Thursday, July 8, 1999
Dole crackdown on 300,000
By TOM ALLARD in Canberra
More than 300,000 job-seekers are facing a dole crackdown, with the
Federal Government ordering a review to ensure agencies such as
Centrelink enforce requirements that they do some work or activity in
return for the payment.
The move reflects fears within the Government that dole payments are not
being reduced when the unemployed fail to undertake work-for-the-dole
projects, literacy and numeracy programs, part-time or voluntary work,
or other activities.
"Somehow, thousands slipped through the net without losing payments and
we want to know why," a source said.
With the doubling of work-for-the-dole places and the expansion of other
"mutual obligation" requirements to job-seekers aged under 35, the
Government fears that it will not be able to fill these places unless
the agencies rigorously enforce the policy.
Beneficiaries will get the benefit of the doubt until they fall into
mutual obligation," the source said. "After that, we want it to be very
strictly enforced."
Under policies initiated by the Coalition, recipients of the dole face
an 18 per cent cut in benefits if they do not fulfil their agreement to
undertake some work or other prescribed activity.
The policies initially applied to about 80,000 people aged 18 to 24 who
had been unemployed for six months or more. Of those, 42,000 signed a
"mutual obligation" agreement but only 28,000 undertook an activity
between July and April.
The expansion of the plan to 300,000 people - school-leavers out of work
for three months or more and those aged 25 to 34 who have been
unemployed for at least a year - means the Government faces a much
bigger compliance job.
The Minister for Employment Services, Mr Abbott, has justified the tough
requirements by pointing to the "culture of welfare dependency" and the
rise of the "job snob", saying the culture had more to with the high
unemployment rate than economic policy.
The idea behind the policies was to make unemployment less attractive
than working, as much as any principle of responsibility.
While the drive has so far centred on job-seekers, the Government has
now turned its attention to Centrelink, the Job Network agencies and the
Social Security Appeals Tribunal, which it believes are letting people
off the hook.
An example of leniency given to the Herald was a decision by the appeals
tribunal to accept an excuse that the third letter sent to a job-seeker
warning of a cut in benefits "flew out the window because there was a draught".
The Government believes the problem lies, in part, with the "cumbersome
process" to cut benefits, which takes two months, and often longer if
there is an appeal.
The review will examine ways to reduce that period, with changes to the
Social Security Act on the table.
Critics in the welfare sector and Labor are outraged by the Government's
stance.
They argue that a lack of proper training is undermining employment
gains and explains the poor response by the jobless to the requirements.
The review, to be chaired by an officer of the Department of Employment,
is not expected to deliver its findings for at least two months.
--
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