The Green Party says proposed changes to Jobseeker Support eligibility for young people will disproportionately affect disabled, injured and unwell New Zealanders, after new figures revealed that almost seven in ten young recipients receiving health-related Jobseeker Support are living with a psychological or psychiatric condition.
The criticism follows the release of new information by Social Development and Employment Minister Louise Upston, showing that 69 percent of 18 and 19-year-olds receiving Jobseeker Support because of a health condition, injury or disability have a psychiatric or psychological condition.
According to the Government, around 2,700 young people receiving Jobseeker Support for health conditions, injuries or disabilities fall within the scope of the proposed eligibility changes.
Green Party Social Development spokesperson Ricardo Menéndez March says the policy risks placing additional pressure on some of the country’s most vulnerable young people.
The Green Party argues that reducing access to financial support will not improve employment outcomes for young people experiencing illness, disability or mental health challenges.
Instead, the party says removing income support could increase financial hardship at a time when many are already managing significant health issues.
The Greens are calling on the Government to exempt disabled, injured and sick young people from the proposed changes if they proceed with tightening eligibility requirements.
The newly released figures highlight the extent to which mental health conditions feature among young people receiving health-related Jobseeker Support.
Mental illness remains one of the leading reasons young New Zealanders access health-based income support, reflecting growing concern over youth mental health and access to treatment.
Advocates say financial stability is often an important part of recovery, allowing people to maintain housing, access prescriptions, attend medical appointments and meet everyday living costs while focusing on their health.
The Green Party argues that reducing financial assistance risks increasing stress and insecurity, factors that can negatively affect mental wellbeing.
The proposed changes form part of the Coalition Government’s broader welfare reforms aimed at increasing workforce participation and reducing long-term benefit dependency.
Ministers have argued that strengthening eligibility settings and encouraging greater engagement with employment services will help more young people move into work or training.
The Government has also maintained that those who are genuinely unable to work because of illness or disability will continue to receive appropriate support through the welfare system.
However, critics say there are concerns about whether tighter eligibility rules could unintentionally affect people with complex or fluctuating health conditions, particularly mental illness.
The debate also has important implications for Māori.
Māori continue to be disproportionately represented among recipients of Jobseeker Support and experience higher rates of mental distress, disability and socioeconomic disadvantage than the general population.
Health and social service providers have consistently argued that improving employment outcomes requires addressing the wider drivers of poverty, housing insecurity, access to healthcare and education alongside labour market participation.
Many also advocate for whānau-centred approaches that recognise employment, income security and health as interconnected rather than separate issues.
The Green Party says supporting young people into work should remain an important objective, but argues it must be balanced with protecting those whose health prevents them from participating fully in employment.
The party says people living with serious illness, disability or mental health conditions require stability and support rather than additional financial uncertainty.
As Parliament continues debating the Government’s welfare reforms, the proposed changes are expected to remain a key point of contention between the Government and opposition parties over how best to support young New Zealanders facing barriers to employment.
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