Sunday, September 02, 2012

Govt resists church groups' call to raise dole

The Federal Government says it is has no plans to increase dole payments despite calls by church groups for them to be indexed to real wage increases, reports Radio Australia.

Church agencies, including Catholic Social Services, say unemployed single people only get $244 a week and they are calling on the Government to set up an independent commission to determine the size of Newstart payments.

A National Centre for Economic Modelling report, commissioned by four churches on financial hardship in Australia, found that while the economy was prospering, those on unemployment benefits were falling behind.

The report found the Newstart allowance for a single person was 40 per cent of the minimum wage, and families relying on Newstart were five times more likely to be in poverty.

The head of Catholic Social Services, Paul O'Callaghan, says the Government needs better information about how much money people need.

"We'd like to see, for the first time in Australia, an assessment of adequacy done independently from either welfare agencies or officials, who are often tempted by trying to ensure that there isn't excessive spending by governments in any particular area," he said.

Mr O'Callaghan says the Government should establish an independent commission, similar to the Remuneration Tribunal which sets the pay rates of key Commonwealth offices including judges, MPs and chief executive officers, to determine an adequate base payment.

"At this stage there has been no serious work done on the question of what is an adequate base," he said.

Workplace Relations Minister Bill Shorten says the Government is doing other things, such as putting jobs agencies in disadvantaged areas, to make life easier for unemployed people.