This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.theguardian.com/society/2014/mar/12/welfare-reform-government-needs-to-spend-more-on-disability-support

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
Welfare reform: government needs to 'spend more' on disability support Welfare reform: government needs to 'spend more' on disability support
(6 months later)
A key job services group has warned the government it cannot “save” its way to welfare reform, saying it must invest in the short term to help people with a disability secure work, which would ease the long-term pressure on the budget.A key job services group has warned the government it cannot “save” its way to welfare reform, saying it must invest in the short term to help people with a disability secure work, which would ease the long-term pressure on the budget.
The message from Jobs Australia came as the social services minister, Kevin Andrews, played down the prospect of imminent changes to the disability support pension, saying such action was unlikely in the Abbott government’s first budget in May.The message from Jobs Australia came as the social services minister, Kevin Andrews, played down the prospect of imminent changes to the disability support pension, saying such action was unlikely in the Abbott government’s first budget in May.
More than 820,000 people are on the disability support pension, or about one in 20 working-age Australians, costing the budget $15bn in 2012-13, according to Andrews. The minister has asked the former Mission Australia chief Patrick McClure to lead a welfare review that would seek “ways to improve opportunities for Australians with a disability to participate in work”.More than 820,000 people are on the disability support pension, or about one in 20 working-age Australians, costing the budget $15bn in 2012-13, according to Andrews. The minister has asked the former Mission Australia chief Patrick McClure to lead a welfare review that would seek “ways to improve opportunities for Australians with a disability to participate in work”.
Jobs Australia, which represents not-for-profit organisations that help unemployed people find work, said the nation’s welfare system had a significant structural problem with a growing gap between the disability support payment and the Newstart unemployment benefit.Jobs Australia, which represents not-for-profit organisations that help unemployed people find work, said the nation’s welfare system had a significant structural problem with a growing gap between the disability support payment and the Newstart unemployment benefit.
The chief executive of Jobs Australia, David Thompson, said the two payments were indexed at different rates. The faster growth in the disability support payment might create an incentive for people to seek or continue to receive the payment, he said.The chief executive of Jobs Australia, David Thompson, said the two payments were indexed at different rates. The faster growth in the disability support payment might create an incentive for people to seek or continue to receive the payment, he said.
Thompson said the answer was not to simply move people with disabilities onto the Newstart allowance, which was already too low for people without additional needs.Thompson said the answer was not to simply move people with disabilities onto the Newstart allowance, which was already too low for people without additional needs.
He said people with disabilities faced barriers in entering the workforce and the government needed to invest in better mental health services and employment services to unlock budget savings in future.He said people with disabilities faced barriers in entering the workforce and the government needed to invest in better mental health services and employment services to unlock budget savings in future.
“You can’t save your way into effective welfare reform,” Thompson said.“You can’t save your way into effective welfare reform,” Thompson said.
“You’ve got to spend your way into it. We’ve got to invest in services that will help people get into the workforce and stay in the workforce.”“You’ve got to spend your way into it. We’ve got to invest in services that will help people get into the workforce and stay in the workforce.”
The Australian Council of Social Service pointed to research showing that people with a disability were three times more likely to be out of paid employment than other people of working age, and twice as likely to be living in poverty. The Australian Council of Social Service pointed to research showing that people with a disability were three times more likely to be out of paid employment than other people of working age, and twice as likely to be living in poverty.
Thompson said there was a widespread misconception that some of the people on the disability support pension were capable of work but did not want to.Thompson said there was a widespread misconception that some of the people on the disability support pension were capable of work but did not want to.
He said some employers were reluctant to hire people with disabilities because of perceptions “that they may not be reliable – that they may be more trouble than they’re worth in the workplace”.He said some employers were reluctant to hire people with disabilities because of perceptions “that they may not be reliable – that they may be more trouble than they’re worth in the workplace”.
But Thompson said there was a lot of evidence to suggest the employers that took on people with disabilities found them to be a significant asset, provided that the right support was in place.But Thompson said there was a lot of evidence to suggest the employers that took on people with disabilities found them to be a significant asset, provided that the right support was in place.
Craig Harrison, the chief executive of Disability Employment Australia, said some people perceived that disability support payment recipients were “living the life of Riley” and yet the evidence showed people with disabilities wanted to work.Craig Harrison, the chief executive of Disability Employment Australia, said some people perceived that disability support payment recipients were “living the life of Riley” and yet the evidence showed people with disabilities wanted to work.
Calling for a “presumption of employability”, Harrison said people with disabilities required support to enter the workforce but predicted long-term economic gains.Calling for a “presumption of employability”, Harrison said people with disabilities required support to enter the workforce but predicted long-term economic gains.
Harrison said the Australian workforce often took for granted government-provided roads, public transport and healthcare, which helped them go to work and stay healthy.Harrison said the Australian workforce often took for granted government-provided roads, public transport and healthcare, which helped them go to work and stay healthy.
“Every single one of us in our society requires support,” he said. “It’s no different for people with disability.”“Every single one of us in our society requires support,” he said. “It’s no different for people with disability.”
Craig Wallace, president of the advocacy group People With Disability, said he was concerned about the rhetoric in some of the media coverage about the disability support payment, which wrongly portrayed people as “bludgers and malingerers”.Craig Wallace, president of the advocacy group People With Disability, said he was concerned about the rhetoric in some of the media coverage about the disability support payment, which wrongly portrayed people as “bludgers and malingerers”.
The disability discrimination commissioner, Graeme Innes, was similarly concerned about the “completely unhelpful” rhetoric about alleged rorting of the disability support pension. Innes told Fairfax Media the nation had “an employment problem, not a rorting problem”.The disability discrimination commissioner, Graeme Innes, was similarly concerned about the “completely unhelpful” rhetoric about alleged rorting of the disability support pension. Innes told Fairfax Media the nation had “an employment problem, not a rorting problem”.
“I’m in the disability [sector] 24/7. I don’t know of anyone rorting the DSP,” he said. “Why would you want to be on DSP? Why would you want live on less than $20,000 a year?”“I’m in the disability [sector] 24/7. I don’t know of anyone rorting the DSP,” he said. “Why would you want to be on DSP? Why would you want live on less than $20,000 a year?”
Andrews sought to calm expectations of immediate changes after News Corp on Tuesday published analysis by the Deloitte Access Economics economist Chris Richardson, who highlighted the different indexation treatment of Newstart and the disability support payment.Andrews sought to calm expectations of immediate changes after News Corp on Tuesday published analysis by the Deloitte Access Economics economist Chris Richardson, who highlighted the different indexation treatment of Newstart and the disability support payment.
Richardson predicted savings of $2.4bn over four years and even greater amounts in the future if disability support pension increases were limited to inflation.Richardson predicted savings of $2.4bn over four years and even greater amounts in the future if disability support pension increases were limited to inflation.
Andrews told the ABC that “in the longer term” the government would have to address the “perverse incentive for people to get on to the disability pension rather than on the Newstart allowance because it pays more”.Andrews told the ABC that “in the longer term” the government would have to address the “perverse incentive for people to get on to the disability pension rather than on the Newstart allowance because it pays more”.
But the minister said potential changes to pension indexation were “not something which I expect that we will be addressing immediately in the budget”.But the minister said potential changes to pension indexation were “not something which I expect that we will be addressing immediately in the budget”.
He reaffirmed that the government was not proposing to reduce the disability support pension for people who were currently receiving it.He reaffirmed that the government was not proposing to reduce the disability support pension for people who were currently receiving it.
The government’s commission of audit, headed by the Business Council of Australia president, Tony Shepherd, is also likely to target welfare as part of its search for budget savings. Andrews told the ABC he was yet to read the interim recommendations.The government’s commission of audit, headed by the Business Council of Australia president, Tony Shepherd, is also likely to target welfare as part of its search for budget savings. Andrews told the ABC he was yet to read the interim recommendations.