Official analysis of the New Zealand Government’s welfare changes for 18- and 19-year-olds indicates that the costs will likely outweigh benefits, with no improvements in youth employment or reduction in long-term benefit dependency. The income test for beneficiaries’ parents may disproportionately affect young Māori, Pasifika, the disabled, and abuse survivors, potentially forcing them into harmful situations. Starting November 2026, those aged 18 and 19 will be ineligible for certain benefits if their parents earn above $65,529. An estimated 4,300 young people could lose eligibility, amid high youth unemployment rates.
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