Welfare to Work

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Welfare to Work Service Delivery at the Local
Level
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Why Welfare Reform?

• Australia is currently experiencing an ageing
  workforce and high levels of welfare dependency.
• Only 15 of the 2.5 million working age
  Australians currently on income support are
  required to actively search for a job.

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Reform Principles

• For working age Australians
• Best form of income comes from a job not
  welfare.
• Services for people with a job search requirement
  should be focussed on getting them prepared
  for, and into, work.

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Increased Participation

• Increases in participation rates are associated
  with the introduction of compulsory requirements.
• Employment outcomes have increased significantly
  for even the most highly disadvantaged job
  seekers.

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Consultations

• Consultations have occurred nationally with a
  range of organisations
• feedback from these consultations has resulted in
  a comprehensive and considered Welfare to Work
  package.
• DEWR will continue to consult on guidelines to
  ensure smooth implementation and service
  delivery.
• State Governments are also being consulted
  on key issues.

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Services

• A significant investment in services to help
  people move from welfare to work.
• New services
• Comprehensive Work Capacity Assessments (for
  people with disabilities)
• Pre-vocational Participation Account
• Employment Preparation
• Wage Assist

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Services

• Expansion of existing services (places over 4
  years)
• Job Network 224,000
• Disability Open Employment Services 20,000
• Vocational Rehabilitation 40,000
• Personal Support Programme 20,000
• Work for the Dole 55,000
• Community Development Employment Projects
  6,000
• NEIS 1,000
• Job Placement, Employment and Training
  200
• Child Care (FaCS portfolio)
• Additional Child Care places 87,800
• JET Child Care 52,000
• Education and training (DEST portfolio)
• LLN 2,900
• Career Counselling 6,600
• VET 12,300

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Priority Groups

• People with disabilities
• From 1 July 2006, DSP, will be for people with
  less than 15 hours work capacity (new
  claimants), who do not need ongoing support in
  the labour market.
• New applicants with a capacity of 15 hours or
  more will be placed on Newstart and will have a
  part-time work requirement.
• Substantial additional places will be made
  available in existing services.
• New services Comprehensive Work Capacity
  Assessment service and the Pre-Vocational
  Assistance Participation Account.
• Access to new Employment Entry Payment and
  increased Mobility Allowance.

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Priority Groups

• Parents - Three groups of parents all with part
  time participation requirements
• Those on parenting payment immediately prior to 1
  July 2006 will be grandfathered
• participation requirements start when the
  youngest child turns 7, or 1 July 2007, whichever
  is the latter.
• Single parents who claim after 1 July 2006 go on
  parenting payment if youngest child is under 8,
  or another payment (typically Newstart Allowance)
  if over 8
• Participation requirements start when the
  youngest child turns 6.
• Partnered parents who claim after 1 July 2006 go
  on parenting payment if youngest child is under 6
  or another payment (typically Newstart Allowance)
  if over 6
• Participation requirements start when the
  youngest child turns 6.

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Priority Groups

• Some parents will be eligible for exemptions and
  also, carer payment will be expanded
• Registered, active foster carers, or those home
  schooling or providing distance education will
  get exemptions of up to 52 weeks (reviewable) and
  single parents will get a higher rate of Newstart
  that is always equal to PPS.
• Other parents eligible to seek case by case
  exemptions include those with a disabled child, a
  large family, or those who are subject to
  domestic violence around the time of separation.
• In addition, carer payment is being expanded so
  more parents with disabled children can
  claim that payment.

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Priority Groups

• Mature age people (aged 50 and over on Newstart)
• Same job search requirements as younger group.
• If 55 or over can meet requirements through
  voluntary work of 15 hours/wk.
• New services Employment Preparation and NEIS
  places, including for those not on income
  support.
• Very long-term unemployed
• Referral to CWCAs for those with severe barriers.
• Wage Assist.
• F/T Work for the Dole for non genuine job
  seekers.
• Job Network

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Fairer ComplianceSafeguards for parents, people
with disabilities and other
vulnerable job seekers

• Clearer link between payment and participation.
• Additional warnings will minimise the possibility
  of penalties being applied inappropriately.
• Penalties will not start until the pay period
  following the one in which Centrelink learns of
  the initial failure.

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Fairer Compliance Continued

• Review and appeals process maintained.
• Serious penalty alert process before deciding 8
  week penalties.
• Case management and limited financial assistance
  available for parents and extremely vulnerable
  job seekers in 8 week penalty period.

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Next Steps

• Discussion of legislation with key peak
  organisations.
• Guide to the Social Security Act.
• New purchasing arrangements.
• Major changes to IT systems.
• Work closely with Centrelink.
• Service delivery at the local level.