SINGLE parents on welfare will lose up to $120 a fortnight in a move Wyndham social workers fear could send struggling families deeper into poverty.
Under changes announced in the federal budget all single, unemployed parents will be forced off their current payments of $648 a fortnight and onto the lower-paying Newstart allowance of $508 a fortnight, when their youngest child turns eight. For an unemployed, partnered parent, the payment will stop when their youngest child turns six.
The changes are expected to save the government $400million.
UnitingCare Werribee Support & Housing chief executive Carol Muir said she feared what the changes would mean for vulnerable clients, most of whom were single parents in private rental properties trying to make ends meet.
“It will have a major impact on their capacities to survive in private rental properties. There’s little to no public housing in Wyndham, and the state government has no plans for growth in public housing,” she said.
Werribee single parent Jane (not her real name) receives about $1000 a fortnight from Centrelink, which includes her parenting payment, family tax benefits and rent assistance.
Each day is a struggle to put food on the table and pay bills, and because she can’t afford a car or replacements of household items like whitegoods, she sources furniture from charity groups. After her fortnightly household expenses of $470 rent, $130 utilities and $40 phone line, Jane’s left with $360 for food and nappies, medication and clothing for herself and her baby. When her parenting payments are reduced by $120 a fortnight, she’ll be left with $240 to cover these costs.
Prime Minister and Lalor MP Julia Gillard said the budget would provide relief to thousands of households in her electorate, through cash payments for families with school kids, starting a national disability insurance scheme and investment in public dental health and aged care.
But Ms Muir said a $210 lump sum payment for welfare recipients would amount to about $4 a week, and would fall short of improving the lives of Wyndham’s disadvantaged. -Nick Toscano
