People receiving JobSeeker are around five times more likely to experience multiple deprivation than the general population, according to a new report by the Poverty and Inequality Partnership led by ACOSS and UNSW Sydney.
Material deprivation in Australia: the essentials of life found about one in two people relying on JobSeeker and one in three sole parents are experiencing multiple material deprivation, compared to about one in twelve people nationally.
Multiple material deprivation is when a person lacks two or more essential items because they can’t afford them. Examples include a decent and secure home, a yearly dental check-up and $500 in savings for emergencies.
The report found eight groups of people are particularly at high risk of multiple deprivation: people relying on JobSeeker Payment; Parenting Payment, Disability Support Pension or Youth Allowance, sole parent families, First Nations people, and those renting social housing or privately.
For example, more than one in three people relying on JobSeeker are deprived of having at least $500 in savings for an emergency, one in three can’t afford home contents insurance and one in five are deprived of dental treatment when they need it.
The report found:
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People on JobSeeker are around five times more likely to lack two or more essential items than the general population (45% vs 9%).
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People receiving a Parenting payment are around four times more likely to lack two or more essential items (38%).
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Sole parents (29%) and First Nations people (32%) are three times more likely to lack two or more essential items
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Private renters are twice as likely to experience ‘multiple deprivation’ compared with the general population (19%).
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People receiving JobSeeker are 14 times more likely to lack a substantial meal at least once a day; almost 9 times more likely to lack a mobile phone or a motor vehicle; and 8 times more likely to lack access to the internet at home or a washing machine
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81% of people with incomes below the poverty line and experiencing multiple material deprivation have low wealth
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50% of unemployed households experience multiple deprivation, lacking two or more essential items.
The report, using data from the Household, Income and Labour Dynamics in Australia Survey, identified 23 essential goods and services considered by a majority of people living in Australia as things that nobody should have to go without, and measured how many people lack those items because they cannot afford them.
The items which people on income support payments most often lack are protections against future risks including at least $500 in emergency savings, home contents insurance or comprehensive car insurance; items for children including new school clothes or a hobby or leisure activity; health items including dental treatment when needed; and getting together with friends or relatives at least once a month for a drink or meal.
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Percentage of people deprived of essential items by payment type |
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|
Essential item |
JobSeeker Payment |
Parenting Payment |
Youth Allowance |
|
$500 in savings |
36.6% |
39.0% |
15.9% |
|
Home contents insurance |
38.3% |
31.6% |
22.2% |
|
Dental treatment when needed |
18.5% |
16.1% |
10.6% |
|
Comprehensive motor vehicle insurance |
22.3% |
20.0% |
11.4% |
|
New school clothes for school-age children every year |
8.1% |
7.5% |
N/A |
“People receiving income support are experiencing multiple material deprivation at rates that far exceed the general population,” said ACOSS CEO Dr Cassandra Goldie.
“This tells us that JobSeeker, Youth Allowance and related payments are so woefully low that people can’t afford the basic essentials of life.
“The extremely high rate of people with low wealth (81%) among people with incomes below the poverty line who are experiencing multiple deprivation shows the important role that wealth plays as a protection against poverty.
“In its upcoming Budget, the Federal Government must raise income support payments to liveable levels, fix employment services, boost social housing and enact a jobs, services and training plan to reduce long-term unemployment. These policies will go a long way to reducing poverty and material deprivation across Australia.”
Melika, who lives in Lake Macquarie and receives the Single Parenting Payment, has put off essential medical appointments for more than a year because she “simply can’t afford them. I need these tests due to the toll poverty has taken on my health. Medicare doesn’t cover the costs and without support, I have no way to access the care I need,” Melika said.
“Living in social housing has brought new challenges… I can’t afford to stay connected with friends and I ignore my electricity bills. This isn’t just financial deprivation, it’s an ongoing struggle that affects every part of my life.”
Lead author of the report, Dr Yuvisthi Naidoo, UNSW Senior Research Fellow, said: “This research highlights that Australia’s income support system is failing to provide adequate protection against deprivation. Income support payment levels are set assuming that everyone has access to universal healthcare and adequate social services - but the high rates of people lacking dental and medical care shows that assumption is flawed.”
Jesuit Social Services CEO Julie Edwards said: “Through our programs supporting people and communities on the margins, we know that people receiving income support are often having to make extraordinarily difficult decisions about choosing whether to pay for medication or their children’s school supplies. This report puts in stark focus the material deprivations that people are experiencing every single day.
“We have long known that the income support system is inadequate and does not allow recipients to lead dignified lives - let alone during a cost-of-living crisis like we are currently in. We call on our political leaders to lift income support to allow recipients to live above the poverty line and increase their ability to afford access to essentials.”
Mission Australia CEO, Sharon Callister said: "This report confirms what our frontline workers see daily: despite Australia’s wealth, too many people on the lowest incomes who rely on income support, or rent social housing, are struggling to afford life’s essentials and are living in deprivation.
“Homelessness and poverty are closely linked. Without urgent action, more people across Australia will be left behind and at risk of homelessness. Mission Australia calls for an increase in JobSeeker and other income support to $82 a day and a 60% boost to the maximum threshold of Commonwealth Rent Assistance. We also need a commitment to building one million new social and affordable homes over the next 20 years, alongside a $500 million Homelessness Prevention Transformation Fund. Now is the time for a long-term commitment to end homelessness and poverty in Australia.”
UNSW Vice-Chancellor and President Professor Attila Brungs said the report demonstrates the needs faced by a growing number of people in Australia.
“The core mission of an Australian university is contributing to a better society through our education, research and engagement on critical issues. At UNSW we believe it is critical that all parts of society benefit, and we want to help build a better, fairer and more equitable Australia,” he said.
“UNSW is very proud to partner with ACOSS to deliver the Poverty and Inequality report. The leading academics from UNSW who worked on this research have provided robust findings. They will help drive policies to address poverty and inequality more effectively, and help advance economic and social prosperity for all.”
JobSeeker is currently $56 a day. ACOSS wants it to match the pension rate of $82 per day.
Contact details:
Lauren Ferri: 0422 581 506