Older disabled women adversely affected by welfare to work changes

The National Foundation for Australian Women has expressed grave concern at the effects of the changes to disability pensioners under the Federal Government’s Welfare to Work policy NFAW spokesperson, Marie Coleman, Chair of the NFAW Social Policy Committee said today. Mrs Coleman was releasing the report of analysis carried out through the NFAW

Mrs Coleman said that the NFAW had also commissioned the National Centre for Economic and Social Modelling (NATSEM) at the University of Canberra to model the impacts of the Welfare to Work policy on sole parents. Those results will be released on 31 August.

Mrs Coleman went on to say: ’ the analysis carried out for the NFAW on disabled people shows that the effects of placing new applicants for the Disability Support Pension (DSP) onto the Newstart Allowance demonstrates that older women in particular will be adversely affected.

‘Between 2001 and 2004, the number of DSP recipients grew by 72,816. Almost all the growth is due to demographic changes: with population ageing a higher proportion is in the ages where disability is more common.

‘If demographic changes are taken into account, the only real growth was among women aged 60-64. This is due to the fact that the women’s age pension age is being gradually raised.

‘Women who would formerly have transferred to age pension at the age of 60 now remain longer on DSP.

‘The proportion of older men receiving DSP has actually fallen over the period.

‘The Newstart assets test regime is really unfair on older people – the sudden death cut-out means that if they have retirement savings they may have to run them down because they are precluded from Newstart – which means poverty in old age, particularly because of their disability.

‘Another issue is that the costs of disability and the ability to work are not necessarily related. Most PWD have some extra costs because of disability, but some can work and have severe costs, while others can’t work at all but don’t have high disability related costs. It depends on what’s wrong with them.

‘The Welfare to Work policy will give an increase in mobility allowance, which is a slight help. But a non-means tested disability allowance is needed, whether people are in paid work or not.

‘We also recognise the potentially very adverse effects of the use of Newstart provisions on people with mental health problems, whose conditions are frequently not stable.

‘ This policy is potentially very punitive towards people of all ages who have severe disabilities.

“ The NFAW would prefer to see disabled men and women allowed to remain on the current DSP, with much more intensive support and case management provided to support and assist them to be re-trained in vocational or professional occupations, and as wellservices to assist them in work-place settings wherethese are appropriate to their needs.”

CONTACT Marie Coleman (02) 6248 6937 041 4483067
Julia Perry 0418 404