ROLLING out income quarantining across the country would be "radically" cheaper per person than the current cost, according to the head of the new Department of Social Services.
At a Senate estimates hearing in which he was cross-examined on the Labor government's scheme by the Greens, department secretary Finn Pratt declared the cost was not expensive as had been assumed by its opponents.
Mr Pratt's views bolster the case being put by the Abbott government that income management could be rolled out at a lower per person cost to other disadvantaged people.
The Australian yesterday revealed a wider cross-section of welfare recipients in more disadvantaged communities would be forced to use their payments on essentials such as food, rent and clothing under an Abbott government plan to expand income quarantining.
Social Services Minister Kevin Andrews has ordered a fast-tracked "interim" evaluation of five existing welfare quarantining trials. The Coalition believes the scheme is too limited and needs better "triggers" to force people on to it.
Greens senator Rachel Siewert put to Mr Pratt that it was a "very expensive program" that cost between $6600 and $7900 a person to implement.
Mr Pratt said the department had estimated a broader rollout would be much cheaper. "That cost is based around a relatively small number of people participating," Mr Pratt said at the estimates hearing in February.
"If the government were to choose to expand income management substantially then the cost per person would go down radically . . . frankly, I suspect we need to see more people participating in income management before we can get really good trends."
Under the current scheme, implemented by the previous Labor government, a person could be forced on to income management if they were referred by a state or territory child protection authority, a Centrelink social worker or, in cases where they had rental arrears greater than a month, by a state housing authority.
Volunteers have 50 per cent of their benefits quarantined to be spent on food, rent, clothing and other essentials using BasicsCards. Those forced into the scheme have 70 per cent of their benefits quarantined.
As of May 17, 423 people were on income management in five trial sites: Shepparton (Victoria), Bankstown (NSW), Logan and Rockhampton (Queensland), and Playford (South Australia). Of these, 391 were voluntary and 32 had been forced into the scheme.
National Welfare Rights Network president Maree O'Halloran said yesterday income management could be a good money management tool but it was very costly to implement.
"Where income management is applied against a person's wishes or in a blanket way across a whole group, it can take away decision-making capacity," she said.
"This is counter-productive if the ultimate goal is to assist people into paid work. Does Australia really want to be in the business of funding a mini-bureaucracy to micro-manage people's lives?"
www.theaustralian.com.au/national-affairs/welfare-control-not-expensive/story-fn59niix-1226731143104#
