Social services oppose youth welfare tightening

The Social Security (Jobseeker Support and Accommodation Supplement) Amendment Bill currently before Parliament’s Social Services and Community Committee would see most 18- and 19-year-olds applying for JobSeeker support first having to prove they are unable to rely on their parents financially, Radio New Zealand reported.

The Bill would also require some homeowners to spend a larger share of their income on housing before qualifying for the accommodation supplement. The minimum weekly contribution that some homeowners must make towards their housing costs would increase from 30 per cent to 40 per cent of their income. This provision would not apply to people receiving New Zealand Superannuation, Veteran’s Pension, Supported Living Payment and Emergency Benefit.

In a submission on the Bill, the NZCCSS, which includes Catholic Social Services as a foundation member, challenged the proposed eligibility restrictions for Jobseeker Support and the Accommodation Supplement. The proposed changes are likely to create increased financial hardship among groups of people who are already experiencing financial pressure, the submission stated. They would also likely create further barriers to employment or training for young people.

The submission expressed concern for “whānau who become financially responsible for young people unable to access work, and young people who are unable to rely on their parent(s) for financial support”.

“We are concerned about the impact this may have on already stretched household budgets, particularly on top of increases in the cost of living in recent years and the current impacts of the fuel crisis.”

The NZCCSS also predicted that the “changes may result in increased demand for our members’ services, such as food parcels”.

“We are also concerned about the potential for these changes to negatively affect family relationships due to increased financial stress,” the organisation explained.

The submission stated that youth have been significantly impacted by unemployment in the current economic context, with the “Not in Employment, Education or Training” (NEET) rate rising to 13.6 per cent among 15-24 year olds in the year to March 2026.

An alternative strategy to reducing youth NEET rates, alongside strengthening of employment supports available to young people, was recommended.

Among the other impacts of the Bill addressed in the submission were Working for Families (WFF) provisions, concern for impacts on whānau and rangatahi Māori, and concern for impacts on disabled young people and their whānau.

FULL STORY

Social Security (Jobseeker Support and Accommodation Supplement) Amendment Bill (NZCCSS)

The House: Welfare debate shifts from policy to process (Radio New Zealand)