Seniors advocates say pension changes will leave people worse off over time Louise Yaxley reported this story on Thursday, August 21, 2014 08:20:00 MICHAEL BRISSENDEN: Hands off the pension is the message seniors advocates are delivering to the Government today to kick off a campaign against changes to welfare payments. The legislation is before a Senate committee now but to avoid breaking promises it doesnt start until July 2017. But groups including the Council on the Ageing are calling on the Upper House to reject the legislation because they say it will cut the standard of living for millions. Political correspondent Louise Yaxley reports. LOUISE YAXLEY: The budget included plans for pension changes including gradually lifting the eligibility age to 70. Pensions would also be indexed according to the inflation rate rather than being linked to a benchmark of male total average weekly earnings. That wouldnt start until July 2017. But Ian Yates from the Council on the Ageing will argue to a Senate committee today that it shouldnt pass the Upper House now because it will leave people worse off - especially if they are totally reliant on the pension. IAN YATES: Many pensioners have to make decisions daily about whether the quality of the food or the amount of food theyre buying, heating or cooling, whether they go out at all, whether they buy gifts for grandchildren. Many pensioners struggle with these cost of living issues and obviously it will make those issues more difficult. LOUISE YAXLEY: Diana Greentree is a 71 year old pensioner who lives in Williamstown, Victoria. She says maintaining her home would get tougher. DIANA GREENTREE: Its a very small house that needs a bit of attention, being an old Victorian weatherboard. And on the pension as it stands now its very hard to maintain a house like this on the current pension. So were the pension to be lowered, I dont know whether Id be able to stay in my own home and, you know, keep it standing up. All those things which are just barely manageable now on a very frugal lifestyle, I just dont know how theyd be managed. It looks rather alarming. LOUISE YAXLEY: The Treasurer Joe Hockey says the Governments challenge is to make sure the welfare system is sustainable into the future. And he pointed out last night on Sky News that inflation has been higher than wages recently. JOE HOCKEY: And the last increase was due to inflation rather than to average male weekly earnings because inflation was the higher rate than the change in average male weekly earnings. So, of course, because it was higher, the pension increase was delivered and they will continue to be delivered. Pensions will go up twice a year; there is no argument about that. And they are going to keep rising. LOUISE YAXLEY: But Mr Yates says usually wages rise faster than inflation so over time only linking pensions to the CPI will leave pensioners relatively worse off. IAN YATES: To make it real, if those arrangements had been in place since the 2009 pension review when the single pension was increased by $30 a week, that $30 increase would be gone. LOUISE YAXLEY: Mr Yates and groups including the Salvation Army, St Vincent de Paul and the Brotherhood of St Laurence will all appear before the Senate committee in Sydney today. abc.net.au/am/content/2014/s4071515.htm
Posted on: Fri, 22 Aug 2014 04:06:26 +0000
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