More than 100,000 young people will have to wait six months for unemployment benefits under the government’s proposed budget measure, with social services advocates warning they face “deeply disturbing” knock-on effects.

Briefings given to various groups by the Department of Social Services show that 113,000 people a year aged under 30 will be denied the Newstart and Youth Allowance payments for six months.

After this period young jobseekers will have to commit to 25 hours a week in a work-for-the-dole scheme. The government will also require those on unemployment benefits to apply for 40 jobs a month, double the current requirement.

The government is facing difficulty in getting Senate support for its changes to the unemployment benefits system. Labor and the Greens are opposed to the changes while Clive Palmer, whose Palmer United party holds three crucial Senate seats, has said the proposals simply punish the jobless, with the majority of unemployed people “already trying desperately to find work”.



The Australian Council of Social Service said the scope of the measure would leave many young people suffering severe monetary and mental distress.



“The human impact will be deeply disturbing, as this isn’t a small number of people,” Cassandra Goldie, chief executive of Acoss, told Guardian Australia. “When you look at other places that have experimented this, such as the UK, you see tragic examples of people in deep depression, overwhelmed by a lack of hope.

“We should be proud of the social safety net we have in Australia. We shouldn’t be a country where if you can’t get a job you face the prospect of not being able to eat, turn on the light, or losing your housing altogether.”

Goldie said the government was misguided if it thought young people were not trying hard enough to find jobs. “At the moment there are 165,000 jobs available out there and 800,000 people looking for work. The competition is very hard, especially for those who face barriers such as discrimination.

“This nasty stereotype that young people are lazy is seriously unhelpful. If we want to encourage employers to give people a chance, this is the last thing we need.”

A spokeswoman from the Department of Social Services said about 700,000 people would be affected by the changes to Newstart should the legislation clear the hurdle of gaining support in the Senate. The government expects 30% of those people to go into education and training. The measure would save the budget $1.2bn over the next four years.

The spokeswoman said “approximately 100,000 people a year” would have to serve the six-month waiting period for unemployment benefits.

Kevin Andrews, the social services minister, said: “Our welfare system needs to be sustainable so that people who need support have access to welfare, and those who are capable of working are encouraged to get a job. These changes aim to maximise everyone’s ability and incentives to participate in the economy.

“Welfare is a critical safety net for those who are unable to work. But for those who are able, working is the best thing they can do for their own wellbeing, and that of their families and children.

“Introducing a six-month waiting period and time limits on income support payments will give young people a stronger incentive to learn or earn. These changes are designed to be the circuit breaker Australia needs to divert people from a life on welfare.”