YOUNG people in the Hunter are facing an uncertain future with the release of the Federal Governments tough budget and the state’s plans to increase TAFE fees.
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The impending welfare cuts, the uncapping of university fees and the loss of the $5500 tool allowance for apprentices delivered in the budget come on top of sweeping reforms of the state's vocational education system.
From 2015 students will pay a set fee per qualification rather than per year which means 40 per cent of students will face fee rises of more than $500.
Fees for apprentices will be capped at $2000 and disadvantaged students and low income earners will receive exemptions and concessions.
However to get a concession students will need to first prove they are welfare recipients.
And this is where things get complicated as school-leavers or a newly unemployed young person won't be able to access welfare for six months unless they enrol full-time in a course, under rules announced in the federal budget.
People under 30 who are unemployed will have to wait six months to be eligible for the income support and will only be able to claim it for six months before the benefit is cut for another six months.
This six-month cycle of getting benefits cut and returned will continue until someone gets a job or turns 30.
Job seekers under 30 will also have to do 25 hours per week on a work for the dole scheme while receiving benefits.
This overhaul of the welfare system includes raising the age of eligibility for Newstart from 22 to 25.
Federal member for the Hunter Joel Fitzgibbon said this Budget hits already vulnerable young people in Hunter the hardest.
He said young people under 25 in Hunter will be shifted from Newstart onto the lower Youth Allowance, making them $48 a week worse off.
“To make matters worse, under the Abbott Government’s Budget young, low income earners in the Hunter will bear the brunt, with support for low income earners maliciously slashed and skills and training hit by a $1 billion cut.”
“This is bad government with bad intentions. The Government is forcing young people into a life of poverty at the very time that they need support the most,” Mr Fitzgibbon said.
Shadow Minister for the Hunter, Sonia Hornery is calling on the state government to reverse the TAFE fee increases and work to encourage greater investment to expand and support the State's manufacturing industry.
“We have seen at least 16 apprentice job losses announced at Hunter companies such as WesTrac and UGL Limited. Young people are losing a valuable training opportunity and career paths for young people who have just completed an apprenticeship are narrowing,” she said.
“Now we have an announcement by the State Government that fees for some TAFE courses will rise by as much as 45 per cent, an increase of up to $1500.
“Add to this the announcement by the Federal Government that the $5500 tool allowance will be cut, apprentices will now be forced to find additional money to be able to complete their apprenticeships.”
These additional costs will make it even harder for young people to secure the skills needed to enter skilled employment, Mrs Hornery said.