Both the Government and the Opposition have in recent weeks signalled a determination to move people from welfare to work through tougher participation requirements and stiffer penalties for those who fail to comply.
People on unemployment benefits get $120 less a fortnight than people on pensions. They can earn less than someone on the aged pension before their benefit is cut. People lose their benefits for eight weeks if they do not meet activity tests. Australia has a strict and tightly targeted payments system already.
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The Federal Budget this year promises hefty cuts to welfare and the unemployed are firmly in the Government and Opposition's sights.
Prime Minister Gillard's speech to the Sydney Institute last week, and Tony Abbot's policy announcements two weeks ago, drew unanimous response from the community sector; that getting people into work is a sound objective, but it's harder than it looks.
The welfare reform debate is in danger of sliding into an unhelpful blame game but a more positive approach will limit the number of people who face a lifetime on benefits. Long term unemployed people are seen as a risk by many employers. So how do we minimise the risks and change or shift that risk profile? We need to test the capacity and interest of employers to offer jobs to this potentially high risk group of job seekers.
The income support system must recognise that people will cycle in and out of jobs, not because they are slack, but because that's how the low skill part of the labour market works. In addition, employers have limited capacity to absorb the risks and costs of employing someone who has been out of work for a long time.
UnitingCare Australia welcomes measures that move people from welfare into jobs, but the UnitingCare network experience as an employment service provider and a provider of services to support families that have had generations of social exclusion does not support tougher sanctions and cuts in entitlements.
There are, no doubt, people who abuse the system. But UnitingCare's experience is that the overwhelming majority of people on unemployment benefits and other income support payments want to work. They want to take responsibility for meeting their families needs and contribute to their community.
The reality is there are a decreasing number of entry level jobs in the Australian labour market. Many people out of work do not have skills or experience that match the needs of employers