Emergency welfare money actually lifted people above the poverty line

The federal government's pandemic welfare supplements actually lifted some of the country's poorest people above the poverty line.

But as soon as those payments were reduced, they went straight back under, according to new research conducted by RMIT University economics professor Dr David Hayward and the Victorian Council of Social Service.

VCOSS chief Emma King says for a few months, people living in poverty could actually pay their bills and buy healthy food.

“It proves ending poverty isn’t a pipe dream, it’s achievable,” she said.

The researchers tracked welfare recipients of nationwide household income support measures worth $27.5 billion from the start of March to the end of October.

They found that households where both adults are unemployed were among those groups that benefited the most during this period, thanks to an extra $275 in welfare payments, reports InDaily.

These households went from 20 per cent below the poverty line to 65 per cent above it.

Students receiving Austudy also went from 48 per cent below the poverty line, to 13 per cent above it.

However, by January, households where both adults are unemployed will be living just above the poverty line, and Abstudy students will be living 30 per cent below it.

Do you think the benefits of supporting the nation's poorest could outweigh the extra cost to the government?

3 comments

But it's still OK for pensioners to have income below the poverty line.

Not only is it ok, in a the current climate it Seems to be encouraged. Apparently if you don't have a job you Are more worthy of help than those unable to work due to age or infirmity

The unemployment benefit is well below the level of the single age pension. This government has the attitude, along with many of the well heeled in society, that the only way to get people into work is to keep them in poverty. This has been shown time and again to be untrue. The facts are that there are many more people unemployed than there are job vacancies.

It is also a fact, despte the government refusing to accept it, that any increase in unemployment benefit feeds straight back into the economy. This is not the case with tax cuts to the well off. If they were geniuinely trying to help the economy instead of playing political ideological games the government would raise the unemployment benefit, or whatever they want to call it now, using the money they have earmarked for the tax cuts that will only really benefit the rich. 

3 comments



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