Hon Anne Tolley

Minister for Social Development

5 November 2015

Another step forward for Child Hardship Bill

Social Development Minister Anne Tolley says the Support for Children in Hardship Bill has passed its second reading in Parliament.

“This Bill raises benefit rates for the first time in 43 years, while continuing to balance increased support with increased expectations and obligations,” Mrs Tolley says.

The Bill supports the Government’s Budget 2015 Child Hardship package which:
· increases part-time work obligations for sole parents,

· increases benefit and student allowance rates for those with children by $25 per week after tax,

· increases Working for Families payments to low-income families not on a benefit, and

· increases Childcare Assistance for low-income families.

“We’ve recognised that while the incomes of working families have increased over time, those on a benefit haven’t seen any real change above inflation. This package provides that increase, while maintaining an incentive to move into paid employment,” Mrs Tolley says.

“Our focus has always been, and continues to be, helping beneficiaries into long-term, sustainable employment. The changes in this package continue to support those who need it and focus on work as the best route out of poverty,” Mrs Tolley says.

This package is expected to reach more than 380,000 children in low-income families and 190,000 children in benefit-dependent families.

“We know that two thirds of children in more severe hardship have a parent on a benefit, and nine out of ten of those are sole parents. This package complements our existing welfare reforms, where we’re already seeing significant results,” Mrs Tolley says.

“Between September 2012 and September 2015 the number of people receiving Sole Parent Support has fallen by over 19,000, an almost 22 per cent drop and there are now 42,000 fewer children in benefit dependent homes.

“This package is the next step in helping families in more severe hardship and supporting them to live independent and successful lives.”

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