Dole increase 'can't be ducked'
by: Pia Akerman
From: The Australian
January 14, 2013
SOCIAL welfare groups and Labor backbenchers have warned the Gillard government that a proposed $50-a-week boost to the Newstart allowance is "non-negotiable" and must not be ducked by adopting other measures to assist the unemployed.
Amid growing pressure to increase the payments to the jobless, currently just $35 a day, the federal government has begun modelling a number of welfare changes, as revealed in The Weekend Australian. But advocates yesterday said a substantial rise in the Newstart allowance was needed as the foundation for any other relief proposals.
National Welfare Rights Network president Maree O'Halloran said the increase should be introduced with bipartisan support, along with other steps such as increasing the amount of paid work that can be done without threatening Newstart payments.
"The $50 per week (increase) is non-negotiable in that it was put forward by the Ken Henry review," she said. "It's a well-based policy position that's been thoroughly investigated and endorsed by community groups.
"To do anything other than the substantial increase . . . would just not be acceptable."
The Australian Council of Social Service has also backed the $50 weekly increase while noting it would still leave people below the poverty line, making other policy changes "crucial".
"Along with extra support measures to prepare people for paid work, and allowing them to keep more of the money they earn, we also need to align the different indexation arrangements, which has led to allowances like Newstart falling $140 below pensions," said acting ACOSS chief executive Tessa Boyd-Caine.
The government is modelling at least three possible welfare changes, including allowing Newstart recipients to keep a greater proportion of their payment while in work, more assistance for single parents, and a moderate dole increase of less than $50 a week.
A number of Labor MPs have publicly and privately backed the increase, which is tipped to command attention in caucus when parliament resumes next month.
Families Minister Jenny Macklin has apologised for saying she could live on the allowance, calling her remark "insensitive", while other ministers have stuck to the line that it would be "very difficult" to subsist on $35 a day.
Labor senator Doug Cameron said yesterday that a package of welfare reforms was needed. "That package has got to include an increase in the Newstart allowance because it has diminished against every other government allowance and payment over the years," he said. "I don't think it's consistent with Labor values to either stigmatise or impoverish some of the most vulnerable people in the community."
In an open letter to the nation yesterday, Julia Gillard emphasised fairness as a key attribute behind her policy goals.
Mission Australia chief executive Toby Hall said it was increasingly difficult to watch the government resist a Newstart increase since it abandoned its promise of a budget surplus last month.