Analysis of the payees affected financially by the Welfare to Work changes focused on those who may have qualified for Parenting Payment Single (PPS) if Welfare to Work rules for single parents had not been introduced. As at 1 July 2008, the difference between receiving Parenting Payment Single (PPS) and receiving the Newstart Allowance ‘with child’ was $37 per week.
Just over half of the parents in this analysis (54 per cent) at one stage received PPS before transferring to a reduced rate of income support (Newstart Allowance or a related benefit). The other 46 per cent did not qualify for PPS under the new rules. This group went directly onto Newstart Allowance or a related benefit.
Around 10,700
1 single payee parents were financially affected by both the Welfare to Work changes outlined above and child support changes. The net changes in child support liabilities and modelled FTB were similar to the results for payees overall, as shown in Table 1 below. There were slight differences in the proportions of payees having no change (18 per cent of the welfare to work cohort compared to 13 per cent overall) and in those experiencing a net increase (33 per cent of the welfare to work cohort compared to 37 per cent overall).
Approximately 38 per cent of the 10,700 parents have an income over than $15,000. This indicates that they had earnings in addition to income support payments.
Approximately 33 per cent of the 10,700 parents had a net increase in combined child support and FTB, around 49 per cent had a net loss and the remaining 18 per cent experienced no change. Table 2 shows the magnitude of this impact. Most parents experienced a change of $20 per week or less, with many having a change of $10 per week or less. For most (92 per cent) of the parents who experienced a change, the change represented less than 21 per cent of their child support and FTB entitlement.
Table 1: All payees compared to payees who are financially affected by the welfare to work changes: by combined child support and FTB net gains and losses by group
| Group |
Net gain |
Net loss |
No change |
Total |
|
No. |
% |
No. |
% |
No. |
% |
No. |
% |
| All receiving parents |
224,600 |
37 |
299,300 |
49 |
81,100 |
13 |
605,100 |
100 |
| Parents with a financial impact as a result of Welfare to Work |
3,500 |
33 |
5,300 |
49 |
1,900 |
18 |
10,700 |
100 |
|
Numbers and percentages may not add due to rounding
Results are actual child support and modelled FTB
The full list of caveats should be considered when interpreting this data |
Table 2: Combined child support and FTB changes by net gains and losses of combined child support and FTB change per week for the parents financially affected by the Welfare to Work changes
| $ Per Week Net Change |
|
Net increase |
Net decrease |
No change |
Total |
|
No. |
No. |
No. |
No. |
| $0.01 ‐$10.00 |
|
1,000 |
2,100 |
- |
3,100 |
| $10.01 ‐$20.00 |
|
1,000 |
1,600 |
- |
2,600 |
| $20.01 ‐$30.00 |
|
450 |
600 |
- |
1,100 |
| $30.01‐$40.00 |
|
500 |
300 |
- |
800 |
| $40.01 ‐$50.00 |
|
200 |
200 |
- |
400 |
| $50.01 ‐$60.00 |
|
150 |
150 |
- |
300 |
| More than $60.00 |
|
150 |
400 |
- |
500 |
| TOTAL |
|
3,500 |
5,300 |
1,900 |
10,700 |
| Overall percentage |
|
33% |
49% |
18% |
|
|
|
Numbers and percentages may not add due to rounding
Results are actual changes in child support liabilities and modelled FTB
The full list of caveats should be considered when interpreting this data | |