Saturday May 9, 2015
On the eve of the Federal Budget, ACOSS and the state and territory Councils of Social Service have urged the Commonwealth Government to urgently address the gaping holes in Australia’s social safety net, releasing new research showing that people on the low unemployment payment and Youth Allowance continue to fall behind.
The report, ‘Payment adequacy: a view from those relying on social security payments’, is based on a survey of more than 600 people receiving income support payments. It highlights the plight of people living on the lowest income support payments, Newstart and Youth Allowance, with 83% saying they don’t have enough to live on, including one in five reporting they are unable to afford basic essentials like housing, food and electricity.
ACOSS CEO Dr Cassandra Goldie said, “We know that everybody who relies on income support to keep their head above water is doing it tough, but our findings confirm that people on working age payments, including Newstart/Youth Allowance, Parenting payments and Disability Support Pension, are struggling the most.
“We know the impossibility of trying to survive on $37 a day on Newstart or $30 a day on Youth Allowance. Nearly half of those on Newstart or the Youth Allowance report having unsustainable levels of personal debt, owing more than they can afford.
“Our survey also found high levels of financial stress and deprivation among people living on the Disability Support Pension and the Parenting Payment, who face higher living costs due to disability or the costs of raising children”, said Dr Goldie.
“Thirty two percent of people receiving the DSP reported going without meals in the past 12 months in an effort to save money and more than half were could not afford Christmas presents.
“Housing stress is a significant issue with one in five people on the DSP paying more than 50% of their income on housing, and 24% of single parents spending half their income on housing costs.
“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. 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.
“ACOSS has welcomed the important recognition by the Government that CPI indexation is inadequate for pensions. The time has come to apply consistent indexation to wages to other vital income support payments, including allowances and family payments.
“The Government must take the 2014-15 Budget cuts to young people and low income families off the table. But that is only a first step. 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.” Dr Goldie said.
Download full report
On the eve of the Federal Budget, ACOSS and the state and territory Councils of Social Service have urged the Commonwealth Government to urgently address the gaping holes in Australia’s social safety net, releasing new research showing that people on the low unemployment payment and Youth Allowance continue to fall behind.
The report, ‘Payment adequacy: a view from those relying on social security payments’, is based on a survey of more than 600 people receiving income support payments. It highlights the plight of people living on the lowest income support payments, Newstart and Youth Allowance, with 83% saying they don’t have enough to live on, including one in five reporting they are unable to afford basic essentials like housing, food and electricity.
ACOSS CEO Dr Cassandra Goldie said, “We know that everybody who relies on income support to keep their head above water is doing it tough, but our findings confirm that people on working age payments, including Newstart/Youth Allowance, Parenting payments and Disability Support Pension, are struggling the most.
“We know the impossibility of trying to survive on $37 a day on Newstart or $30 a day on Youth Allowance. Nearly half of those on Newstart or the Youth Allowance report having unsustainable levels of personal debt, owing more than they can afford.
“Our survey also found high levels of financial stress and deprivation among people living on the Disability Support Pension and the Parenting Payment, who face higher living costs due to disability or the costs of raising children”, said Dr Goldie.
“Thirty two percent of people receiving the DSP reported going without meals in the past 12 months in an effort to save money and more than half were could not afford Christmas presents.
“Housing stress is a significant issue with one in five people on the DSP paying more than 50% of their income on housing, and 24% of single parents spending half their income on housing costs.
“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. 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.
“ACOSS has welcomed the important recognition by the Government that CPI indexation is inadequate for pensions. The time has come to apply consistent indexation to wages to other vital income support payments, including allowances and family payments.
“The Government must take the 2014-15 Budget cuts to young people and low income families off the table. But that is only a first step. 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.” Dr Goldie said.
Download full report
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