ABC NEWS
29 Oct 2013
For tens of thousands of older Australians who are stuck in limbo on Newstart, the age pension will seem like a windfall.
There are 140,000 unemployed Australians aged between 50 and 64 receiving the Newstart allowance from Centrelink.
Many have been out of the workforce for years and face daunting odds of ever finding a full-time job again.
Wayne Dunoon, 55, never dreamed he would struggle to find work after he was stood down at Ford eight years ago.
But he has had little work in Geelong since.
He spends most of his days at the Men’s Shed and manages to scrape by on $250 a week on Newstart.
“People think because you’re unemployed, it’s too much money,” he said.
“Try being in our shoes for a couple of months.
“See how far they can get.”
The money Mr Dunoon gets on Newstart is below the $368-a-week poverty line, and $125 a week less than he would get if he were on the age pension.
Many Newstart recipients say the payment is so low they cannot afford to actually look for a job.
Kathy Lee, a 55-year-old from Adelaide, was among 80,000 single mothers moved from the sole parent pension to Newstart last year.
The shift meant more than $100 less per week, and she says it forced her to abandon plans to pay for a computer IT course.
“A lot of us that have been put on Newstart, we don’t call it Newstart. We call it no-start,” she said.
A lot of us that have been put on Newstart, we don’t call it Newstart. We call it no-start.
Kathy Lee
She says job search agencies have told her repeatedly to brace herself for a long wait for the extra money the age pension will bring.
“That’s a horrible thought. And it isn’t nice to think, I want to reach old age so that I can afford to live,” she said.
The number of Australians aged 50 to 64 on Newstart is expected to grow to more than 160,000 in the next decade.
Community service groups in places like Geelong say more and more unemployed in the age group have simply given up trying to escape the pension gap.
“We’re finding quite a few people that are subsisting on Newstart,” said Megan Peacock from St Laurence Community Services.
We used to say it was a rat race. But it’s not a rat race anymore. It’s not even a race. They just want younger people.
Wayne Dunoon
“[They come] to volunteer with us for something to do with their day, but also to tick off their obligations with Newstart while waiting to go on the age pension.”
Many older Australians on Newstart are resigned to having to wait for a slightly better life.
Most know the Government is talking about budget cuts, and few expect Newstart payments to rise.
There is also little optimism from those like Mr Dunoon that landing another full-time job is possible.
“People just don’t want to give us a chance,” he said.
“We used to say it was a rat race. But it’s not a rat race anymore. It’s not even a race. They just want younger people.”