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Welfare recipients dragged into energy row

The Turnbull government is introducing legislation to strip compensation for energy bills from new welfare recipients.

2 min read

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Source: AAP


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Welfare recipients are being dragged into a fresh political stoush over plans to scrap household energy supplements.

The Turnbull government on Wednesday will introduce legislation to cut the supplement - introduced to compensate for the defunct carbon tax - to new income support recipients from September 20.

"It is simply not sustainable to continue to compensate people who have not yet even entered the welfare system for a tax that no longer exists," Social Services Minister Christian Porter said.

The measure, if passed, is expected to save almost $1 billion.

"Labor previously agreed with that proposition by including the estimated $933 million saving over four years for this policy measure in its costings at the last election," Mr Porter said.

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"If Labor now doesn't back the legislation, it has to explain where it will find the money to cover the continuing cost of the supplement or create another $1 billion black hole in its budget."

But if the minister is looking for Labor's support, he's barking up the wrong tree.

Opposition social services spokeswoman Jenny Macklin said single pensioners would see their pensions cut by $14.10 per fortnight, or $365 a year, while couples would be $21.20 a fortnight (or about $550 a year) worse off.

"In the same week that he (the prime minister) is claiming credit for a one off payment of $75 - less than $1.50 a week - to pensioners he's ripping away $365 every year from new pensioners," Ms Macklin said.

"It's a bit rich for Malcolm Turnbull to say people need help with rising energy costs when he is scrapping the energy supplement to 1.7 million Australians."

Community groups have long railed against stripping away such supplements, arguing they help alleviate the inadequacy of basic payments in the welfare system.

Existing recipients will continue to receive the supplement even if the measure is passed.


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