Pensioners demand payment increase

About 200 pensioners have gathered at the Melbourne Town Hall to demand an increase in their payments.

The Government is giving pensioners a one-off payment of $1,400 next month, but they say it will not be enough to cover the rising cost of living.

Seniors groups want the Federal Government to increase the pension rate from 25 per cent of average weekly earnings, to 35 per cent.

The Council on Ageing spokeswoman Patricia Reeve says pensioners are struggling to survive.

"Some people are talking about a $30 a week increase and that's just not enough that won't make the difference that's required," she said.

"The other thing is Government has many calls on it. We're asking a whole community to say to the Government it's time to do something about pensions."

Related:

Sydney pensioners rally for long-term reform
Pensioner, retiree and welfare groups have rallied together in Sydney, calling on the Federal Government to improve their standard of living.

Govt considers payment increase for 'vulnerable' pensioners

The Federal Government is considering increasing its payments to single pensioners after a discussion paper found they are particularly vulnerable to cost of living pressures, with many possessing limited assets.

However, a decision will not be made by the Government until after next February, when the results of a review by the Department of Families, Housing, Community Services and Indigenous Affairs into pensions will be handed down.

Today's discussion paper, released by Community Services Minister Jenny Macklin, has found those on the single aged pension are on a lower rate compared to other developed countries.

The single pension rate sits at 60 per cent of the combined couples' rate at $273.40 a week. Couples receive $456.80 a week.

The report found in a comparison with 11 other OECD countries, Australia sits under the average of 63 per cent.

In other countries the single aged pension as a percentage of the pension for couples ranged from 57 to 75 per cent.

The report also says there are more than 2 million older Australians - about 80 per cent of those over 65 - who are dependent on aged pensions, with more than half of those on a "very, very low" additional private income of around $20 a week.

It also found that around 30 per cent of pensioners have a bank balance of less than $1,000 and pensioners, including those on disability payments, have been receiving benefits for around 11 to 13 years.

"Not only are many, many Australians on low levels of income, they are on these low levels for a long period of time," Ms Macklin said.

"What this demonstrates to us is that it's very important that we get the maximum rate of income support at a level that enables people to have a reasonable standard of living."

Ms Macklin has promised the Government will respond quickly to the review's recommendations when it reports in February as to whether it will make increases to the amount paid to pensions.

"We understand that money will need to be spent, but it's important that we get this right because such a significant number of people are dependent on these pensions," she said.

"That really is a matter that will be worked through in the first instance by the review as they make assessments about the best way forward."

The review is accepting submissions until September and will hold a number of public hearings around the country.

The review taskforce is also working closely with the Henry review into taxation, which is also examining pensions.

Retailers' warning on welfare card shop spies

EMPLOYEES across the country will be at risk of entrapment by government "spies", retailers have warned, under a Federal Government proposal to control fraudulent use of a new welfare debit card.

Cardholders will have about half their benefits quarantined under the scheme, in which money credited to the Eftpos-style card can only be spent at approved retailers on essential items such as food, clothing and petrol.

The scheme will be introduced into indigenous communities in the Northern Territory next month before being extended nationally.

The Australian Retailers Association has objected to the way the scheme will be monitored, describing as sinister and absurd the proposal by the Human Services Minister, Joe Ludwig, to use random audits and "secret shoppers" to ensure the cards are not being used fraudulently.

The association's executive director, Richard Evans, said although the retail sector had used secret or shadow shoppers for years, the practice was about improving customer service and not about spying on employees.

"They will be sending government spies in to create fraud," Mr Evans said, referring to Senator Ludwig's suggestion that Centrelink inspectors would pose as social security clients and attempt to buy excluded items such as alcohol and tobacco with the card.

Mr Evans said teenaged employees were particularly vulnerable, as they would not feel they had enough authority to tell someone much older or intimidating what they could or could not buy with their card.

"If they succumb, then the retailer and their employee will be penalised by the Government for applying its own program … it's just stupid."

But Senator Ludwig said the debit card was being introduced because "local businesses were crying out for a better system … they felt the existing system had left them out of the game".

The system would also allow recipients to choose from a wider range of shops than the current income management system operating in the Northern Territory under the previous government's intervention policy, where credit for welfare recipients was deposited directly to a limited number of shops.

Senator Ludwig said the Government was committed to compliance because the purpose of income management was to ensure welfare payments were spent in the interests of children.

"The Government is considering a range of practical ideas to help the system work effectively on the ground," he said. "No decision has been made on this issue."

The Australian Council of Social Service has already signalled its opposition to the card, saying the quarantining of benefits will keep disadvantaged families in a rut and not allow them to move out of their crisis.

The Opposition's spokesman for families, Tony Abbott, has said the card will become an administrative nightmare.

Related:

Budget to roll out new welfare card
Welfare plan: The new card will be initially rolled out in NT Indigenous communities. The Australian Council of Social Service (ACOSS) says the Rudd Government's proposed welfare debit card is not the best way to help struggling families.