Stopping a safety-net becoming a trap
ANGLICARE Sydney has called the federal government to increase investment in social and community housing and raise the current level of the Newstart allowance.
In a submission to the Treasury in the lead-up to the 2012-13 Federal Budget, the Sydney Anglican community care organisation has identified lack of affordable housing and the inadequacy of Newstart as two key areas the government can begin making a real difference with in the coming fiscal year.
"Providing an affordable place to live is the best way to help people achieve stability and give them choices for the future", says ANGLICARE Sydney CEO, Grant Millard.
"Current figures from the Housing Supply Council suggest a shortage of 180,000 affordable dwellings nationally.
"While the Federal Government's current commitment to build 50,000 new social and public housing dwellings is very welcome, we really need 220,000 new, affordable dwellings by 2020 to relieve the rental stress on over 600,000 Australian households”.
ANGLICARE Sydney also raised serious concerns in the submission about the current level of the Newstart allowance stating that it is now no longer sufficient to support unemployed people seeking to enter or re-enter the workforce.
“Newstart is meant to protect, not punish someone who finds themself unemployed. It was set up as a safety-net, but it is fast becoming a trap instead.
“Past increases in Newstart have been linked to the Consumer Price Index whereas pensions are indexed against average weekly earnings. As wages have gone up and broad-based inflation stayed low, the relative value of Newstart has decreased significantly, particularly in light of rises in the cost of housing, food and utilities.
“There is broad support for an increase to Newstart across the social and economic spectrum. Increasing Newstart would not be difficult for the government; it would be supported by business and by welfare groups and would provide the means to mobilise unemployed Australians into the workforce”.
