Thursday, July 16, 2020

Broken benefit system?

Obviously the sharp increase in benefit numbers to 353,440 or 11.8% of the working-age population at the end of June is a result of the economic response to Covid.

However there are other factors contributing to increased numbers.

Firstly benefit cancellations for medical reasons have dropped right away. That means people are not getting fixed in the health system. The issue hasn't been getting a lot of coverage yet but the growth in waiting lists must be significant. Firsthand experience and plenty of anecdotal evidence tells me this is the case.

Secondly sanctions have been all but suspended due to resources going into processing new applications. With the Greens actively campaigning for sanctions to go permanently one wonders if they will ever be re-instated. Without sanctions there is no point in obligations. Without obligations the system is open slather.

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