Newstart Allowance: surge in need for help in Wagga as winter hits unemployed

That's according to two Wagga community service people who help those who are trying to get by on just under $40 per day.

They say the long and frosty nights have provoked a surge of people who face the choice of trying to brave the cold or burning up a significant part of their budget in electricity bills.

Matthew Lungley, aged 44 from Mangoplah, used to work as a cleaner and previously took casual shifts in traffic control.

However, the winter weather has put a lot of road projects on hold so he is currently receiving $555.70 per fortnight on the Newstart Allowance.

"Working is a lot better than being on the friggin' dole," he said.

"When you are working you have got money coming in every week."

Mr Lungley said most of his Newstart payment was taken up by rent, which left very little for other essentials, transport costs and joining in competitions with his fellow 10-pin bowling team members.

"They should give Newstart a bit of a boost as everything keeps getting more expensive," he said.

Mr Lungley said spending so much effort trying to make ends meet on Newstart made it harder to find another job.

St Vincent de Paul Wagga region president Joanne Crowley said about 45 per cent of the people who came to the organisation for help were on Newstart.

"They have got $80 a week left over after they have paid their rent," she said.

"A lot of them are on a budget but it's useless as that's all they have to pay their utilities, food and to clothe themselves."

Ms Crowley said in the past few weeks St Vincent de Paul had been trying to help multiple people on Newstart who had run up bills they could not pay while trying to heat their homes.

"Some don't have a heater and some don't have a fridge," she said.

"They are freezing and they come into us for a clothing voucher....we are giving away blankets every day."

Newstart increases in line with the consumer price index in September but advocacy groups have argued that it should be raised further to avoid trapping people in unemployment.

Prime Minister Scott Morrison has ruled out any increase, saying the "quiet Australians" who helped re-elect the government were opposed to the move.

"They believe that our welfare system should work as much for taxpayers as it does for those who benefit from it," he said.

Increasing Newstart by $70 a week would cost the federal budget an extra $3 billion a year.

Riverina MP and Deputy Prime Minister Michael McCormack is also opposed to increasing Newstart, preferring to concentrate on getting more people back into work through improved business confidence.

"The best form of welfare is a job," he said.

"Newstart is a stopgap measure for people who are transitioning between jobs.

"I am proud to be part of government which has helped to create the right economic environment to support businesses to back themselves and create more than 1.3 million new jobs since we came to office.

"We want Australians in work and earning money to build a better life."

Anglicare child and family services Riverina coordinator Jasmine Woodland said housing was the the biggest cost for people on Newstart.

"At our Ashmont Community Centre we are definitely seeing a lot of new faces coming in for help," she said.

"We are just seeing so many more people in crisis and great debt.

"People are coming to us looking for support with things like gas and electricity as it's really hard since it's winter.

"I have families who are struggling to buy school uniforms because the cost of housing is so great."

Ms Woodland said the Newstart Allowance should be increased.

"Everybody is complaining about the cost of electricity and gas - these a killer cost - and Wagga has cold winters and hot summers," she said.

Mr McCormack said his call for people on the Newstart Allowance to look for jobs in regional Australia is workable despite the numbers of unemployed already in areas like Wagga.

Wagga City Council residents collect just under 40 per cent of all Newstart payments within the Riverina federal electorate, according to the Department of Social Services.

During December there were 1999 people living within Wagga City Council's boundaries who received a Newstart Allowance, out of 5300 across the electorate.

The Riverina's number of people on Newstart was about 4000 lower than the Farrer electorate to the south but 1700 higher than in Eden-Monaro.

"Statistics only tell part of the story. The fact is we are getting on building the economy to provide more job opportunities for all Australians, including those in the Riverina and Central West," Mr McCormack said.

"According to the June 2019 Vacancy Report...there are at least 1100 job vacancies in the Riverina-Murray region.

"The government's approach to assisting people on Newstart is focused on our success in getting people off welfare payments and into a job and we will continue to do that."

The maximum fortnightly Newstart payment ranges from $501.70 for partners to $776.10 in exceptional circumstances.

Mr McCormack said 99 per cent of Newstart recipients were eligible for additional supplementary welfare.

"Welfare cost more than $172 billion in 2018-19, which is 35 per cent of all spending by the government," he said.

"It is the responsibility of government to ensure our social security and welfare system is sustainable into the future, so that it can continue to provide support to those most in need."