Welfare recipients excluded from coronavirus disaster support payments

Almost one million welfare recipients living under lockdown are excluded from government’s new Covid income support payments.

Angela is in lockdown in Western Sydney and is receiving a small amount of JobSeeker. But the small income payment means she is ineligible for receiving the coronavirus disaster payment. Picture: John Feder

The Australian Council of Social Services has lashed the federal government’s coronavirus disaster payments for excluding almost one million welfare recipients living under lockdown.

As more than half of the country is forced to follow stay-at-home orders, Australians on the lowest incomes have been locked out of the government’s new income support payments.

A report released by ACOSS details the experiences of Australians receiving social security payments, who have either lost their part-time or casual employment or are unable to attend work due to lockdown restrictions.

A survey of 88 welfare recipients in Greater Sydney’s lockdown found half were at risk of facing homelessness and all were struggling with the cost of living.

Australians living in a commonwealth-declared Covid-19 hotspot are eligible for a $375 disaster payment if they’ve lost between eight and 20 hours of work and $600 if they’ve lost 20 hours or more.

ACOSS chief executive Cassandra Goldie said the two-tiered system ruled out low income earners who received payments like JobSeeker or Youth Allowance from receiving additional support and kept them below the national poverty line.

“These are students, older women, single parents who have been hit hard by this pandemic again and again – how will they keep a roof over their heads or food on the table?” she said.

Ms Goldie has also called on the government to boost all the disaster payments to $600 per week.

“This is a public health issue – people can’t stay home in lockdown if they lose their home because they cannot afford to keep it,” she said.

“When federal parliament returns, we need to fix social security arrangements for lockdowns to deliver an income floor for all. This would ensure everyone can cover the basics, including a roof overhead, to keep everyone safe.”

The commonwealth payment is only accessible retrospectively – seven days after a lockdown has begun.

Western Sydney resident Angela, 56, had her 20 hours of part-time work at a local hotel evaporate as the city entered a lockdown last month.

Prior to lockdown, Angela received between $70-$150 per week of JobSeeker to supplement her part-time work. Now, confined to her house in Penrith, she must live on about $300 of JobSeeker a week.

“It feels the government has forgotten about us because we are treated differently to other workers who have lost hours and can get $600 a week,” she said.

The government has also waived the $10,000 asset test for the support, increasing the eligibility of recipients. Angela said she was devastated it allowed people in a more financially secure position than her to access the payments.

“I actually cried when I saw the Prime Minister announce he would waive the asset test,” she said.

“I’ve already had to access my super money. I’ll have nothing by retirement but I don’t have a choice.”