PREMIUM
Opinion

The pandemic showed us another way to tackle poverty

David Tennant is the chief executive of FamilyCare in Shepparton.

A lot of time and money is invested in tackling poverty.

It is mostly focused on consequences, not causes.

The COVID-19 pandemic showed us there are potentially more effective approaches.

At the start of pandemic restrictions, the Commonwealth made a number of extraordinary economic decisions.

Most remarkable, given stubborn refusals to increase the JobSeeker unemployment benefit, was the $550-a-fortnight coronavirus supplement, paid to a range of social security benefit recipients.

The impacts of the supplement were profound and immediate.

In households reliant on JobSeeker, poverty fell by four-fifths and in single parent households it was almost halved.

FamilyCare’s clients reported being able to eat properly, pay rent on time and cover basics, without being perpetually stressed.

That feedback was consistent with information gathered by the National Council of Single Mothers and their Children, through a campaign called ‘550 reasons to smile’.

Because the extra money was more likely to be spent locally, on essentials, it also helped the Shepparton community ride out the worst of the financial upheaval.

For context, there are currently about 3000 JobSeeker and 1000 Single Parenting Payment recipients in Shepparton.

If the supplement applied now, those people would collectively have an extra $2.2 million to spend fortnightly.

Poverty diminishes the lives and opportunities of those it touches.

Physical and mental health outcomes are worse, the capacity to plan and act undermined.

You are more likely to be exposed to physical violence or abuse, either as victim or perpetrator.

For children, in addition to other impacts, the ability to engage successfully with education is reduced.

After a decade of heading in the wrong direction, the 2021 Australian Early Development Census data shows a reduction in the proportion of developmentally vulnerable children in City of Greater Shepparton.

The coronavirus supplement and relaxation of compliance requirements were among the most significant environmental changes since the last AEDC data was released in 2018.

The coronavirus supplement was temporary.

It dropped to $150 a fortnight in January 2021, before ceasing two months later.

Almost as quickly as they fell, rates of poverty shot back up.

Hardship likely felt more difficult because of the brief respite.

JobSeeker recipients did, however, receive a $50 a fortnight increase, so the net reduction when the supplement ended was $500.

Those who oppose increasing social security payments often note the best insulation against poverty is a job.

That is true, but incomplete.

Does it magically create jobs that accommodate caring commitments, chronic health conditions or sudden changes in circumstances?

Does it justify putting children in harm’s way because the adults who care for them are always financially stressed and struggle to provide life’s essentials?

Making adjustments, perhaps not to the extent of the coronavirus supplement, is likely to produce long-term savings on physical and mental healthcare, social and justice supports.

Poverty is awful.

Preventable poverty is worse.

David Tennant is the chief executive of FamilyCare in Shepparton