MORE than 50,000 people have joined the ranks of Australians relying on the Newstart income support payment over the past year, including 3000 in the past month, latest figures show.
Figures from the Department of Social Services show that people on Newstart and Youth Allowance grew by almost 60,000 people in the year to March. Almost 850,000 Australians are on the two payments, with those on Newstart rising 7.5 percentage points from 682,120 to 733,601.
The Australian Council of Social Services described the increase as “deeply alarming”, warning that people aged over 50 and younger Australians were finding it difficult to find work.
ACOSS seeks a $50 a week increase in the single rate of Newstart, the same rise given to pensioners in 2009, and indexation to minimum wages to keep pace with living standards. “We caution the government against considering shifting even more people on to Newstart, including people with disabilities on the DSP payment,” said ACOSS director of policy Jacqui Phillips.
The gap between DSP and Newstart is $166 a week, so any move to shift people from DSP to Newstart would drive people into deeper poverty, she said. About 80,000 Newstart recipients were sole parents who until a year ago got extra money under the now-scrapped Parenting Payment.
“They and their children have suffered a more than $60 a week drop in income as a result of a decision by the previous government,” she said. “People who are unemployed need more help to find a job and a better income support payment than the $36 a day Newstart Allowance.”