Welfare shake-up offers $1000 bonus to keep young Kiwis working

Thousands of young New Zealanders could benefit from a new $1000 work-retention bonus and tighter welfare rules aimed at moving more young people off benefits, Social Development and Employment Minister Louise Upston says.

Under the new incentive, announced on October 5, 18-to 24-year-olds on Jobseeker Support who have taken part in the Ministry of Social Development’s Community Job Coaching service, will be eligible for a $1000 payment if they find a job, stay employed, and remain off the benefit for 12 months.

The bonus will be available from October 2026 and is part of the Government’s Welfare that Works policy.

At the same time, from November 2026, 18 and 19-year-olds without children will need to pass a new Parental Assistance Test before qualifying for Jobseeker Support. The test will assess whether their parents earn below the income limit, currently $65,529, or whether there are genuine reasons they cannot rely on parental support.

Upston says the changes are about targeting welfare to those who truly need it and encouraging young people to pursue work, training, or education rather than long-term dependency.

“Going on welfare when you’re young is a trap. People under 25 on Jobseeker Support are projected to spend an average of 18 years on a benefit over their lifetime,” she says.

Currently, more than 15,000 18- and 19-year-olds are on Jobseeker Support.

Upston says the Government’s broader welfare reforms, including job coaching, employment seminars, and a new “traffic light” system to track obligations, are designed to ensure “young New Zealanders see education, work and training as their best options for the future.”