Benefit levels on an eight year low

Jo Goodhew announced:

Acting Social Development Minister Jo Goodhew says the number of people receiving a main benefit has continued to fall year on year, with the latest figures the lowest for any June quarter since 2008.

“The number of people receiving a main benefit has fallen by 5,172 (or 1.8 per cent) in the last 12 months, with those on Sole Parent Support continuing to drive the strong downward trend,” Mrs Goodhew says.

“This is the first quarter since the $790 million Child Hardship Package came into effect, raising benefit rates by $25 a week after tax for those with dependent children, and increasing obligations for sole parents.

“Sole Parents have shown they are willing and able to move into independence, with a reduction of 965 in the last quarter, or 3,818 in the last year in the numbers receiving Sole Parent Support.

This is good. We want a supportive welfare system to help people temporarily (unless incapacitated) while they have tough times, but we know that on average a welfare dependent household leads to far far worse outcomes for children growing up in them.

The changes in benefit levels for the last five years are:

• All main benefits down 14.5%
• Under 25s on welfare down 22.9%
• Work ready job seekers down 21.6%
• Job seekers on welfare for over a year down 17.7%
• Sole parents benefits down 26.5%
• Under 25 sole parent benefits down 34.3%

The under 25 reductions are especially pleasing as data shows the longer a teen stays on welfare the more likely they’ll remain there and have far worse life outcomes than if they get into the workforce.