Homelessness services under pressure from low wages for workers

Workers providing homelessness services are missing out on wage increases being given to other support services, unions and homeless organisations warn.

Unions and homelessness groups say homelessness services have been ‘frozen out’ of a $560m Albanese government funding boost announced in the October budget. Picture: iStock

Demand for homeless services is peaking in the holiday season, but services are falling behind due to workers leaving over continuing low wages and concern for the future of their programs, unions and homelessness groups warn.

They say homelessness services have been “frozen out” of a $560m Albanese government funding boost announced in the October budget for improved wages in other service sectors such as youth and family violence, leaving nearly 300 people a day being turned away from support, a number that is increasing as the cost of living rises.

“When the minimum wage and award wages were increased by the Fair Work Commission, $560m was allocated by the federal government, but homelessness services were frozen out of that deal,” Australian Services Union assistant national secretary Emeline Gaske said.

“Homelessness services are feeling this crisis now, on the eve of Christmas. Workers are seeing peak demand for these critical services, but many are already leaving or thinking of leaving because of the funding uncertainty hanging over their programs.

“Services and workers are already struggling with 288 people turned away every day from their services due to insufficient capacity – and this number is increasing every month. Without urgent action from the federal government, these services will be crippled, right at the time when Australians need them more than ever.”

More than 270,000 people sought specialist housing and homelessness support last financial year. Homelessness organisations say higher interest rates and rents, on top of the issue around wages, is leaving services having to make decisions now about reducing programs or cutting them altogether.

“Without urgent action in the coming months, service providers will have no choice but to reduce the number of workers – they simply can’t keep staff that they can’t afford to pay – and that means reduced services to people in desperate need,” Homelessness Australia chief executive Kate Colvin said.

The federal government provides about $1.6bn a year to the states to fund homelessness and housing services and programs under an agreement that runs out mid-next year. A new deal is currently being negotiated.

“The government has an ambitious reform agenda to help address Australia’s housing challenges,” federal Housing Minister Julie Collins said.