In Australia, the controversial trial of benefits payments that quarantines up to 80 percent of a person’s welfare money onto a card that does not allow cash withdrawals, and cannot be used to buy certain products and services, looks likely to become permanent. The government is now seeking to nearly triple the number of people on the program, despite fewer than 10 percent of Senate inquiry submissions backing the move.
The so-called ‘cashless welfare cards’ are intended to combat social ills such as alcoholism, drug use and gambling by locking away most benefit money to be spent only on approved items. One problem with this is that is also locks people out of the local cash economy, meaning they cannot use common money-saving tactics such as buying items second-hand at garage sales or fetes, or getting bargains at local markets.
Giving evidence to the Senate inquiry on the cashless welfare bill, trial participant Miss Silk explained that many of her budgeting tactics rely on ‘trust, cash and community support.’
