The National Welfare Rights Network has today released a comprehensive analysis of the impacts of the controversial and much criticised decision by the previous Government to push over 65,000 single parents onto the lower Newstart Allowance. It should be noted that the Coalition voted in favour of the changes while in Opposition.
New data from the Senate highlights the effects on single parents affected by retrograde changes in 2006, 2011 and 2013.
“This new Senate estimates data provides the first snapshot of how single Newstart mothers are faring 12 months after being abandoned by the Federal Parliament,” said Maree O’Halloran, President of the National Welfare Rights Network today. “The Minister for Social Services, Kevin Andrews, must ensure that any changes in the May budget and the Commission of Audit do not further penalise single parents.
“Just 12 months ago, there were only 48,000 single parents on Newstart, the legacy of the Howard Government’s 2006 ‘welfare to work’ reforms.
“As at 29 November 2013 there were a total of 112,049 single parents on the Newstart Allowance.
“Successive governments have pushed more and more single parent families into financial hardship. Single parents on Newstart are now between $80 and $140 per week worse off as a result of these changes. A single parent in receipt of Newstart (with supplements) will receive a maximum weekly income of $275.65, leaving them $80.15 per week worse off than under former Parenting Payment Single conditions.
“Ninety-one per cent of single parents are women, with just 10,126 male single parents on Newstart. Indigenous single parents make up just 7.6%.
“Sixty percent are aged between 30 and 60 years of age. There were almost 16,000 mature age single parents, with one-in-eight are aged over 50, many of whom are struggling against age discrimination and prejudice to find work.
“A significant proportion of single parent families on the low-paying Newstart Allowance are struggling in the private rental market. There were 52,470 single parents receiving Rent Assistance, which was being paid to 47% of families. Since the 1 January 2013 $728 million budget cuts took effect, single parents report that difficulties paying rent is one of the most common experiences. Just over a quarter of single parents, or 26.3%, are paying off a mortgage or own their home.
“Almost 48,000 single parents reported earnings and were in paid work, with the data revealing that almost 43% of single parents were in the workforce and working wether full or part-time or casual to make ends meet. This figure is more than double the proportion all Newstart Allowance recipients who were working, which was just 20%.
“The very high proportion of single parents working shows clearly that pushing people onto unemployment benefits was never a work incentive despite the rhetoric of governments. The difference now is that the financial returns from their work efforts are much less as they start to lose income much faster under the harsher rules that apply to Newstart compared to Parenting Payment Single. We note that on 1 March 2014, the amount of income that can be retained from work will increase to $100 per fortnight for Newstart Allowance recipients.
“Many single parents have caring responsibilities, and over 8,450 receive the Carer Allowance, 7% of all single parents on Newstart. They are caring for a total of over 1,500 adults with a disability and 7,131 children with significant disabilities. Over 500 single parents are caring for two children with disabilities.
“Only 1,641 single parents on Newstart are currently receiving the Pensioner Education Supplement, a payment of up to $62 per fortnight to assist with the costs of education and study. As a result of hard won campaign by single parent and welfare groups, new rules from 1 January 2014 will mean that single parents on Newstart will be eligible for this important financial support. Welfare groups have welcomed this change, put are concerned that the loss of reductions in incomes has meant that parents are just not able to afford to maintain their studies.
“Almost two-third of single parents on Newstart live in the major cities of Australia. At November 2013, 64% were living in the main cities, totalling 71,525. Inner regional accounted for a further 22% (25,143, remote at 1.3% (1,493) and very remote 1.5 (1,845).
The Department of Human Services collects information on significant barrier to employment or education, called ‘vulnerability indicators’. One-in-ten single parents on Newstart have a indicator of vulnerability which impacts on their ability to look for work. Almost 8% or 8,729 parents had just one, 1.8% had two, (2,096), just 262 have three, while just 36 parents had four or more indicators of vulnerability that impacted on their ability to look for work.
“There were around 25,000 vulnerability indicators in total. The most common vulnerabilities were psychiatric or psychological, affecting, 9.4% or 7,113 single parents. Illness or injury requiring frequent treatment was also very common, at 3.1% or 3,438 parents. Just 1%, or 979 parents, experienced a significant lack of literacy and language skills.
“Recent reports have confirmed the serious financial and emotional consequences that payments cuts have had on single parents and their children.
“The Government must ensure that single parent families are not placed under further hardship and stress in the coming Federal Budget and the looming Commission of Audit,” concluded Ms O’Halloran.
Note: Information in this analysis was released on 24 January 2014. See Senate Community Affairs Committee, Answers to Questions on Notice, Social Security Portfolio, 2013-14 Supplementary Estimates Hearing, Question: No. EM0090_14.
Go to: http://www.aph.gov.au/Parliamentary_Business/Senate_Estimates/clacctte/estimates/sup1314/DSS/index