THE most disadvantaged people in our society will be the hardest hit by the federal budget – the young unemployed, disabled, and single parents, says Victorian Council of Social Services CEO Emma King.
“I think young people are being demonised,’’ she told The News. “The government is hitting our poorest and most vulnerable people – the long-term unemployed and the disabled.
’’They are being hit on so many fronts, such as with university sector fees to be deregulated giving them the green light to charge more, which will further disadvantage young people.’’
Ms King said moving more young people off the Newstart allowance – which she said was $36 a day – would see more people forced into poverty.
“The notion that the so-called ‘age of entitlement’ is over is so much nonsense – as is the notion that somehow the politicians’ pay freeze is going to achieve anything worthwhile.’’
Under the new rules, to start on 1 January, applicants for Newstart or the Youth Allowance will have to wait six months before receiving the dole, then work for it for another six months before either getting a job or getting cut off again for another six months.
Newstart will be denied to those aged under 24 (a loss of $48 a week on the current arrangement) and move more young people on the disability support pension to Newstart or the Youth Allowance (a cut of $166 a week).
On the plus side there are incentives of up to $10,000 over three years for employers that hire older workers – especially those who have been unemployed for six months or more.
This so-called “earning or learning” regime is expected to save the government $1.2 billion over four years. Ms King was scathing: “For young unemployed to be denied youth support for six months, and to push the disabled off the disability support pension, is outrageous. How are they going to live?’’
She said low-income parents will struggle to provide for young, out-of-work family members – many of them school leavers – who are unable to find work yet cannot access income support for six months of every year.
And she is concerned for the many young unemployed who don’t have any parental support.
“Instead of acknowledging that early intervention and prevention of joblessness gives a real return on investment, and instead of investing in these things, the Budget will entrench disadvantage.’’
Anne Catanese, manager of Chelsea Community Support Services, said she also had concerns about changes to Newstart, particularly regarding jobseekers in their 40s and 50s, and the plight of single parents affected by the changes to family benefits.
“These changes will certainly impact on our clients,’’ she said. “Many of them were just managing and the gap is widening.’’
Ms Catanese expects more of these families will require food parcels to ease their weekly shopping burden.
“Many people on low incomes are already faced with choosing to fill up the car over buying fresh fruit and vegies’’ she said. “We assist people with food parcels and petrol vouchers as well as weekly groceries from Pantry 5000 in Carrum.
“Healthcare costs, education expenses and fuel increases are big stress points in a family budget. With winter approaching the energy costs and healthcare expenses will add pressure to people’s budgets.
“We are seeing an increase in the number of people needing assistance who are not on Centrelink benefits – this will probably increase.”
She said her group – which “throws a lifeline to people in crisis’’ – had 6200 clients. ‘’They come to us for basically financial reasons and we provide a holistic approach to their problems.’’
She admits her group was “pretty well prepared’’ about possible Budget changes through the Australian Council of Social Services, and that the Government had been ‘’responsive to our concerns’’.
However, she said staff were “bracing’’ themselves for an expected rush on services as the delayed effects of the Budget’s changes became known. Compounding this is concern that stress generated by the changes will exacerbate health problems.
Jo Cavanagh, CEO of Family Life, said the Budget cuts meant she had ‘’strong concerns for sole parents’’.
‘’We service low income earners, many on benefits, and we are concerned that financial stress will exacerbate problems associated with relationship breakdowns and a whole range of factors that affect children. Taking money from their parents is really taking it from their kids.’’
Ms Cavanagh said Australia needed a ‘productive and caring’ economy – not just a ‘productive’ economy. “We see people in times of struggle and crisis – and they are already strained. It’s often not an option for kids to stay at home longer [if they cannot get a job or are ineligible for Newstart]. Their parents have pressures too.’’
She said Family Life, which counselled 7000 families last year – had no problems with the Government’s Civil Society Agenda in which ‘’everyone contributes and everyone helps’’ – and that better outcomes occurred when “everyone is involved’’.
“However, we see people that really need support, such as the long-term unemployed and those with mental illness.’’ Family Life staff members were able to give these clients that ‘magic’ ingredient that points them in the right direction for training or job success.
Ms Cavanagh – a ‘Lifer’ for 20 years – said simplified government funding arrangements would make grant applications easier. ‘’There is less red tape now and we have one contact point for grants, which will cut reporting and administration costs. We want to help people – not fill out forms.’’
She acknowledged the government was committed to prevention and early intervention, and Family Life could help – perhaps easing the pain of a separation before it all ends up in court. “If people have to wait for help their problems become entrenched,’’ she said.
Dr Kathy Landvogt, social policy and research unit manager at Good Shepherd Youth & Family Service – which has offices in Frankston, Hastings and Mornington – said the Budget “lacked coherence and fails its own test of securing the nation’s economic health for the future’’. She said the ‘sharing the pain’ adage touted by Treasurer Joe Hockey did not justify “savage cuts in payments to single mums, young people, indigenous Australians, those with disabilities and older people.
“Their lives just got even more difficult,’’ she said. “At the other end of the spectrum – and only a temporary measure – people earning $180,000 will contribute 2 per cent toward fixing what is now proving to be a false ‘budget emergency’. We are not sharing the pain; we are taking from the most vulnerable. This is not balanced.’’
Good Shepherd Youth & Family Service has been helping the poor and disadvantaged on the Peninsula since 1976. It assists around 18,000 each year.
Dr Landvogt said the “pain of cuts falls disproportionately on those least able to bear it’’, and describes the cuts to Newstart and the Youth Allowance as “brutal’’.
Maureen Griffin, of the Frankston Food Access Network, said the “assault’’ on the health care system in the federal Budget was alarming.
“I am saddened by this budget for many reasons but the outstanding one for me is the assault on the primary health care model. This is where people are able to affordably take more responsibility for their own health through government provided health promotion education, and by having a good relationship with a GP to help them through times of physical or mental health problems,” she said. “This is of great importance to those already suffering on-going health issues and, possibly, economic and housing problems as well. Emergency departments and ambulance staff are already well and truly overworked and under resourced.’’
She asked: “What’s the point of winning a Nobel Prize for health research when the health care of citizens in Australia is now being undermined and compromised in this budget? Primary health care and affordable medical support are keys to a healthy society.”
