Fed: Welfare report recomends expansion of mutual obligation

AAP General News (Australia)
08-16-2000
Fed: Welfare report recomends expansion of mutual obligation

By Rob Taylor

CANBERRA, Aug 16 AAP - Every welfare recipient of workforce age will be required to
take part in a community activity or risk losing benefits under a sweeping reform plan
for Australia's welfare net unveiled today.

The long-awaited report by the government-appointed welfare reform group, chaired by
Mission Australia chief Patrick McClure, outlined a radical overhaul of the $50 billion-a-year
social security net.

The existing network was too disjointed and lacked incentives to coax people on welfare
back into paid work, the report said.

But along with cash rewards for moving back into employment, the recommendations also
included tougher hurdles for welfare targeting sole parents and people on disability pensions.

Single mothers would be required to attend an annual counselling session when their
youngest child turned six, while those with children over 13 would have to undertake education
or employment in return for support.

The disabled likewise faced intensive one-on-one guidance sessions to help them exploit
work abilities.

Family and Community Services Minister Jocelyn Newman said the report was not about
punishing those on welfare or slashing costs, but rather about encouraging participation.

"We're looking to achieve better outcomes for Australians in welfare reform," she said.

"This is not an exercise in cutting rates of benefits, it's about doing better for people."

Mr McClure said his review, which would take at least 5-10 years and possibly up to
$1 billion to implement, was designed to minimise social and economic exclusion for those
on benefits.

Measures foreshadowed included a participation supplement to help welfare recipients
move back into work, a simpler unified payment structure, and tax credits or return to
work rewards.

Mr McClure also said he anticipated most people would participate willingly in mutual
obligation activities, with safeguards in place to avoid punitive sanctions.

"The requirements for participation should be set in the context of community expectations
that are fair and just," he said.

Senator Newman said while cabinet had broadly endorsed the recommendations, the government
would not respond to the report until the end of the year.

She also declined to speculate on whether a unified payment structure would lift unemployment
benefits by $21 a week to bring them into line with pension payments, although she admitted
up-front investment in welfare was required.

"I'm not in a position today to give you detailed responses to those recommendations," she said.

"Nothing is ruled out or ruled in.

"It is a long-term goal that the welfare bill will be reduced, but it's inevitable
that there needs to be up-front investment."

AAP rft/mfh/jnb/de

KEYWORD: WELFARE REPORT LEAD

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