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Children in single-parent homes more likely to be living in poverty, says report Children in single-parent homes more likely to be living in poverty, says report
(4 months later)
Nearly one in four Australian children living with a single parent are now in poverty, with cuts to welfare payments potentially to blame for a steep increase in the poverty rate over the past decade, according to new research.Nearly one in four Australian children living with a single parent are now in poverty, with cuts to welfare payments potentially to blame for a steep increase in the poverty rate over the past decade, according to new research.
The latest Household, Income and Labour Dynamics in Australia (HILDA) Survey, an annual report conducted by Melbourne University, shows that lone parent child poverty has soared by 15% since 2001.The latest Household, Income and Labour Dynamics in Australia (HILDA) Survey, an annual report conducted by Melbourne University, shows that lone parent child poverty has soared by 15% since 2001.
While 24.1% of children in one-parent households are now in poverty, just 7.6% of children with two parents are similarly wealth-deprived.While 24.1% of children in one-parent households are now in poverty, just 7.6% of children with two parents are similarly wealth-deprived.
The study, which looked at a decade of data from 2001 onwards, defines poverty as half of Australia's median household income. A single person is considered to be above the poverty line if he or she has an income of $20,000 a year, while a lone parent with two children requires $32,000 a year to be above the threshold.The study, which looked at a decade of data from 2001 onwards, defines poverty as half of Australia's median household income. A single person is considered to be above the poverty line if he or she has an income of $20,000 a year, while a lone parent with two children requires $32,000 a year to be above the threshold.
Associate professor Roger Wilkins, editor and co-author of the report, told Guardian Australia that while there is no definitive cause for the rise in poverty, there is "good circumstantial evidence" that cuts to welfare payments have fuelled the increase.Associate professor Roger Wilkins, editor and co-author of the report, told Guardian Australia that while there is no definitive cause for the rise in poverty, there is "good circumstantial evidence" that cuts to welfare payments have fuelled the increase.
The poverty rate could be set to climb further, Wilkins warned, due to further recent changes by the Gillard government to single parent payments.The poverty rate could be set to climb further, Wilkins warned, due to further recent changes by the Gillard government to single parent payments.
Single parents will be moved to the Newstart Allowance when their child turns eight years old. While the single parent payment offers a maximum of $683.50 per fortnight, the Newstart Allowance doesn't go above $537.80 per fortnight.Single parents will be moved to the Newstart Allowance when their child turns eight years old. While the single parent payment offers a maximum of $683.50 per fortnight, the Newstart Allowance doesn't go above $537.80 per fortnight.
This, Wilkins contends, is an even more comprehensive cut than was delivered by the Howard government in 2006, which is thought to be responsible for the recent rise in lone parent child poverty.This, Wilkins contends, is an even more comprehensive cut than was delivered by the Howard government in 2006, which is thought to be responsible for the recent rise in lone parent child poverty.
"In 2006, single parents who entered the welfare system were put on unemployment benefit if their child was eight years old or older," Wilkins said. "This cut benefits more rapidly the more that a single parent worked and disadvantaged more people on lower benefits."In 2006, single parents who entered the welfare system were put on unemployment benefit if their child was eight years old or older," Wilkins said. "This cut benefits more rapidly the more that a single parent worked and disadvantaged more people on lower benefits.
"The increase in lone parent child poverty took place around 2005 to 2007 and has remained at a higher rate of around one in four children. In terms of the current government's changes, it will certainly increase child poverty in the short run.""The increase in lone parent child poverty took place around 2005 to 2007 and has remained at a higher rate of around one in four children. In terms of the current government's changes, it will certainly increase child poverty in the short run."
"Big challenges remain if we are to drag more children out of poverty. It's a real cause for concern that this number has gone up, and a further concern that there's a growing gap between single parent households and households with two parents.""Big challenges remain if we are to drag more children out of poverty. It's a real cause for concern that this number has gone up, and a further concern that there's a growing gap between single parent households and households with two parents."
Wilkins said that changes to childcare, education and in-work benefits could help reduce the child poverty rate.Wilkins said that changes to childcare, education and in-work benefits could help reduce the child poverty rate.
"My personal view is that in-work benefits are effective instruments and would be beneficial in Australia," he said."My personal view is that in-work benefits are effective instruments and would be beneficial in Australia," he said.
"If you look at what has worked in the US and UK, it's measures like the working family tax credit. These measures increase the benefits of working and they have been shown to really help low-income families, of which lone-parent families are a disproportionate part.""If you look at what has worked in the US and UK, it's measures like the working family tax credit. These measures increase the benefits of working and they have been shown to really help low-income families, of which lone-parent families are a disproportionate part."
The HILDA research also analysed the overall wealth gap in Australia and found that it had shrunk slightly, even though the richest in society remained relatively unscathed by the global financial meltdown.The HILDA research also analysed the overall wealth gap in Australia and found that it had shrunk slightly, even though the richest in society remained relatively unscathed by the global financial meltdown.
The data shows that Australian households increased their wealth to an average of $683,694 over the decade, driven mainly by a boom in house prices. However, the report only looked at figures up until 2010, when the market began to soften.The data shows that Australian households increased their wealth to an average of $683,694 over the decade, driven mainly by a boom in house prices. However, the report only looked at figures up until 2010, when the market began to soften.
"In 2002 to 2010 there was less wealth inequality, primarily due to the poor performance of share prices between 2006 and 2010," said Wilkins. "Shares make up a higher proportion of wealth for the very wealthy, so they are not very important to people with less money.""In 2002 to 2010 there was less wealth inequality, primarily due to the poor performance of share prices between 2006 and 2010," said Wilkins. "Shares make up a higher proportion of wealth for the very wealthy, so they are not very important to people with less money."
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