCA had 120 op shops and animal rescue centres across the country in which volunteers worked.
General manager of retail Cathy Crichton said they received about 1300 extra applications for volunteer roles, a 32 percent increase, from June to November 2025, compared to 2024.
"There's definitely a nudge forward which is very exciting and we're very grateful."
But it meant they were not accepting any more volunteers in some areas.
"Because the applications are up it's a unique scenario. But at this point in time, in smaller locations, we've actually got a hold in 19 locations in New Zealand where we are at capacity - and that's very rare and it's a very new trend."
Crichton said anyone seeking volunteer work should think creatively about what skills they can offer - it could be in administration or marketing.
"We'd love to welcome as many people as we could because the more hands on deck the more we can do and the more we can contribute to the community."
She said people were self-motivated to apply for volunteer work.
The unemployment rate rose to 5.3 percent in the September quarter, meaning 160,000 people were jobless. The next quarterly figures are out in February.
"There's a willingness to give back and contribute to the community. Unemployment being high really does encourage people to engage with the workforce and get experience," Crichton said.
"It really is about staying connected with the community and meeting others."
She said they had also seen an increase in young people seeking volunteer work experience.
"It's a great opportunity to get work experience and a reference and there's an appeal there as an employer...I really do think it adds value to a CV."
Stats NZ data showed over half of New Zealanders, 53 percent, volunteered during March 2025 and of those, 27.6 percent volunteered through an organisation and 40.8 percent volunteered directly for another person.
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