News

The Government’s decision to means test the families of 18- and 19-year-olds before they qualify for Jobseeker support will unfairly punish young people with intellectual disability and families already struggling to make ends meet.

From November 2026, households earning over $65,000 will be expected to financially support their 18- or 19-year-old children before those young adults can access Jobseeker or an equivalent Emergency Benefit.

IHC Director of Advocacy Tania Thomas said the policy seemed to have been developed without any consideration for young people with disabilities and their families.

“Families with disabled children already face higher living costs, and this new rule assumes a one-size-fits-all level of parental support that simply doesn’t exist,” Tania said.

The change comes as research continues to show the deep and persistent financial hardship experienced by families that include a person with an intellectual disability. IHC’s Cost of Exclusion report found that families supporting a child with intellectual disability are much more likely to experience long-term poverty and hardship.

“Setting a hard cut-off at $65,000 treats all families as if they face the same costs, no matter where they live in NZ or what extra needs their teenager has ” Tania said. Policy needs to reflect those realities.”

Many young people with intellectual disability want to work but there is insufficent support to assist them into employment. IHC’s data from a forthcoming report shows the odds are already stacked against them. Compared to the non-intellectually disabled population, people with intellectual disability are:

• more than five times more likely to have no qualifications

• 73% less likely to be employed

• More than three times  more likely to not be in education, employment, or training

• More than 1.2 times more likely to have one parent not in full-time employment.

Tania said IHC’s data also shows that people with intellectual disability experience disproportionately high levels of deprivation, from struggling to pay unavoidable bills and afford food, to being unable to heat their homes or take a holiday. Nearly half could not pay an unavoidable bill within a month without borrowing, compared with 18 percent of the general population, she said.

“This policy change ignores the reality that many of these families are already doing everything they can,” Tania said. “What’s needed is investment in meaningful employment opportunities and targeted financial support, not new barriers.”

IHC is calling on the Government to review the proposed parental income test and develop an individualised eligibility process that recognises the unique care and financial needs of young people with disabilities and their families.

Editor’s Note:

• 60% of the intellectually disabled population have no qualification vs 11% in the general population

• 21% of people with intellectually disability are in paid employment compared to 77% of the general population

• 41% of young people with intellectually disability are not in education, employment, or training compared to 14% of young people in the general population

• 67% of children with an intellectual disability have only one parent working full-time vs 56% of children in the general population.

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