Over the last twenty years the number of people depending on a benefit due to psychological or psychiatric reasons has increased by 140 percent. Meanwhile the working age population grew by just 26 percent.
In June 2006 the number dependent was 37,300. Fast forward to June 2026 and it's 89,385.
89,385 is a very big number. It does not include people with an intellectual disability, those we might traditionally regard in genuine lifelong need of community support.
Ironically, paying people to be inactive and isolated is probably the worst approach to improving their mental state.Part of the reason for the disproportionate growth in numbers is that people are becoming reliant younger and staying reliant longer.
2024 data showed that under 25-year-olds who go on Jobseeker with a Health Condition or Disability (JS-HCD) will spend a further 23.3 years reliant - in 2023 the expectancy was 20.6 years. The year-to-year 13.1 percent increase in future years is larger than for any other benefit.
NZ isn't alone with this problem.
UK Conservative leader Kemi Badenoch said last year:
"We should be aiming for everybody to support themselves as far as they are able, while providing support for those who cannot.
But to do this, we will have to win arguments. Arguments that too many in politics have forgotten how to make. Like a life of work being better than one dependent on the state.
Not just better for society, although we believe that too, but better for the soul. That it feels better to contribute and enjoy the freedom that comes with paying your own way.
Too many young people are growing up not knowing that. They think that a life on benefits is an alternative to working. They think isolating themselves at home is okay because starting a job feels daunting."
As a parent of two in the generation she speaks about, I have seen mental distress. Luckily mine are amongst those who have pushed themselves to work and be independent. At times. the jobs haven't been what they want but they've reckoned any work is better than no work, recognising that a lack of purpose, listlessness and loneliness lead to anxiety and depression.
In November, National will be restricting access to the Jobseeker benefit (including JS-HDA) for 18-19 year-olds. (ACT is also campaigning on tightening up the medical certification process.)
This causes outrage from the left.
The Greens constantly oppose efforts to stop young people getting into the dependency trap. Green spokesman Ricardo Menendez-March says the policy is cruel:
“The National Party has a long history of dehumanising people who struggle to get by on a day to day basis."
I am diametrically opposed, believing both the Green's Income Guarantee or TOP's Citizen's Income from age 18 would seriously damage young people's motivation. If both parties are in government together the likelihood of a universal income being implemented increases.
If someone under twenty cannot find a job, they should be training for one. The late teens is a crucial time. The last thing they need is to be derailed with 'free' money to stay in bed.

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