Wednesday, November 24, 2004

Disability Pensioners to go back to work

Wednesday November 24, 10:10 AM – from Yahoo News

Govt 'determined' to move disability pensioners into work

The Federal Government is considering a system of coercion and incentive to get disability pensioners off welfare and into the workforce. The Government says a six-month pilot program to encourage disabled Australians back into the workforce or training was a success. Workforce Participation Minister Peter Dutton says the pilot showed that a combination of coercion and incentive can help get disability pensioners back to work. "What we've shown is that for the majority of people there is a willingness to participate, to look for work," Mr Dutton said. "For those people we think aren't there legitimately then we've got to try and adopt some coercion and that's unfortunate in the minority of cases."

Pete's Points

Why does this direction of the newly elected government surprise anyone? What does being a Disability Support Pensioner mean?

In the past, when it was called the "Invalid Pension", we knew with considerable certainty that the recipient was at least 85% permanently incapacitated. Following a review, there was a decision made to move to a more medical model which emphasised the level of residual capacity for employment which remained for people.

From that moment on, it was a foregone conclusion that at some point there would be a decision made, when the political situation was right, to require people to exercise their residual capacity. This trend, to assist people from receiving welfare payments into employment began some years ago with the introduction of similar assistance for Sole Parents and then of course the introduction of Mutual Obligations as a mainstay of government policy.

What is a little puzzling is that many people in the community have always thought that with the tightening of the model, the people who were eligible for the Disability Support Pension were those who did not have a capacity for work remaining after their accident or illness.

As the number of people leaving the work force grows into the expected flood arising from Baby Boomers going into retirement and/or falling ill as they age, there is a pressing need to reduce the amount of money being sucked out of the welfare system into pensions of one kind or another and there is certainly a need to bring expertise and experience back into the work force generally. Hence the emphasis on superannuation leading to self funded retirees, the encouragement of older workers to stay in the work force and of course the encouragement of as many people on welfare payments as possible to return to the work force.


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