Rise in welfare cuts for unemployed recipients

A “large” number of unemployed welfare recipients have had their payment cuts off more than two million times over the past year for failing to show up to job interviews, but the Federal Government is adamant its crackdown is “working.”

More than 400,000 unemployed welfare recipients had their payments cut off more than two million times over the past year for failing to show up to a job interview.

New figures reveal there were 2.36 million payment suspensions in 2018-19, affecting 581,866 jobseekers.

Failure to attend a “Jobactive” appointment was the biggest reason, with 412,315 welfare recipients having their payments cut off 1.04 million times in the one year.

Almost 750,000 suspensions resulted from “mediocre” job searches and more than 546,000 were for not attending activities such as Work for the Dole or volunteering. A further 3436 jobseekers faced one or more payment suspensions for misconduct at a meeting, activity or interview. including verbal or physical abuse.

Employment and Skills Minister Michaelia Cash said the focus was to “get people off welfare and into work”.

“What these figures show is a large cohort of Jobactive participants not taking their mutual obligations seriously,” she said. “While the number of payment suspensions is still far too high, and taxpayers would expect better, the numbers show the new targeted compliance framework is working, with most of the misconduct and transgressions occurring once or twice.”

Senator Michaelia Cash wants more Australians working.

Across Australia, 88,726 welfare recipients were kicked off payments entirely after receiving a suspension and failing to “re-engage” with their provider in 28 days.

In Victoria, 20,132 people were kicked out of the system.

More than 580,000 job­active participants — welfare recipients deemed able to work — had payments suspended during the 2018-19 financial year. In Victoria, 150,837 welfare recipients had their payments cut off, while there were 535,332 suspensions.

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Under a new compliance system introduced in July last year, welfare recipients’ payments are automatically suspended if they fail to attend an appointment or interview or behave inappropriately in a meeting.

The new figures come as the Morrison Government has announced plans to drug test welfare recipients in three trial areas and roll out the cashless welfare card nationally.

People who fail the drug tests will be put on income management.

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