New plan to break welfare trap

Australians stuck in the welfare trap could soon be forced into new rules and programmes to help them break the cycle of dependency.

Christian Porter. Photo: Twitter
Christian Porter. Photo: Twitter

A long-awaited report into the impact of long-term welfare reliance is set to be released today by the federal government.

The result of years of analysis, it will show how 4370 young parents will remain on benefits for long periods of time because they will have more kids, costing the taxpayer some $A2.4 billion ($NZ2.48 billion) over their lifetimes.

Most of those young mothers getting welfare for the first time had a parent who also received benefits at some stage of their life.

On students, the report shows that almost 30% of those who have received study payments will draw on the system at some point over the next 60 years.

About 594 students who have moved onto payments such as unemployment benefits straight out of study will continue to seek benefits each year for the rest of their lives.

On young carers, almost half of the 11,000 getting welfare are predicted to remain on benefits over the next 70 years, costing $A5.2 billion.

Social Services Minister Christian Porter, who will release the report at the National Press Club in Canberra today, is set to use the data to call for a revolution in the way social security is paid.

While welfare has long been considered a helping hand to those in times of need, it wasn't good enough that passively giving money to people turned some into dependents.

"For too many people inside the system the money flows but nothing changes and lives are not improving," he said.

No longer would welfare be a "set and forget" payment.

"Instead we will target new programs and rules and then measure rigorously what works and what doesn't," he said.

"The helping hand of welfare should wherever possible be a helping hand out of the system, not help that sees people stay in the system for life."

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