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Income management: What’s human rights got to do with it? April 2011

Income management: What’s human rights got to do with it? April 2011. Australian Council of Social Service. Income management - A new frontier for social security policy. Some unemployed people, young people and sole parents get half their payments ‘in kind’, not in cash

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Income management: What’s human rights got to do with it? April 2011

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  1. Income management:What’s human rights got to do with it? April 2011

  2. Australian Council of Social Service Income management - A new frontier for social security policy • Some unemployed people, young people and sole parents get half their payments ‘in kind’, not in cash • They have to negotiate with Centrelink over how this money is spent • This is a new frontier for social security policy - People will not only answer to Centrelink for their efforts to find work, but also for how they spend their money

  3. Australian Council of Social Service Income management – a blanket approach • It says, unless they prove otherwise, that they: • Don’t care for their children properly • Don’t ensure they attend school • Are not seriously looking for work • Haven’t made an effort to improve their education • Waste their money on things like alcohol and gambling • Have chosen ‘life on welfare’

  4. Australian Council of Social Service What is the reality of life on social security payments? • NSA is $239pw or $34 per day • Noone knows how many NSA and PP recipients are ‘third generation welfare recipients’, have problems with addictions, or have been identified as abusing or neglecting their children • We do know that: • One in six NSA recipients has a disability • One in three is over 44 years • One in ten is Indigenous • Two thirds of LTU people have Year 10 quals or less • People in rural/remote areas are over-represented

  5. Australian Council of Social Service What do human rights have to do with income management? • Everyone has the right to social security (Art 9 International Covenant on Economic, Social and Cultural Rights). This right is of ‘central importance in guaranteeing human dignity for all persons’ and needs to be provided ‘respecting human dignity’ • Everyone (including children) has the right to an adequate standard of living (Art 11) • As well as • Everyone has the right to live free from violence • Everyone has the right to an education

  6. Australian Council of Social Service What are the other schemes of Income Management? • ‘New Income Management’ now extends across the NT • It will be evaluated by the Govt during 2011, then extended to other areas nominated by the Minister • The ‘child protection’ scheme operates in the NT and in parts of WA • The ‘school attendance’ scheme operates in the NT and parts of WA and Queensland • There is also a voluntary scheme in the above communities • And a separate scheme in Cape York Indigenous communities

  7. Australian Council of Social Service Who is affected by ‘New Income Management’? • Cash social security payments (eg Newstart Allowance and Family Tax Benefits) are halved • The other half goes into an ‘income management account’ run by Centrelink that can only be spent on ‘essentials’ like • People receive a Basics Card which can only be used in stores licensed by the Govt. and only to buy ‘essentials’ • They will negotiate regularly with Centrelink over how to pay bills such as rent, electricity, etc • People who: • Live in a ‘disadvantaged area’ named by the Minister and • Have received Newstart Allowance or Parenting Payment for over 52 weeks in the last 2 years; or Youth Allowance for 13 weeks in the last 6 months (if under 25 years)or • Have been assessed as ‘vulnerable’ by a Centrelink social worker (e.g. a victim of domestic violence)or • Have been referred by state welfare departments on child protection grounds

  8. Australian Council of Social Service How can people get out of the scheme? • People in the target groups are automatically income managed unless they show that: • their children are attending school (if they have school age children) • their children are properly cared for (if they have preschool age children) • They have obtained employment or are studying fulltime, if they don’t have children

  9. Australian Council of Social Service How much does it cost? • The average cost of Income Management per person in the NT is around $4,400 per year (mainly for Centrelink and the basics card) • This is one third of the cost of Newstart Allowance for a single unemployed adult

  10. Australian Council of Social Service What are the alternatives? • Different ways to pay social security to disadvantaged people have been tried in the past, including CDEP and Centrepay • The difference between these and compulsory income management is that individuals and communities have voluntarily chosen to use them. • The compulsory scheme should be withdrawn and individuals and communities invited to use income management where they think it will help them • To reduce deprivation and reliance on income support, Newstart Allowances should be increased and the Govt should invest more in support services like employment services, financial counselling, and drug and alcohol services

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