Figures belie Newstart reality for single parents, say Greens
by: PATRICIA KARVELAS
From: The Australian
April 10, 2013
Greens senator Rachel Siewert says the government is 'spinning' the number of single parents reporting earnings income.
THE Greens have accused the Gillard Government of trying to "spin" the number of single parents reporting earnings income in order to justify "their unfair payment cuts".
Greens Senator Rachel Siewert said the Government should not be patting themselves on the back so quickly.
"These figures cannot simply be interpreted as straightforward evidence as to this policy's effectiveness," she said today.
It comes after The Australian reported that the Gillard goverment's tough-love budget decision to force thousands of single mothers on to the dole is achieving one of its key objectives, with almost 4000 parents who were relying exclusively on welfare now drawing their own income.
While Labor's decision to shift single parents off the higher Parenting Payment was mainly motivated by the desire to save $700 million for the budget, the government has maintained the move, which is opposed by the majority of caucus, was about increasing work participation and ending welfare dependence.
The Australian revealed that 3861, or 11.7 per cent, of the 32,896 parents who had no fortnightly earnings as of January 1 when they were shifted from Parenting Payment to Newstart Allowance now have income.
Employment Minister Bill Shorten, who has been travelling with Julia Gillard in China, said yesterday he was pleased the policy was having its desired effect.
"The government has always said our priority is getting people into work," Mr Shorten said. "I'm pleased that over 3800 single parents have found jobs."
Labor MPs have become increasingly angry at the decision to move about 84,000 parents to Newstart when their youngest child turns eight. About 72,000 single parents now receive between $60 and $100 a week less than before the change.
But the Greens say that in reality the majority of single parents were already working before being moved to Newstart and they are now worse off as a result of the payment's lower income threshold of $62 per fortnight. "Some have even had to drop their work hours because of this".
"There is a lot that these numbers don't tell us. In particular, we don' know if these parents that are now reporting earnings are financially actually better off.
"We don't know whether they have they managed to replace the income lost by moving to Newstart, or if they have adequate childcare arrangements.
"It is entirely possible that these parents, as with those who were previously working and have dropped out of the income support system altogether, are not better off when their overall financial position is taken into consideration.
"It is also likely that these jobs are in insecure and temporary work, which can end at very short notice. Such roles do not offer important benefits such as personal leave or carers leave, and they are not viable replacements for a stable job," the Greens Senator said.
"My office has already been contacted by one mother who has taken up an extra 15 hours a week since the payment cuts took effect. With Newstart's taper rates and additional childcare fees taken into consideration, she's estimated that she is working for an extra $3 per hour. On top of this, her extra shifts are limiting the time she can spend with her family.
"This policy has never been about helping people into work, rather, it's been a way for the Government to top up the budget without being forced to stand up to the mining industry and fix the MRRT.
"Punishing people with low income support and forcing them into insecure work is not a sustainable way to ensure they become financially independent and are able to raise their children," Senator Siewert concluded.
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