Social Services Minister Christian Porter says the Government has been reining in the Newstart program, the main form of income support for jobseekers.
Mr Porter's claim is spin. A Fact Check analysis of departmental annual reports shows that over six Labor budget years Newstart spending increased at an annual average pace of 13.8 per cent, compared with 3.5 per cent so far under the Coalition. This more or less accords with Mr Porter's figures. However, it is a stretch for Mr Porter to suggest that in contrast to Labor's "massive failure" the difference reflects the Coalition's very hard work. Rather, as experts contacted by Fact Check noted, the rise in Newstart spending under Labor initially reflected a rise in unemployment linked to the Global Financial Crisis — a factor beyond the Australian government's control — and later was affected by policy decisions designed to save the budget money, including shifting tens of thousands of single parents from the Parenting Payment (single) to the less generous Newstart. As experts have noted, this led to lower spending on the Parenting Payment (single) allowance, but higher spending on Newstart. The net result was a substantial saving to the budget. In addition, there is no evidence to show that people have been making the transition from Newstart to employment more quickly under the Coalition. The latest Department of Social Services figures show that Newstart recipients are exiting the payment at a slower rate than they were in any of Labor's six budget years.
Fact check: Is Newstart spending growth lower under the Coalition and are recipients moving off it faster?
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