Welfare rights media release.... 18 June 2013 Finally, a Senate Committee supports an increase to the Newstart Allowance The National Welfare Rights Network (NWRN) has today called on the Federal Government to heed the recommendations of the most recent Senate report and increase the Newstart Allowance as a matter of utmost priority. Alternatively, we call on all political parties to give priority to a significant increase in the Newstart Allowance in their election policies. The Government-dominated committee found that three proposed minor reforms for people on the Newstart Allowance “do not go far enough”, and recommended that “the base rate of Newstart Allowance should be increased and properly indexed.” “This is a very significant finding, as it is the first time that a Government-dominated committee has supported the community-led campaign to increase the Newstart Allowance. A previous Senate Committee reported on 29 November 2012 that Newstart fails to provide an acceptable standard of living “for anything but the shortest period”, said Maree O’Halloran from the NWRN. “The Committee is reporting what all the evidence shows – which is that the rate of Newstart is a significant problem and is a barrier to helping people into paid work. “Newstart was last increased in 1994, by $2.95 per week. The gap between Newstart and the pension is now $150 per week, and by 2030, unemployed people will receive just half of what is paid to age, disability and carer pensioners. This is unfair and unacceptable in a prosperous nation like Australia which has traditionally prided itself on its ethos of a ‘fair go’. “The Newstart Allowance has also fallen when compared to the National Minimum Wage which now stands at $622.20 per week. At just $248.50 per week, the Newstart Allowance is now 39.93 per cent of the minimum wage. In May 2012 it was 41.2% of the minimum wage. “Welfare Rights supports the three key measures included in the Bill being considered by the Senate Committee: the increase in the income free area to $100 per fortnight, the extension of the Pensioner Education Supplement to single parents on the Newstart Allowance, and access to the Pensioner Concession Card for an additional twelve weeks for single parents taken off parenting Payment (Single) but not eligible for the Newstart Allowance. Welfare Rights also argued that these benefits be extended to all people on Newstart Allowance including people with disabilities and older people. “We are particularly pleased that the Senate Committee agreed with Welfare Rights that it was fairer to implement the beneficial measures earlier than the Government had proposed. The increase in earnings thresholds is not due to start until March 2014. “The delay in granting access to the Pensioner Concession Card until January 2014 means that about 1000 single parents will miss out on much needed assistance. “We call on the Government to introduce these beneficial changes as soon as possible. “Nationally, one in 8 Australians and 1 in 6 children live below the poverty line. The latest Household, Income and Labour Dynamics in Australia (HILDA) Survey, an annual report conducted by Melbourne University, shows that single parent child poverty has soared by 15% since 2001. While 24.1% of children in one-parent households are now in poverty, just 7.6% of children with two parents are experiencing poverty. “Unemployed people and single parent families have a right to feel let down and disappointed by this Parliament. NWRN notes the substantial minority report by Senator Rachel Siewert from The Greens, and we acknowledge the need for comprehensive reform as essential to move people out of poverty and into work. “As we move to the September election all parties need to focus on ensuring a better employment services system to support people into employment, in addition to an adequate social security safety net to assist those needing help along the way.” For comment: Maree O’Halloran, President, National Welfare Rights Network: 0417 672 104 or Gerard Thomas, Policy and Media Officer: 0425 296 882.
Posted on: Wed, 21 Jan 2015 04:32:36 +0000
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