Benefit receipt

Definition

The proportion of young people aged 16 to 24 who are in receipt of a main benefit (Unemployment Benefit, Domestic Purposes Benefit, Sickness or Invalid’s Benefit, or Independent Youth Benefit).

Relevance

A large proportion of youth have contact with the benefit system at some time. Of this group, a significant minority spend a long time on benefit.

Young people in receipt of benefit are more likely than those in paid employment to have low incomes and reduced living standards.(1) Long-term benefit dependence is also costly for society.

Current level and trends

In the year to June 2007 6.8 percent of young people aged 16 to 24 were receiving a main benefit.

This represents 37,307 individuals: 10,228 males and 27,079 females. Of these 37,307, largest group (18,264, or 49 percent) were receiving a Domestic Purposes Benefit.

Benefit receipt in the 16 to 24 population has decreased dramatically over the last decade, from 15.6 percent in 1996 to 6.8 percent in 2007. The decrease has been particularly noticeable with respect to the Unemployment Benefit: in the year to June 1996, 8.2 percent of all young people aged 16 to 24 received an Unemployment Benefit, compared to 0.8 percent in the year to June 2007.

Proportion of the population aged 16 to 24 in receipt of benefit, by benefit type, 1996-2007

Source: Ministry of Social Development.

Notes

1. Higgins, J (2003), Labour Market Programmes for Young People: A Review (Ministry of Social Development), Youth Transitions Report Series 2003.