Gillard Youth Allowance changes disastrous

A Labor-dominated Victorian Parliament Inquiry has agreed with Coalition concerns about Julia Gillard's Youth Allowance changes that will stop many students from rural and regional areas from accessing university education, Shadow Education Minister Christopher Pyne said today.

"We know that the Government's changes to Youth Allowance will punish all students who are currently on a gap year - having taken the decision to defer the studies in order to meet the workforce participation criteria they were told about at school last year.

"In particular the Government's changes will hurt students from farming and small business backgrounds in rural and regional areas - these students will not be eligible for youth allowance even if their families can't afford to send them to the city. They don't have the luxury enjoyed by wealthy city students that means they can stay at home when they study.

"The changes to eligibility have been attacked by the Coalition, the Greens and Independents for months. Now we see Julia Gillard's state Labor colleagues in Victoria joining the chorus of criticism," Mr Pyne said.

The Chair of the Education and Training Committee, Labor Member Geoff Howard, said of Julia Gillard's changes in his introduction to the report: "(the Committee) is concerned that the specific circumstances of rural and regional young people still have not been adequately addressed. Already, many such students defer their studies to meet eligibility criteria for income support and this route to financial independence is set to become even more difficult under the new system."

In a particularly scathing passage on page 177-178 of the report, the Committee argued: "the Committee believes that the removal of the main workforce participation route will have a disastrous effect on young people in rural and regional areas..." and that the changes "... will have a detrimental impact on many students who deferred their studies during 2009 in order to work and earn sufficient money to be eligible for Youth Allowance."

"This Report confirms the point that the Coalition has been making since the Budget: Julia Gillard's changes will suffocate many students' dreams of a higher education," said Mr Pyne.

"We have now reached the stage where there is not a political Party in the land that hasn't expressed severe concerns about the abolition of the workforce participation criteria for gaining Youth Allowance. Ms Gillard needs to swallow her pride, admit that she is wrong.

"Australia deserves better than a part-time Education Minister," Mr Pyne said.

July 29, 2009