Wide Support for weekly welfare payments

The legislation will allow financially vulnerable Centerlink customers to receive their income support payments weekly instead of fortnightly. If the legislation is passed, weekly payments could be available as soon as May.

Mr Panny said weekly payments would help welfare payment customers who have difficulty controlling their money. “It would make it alot easier to budget and plan spending,” he said. “I know a lot of people who have difficulty saving their money and they spend their payment in one week and can’t afford anything the next.”

The proposed legislation is part of the Government’s plan to reduce homelessness in Australia by 2020. Centerlink customers who are financially vulnerable and at risk of homelessness will have the choice of weekly payments where it is believed it would help them to improve their circumstances.

The legislation is targeted at customers who spend their fortnightly payments too quickly and then can’t afford to pay rent or buy essential services. The amount of income support received will not change but it is hoped that weekly payments will help recipients to manage their money and stabilise their living situation.

Federal Member for Sydney, Tanya Plibersek, said weekly payments would help many people struggling with bills to keep a roof over their heads. “Many people find it hard to balance their budget across a fortnight Continued from pg 1

so weekly payments will make it easier to stay on top of rent and mortgage repayments,” Ms Plibersek said. “This is one of the many practical ways the Rudd Government is helping prevent vulnerable Australians from becoming homeless.”

The proposal has won the support of many community welfare organisations.

Director of the Welfare Rights Centre in Surry Hills, Maree O’Halloran, said studies show that the most disadvantaged welfare payment customers cope better on weekly payments. “People participating in weekly payment trials increased their ability to manage their finances and some of the severe stress on their lives and their families was reduced,” Ms O’Halloran said.

“Very vulnerable clients have been able to turn their lives around with improved health and more stable accommodation. The policy of voluntary weekly payments is common sense response that deserves bipartisan support,” she said.

St Vincent de Paul Society executive, John Falzon, said the policy is respectful and responsive.

“This puts some of the flesh on the bones of the Government’s Homelessness Strategy,” Dr Falzon said. “Our 40,000 members continue to be alarmed at the persistence of poverty and inequality in Australia. We congratulate Ministers Macklin, Plibersek and Bowen on this move.”

While the legislation has been widely supported, the Government continues to come under fire for plans to roll out compulsory income management for welfare recipients.

Australian Council of Social Service CEO, Clare Martin, welcomed weekly payments but said the income management scheme was wasteful and discriminatory.

“The income management scheme is based on a discriminatory assumption that people on income support cannot manage their money or that they are unable to care for their children,” Ms Martin said. “We support nondiscriminatory policies that help people manage their finances and income management can be used as a useful tool when this is voluntary and supported by the right mix of community services.”

“Homeless people, in particular, can struggle to maintain a budget and often operate on a day-to-day basis rather than in fortnightly cycles. Giving people a choice to receive payments weekly will empower them to take control of their finances, minimise hardship and prevent people from slipping into homelessness.”

Source: South Sydney Herald April 2010 www.southsydneyherald.com.au