Tough welfare measures in the Commonwealth Budget will punish the poor and further disadvantage vulnerable families and children, says Anglicare Victoria.
Chief executive officer Paul McDonald said instead of trying to cut welfare spending through a demerit system, the Budget should have invested in lifting vulnerable young people and their families out of poverty, unemployment and homelessness.
‘Welfare payments in Australia are so low, that people on government benefits are shut out of the private rental market and trapped in poverty,’ he said. ‘Anglicare’s recent Housing Affordability Statement showed that even renting in a share house was beyond the reach of Victorians on Newstart or Youth Allowances.’
Mr McDonald said the Budget’s welfare measures overshadowed positive moves on disability and housing, including a new national homelessness and housing agreement and $375 million over three years for homelessness services.
‘Instead of taking the opportunity to invest in people and increase welfare payments so people can pay modest rents and cover basic costs of living – the government has taken a punitive approach.’
Mr McDonald said plans to halve payments for missed appointments, and then cut off welfare for a month for further breaches could have very serious consequences.
‘The impact of having no income for a month will lead to extreme financial and mental stress and put people already under extreme hardship at further risk of becoming involved in criminal activity or inappropriate lending practices,’ he said.
‘Not providing disability payments for drug or alcohol related injuries, and random drug testing trials are other examples of government abandoning our society’s most vulnerable.’
Mr McDonald said funding for social impact investments targeting priority groups such as care leavers was another positive, although the Budget had missed the opportunity to throw Commonwealth support behind raising the age of young people leaving state care.
‘Each year, around 3000 Australians leave state before they turn 18 and are at risk of being homeless, unemployed, a new parent or imprisoned within 12 months. Raising the age to 21 across Australia would give them the support they need to make a better start to adult life.’
Media Enquiries: E: media@anglicarevic.org.au P: (03) 9412 6173
