The federal government’s hand-picked Economic Inclusion Advisory Committee has called for a significant increase to the JobSeeker unemployment payment, describing the current rate as “seriously inadequate”.
While the aged pension has increased over time, JobSeeker has stagnated for decades, dragging people without a job well below the poverty line, Australia Institute Chief Economist Greg Jericho said on the latest episode of Dollars & Sense.
Currently worth less than 70 per cent of the aged pension, JobSeeker payments should be increased to 90 per cent, according to the Committee.
The significant disparity between the two payments is the result of a policy decision by the Howard government, Jericho explained.
“What John Howard did was change how [JobSeeker and the aged pension] were indexed,” Jericho said.
“He linked the aged pension – but not unemployment benefits – to average, full-time, male earnings.
“In a sense, what [Howard] was saying was, ‘those people on that government benefit, they’re worthy – these people on unemployment benefits, not worthy.