16 and 17 year olds and 16 to 18 year old teen parents who are receiving government financial assistance.
From 30 July 2012, a new Youth Payment and a new Young Parent Payment will be introduced with youth-focused obligations.
To qualify young people will need to be in education or training and they will have to meet certain obligations such as undertaking budgeting courses and, if a parent, parenting courses. Some of their basic costs like rent and power will be paid directly to suppliers with a small in-hand allowance paid direct to the young person and any remainder of their payment placed on a payment card for groceries.
To enable this policy to work the Minister is asking for the private sector to help:
Letter to providers about youth services
Changes to the way we work with young people
The Government has announced its intention to undertake major changes to the welfare system. One of the first areas of focus is how Work and Income will manage young people at risk of long term benefit dependency. Currently too many young people in New Zealand are not in school, training or work. In addition to this, we know more than half the young people who end up on a benefit before they’re 18 years old spend at least five of the next 10 years on welfare. These people require intensive support, attention and encouragement. We need to change the way we identify, support and manage these young people before they end up trapped in the cycle of welfare dependency – and we need your help to do it.
Well, I could point out what many libertarians have in the past, that government money corrupts the impetus and motivation of charitable endeavours. However, using tax to buy ' hand-up' assistance is still better than using it for 'hand-out' assistance.