Welfare reform will succeed with the right employment support

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 Welfare reform will succeed with high expectations and the right employment support!

Minister Morrison makes three points we can agree with;

  • “the best form of welfare is a job
  • the biggest welfare savings are driven by getting people into work
  • the NZ investment model uses actuarial evaluations to identify which risk factors drive long term welfare dependency and outlays, and what are amenable to early effective intervention”

Getting a job is good. Good for the individual and the federal budget. Investment in support that works is value for money.

Inclusion Australia presented two case studies of evidence based practice to the consultation — Audrey and David. These show that with the right right support, it is possible to get a job and reduce reliance on the pension. (Inclusion Australia’s submission to McClure Review)

Audrey and David are, however unique. Their provider is the only evidence based transition and open employment provider for people with significant intellectual disability — operating in Sydney and part of Melbourne. Their jobs were created by combining their strengths with the needs of employers — i.e. not jobs advertised by employers.

Audrey and David save the Commonwealth $15,906 annually (Table 1). Put in context, only 2.5% of all DS Pensioners earn more than $250 per week. The potential annual savings of providing the right support to 100,000 DSP recipients with intellectual & learning disability is between $0 and $1.6 Billion.

The Productivity Commission noted that effective transition support could save the Commonwealth considerable funds currently spent on more expensive non-work and supported employment options.

The Centre for International Economics (Table 2) found that the annual cost to the taxpayer (after pension offsets) for evidence based open employment was $4,206 per annum and this was far cheaper than alternate supported employment ($12,908) and state government programs ($17,667 – $23,884).

Changing to an evidence based system of support will require investment to develop this capacity. Inclusion Australia will be presenting a report to the Government and the National Disability Insurance Agency on building a national sector of evidence based transition and open employment support for all people with intellectual disability.

For people with intellectual disability, the best form of welfare is getting the right support to get a job.

Enquiries: Paul Cain,

0419 462 928,

paul.cain@inclusionaustralia.org.au

Tables:

MC report tables

Note Table 1: Figures based on DSP figures for adults 21 and over rates as at 20 September 2014.

Notes Table 2:

  1.  Most recent wages available for ADE are for 30/6/2008. Wage indexed to 30/6/2013 using minimum wage movements.

  2.  CBF funding and wage subsidy for 2012/13 year divided by the number of DES-ESS clients on 30/6/2013.

  3.  Pension offsets based on the March-June 2013 means test of $0.50 per dollar of earnings above $76 per week.

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