No plan to raise welfare payouts

FINANCE Minister Mathias Cormann insists building a “stronger economy” is the best way the Federal Government can help jobseekers struggling to make ends meet.

Pressure is mounting on the Coalition to increase the Newstart payment, as a new survey shows some recipients are skipping meals, going without heating during winter and cutting back on showers.

The Australian Council of Social Service has released the findings as part of its push to increase the benefit – which is $282 a week for a single person without children – by at least $75 a week.

The Government has refused to consider an increase to Newstart beyond twice-annual adjustments in line with inflation, despite repeated calls from ACOSS, business groups, unions and economists.

Labor, the Greens, crossbench politicians, Coalition backbenchers and even former Liberal prime minister John Howard have called for a rise.

Senator Cormann, however, says the Government must think of its bottom line.

“These conversations are ongoing, but in the end we’ve got to make judgments about what is affordable in the budget,” he told ABC Radio National yesterday. The minister has stressed the Government is trying to make it easier for people to find work.

“We understand that people on welfare and people on Newstart allowance in particular, when you’re looking for a job, that that is a tough circumstance,” he said. “Our focus has been on helping all Australians – in particular those who are unemployed – with getting into work.”

The ACOSS survey findings only add fuel to those ambitions, he added.

“We will continue to work really hard to build a stronger economy, where more Australians have the best possible op

OUR FOCUS IS HELPING ALL AUSTRALIANS – IN PARTICULAR THOSE WHO ARE UNEMPLOYED – WITH GETTING INTO WORK MATHIAS CORMANN

portunity to get a job and get ahead.”

Former deputy prime minister Barnaby Joyce is among backbenchers calling for a Newstart rise, inspired by his own struggles to make ends meet while earning more than $200,000.

“God knows how someone on $280 a week ever gets by; I don’t know how they do it. It would be near impossible,” he told Seven’s Sunrise program. The ACOSS survey of 489 people on Newstart or Youth Allowance found more than 80 per cent of respondents skipped meals to save money, and about 44 per cent skipped more than five meals a week.