The Government is making changes to ensure the fiscal sustainability of the welfare system by better targeting financial assistance to those most in need, Social Development and Employment Minister Louise Upston says.
The Social Security (Jobseeker Support and Accommodation Supplement) Amendment Bill was introduced to Parliament today. It implements two initiatives announced by the Government in Budget 2025.
The Bill:
- Tightens eligibility criteria for Jobseeker Support and the equivalent Emergency Benefit for 18- and 19-year-olds, requiring those people to meet the Parental Assistance Test before receiving the benefit, and
- Adjusts the calculation for the Accommodation Supplement for homeowners based on the homeowner contributing 40 percent, not 30 percent of their income to housing costs, before being eligible for a subsidy.
Louise Upston says the Bill reflects the Government’s commitment to reduce benefit dependency and support long-term fiscal discipline in the welfare system.
“New Zealanders deserve a welfare system that is firm, fair and simple.
“Our Government expects 18- and 19-year-olds to be in further education, training or work – not on welfare.
“With modelling indicating that 18- and 19-year-olds on Jobseeker support are estimated to spend an average 21 more years supported by a main benefit, action is required to ensure welfare is sustainable in the long term and to build a future for young New Zealanders.
“The changes also target welfare assistance to those most in need. 18- and 19-year-olds who don’t study or work, and can’t support themselves financially, should be supported by their parents, not the taxpayer.”
The change will not apply to 18- and 19-year-olds with dependent children.
Louise Upston says the Accommodation Supplement calculation has not changed for 33 years, and those with unsubsidised housing costs now generally pay a higher proportion of their income towards housing.
“This rebalances that. This will target the Accommodation Supplement to those with the greatest need, while continuing to support the most vulnerable groups.”
The change does not apply to renters and boarders, nor homeowners who are likely to require longer-term social assistance, including those on New Zealand Superannuation, Veteran’s Pension, Supported Living Payment, or Emergency Benefit equivalent of Supported Living Payment.