THE welfare system is expensive and cumbersome and the Government is considering hacking it back from 20 benefits to a basic five in a “major redesign”.

The dole would become a tiered Working Age Payment. There would be Supported Living Pension, a means tested Child and Youth Payment, a Carer Payment and the Age Pension.

Social Services Minister Scott Morrison today is releasing a detailed final report into the $150 billion welfare system by Patrick McClure, the former head of Mission Australia.

“One of the key recommendations is a major redesign of Australia’s welfare payment structure to address the costly, confusing and inequitable elements of our current system,” said Mr Morrison today.

The Government wants to trim the system and the number of recipients by getting more people into work and will consider the McClure recommendations for these objectives.

It pledges “There are currently around 20 different income support payments and 55 supplementary payments, which the report recommends reducing to five,” Mr Morrison said in a statement.

“It suggests that each of the recommended payment types better reflects people’s circumstances, covers basic costs of living and supports those seeking employment.

“The report also examines how the system could better support people to find work, including initiatives that increase workforce participation for disadvantaged people to ensure all Australians gain the benefits of employment growth.”

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The cost of paying benefits to the Budget also is a problem. Mr Morrison said of the 10.1 million Australian income tax payers, eight million pay that tax to fund the $150 billion bill.

“If Australia keeps going this way, it will inevitably reach 10 out of 10 income tax payers,” he said.

“It is important we get that the funds we are committing to welfare payments and the system that facilitates those payments ensures that we get this support to those who need it and we respect those who have to pay for it.

“Above all, the Government’s focus is to acknowledge those who need our help while respecting those who pay for it.”

Mr Morrison said the group of five core benefits recommended by Mr McClure could better reflect “ people’s circumstances, covers basic costs of living and supports those seeking employment”.

“The report also examines how the system could better support people to find work, including initiatives that increase workforce participation for disadvantaged people to ensure all Australians gain the benefits of employment growth,” he said.

“The Government will consider the report’s recommendations and will make further decisions on these commencing with the 2015-16 Budget, and as part of a longer term vision of Australia’s welfare system.”

Originally published as Are we about to scrap the dole?