Hon Anne Tolley

Minister for Social Development

26 October 2016

$41m Youth Service extension takes effect

Social Development Minister Anne Tolley says more young people will have access to increased support to become independent following an extension of the Youth Service which comes into effect this week.

Budget 2016 invested $41 million to allow the Youth Service to be extended to 19 year-old parents, one of the groups most at risk of long-term welfare dependency.

A range of 16, 17 and 18 year-olds are already eligible for the Youth Service, which provides specialist case management and support to help young people into training and education, and prepares them for employment. It also offers support with budgeting and parenting skills.

“We want to support young people to reach their potential, and it makes good sense to enable more teenagers to access this intensive support, and to be able to have this support for longer,” says Mrs Tolley.

“For example, sole parents will no longer have to leave the service when they turn 19, and can now receive wraparound support, which includes working with a youth coach, until they turn 20.

“Research shows that 19 year-old sole parents have an average lifetime liability of more than $218,000 to taxpayers and on average go on to spend more than 18 years on benefits. So if we can work with them earlier, and for longer, they can gain important skills and have the opportunity to lead successful lives.

“This is also important for their children, as we know that kids who grow up in benefit-dependent homes are more likely to be notified to CYF, receive a benefit as a young person and are less likely to achieve NCEA level 2.

“The extension to the Youth Service is great for young parents and their children, and is also something that will benefit taxpayers.”

The $41 million investment in extending the Youth Service to 19 year-old parents is part of a $111.5 million package announced in Budget 2016 to support more New Zealanders, especially young people, to get off benefits and gain sustainable employment.

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