Extract from The Guardian
Australian Council of Social Service urges Abbott government to change the way it sets increases to social security payments
The government is being urged to change the way it indexes social
security payments after a survey found almost 80% of those forced to
live on them are struggling.
The Australian Council of Social Service (Acoss) used the weekend before the federal budget to release the survey which found 78% of those on income support are struggling to live on it and many are in housing crisis.
One in five people on Newstart or Youth Allowance spend more than 50% of their income on housing costs while 52% spend more than a quarter and 10% spend more than 75%. Of the people on parenting income, 24% spend more than 50% of their income on housing.
One in five respondents receiving the Newstart or Youth Allowance reported not having enough money for basic essentials such as housing, food and electricity.
The CEO of the Australian Council of Social Service (Acoss), Cassandra Goldie, used the findings to call on the government to change the indexation of payments to peg to the rise in average weekly male earnings as opposed to inflation.
“Governments have a duty to provide a safety net for those who need it. The reality is that we’ve allowed holes to develop in this safety net, with vulnerable groups falling through the cracks,” she said.
“Our budget challenge requires that we target spending carefully and take steps to strengthen the revenue base so that we can increase support for those being left behind.”
Goldie said it was unsurprising that while those on the pension were forced to live frugally, those on working age payments were struggling to a far greater extent.
She called on the social services minister, Scott Morrison, to take all the cuts to the payments of people under 30 in last year’s budget off the table. The proposals included raising the age at which people are allowed Newstart and taking people under 30 off Newstart for six months at a time.
“We will also be looking to this budget to deliver a better quality of life for people on working age payments, including greater financial assistance and support for those who are unemployed,” Goldie said.
The budget, which the prime minister promised would be “dull”, will be handed down on Tuesday. Morrison has already announced changes to the the part-pension asset test and taper rate which are broadly supported by Acoss.
The Australian Council of Social Service (Acoss) used the weekend before the federal budget to release the survey which found 78% of those on income support are struggling to live on it and many are in housing crisis.
One in five people on Newstart or Youth Allowance spend more than 50% of their income on housing costs while 52% spend more than a quarter and 10% spend more than 75%. Of the people on parenting income, 24% spend more than 50% of their income on housing.
One in five respondents receiving the Newstart or Youth Allowance reported not having enough money for basic essentials such as housing, food and electricity.
The CEO of the Australian Council of Social Service (Acoss), Cassandra Goldie, used the findings to call on the government to change the indexation of payments to peg to the rise in average weekly male earnings as opposed to inflation.
“Governments have a duty to provide a safety net for those who need it. The reality is that we’ve allowed holes to develop in this safety net, with vulnerable groups falling through the cracks,” she said.
“Our budget challenge requires that we target spending carefully and take steps to strengthen the revenue base so that we can increase support for those being left behind.”
Goldie said it was unsurprising that while those on the pension were forced to live frugally, those on working age payments were struggling to a far greater extent.
She called on the social services minister, Scott Morrison, to take all the cuts to the payments of people under 30 in last year’s budget off the table. The proposals included raising the age at which people are allowed Newstart and taking people under 30 off Newstart for six months at a time.
“We will also be looking to this budget to deliver a better quality of life for people on working age payments, including greater financial assistance and support for those who are unemployed,” Goldie said.
The budget, which the prime minister promised would be “dull”, will be handed down on Tuesday. Morrison has already announced changes to the the part-pension asset test and taper rate which are broadly supported by Acoss.
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