Improvements made to welfare system

A Bill that better targets financial assistance to those most in need and improves the fiscal sustainability of the welfare system has passed its third reading in Parliament. The Social Security (Jobseeker Support and Accommodation Supplement) Amendment Bill implements two initiatives announced in Budget 2025: Tightening 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 Adjusting 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. Social Development and Employment Minister Louise Upston says the legislation reflects the Government’s commitment to reduce benefit dependency and encourage people into work. “New Zealanders deserve a welfare system that is firm, fair and simple. “This legislation reinforces the expectation that young people who are not in employment, education or training should be financially supported by their parents, not by taxpayers through the welfare system. “Changes to th