The Albanese government is poised to increase jobseeker for people aged over 55, citing the need to target cost of living relief at women and the long-term unemployed.
On Monday Channel Seven first reported, and Guardian Australia independently confirmed, that the $50 a day rate of jobseeker will be increased at first only for those 55 and over with reconsideration of a broader raise in later budgets.
The revelation follows senior ministers on the expenditure review committee repositioning after the government poured cold water on a recommendation from its poverty experts calling for a “substantial” increase in the “seriously inadequate” payment.
Guardian Australia understands the partial jobseeker increase is part of a suite of poverty reduction measures, including raising the children’s eligibility age for the single parent payment to 14, and possible changes to rent assistance.
Last week four Labor MPs signed a letter organised by the Australian Council for Social Services calling for an increase in jobseeker, joined by a further eight colleagues publicly backing an increase.
Increasing jobseeker for over 55s would benefit more than 220,000 people, but exclude more than 680,000 others on jobseeker and youth allowance.
Those aged 60 or over with more than nine months on jobseeker already qualify for a higher rate of $745 a fortnight, compared with $693 for a single person with no children under that age.
Earlier on Monday the finance minister, Katy Gallagher, promised a “significant response” to the economic inclusion advisory committee’s report, the primary recommendation of which was a higher rate of jobseeker.
Gallagher disputed the characterisation the government had “poured cold water” on the recommendation, despite ministers repeatedly refusing to lift jobseeker to 90% of the pension citing its $24bn cost.
“There were 37 recommendations, the point we made is we couldn’t do all of them in one budget, but that we would have a significant response to that report,” Gallagher told reporters in Canberra.
“We’ve been saying that for some time. I’ve also been saying there will be a very significant cost of living package in this budget and that that will be targeted to most vulnerable Australians, I think that’s what you’d expect from a Labor government.”
Spokespeople for the treasurer, Jim Chalmers, and social services minister, Amanda Rishworth, said: “There’s always speculation the week before budget, some of it accurate and some of it not. There’ll be responsible cost of living relief, it will focus on the most vulnerable, and it will be made clear on budget night.”
Earlier, the infrastructure minister, Catherine King, who also sits on the expenditure review committee, told ABC Radio that “everybody knows that in order to live … at the rate of jobseeker it’s incredibly difficult for people”.
King said given inflation “running through the economy in the way in which it is, I don’t think anybody thinks that the jobseeker rate is adequate for people”.
“We said before the election what we would do is look at every single budget, the way in which we could support people on income support payments.”
King said it was “very clear” the budget did not “have room” for a $24bn increase, but did not deny that an increase in jobseeker was still possible.
Several Labor MPs contacted on Monday night said they were not aware of the announcement in advance, but confirmed they were aware of recent discussions about targeted relief for older unemployed people.
One MP said that cohort had “particular challenges” in finding work, or potentially re-training or moving to a new area to seek work. They said there had been conversations about recognising older people who found themselves unemployed may need extra support.
The prime minister, Anthony Albanese, told a press conference in Darwin on Monday afternoon that the government would have “a comprehensive plan for lifting living standards.”
“You’ll see a range of other measures in the budget in eight days’ time, which arise from the understanding that we have that people are doing it tough. We’ve had global inflation. So, we need to make sure we keep on top of inflation. But at the same time, we’re doing what we can to provide that relief for people,” he said.
