AUSTRALIA —
AUSTRALIA'S 700,000 disability pensioners will be spared
tough new welfare reforms aimed at encouraging people
back into the workforce.
But single parents will be forced
to look for jobs or enter training programs as soon as
their children reach school age. The bold new approach to
weaning people off welfare is contained in a cabinet
blueprint, to be presented by John Howard tomorrow.
It signals the federal Government's
determination to extend "mutual obligation" principles to
hundreds of thousands of welfare recipients who currently
do little to justify fortnightly payments. And it shows
the Government's willingness to exploit a more compliant
Senate from July 1 to drive through significant
reforms.
Armed with new research showing
strong community support for tougher welfare measures,
ministers are expected to approve, in principle, a new
"work first" model. Ministers familiar with the cabinet
document claim it provides a framework to improve
workforce participation.
"There is high favourability
towards that policy in the community," one source
said.
The blueprint focuses on three
categories: mature-age workers, disability support
pensions and sole parents.
But plans to introduce a single
welfare payment have been dropped, amid concerns it would
be too expensive and difficult to administer.
The Government has tried to clamp
down on the number of DSP recipients, which has ballooned
out to 700,000 a year. But previous attempts have been
blocked by the Senate, which has been controlled by
opposition parties.
Under the new approach, people
applying for the DSP will be ineligible if they are able
to work at least 15 hours a week. At present, there is a
30-hour cut-off.
However, the Prime Minister will
support "grandfathering" arrangements for those who
presently get the more generous disability
pension.
The Government believes "bad back"
syndrome is rife and wants to clamp down on an escalating
welfare bill. Single parents receiving income support are
also in the Government's sights. Cabinet will consider
plans that would force thousands of single parents to
look for work once their children started primary
school.
At present, those receiving the
single-parent pension are required to attend an interview
with Centrelink once a year. But they are not required to
look for work until their youngest child is
16.
Senior government figures said
cabinet was expected to endorse the blueprint, which
would then be refined into detailed plans. These would be
ticked off over coming months along with a wave of
industrial relations reforms.
The Government has consulted
welfare groups in a bid to avoid a major public
spat.
Last night, the main welfare lobby
cautioned that the new mutual obligation rules were a
"double-edged sword", particularly for those on the
disability support pension. Andrew McCallum, president of
the Australian Council of Social Service, was concerned
the Government would strip resources away from existing
DSP recipients.
"We wouldn't like to see people
grandfathered into obscurity," Mr McCallum
said.
ACOSS also wanted to ensure the
Government's tougher approach to single parents would be
fair.
"We want them to have avenues into
the workforce, but not at the expense of their services
and meaningless compliance programs," Mr McCallum
said.
Labor and the minor parties are
almost certain to challenge the reform overhaul. But from
July 1 the Government will be able to pass legislation in
its own right - provided the Coalition partyroom
agrees.
