DOLE payments are unlike to rise after a Senate committee reviewing the Newstart Allowance today found they are enough to support people while they look for work.

But the committee had concerns that 42 per cent of people on New Start each year didn't find employment and might warrant a special allowance. This would include increasing the time a recipient could work without losing benefits.

The committee found that heeding calls from welfare groups for a $50-a-week rise in the dole would cost an extra $2 billion a year. The Government has warned it doesn't have the funds for a significant rise.

"The Newstart Allowance payment is effectively discharging its primary duty: to support people through a short- term transitional period of unemployment,'' said the Senate Education, Employment and Workplace Relations References Committee.



"However, the committee is concerned that 42 per cent of new recipients each year do not transition quickly back into the workforce and believes that the allowance payment system can better encourage workforce participation.''



It said New Start recipients should be encouraged to get part-time work as part of their transition to full-time jobs and noted the problems of "carers who are re-entering the workforce after a period of caring, and the particular challenges faced by mature age workers''.



Forcing people to live on $35 a day was a powerful means of achieving social exclusion, said St Vincent de Paul chief executive Dr John Falzon.



“We are steadfast in our resolve that the Newstart payment is too low to live on either in the short term or the long term. Life on this payment is a daily battle waged from below the poverty line. and must be increased as a matter of urgency, “ said Dr Falzon.



“People on Newstart are effectively denied adequate social security. You don’t achieve social inclusion when you take away social security. You don’t build people up by putting them down.”

The committee recommended:



* The government consider increasing the resources available to Stream 1 jobseekers, to ensure that prompt and effective support is provided in the first weeks and months of unemployment;



* That the Department of Education, Employment and Workplace Relations work with Job Services Australia to ensure that training and support programs for workers aged 45-64 are appropriately targeted;



* That the Government develop targeted and tailored programs for former carers as they move to Newstart Allowance or another payment once their caring responsibilities end;



* That the government identify savings in the existing social security expenditure to increase the income free threshold for long term Newstart Allowance recipients to 6 hours work per fortnight at the minimum wage;



* That the working credit for Newstart Recipients be increased from $1000 to the equivalent of three months' work at the minimum wage;



* That the Government reform its processes to enable departing Newstart recipients to remain active on departmental systems for one year after they cease receiving payment;



* That the government assess the viability of creating an online calculator for Newstart and other recipients to enable jobseekers to easily calculate the costs and benefits of work, and the impact of work on allowances and other payments.

Originally published as $35 a day enough: Senate says no to dole increase