Welfare controls: Solution or stigma?
Lynne Bell
ΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύ I admit my heart sank a little bit when my dear editor suggested the topic for his week's debate. However, after researching the issue, I have to admit that it is timely and relevant-both important factors to consider anytime you write for a newspaper-and especially if you live in a country where a federal election is looming.
ΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύ Kelly-who has spent time in Australia and New Zealand-brought me a copy of a story that ranΜύ in 2014 in an Australian national newpaper, in which recommendations were made to the then-Australian Prime Minister, Tony Abbott regarding a proposal to issue welfare recipients with a card that would ensure they used their state-issued benefits for necessities like food and clothing and effectively preventing them from using their payments to gamble or to purchase alcohol, cigarettes, home brew kits and/orΜύ pornography.
ΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύ My initial reaction was one of distaste and discomfort. After all, it's probably hard enough to ask for government assistance without having one's dignity and privacy compromised further. But reading on, I discovered that the recommendations were not entirely ill-advised or mean-spirited.
ΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύ The controversial proposal called for βAll welfare payments to all Australians, other than (old) age or veterans' pensions (to be) paid into a savings account, which could be accessed by a 'health welfare card.' It would be fully redeemable at any Australian shop that accepts Visa and MasterCard with electronic payment facilities.β The intention was to direct spending towards sustaining and supporting a healthy lifestyle for welfare recipients and their families, with the hope that any surplus money would remain in recipients' savings accounts for larger purchases.
ΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύ Predictably, the scheme had a lot of supporters and detractors, possibly in part because Australian mining magnate Andrew Forrest was the author of the proposal. However, the idea of the βhealthy welfare cardβ came about, in part, due to what one official called: βThe absolute destruction which alcohol is causing in some communities.β
ΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύ One of these communities, the ΒιΆΉΚΣΖ΅ Australian town of Ceduna, will be the site of a trial run for the card in 2016.
ΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύ The agreement to test the cards was reached after consultation with members of the community and local leaders.
ΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύ The town's mayor, Alan Suter says, βWe're very happy to support what we think will be a huge improvement for our community generally. The principal concern we are trying to address was the very sad situation where a very small minority of people are spending the bulk of the benefits they receive on the purchase of alcohol or gambling services.β
ΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύ According to the Australian federal government, Ceduna has a hospitalization rate from assault which is 68 times the national average, most of which is due to widespread alcohol abuse within the community. In addition, this town of 4,000 people racked up 4,500 admissions to one alcohol treatment centre within one year.
ΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύ The upcoming pilot project proposes that 80 percent of all welfare payments will be placed ontoΜύ debit cards and the remaining 20 percent will be placed into each individual's bank account.
ΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύ Critics have argued that these types of income controls stigmatize the poor, are costly to set up, and ultimately, have a detrimental effect on peoples' decision-making.
ΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύ However, if this project was combined with financial education and other forms of assistance designed to educate people with the intent of breaking the cycle of addiction and dependency-it may prove to be an investment in the future.
ΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύ Time will tell, but as Ceduna's mayor says, βWe're hoping this will be one of a series of steps to break the cycle.β
Μύ
Cashless welfare card doesnβt see full picture
By Kelly Running
ΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύ I came across an interesting article the other day about an Australian cashless welfare card.
ΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύ The topic has been presented in the House of Representatives in Australia last week. It would allow the government to put 80 percent of a welfare recipientβs dole money into a special account. This account could only be accessed via a debit card. Cash could not be taken out and the cards would not be allowed to be used for purchases such as gambling or buying liquor.
ΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύ The creation of the card by the Australian government is to attempt to address the alcohol, drug, and gambling abuse amongst people receiving welfare.
ΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύ However, not everyone is in favour of the change. Mining magnate, Andrew Forrest, was the first suggested the card and some are leery of whether it will actually benefit people.
ΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύ It is said that most people will receive $60 to $150 cash still, while the remainder of the monies will be placed in the special account.
ΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύ Speaking against the card was the Greensβ spokeswoman, Rachel Siewert, who said, βLimiting access to cash will severely restrict the ability to budget and decision-making. Whether it be at the markets, lunch money for their kids, or a bus fare β all these things add up and may not be available via card payment.β
ΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύ Before simply implementing the card, the Australian government has three trials being set up in different locations across their country to see how it will work.
ΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύ What others are concerned about, is that the card, comes from the belief that people who are receiving welfare are irresponsible and limitations must be placed on them.
ΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύ Focusing on alcohol, however, is being looked at by some as not being the root of all problems. Instead people are arguing that the real issues are much larger than limiting how much one can spend on alcohol. Instead the issues surround people without an education, who have trouble transitioning into the workforce, and who are unable to manage their money because of lack of know-how.
ΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύ Ceduna Aboriginal Community Leader, John Isgar, said in 2013, βI mean, if you got up in the morning and had nothing to do, why wouldnβt you go and have a grog?β
ΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύ The card is therefore seen as a being restrictive and paternalistic, a bandage, a solution that treats the symptom, but fails to address the larger issues within the Australian society.
ΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύ It doesnβt help people escape from a cycle of hopelessness or help educate them to make better choices. In fact an article, βCashless Welfare Card β an insult to all Australians,β written by Eva Cripps says, βThe cashless welfare card is nothing but a restrictive, paternalistic sledge-hammer response to dealing with problems that do not stem from alcohol or drug abuse at all. It is a Band-Aid solution to treat a symptom of a failed society. The cashless card does nothing to address the lack of hope, lack of opportunity, and lack of pride in self and community. It does nothing to empower the most vulnerable and marginalised people to make their own good decisions and choices.β
ΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύ βThe majority of people on welfare are not chronic drug abusers, alcoholics or gambling addicts. But many people on welfare are vulnerable, disadvantaged, and facing discrimination. They are facing outright hostility from the Abbott Government and his ministers, with labels of βΜύand β. The cashless welfare card is a blatant attempt to further shame and demonise welfare recipients. It perpetuates the idea that the poor are sucking the nation dry with their dependency on the richβ¦ which works against a fair, inclusive and supportive society.β
ΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύΜύ So, to some it is a way to try and combat alcoholism, yet to others it doesnβt address the real issues.
