Labour will not campaign to reverse parental test for benefits

Labour leader Chris Hipkins has confirmed the party will not commit to reversing a new policy that restricts Jobseeker benefit access for many 18 and 19-year-olds. The policy, which begins in early November, bars young people from receiving the benefit if their parents earn above a certain threshold.

Under the new rules, 18 and 19-year-olds are ineligible for Jobseeker if their parents earn more than $67,000, though another report states the threshold is $67,225. The Government estimated that 4,300 teenagers will lose eligibility when the change takes effect. Social development minister Louise Upston stated the legislation reinforces the expectation that young people not in employment, education, or training should be supported by parents rather than taxpayers.

Hipkins said the party's focus is on job creation for this age group and ensuring hardship assistance remains available. He noted that Labour has not yet announced a full social development policy, which would address whether the party might reverse changes to Temporary Additional Support (TAS) or the use of automated decision-making (ADM).

The Green Party has committed to reversing the change, with spokesperson Ricardo Menendez March describing the National Party's changes as "deplorable and indefensible". Meanwhile, Labour members previously criticised the policy, with deputy leader Carmel Sepuloni saying the Government was "punching down trying to make budget savings".

Where reports differ

• Reports differ on the exact parental income threshold, citing either $67,000 or $67,225.

Compiled from reports by The Post and Stuff.