New employment hubs plan for cashless welfare card, but recipients say the system's flawed
ABC News
Oct 5 2021
Cashless welfare card users say there have been issues paying for everyday items.
The federal government is inviting organisations in cashless welfare card zones to set up employment hubs, but there are ongoing concerns about the system's design.
Key points:
The Minister for Families and Social Services says employment hubs will support the welfare recipients
Experts have welcomed the idea, but say there are ongoing flaws in the system
Local medicine students have been placed on the card, and say it's a challenge to get off it
A $30 million pool of grant funding has been announced to set up the hubs, which would offer assistance with job seeking, training and financial management for those on the card.
Last week the City of Kalgoorlie-Boulder in the West Australian Goldfields said it would be the first to set up a hub.
The cashless welfare card is in operation in Ceduna, East Kimberley, Kalgoorlie, Bundaberg and Hervey Bay.
Trials first began more than five years ago.
Federal Social Services Minister Anne Ruston said it would encourage those on the card to find work.
"The cashless debit card has provided practical support for people to stabilise their lives, but now that they are we want to make sure that we're supporting them into work," she said.
She said engagement with the hubs would be optional.
"It's not a compulsory mechanism, but we would be very keen to encourage people who are on unemployment benefits to avail themselves of this opportunity to make themselves job-ready," Ms Ruston said.
Anne Ruston says the employment hubs will connect unemployed people with businesses struggling to find workers.
Minderoo gives tick of approval
Mining billionaire Andrew Forrest put forward the concept of the card to the federal government in 2014 as one of the recommendations of his Creating Parity report.
Louise Olney leads the Building Community initiative at Dr Forrest's philanthropic organisation, the Minderoo Foundation.
"We're really pleased to see the grants open for communities to make their applications and think this is a great step in supporting these communities and their participation in the cashless debit card," Ms Olney said.
She said the organisation was hearing positive reports about the card's impact.
"We hear from women and the role that they play in supporting their families and the impacts for children — in particular, those kids who are able to go to school having had breakfast and families that have enough for the essentials of life," Ms Olney said.
She said the grants could provide crucial wrap around services for those receiving their benefits through the card.
"These grants are aimed at greater economic participation and I think that it's important to appreciate that it is not the silver bullet, but it's a really important part in supporting families and children," Ms Olney said.
Two young woman stand in front of a building on a campus.
Sara El-Gamil (left) and Devma Desilva are living in Kalgoorlie and studying with the Rural Clinical School of WA.
Medical students placed on the card
But not everyone agrees that the program is going smoothly.
All welfare recipients in locations where the card is operational are placed onto the system.
CDC review inconclusive
Ceduna local holding new cashless welfare card
A review of the government's Cashless Debit Card program finds evidence of a decrease in alcohol use and gambling in trial areas, but participants of the program report feeling "embarrassment and shame".
That includes medical students like Sara El-Gamil on year-long placements in rural or regional communities.
"I used to work maybe 10 to 20 hours a week to support myself prior to moving to Kalgoorlie," she said.
"But now while we're here, we're on prac full-time hours and we don't get paid for any of it.
"The only way I've been able to support myself is through the Centerlink allowance."
She said being put on the card felt disempowering and she imagined that feeling would be even worse for more disadvantaged people.
"To be told that, you're studying and you're working full-time hours, and then there's this government support, but then at the same time, you're not a valued member of society," Ms El-Gamil said.
She said there had been occasions when the system had blocked payments for everyday spending.
"You get anxiety sometimes, using the card in random places, because you're like, 'Is it going to work? Is it going to decline? Are they going to accept the card?'" Ms El-Gamil said.
Eighty per cent of the 25-year-old's Youth Allowance income goes directly onto the card.
The card is in operation in the Goldfields, East Kimberley, Ceduna and Bundaberg areas and was proposed for Tennant Creek. (Wikipedia)
She said that meant she had to take on credit card debt to ensure payments go through.
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