Posts Tagged ‘welfare’

Australian Poverty Line

October 17, 2016

Recent reports of 3 million Australians below poverty line (where defined as below 50% of median income) – currently $426.30 per week for a single person – have started some public response. One person commented online that increasing welfare wouldn’t help, as it would drive up the average income and thus leave them still below par – another voter who does not know the difference between mean and median. Depressing that they can vote…

My immediate thought was different: have a major depression, and weaken Unions so more workers join the 32% of below-current- poverty-line whose main income is paid employment. Then the dole will be above that definition of poverty, while the executives stay on salaries giving over the poverty level weekly income per executive hour!

To compare with cost of basic needs: The March 2016 Henderson poverty line for a single person, including housing, is $425.61 for a single not in work, $524.89 for a single in the workforce. (The Henderson poverty lines are based on a benchmark income of $62.70 for the December quarter 1973 established by the Henderson poverty inquiry. The benchmark income was the disposable income required to support the basic needs of a family of two adults and two dependent children. Poverty lines for other types of family are derived from the benchmark using a set of equivalence scales. )

Australia’s Newstart Allowance (single person over 22  unemployment benefit) currently is at best about $335 per week, including rent assistance, and the Government is proposing to cut the Energy Supplement from it – about $8 per week. That is why I keep calling for those on welfare to have the right to surrender 90% of their income for guaranteed, supervised basic living provided by the Government.

Housing on the dole – or the minimum wage

May 6, 2014

 Fining beggars, cutting welfare, and moving young unemployed away from home.

The City of Perth recently suggested that beggars should be fined.  (They rapidly backed away from the resultant backlash, and started talking about “… if they don’t accept a referral to the Salvation Army…”)   At that time I thought – Our State gaols people for unpaid fines.  Someone poor enough to need to beg, and allergic to  religious types, can’t pay the hundred dollars, so goes to prison.  One way out of homelessness…

Now the Australian Government’s rushed “Commission of Audit” – consisting of the type of people you’d expect  to be appointed by a very Big Business aligned government – has brought in its predictable extreme list of possible actions.  As in the Pauline Hansen /  One Nation days, their suggestions are so extreme as to make vicious treatment of the poor look moderate, and a number of rich people are chipping in with ways to cut the welfare budget.

One of the ideas raised in the past week was to require young unemployed people to move from areas of high unemployment.

This reminded me of the City of Perth’s proposal, and I shall explain why.

 Income and homelessness

In Australia we have well over 5% unemployment, where that is defined as  not having had an hour’s paid work in the previous week.  

We also have cities where a report on affordable housing

“… prepared by Anglicare Australia, found single Australians on government payments are “seriously disadvantaged” in the housing market, with less than 1 per cent of properties examined deemed suitable. 

Single people with no children living on the minimum wage were slightly better off, with 4 per cent of listed properties found suitable, according to the study. ” 

The full report is at http://www.anglicare.asn.au/site/rental_affordability_snapshot.php   It includes figures for some areas where welfare income won’t even rent a shed.

Now, business claim that the minimum wage is sufficient, and the governments say that the various welfare payments are sufficient.

Welfare groups say that we need much more public housing, as we have at least 100,000 homeless (2011 figures plus local information).

Young unemployed people rely on support – and often housing – from a network of family and friends.  Couch-surfing and rental sharing are much easier where you know a lot of people. Life is cheaper when they help you with food and laundry facilities. So, moving young unemployed people away from their home ground will lead to more homelessness and begging.

Here’s a thought.  Social Science Fiction, perhaps.

If the payments are sufficient, let the Federal government and State governments accept responsibility for showing it is so.

Sell no more government owned land within 20 kilometers of a city – any buildings which are no longer required (say, an old hospital in Perth where a replacement is being built elsewhere) can be replaced by State-owned quick-built and easily recycled buildings (in this case, so when the new hospital gets too old, you have somewhere to rebuild.)    That way you can experiment with physical structures for the housing.  (By the way, NEVER sell government owned land within 20 kilometers of a city in Oz,  ever.  You will need the land later, and it will have increased in cost beyond the interest on the money you get today.)

Have large, mulitstorey complexes with communal kitchens and laundries, and a mixture of single and family accommodation.  Provide subsidised housing there for concierges/maintenance workers, police, nurses, teachers, cooks, lawyers  and social workers.   And hire some of these to work in the buildings as teachers for those who cannot attend school, social trainers, residents’ representatives, police, etc.

People on welfare can choose to surrender their benefits in return for secure housing, food and clothing and laundry (taking rostered turns at kitchen and cleaning and maintenance duties if capable – thus learning skills and responsibility), transport to education or job-seeking activities and to second-hand stores (to get clothing etc.), internet access for such purposes, education and work equipment costs, health care, etcetera.  One of the in-house jobs woud be the “knocker-upper” : some people do need a person to get them up on time to get to where they have to be on time, and to remind them to get to important appointments.  It is a surprisingly common problem, and naturally linked to unemployment and problems with bureaucracy.

Where welfare recipients have their payments suspended for “breaches” they can be put on daily work rosters – a contrast with the current system: six weeks or more with no income and no monitoring of behaviour (natural risk of crime or homelessness.)

If  residents get employment or other income, half of all after-tax-and- costs income above welfare is also charged, and once they get more than the minimum wage they have support to find independent rentals (they do, after all, have a “rental reference” now. )

It’s cheaper than imprisonment or fully institutional care, and for many of those who are  intellectually handicapped / brain injured / just unable to cope out of institutions it is more likely to be  a happy life than tying to live independently.  For those who haven’t learned how to run a home in our culture, it can help with gaining the skills they need.  For families under stress it may provide the added support the children need to get them to happy adulthood – without the shame of being officially “targets” of support.  For single unemployed people, it provides a better environment that many random share houses.  For the elderly, it provides support greater than fully independent living but less intense that nursing home care.

What is more, it will take some pressure off the lower end of the rental market.

The trouble is, the State and Federal governments want to send the needy to the Salvation Army, Anglicare, the Uniting Church Mission, … anything but admit that the problem requires serious action by something more than volunteer organisations.