The Federal Government has flagged a revolution in its approach to welfare, switching its philosophy to investing in the future of welfare recipients, improving their lives and preventing long-term welfare dependency.
Hallelujah!
The Social Security Minister Christian Porter last week said the new investment approach would include providing $96 million to fund investment-style programs from non-government organisations to see if they worked.
So how come most of the debate since his announcement has been on cutting costs and punishing people who step out of line? Let’s get the debate back on track and talk about investment in avoiding welfare traps and intergenerational disadvantage.
Here are my top five suggestions to invest and save, based on 35 years of experience in welfare in the government and non-government sectors:
1. Parenting as an investment
Parenting programs are too often regarded as fringe players and are not seen as core strategies. But I have seen them work and save money.
These programs turn around dysfunction and chaos within families and have high returns on investment for government. We can coach and train parents in communicating and caring for their children from baby to teen. By resolving conflict and bringing better routine to struggling families means parents will become more aspirational, and will pursue employment and training. More investment in these programs minimises the spiralling cost of children hitting the child protection system or turning to drugs and crime.
2. Targeting social disadvantage hot spots
In 2007, Professor Tony Vinson from the University of NSW issued a ground-breaking report, Dropping off the Edge analysing by postcode the levels of disadvantage over 22 indicators including long-term unemployment, social disengagement by young adults and school retention rates.
He found that 78 postcodes nationally were in desperate disadvantage. When he revisited the study 16 years later, he found that little had changed. We know that 25 per cent of prisoners come from 2 per cent of postcodes. We know that most child protection referrals come from these postcodes and we know that parental unemployment is highest in these communities.
The federal Government has enormous power to direct resources for infrastructure and facilities and other investment to geographic areas. We need a more discriminating approach to our investment in infrastructure to Vinson’s most struggling postcodes. Let’s call it pork-barrelling for Australia’s future rather than political advantage. It has been proven through the evidence of models such as the internationally acclaimed “Communities that Care” that local areas can respond to social issues when key players like government and business take an interest.
3. Establish a housing building fund
When will we learn that access to affordable housing is just about a pre-requisite for self-esteem, self-improvement and stable families?
Housing would be the greatest investment of all in eliminating the welfare trap for millions of Australians. It is estimated that to resolve Australia’s housing crisis we need more than 350,000 properties for lower income people. Even the Reserve Bank of Australia’s new chief is worried for his own children because of housing unaffordability.
For too long Governments have ignored the housing crisis. Public housing budgets have declined whilst rentals have skyrocketed. Governments cannot claim that welfare dependents are not organised to seek employment when we can’t house them to get organised. In the annual Anglicare Rental Affordability snap shot showed zero access to affordable rental housing for anyone on Commonwealth benefits or minimum wage.
4. Get young people working
We need a better vision for young people and their employment chances. Across Australia youth unemployment rates are between 12 and 25 per cent.
The Brotherhood of St Laurence has identified 20 national youth unemployment hotspots that require urgent investment. The BSL argues such an investment requires training, engagement with young people, vocational guidance and coaching to build employability and address barriers. They argue that employment chaperones or mentors should be the key to a new approach. This should be seen as an investment to provide returns in lower unemployment, a better work ethic and more harmonious families.
5. Keeping children at school
Making sure education is any child’s best friend regardless of ability should be a top priority.
We must invest in pathways for students who do not see themselves academically competitive. The trend towards merging schools to create huge campuses of 1200 students or more has isolated some students who feel they don’t belong, causing them to drop out. There are now 10,000 school-aged teenagers not attending school in Victoria alone. Some of them are homeless, some are poor or lack support from their parents or are too ashamed to go to school. We need to support existing community programs that help these children stay at school, which is often the last chance for them to build a future. The Victorian Government has announced a back-to-the-future reform by building 10 new technical schools. These used to be the alternative paths for many young people who did not warm to the written exam and literary classics.
In all five areas, there is ample evidence that such programs save money in the medium and long-term.
They fit the new paradigm outlined by Christian Porter. Let’s get on with it.
*Paul McDonald is CEO of Anglicare Victoria and was head of Victoria’s Child Protection system for five years.
Further enquiries contact:
Julie-Anne Davies
Media and Communications Manager
Julie-Anne.Davies@anglicarevic.org.au
Tel: 0413 583 919.
