July 30 2019
Newstart allowance not enough to live on: agencies
illawarra Mercury
Illawarra agencies have joined national calls for the government to increase the Newstart Allowance, saying it's "impossible" for many to survive on the benefit.
The unemployment benefit hasn't risen beyond inflation since the mid-1990s.
The payment is $555.70 a fortnight for a single person without children, or $40 a day. The fortnightly allowance for a single person with a dependent child or children is $601.10.
Mandy Booker is manager of Wollongong Emergency Family Housing and the Wollongong Homeless Hub.
Ms Booker said a high proportion of their clients were on Newstart payments, with over-50s the main age group that are struggling and falling between the Newstart gap.
She said it was "near impossible" for clients to survive on Newstart, which she said doesn't even cover basic needs in terms of housing and food.
"People are being left with $30 to actually be able to support themselves for looking for work, (and) getting into accommodation," she said.
"If they've got even what is a normal rent in the Illawarra, then they're left with $30 a week to live off, which is not sustainable.
"People are having to make the choice to purchase their medication or buy food for the day.
"It needs to be looked at being raised if we want to make an impact in supporting people getting into long-term housing, or also being able to go into employment."
Earlier this year, Berkeley single mother Brianna Muir told the Mercuryshe is left with about $160 per week to cover all other life expenses, after her rent is paid.
While grateful for receiving Newstart, the Family Tax Benefit and Rent Assistance, the reality is, the bulk of that is spent on rent.
"They haven't put it up since Kurt Cobain died, and the price of everything has gone up," Ms Muir said.
"Politicians have no idea what it's like."
Former deputy prime minister Barnaby Joyce has said his own struggles to make ends meet on a $200,000-plus parliamentary salary inspired him to break ranks and call for a rise in welfare payments for job-seekers.
Ms Booker welcomed "anybody to come and work in a service like ours and walk in the shoes of our clients on a daily basis".
"There needs to be a bipartisan approach to actually looking at people's welfare payments, and the barriers that is creates from them getting into jobs and long-term housing, and the effects it has on their overall well-being," she said.
Narelle Clay, CEO of Southern Youth and Family Services said it was "impossible to live on that amount of money", especially as some Newstart recipients remained on the benefit for long periods.
Ms Clay said the casualisation of the workforce was a contributing factor to many of these issues.
"The people we see, the young people are already experiencing not being able to get a full-time, permanent, secure job anyway, and are surviving on just casual work or Newstart for quite long periods," she said.
"It's not remotely enough to be able to pay for the rent, and then also cover food, electricity and travel costs to go and look for work.
"It's really awful, and these people are experiencing extreme poverty. It's really quite unacceptable in this country."
The Australian Council of Social Service's 'Raise the Rate' campaign is calling on the federal government to lift the single rate of Newstart, Youth Allowance and other related payments by at least $75 per week, and index allowances to wages.
CALL FOR ASSISTANCE: Illawarra agencies have joined national calls for the government to increase the Newstart Allowance. The Newstart unemployment benefit hasn't risen beyond inflation since the mid-1990s.
The government has refused to consider an increase to Newstart beyond twice annual adjustments in line with inflation.
An ACOSS survey of 489 people on Newstart or Youth Allowance found more than four-out-of-five respondents skipped meals to save money, and about 44 per cent went without more than five meals a week.
Labor and the Greens have joined forces to initiate a Senate inquiry into the adequacy of Newstart and other welfare payments, which is due to report back next year.
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