Mentions Centrelink

Your regular reminder that solving every problem by creating a competitive market of private sector "service providers" does not work.

Just 11.7% of jobseekers in Australia found long-term employment through a job provider in the latest financial year, according to the Department of Employment and Workplace Relations’ annual report.

Service providers are allowed to claim publicly funded outcome payments when clients have completed four, 12 and 26 weeks in employment – regardless of whether the client or provider found the job.

[…]

Jeremy Poxon, a welfare advocate at the Antipoverty Centre, said the system was failing “en mass” to help get people into meaningful work.

“The government knows full well that this system is failing on this basic metric to help people into work,” he said.

It came as Guardian Australia revealed Centrelink has threatened payment suspensions to jobseekers at a rate of five a minute, despite serious concerns from social security experts that they are illegal.

Poxon said the data showed the system was better at punishing people than helping them into employment.

Job providers are being paid millions of dollars in public money for work that jobseekers are finding themselves, with advocates saying there is “simply no reason” for the payments.

The Department of Employment and Workplace Relations has paid providers more than $3.6m in the past five years for pre-existing employment, where someone on jobseeker found a job prior to starting with a provider, according to data provided to Guardian Australia by the department.

The data shows there has been an uptick in pre-existing employment payments, with providers receiving $1.1m in the 2023-2024 financial year, more than double the $464,200 paid in 2019-2020.

The Centrelink officer on the end of the phone to Eve* was telling her she was dead. Eve, 74, who receives a carer payment, had called after she noticed an extra $3,000 from Centrelink in her 81-year-old husband’s account in May this year, and she was concerned they had been overpaid.

After calling multiple times, she reached someone from Services Australia who looked up her account history.

“As far as we are concerned you are deceased,” the officer said.

The $3,000 was a bereavement payment made to her husband. It was then followed by a letter to him apologising for his loss, and letting him know she had been overpaid by a small amount, that would need to be returned, and that Centrelink would be contacting her bank.

Within a few weeks, all her records were wiped, her bank accounts were shut down, her energy concessions for the Gold Coast council were withdrawn and she could not even book an Uber.

Many seniors rely on Centrelink for vital government services and payments. But recently, there has been growing concern over outrageously long wait times that seniors face when trying to contact Centrelink by phone or have their claims processed.

Despite Centrelink receiving fewer calls this year, the agency's performance in answering calls and processing claims has 'deteriorated'.

Only 60 per cent of calls are being answered within 15 minutes, with 9 million calls annually met with a voicemail asking callers to try again later due to high demand.