UNSW: The University of New South Wales - Sydney Australia - News - Penalties cause hardship, debt, homelessness and risky behaviour: new findings

20 October 2005

Penalties imposed on income support recipients for not meeting Centrelink requirements can cause homelessness, increase risk-taking behaviour such as drug and alcohol-use, and impede future compliance, according to new research from the University of New South Wales (UNSW).

The findings were released today as part of a report on the impact of income support penalties (known as 'breaches') on unemployed recipients. The study, completed by the Social Policy Research Centre (SPRC) at UNSW, involved a national telephone survey of 1054 unemployed people who were breached in late 2002. In-depth qualitative interviews and a national survey of 99 welfare agencies dealing with unemployed people were also conducted.

Chief investigator and senior research fellow at UNSW Tony Eardley believes the situation could be worse than the research indicates. "Contacting people by phone means we inevitably missed out on hearing the stories of some of the most disadvantaged people, such as those who were homeless at the time, so it's possible our study under-estimated the worst impacts," he says. "Even so, it's clear that many people who get breached have a very hard time without it necessarily improving their capacity to look for work effectively."

In response to an open-ended question about the impact of the most recent breach, fewer than seven percent of people surveyed reported increased participation in job search or work. When prompted most respondents reported looking harder for work, but many said breaching made this more difficult. Welfare agencies also felt penalties did not assist their clients to comply with income support obligations.

Key findings

Two-thirds of respondents felt the level of penalties were too harsh and that Centrelink didn't take people's circumstances properly into account
Attitudinal responses showed nearly two-thirds agreed that having their payments cut made them more determined to find work but three-fifths also said that it made it harder for them to look for it
Eighty percent felt it was fair for Centrelink to breach people who were not 'doing the right thing'
Unemployed under-25-year-olds and Indigenous respondents were more likely to be penalised than older people
Up to 20 percent reported losing their accommodation or having to move to cheaper housing
Seventeen percent reported having to cut down on medication they needed
Thirteen percent increased potentially harmful behaviours such as drinking and drug-use
Friends and family played a crucial safety net role in alleviating the more serious impacts.

The Commonwealth Department of Family and Community Services commissioned the study.

For a full copy of the report and to arrange interviews contact:
Alex Clark, Media Office 02 9385 3263/0405 237 553 alex.clark@unsw.edu.au

Date issued: 19 October 2005

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	MEDIA, NEWS & EVENTS Penalties cause hardship, debt, homelessness and risky behaviour: new findings 20 October 2005 Penalties imposed on income support recipients for not meeting Centrelink requirements can cause homelessness, increase risk-taking behaviour such as drug and alcohol-use, and impede future compliance, according to new research from the University of New South Wales (UNSW). The findings were released today as part of a report on the impact of income support penalties (known as 'breaches') on unemployed recipients. The study, completed by the Social Policy Research Centre (SPRC) at UNSW, involved a national telephone survey of 1054 unemployed people who were breached in late 2002. In-depth qualitative interviews and a national survey of 99 welfare agencies dealing with unemployed people were also conducted. Chief investigator and senior research fellow at UNSW Tony Eardley believes the situation could be worse than the research indicates. "Contacting people by phone means we inevitably missed out on hearing the stories of some of the most disadvantaged people, such as those who were homeless at the time, so it's possible our study under-estimated the worst impacts," he says. "Even so, it's clear that many people who get breached have a very hard time without it necessarily improving their capacity to look for work effectively." In response to an open-ended question about the impact of the most recent breach, fewer than seven percent of people surveyed reported increased participation in job search or work. When prompted most respondents reported looking harder for work, but many said breaching made this more difficult. Welfare agencies also felt penalties did not assist their clients to comply with income support obligations. Key findings Two-thirds of respondents felt the level of penalties were too harsh and that Centrelink didn't take people's circumstances properly into account Attitudinal responses showed nearly two-thirds agreed that having their payments cut made them more determined to find work but three-fifths also said that it made it harder for them to look for it Eighty percent felt it was fair for Centrelink to breach people who were not 'doing the right thing' Unemployed under-25-year-olds and Indigenous respondents were more likely to be penalised than older people Up to 20 percent reported losing their accommodation or having to move to cheaper housing Seventeen percent reported having to cut down on medication they needed Thirteen percent increased potentially harmful behaviours such as drinking and drug-use Friends and family played a crucial safety net role in alleviating the more serious impacts. The Commonwealth Department of Family and Community Services commissioned the study. For a full copy of the report and to arrange interviews contact: Alex Clark, Media Office 02 9385 3263/0405 237 553 alex.clark@unsw.edu.au Date issued: 19 October 2005
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Penalties cause hardship, debt, homelessness and risky behaviour: new findings