Thousands of youths across the country are set to lose access to unemployment benefits, after a welfare bill passed into law under urgency on Friday night.

From November 2026, the government will end Jobseeker payments to 18 and 19-year-olds whose parents earn more than $65,000.

In October last year, it was estimated that around 4300 young people would become ineligible for support as a result.

Social Development and Employment Minister Louise Upston said the legislation reflected the government's commitment to reduce benefit dependency and encourage people into work.

"This legislation reinforces the expectation that young people who are not in employment, education or training should be financially supported by their parents, not by taxpayers through the welfare system," she said.

"New Zealanders deserve a welfare system that is firm, fair and simple."

The bill also makes changes to how accommodation supplements are calculated.

Upston said the changes would "better target that support to those who need it most".

"Importantly, it does not apply to homeowners who are receiving New Zealand superannuation, veteran's pension, supported living payment, or the emergency benefit that is the equivalent to the supported living payment.

"The partner or spouse of a recipient of one of those benefits will also not be impacted by the change."