Grieving families could be left $1,300 worse off under planned cuts to a bereavement allowance meant for low-income households, an inquiry has heard.

Pregnant women whose partners die would be hit particularly hard by the proposal to change the allowance, which is part of changes to the welfare system pushed by the federal government.

The changes include the controversial drug-testing plan for welfare recipients, major changes to the compliance regime for jobseekers, the abolishment of wife pension payments for about 200 women living overseas and the removal of “intent to claim provisions”, which protect people who are entitled to welfare but are unable to lodge a full claim due to personal circumstances.

A separate bill seeks to make $119m in savings by tightening requirements for older migrants seeking to access the pension, which critics say sets a dangerous precedent by punishing those who have previously claimed welfare.

The Australian Council of Social Service said the changes, taken together, continued an attempt to “dismantle an already inadequate social security system”.



Its chief executive, Cassandra Goldie, told a Senate inquiry into the welfare changes on Wednesday the changes were cruel and would further marginalise and punish Australia’s most vulnerable.

“There is no question in our view that life will be made much harder for people who are already in the bottom 20% of the socioeconomic circumstances of the population if this bill goes through,” Goldie said.



The bereavement allowance is designed as a safety net for low-income individuals who lose their partner.

It is paid for up to 14 weeks after the death, potentially longer for pregnant women, who are able to claim between the time of the death and the birth of their child.

The changes would increase an initial upfront lump sum payment but the weekly rate would be cut because it will be rolled into the new jobseeker payment.

Overall, Acoss said this would leave individuals up to $1,300 worse off. The impact would be greater on pregnant women, because they would potentially need to claim the allowance for longer.

A senior policy and advocacy officer for Acoss, Charmaine Crowe, welcomed the initial lump sum increase but said it was overshadowed by the overall cuts to the allowance.

“Someone in that circumstance … it’s very difficult to cover the cost of a funeral and other associated expenses,” Crowe said. “So cutting the bereavement allowance will just place those people into further hardship and make even more difficult the period of time after bereavement.”

Acoss warned changes to the compliance regime for jobseekers, which penalises those who do not attend appointments or interviews, aimed to save $204m.

Acoss plans to join with 40 other community leaders and experts on Wednesday to condemn the federal government’s overhaul of the welfare system.

“It is expected that the bulk of these savings, these cuts, would be derived from cutting people off from essential social security more often, and for longer periods of time, rather than the effect being to improve employment outcomes,” Goldie said.



Goldie said the changes stigmatised welfare recipients, assuming they were to blame for their inability to secure work.



“The stigmatisation that is being generated by these kinds of proposals is alarming,” she told the inquiry. “It is tough enough for people in Australia to live with dignity in the reality of a labour market where there is just one job available for every 10 people who cannot get paid work or who are looking for more.”