21 May 2014

Page 1

Chelsea • Mordialloc • Mentone

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Battlers bear budget burden Stephen Taylor steve@baysidenews.com.au

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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.” Continued page 3

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