Australian Priority Investment Approach to Welfare Parents – Payment had a parent or guardian who What we know was on income support at some stage during their upbringing. In 2014-15, there were 432,000 people receiving Parenting Payment. Having a child young can disrupt education, and increase the barriers to It is estimated that in 10 years around finding and keeping a job. This can lead 48 per cent of those parents will be to long-term welfare dependency, and receiving income support payments, poorer life outcomes for mothers and with only 22 per cent having left the their children. welfare system. The Government will spend an estimated Young parents $191 billion on future welfare payments for all people currently receiving Parenting Additional PwC analysis shows that Payment. young parents aged 18 and under People currently receiving Parenting are particularly vulnerable to the risk Payment have the highest average future of long-term welfare dependency. lifetime cost of all payment groups at In 2014-15, 4,370 young parents $441,000 per person. were receiving Parenting Payment. Young parents are expected to have a higher Departmental analysis shows that if average future lifetime cost at $547,000 per nothing changes for these young person. parents: Around 70 per cent will be receiving Try, Test and Learn Fund income support in 10 years, with a further 23 per cent receiving other The Try, Test and Learn Fund will seek non-income support payments. new and innovative policy responses Around 40 per cent will be receiving that support groups identified by Priority income support in 20 years, with a Investment Approach analysis as being further 39 per cent receiving other at risk of long-term welfare dependency. non-income support payments. About Parenting Payment Why? Parenting Payment provides income We know that generational influences support to parents or guardians with play a significant role in the cycle of caring responsibilities for young welfare dependency. children. Analysis shows that since 2002, 80 per cent of young mothers new to Parenting
Australian Priority Investment Approach to Welfare – Parents What we know In 2014-15, there were 432,000 people receiving Parenting Payment. It is estimated that in 10 years around 48 per cent of those parents will be receiving income support payments, with only 22 per cent having left the welfare system. Young parents Additional PwC analysis shows that young parents aged 18 and under are particularly vulnerable to the risk of long-term welfare dependency. In 2014-15, 4,370 young parents were receiving Parenting Payment. Departmental analysis shows that if nothing changes for these young parents: Around 70 per cent will be receiving income support in 10 years, with a further 23 per cent receiving other non-income support payments. Around 40 per cent will be receiving income support in 20 years, with a further 39 per cent receiving other non-income support payments. Why? We know that generational influences play a significant role in the cycle of welfare dependency. Analysis shows that since 2002, 80 per cent of young mothers new to Parenting Payment had a parent or guardian who was on income support at some stage during their upbringing. The Government will spend an estimated $191 billion on future welfare payments for all people currently receiving Parenting Payment. People currently receiving Parenting Payment have the highest average future lifetime cost of all payment groups at $441,000 per person. Young parents are expected to have a higher average future lifetime cost at $547,000 per person. Having a child young can disrupt education, and increase the barriers to finding and keeping a job. This can lead to long-term welfare dependency, and poorer life outcomes for mothers and their children. Try, Test and Learn Fund The Try, Test and Learn Fund will seek new and innovative policy responses that support groups identified by Priority Investment Approach analysis as being at risk of long-term welfare dependency. About Parenting Payment Parenting Payment provides income support to parents or guardians with caring responsibilities for young children.
parents_factsheet.docx