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| Welfare quarantining on agenda despite evidence of ineffectiveness | |
| (35 minutes later) | |
| The Coalition has left the door open to expanding welfare quarantining across Australia, despite one of the most comprehensive reviews of the policy finding that, in the longer term, it was more about controlling people than helping them change their behaviour. | The Coalition has left the door open to expanding welfare quarantining across Australia, despite one of the most comprehensive reviews of the policy finding that, in the longer term, it was more about controlling people than helping them change their behaviour. |
| The social services minister, Kevin Andrews, dismissed reports that the Abbott government is planning to expand the quarantining of welfare but said an evaluation of the practice had been requested. | The social services minister, Kevin Andrews, dismissed reports that the Abbott government is planning to expand the quarantining of welfare but said an evaluation of the practice had been requested. |
| A spokesman for the minister said he was waiting for the results of a review before making any changes to welfare. | A spokesman for the minister said he was waiting for the results of a review before making any changes to welfare. |
| Welfare quarantine trials are being run at five sites and it is understood the government is expecting an evaluation to recommend an increase in the number of people having their welfare quarantined. | Welfare quarantine trials are being run at five sites and it is understood the government is expecting an evaluation to recommend an increase in the number of people having their welfare quarantined. |
| Welfare quarantining – also known as income management – sets aside 50% to 70% of a person’s benefit to be spent only on particular needs, such as food. | Welfare quarantining – also known as income management – sets aside 50% to 70% of a person’s benefit to be spent only on particular needs, such as food. |
| It has been used widely in the Northern Territory for years and in July last year the Social Policy Research Centre published a paper looking at the effects of different types of income management. | It has been used widely in the Northern Territory for years and in July last year the Social Policy Research Centre published a paper looking at the effects of different types of income management. |
| “There is little evidence to date that income management is resulting in widespread behaviour change, either with respect to building an ability to effectively manage money or in building ‘socially responsible behaviour’ beyond the direct impact of limiting the amount that can be spent on some items,” the report says. | “There is little evidence to date that income management is resulting in widespread behaviour change, either with respect to building an ability to effectively manage money or in building ‘socially responsible behaviour’ beyond the direct impact of limiting the amount that can be spent on some items,” the report says. |
| “As such, the early indications are that income management operates more as a control or protective mechanism than as an intervention which increases capabilities.” | “As such, the early indications are that income management operates more as a control or protective mechanism than as an intervention which increases capabilities.” |
| Welfare quarantining works by issuing people with EFTPOS-type cards which can only be used in approved shops or for specific goods. In some instances, Centrelink would prepay for the goods on behalf of the recipient. | Welfare quarantining works by issuing people with EFTPOS-type cards which can only be used in approved shops or for specific goods. In some instances, Centrelink would prepay for the goods on behalf of the recipient. |
| In the Northern Territory and at five trial sites across Australia, welfare is quarantined in four different ways, which could work as a blueprint for expansion to other parts of the country: compulsory income management for long-term unemployed and people labelled as having alcohol and gambling problems; child protection income management for those who come into contact with child protection authorities; and vulnerable income management for people Centrelink deems vulnerable, such as those being financially harassed. There is also voluntary income management. | In the Northern Territory and at five trial sites across Australia, welfare is quarantined in four different ways, which could work as a blueprint for expansion to other parts of the country: compulsory income management for long-term unemployed and people labelled as having alcohol and gambling problems; child protection income management for those who come into contact with child protection authorities; and vulnerable income management for people Centrelink deems vulnerable, such as those being financially harassed. There is also voluntary income management. |
| The report finds that many of the people put on compulsory income management were capable of looking after their own finances and that the welfare quarantining led to “considerable feelings of disempowerment and unfairness”. | The report finds that many of the people put on compulsory income management were capable of looking after their own finances and that the welfare quarantining led to “considerable feelings of disempowerment and unfairness”. |
| The report notes the overwhelming majority of people put on income management were Indigenous and their welfare remained quarantined much longer than that of non-Indigenous. | The report notes the overwhelming majority of people put on income management were Indigenous and their welfare remained quarantined much longer than that of non-Indigenous. |
| It also finds that for some, welfare quarantining had a positive impact, and they chose to remain on it. | It also finds that for some, welfare quarantining had a positive impact, and they chose to remain on it. |
| “Among Indigenous people on income management, there was a statistically significant perception of an improvement in their ability to afford food,” the report says. However, noting an apparent discrepancy between perception and reality, it adds: “Relative to the control group there was no reduction in the extent to which they reported running out of money for food.” | “Among Indigenous people on income management, there was a statistically significant perception of an improvement in their ability to afford food,” the report says. However, noting an apparent discrepancy between perception and reality, it adds: “Relative to the control group there was no reduction in the extent to which they reported running out of money for food.” |
| “Many people subject to income management reported that it makes little practical difference to their lives.” | “Many people subject to income management reported that it makes little practical difference to their lives.” |
| The Social Policy Research Centre will continue to collect data on income management until next year when another report will be published. | The Social Policy Research Centre will continue to collect data on income management until next year when another report will be published. |
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