Labor backs down on JobSeeker rise, refuses to end poverty

April 13, 2022
Issue 
Photo: Fernando M Gon莽alves/Anti-Poverty Network SA

Shadow Assistant Treasury Minister Andrew Leigh confirmed on April 12 that Labor will not commit to raising the JobSeeker payment of $44 a day, backing down on a promise the party聽made in 2019 to review it.

He told the Australian Council of Social Services (ACOSS) that 鈥淲e haven鈥檛 committed to an additional increase鈥 and said Labor鈥檚 plan to build 30,000 鈥渟ocial鈥澛燼nd 鈥渁ffordable鈥澛爃omes is an alternative to raising the payment.

ACOSS chief executive officer Cassandra Goldie Labor鈥檚 decision, saying the lack of income support is a 鈥渒ey cause of poverty that鈥檚 being experienced, including among 鈥 single parents, older women [and] people with a disability鈥.

The JobSeeker payment is $642.70 a聽fortnight, about $46 a day, for a single person without children. The Henderson Poverty Line is $88 a day. The cost of living is rising rapidly and, with聽, shows that Labor鈥檚 鈥渟mall target鈥 strategy is a slap in the face for those struggling to get by.

: 鈥淛obSeeker must not be treated as a political football. It鈥檚 unacceptable they appear to be caught up in a scare campaign on budget deficits. You can鈥檛 claim to care about cost of living without addressing JobSeeker which isn鈥檛 enough to cover the basics.鈥

The Australian Unemployed Workers鈥 Union that Labor鈥檚 welfare policy is now 鈥渨orse than the one it took to the 2019 election鈥. Labor鈥檚 decision is 鈥渧ery disappointing鈥.

The 聽said it is a 鈥渇ailure of decency and courage鈥. It pointed to polls showing widespread support for raising the rate. An Ipsos poll showed 65鈥74% support JobSeeker being raised above the poverty line and an Essential poll showed 84% support the payment being high enough to cover living costs.

The temporary rise to welfare payments during the COVID-19 lockdowns over 2020鈥21 showed how simple it is to lift more than a million people out of poverty. For many people, the COVID-19 supplement was the first time they could afford to meet everyday costs.

The Australian propose raising聽all welfare payments, including JobSeeker, Youth Allowance, the Disability Support Pension, to $88 a day.

The says all welfare payments must be above the poverty line. Both are calling for an end to punitive income management and means testing. Socialist Alliance New South Wales Senate candidate Paula Sanchez said if companies pay聽their fair share of tax, we could 鈥渆liminate poverty and deliver at least $88 a day to people who need support鈥.

Meanwhile,聽Labor leader Anthony Albanese did not appear to know the unemployment rate.聽Nor was he able to talk about how Labor intends to deal with unemployment and underemployment 鈥 the latter聽being particularly important as Australian Bureau of Statistics (ABS) count someone who works聽one hour a week as聽鈥渆mployed鈥.

Alison Pennington, senior economist at the Centre for Future Work, said on : 鈥淎BS will release new unemployment data in 2 days. The rate will likely change. What won鈥檛 change? Long-term drivers behind insecure work & low pay. Or barriers to participation 鈥 Australians are sick of being told all鈥檚 hunky dory coz unemployment rate is X.鈥

Keeping hundreds of thousands of people out of work is intentional policy that聽Labor and the Coalition support because it 聽wages and inflation. There are not enough jobs .

Workers are facing rising casualisation, zero-hour contracts and hard-fought-for agreements for better pay and conditions are being eroded. A rise in the JobSeeker rate聽and other support payments聽would provide an important safety net while they look for work.

Labor鈥檚聽JobSeeker policy shows it has discarded the most vulnerable section of the working class.

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