A scheme meant to help people avoid debt is now causing it – Centrepay needs urgent repair

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A system meant to help people on Centrelink pay for essentials has crashed wildly off course, becoming a vehicle for economic abuse and predatory businesses

‘We’re talking about a government-run budgeting tool taking money from people in survival mode and giving it to big business for services not received.’‘We’re talking about a government-run budgeting tool taking money from people in survival mode and giving it to big business for services not received.

Centrepay was set up for people on Centrelink to pay for essentials, not to enable vulnerable people to be preyed upon. Thankfully the federal government appears serious about fixing the deep problems and refocusing the program back to customers and away from business. We’re working with Services Australia and other advocates to get this done.Some quick history.

The scheme has exploded beyond the original intent to include 15,000 providers offering a dizzying range of goods and services, from butchers and veterinarians to mobile phones, tablets, fridges and washing machines – some at triple the retail price. During a recent trip to the Kimberley, service providers told Economic Justice Australia that they regularly saw mothers losing a third of their Centrelink payment to Centrepay, making them unable to afford the basics, or care for their children.

 

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