Shame Rudd Shame: government gets a fail on pension increase

State government housing authorities and community housing are lining up to take a bite out of the Rudd Government $60 per fortnight base pension increase for single pensioners.

Those on low incomes in public housing normally pay 25 per cent of their total income in rent, however the NSW Government has already changed rent calculation rules for community housing so that single pensioners are often paying more than 25 per cent of their total income on rent each fortnight and, in many parts of NSW that steep late 2008 rent increase was implemented in one fell swoop despite the Federal Government being told that there would be a graduated increase over years.

That particular fiddle saw at least an extra $22 per fortnight immediately removed from the pockets of single pensioners living in community housing.

At present state governments are considering a twelve month delay of any rent increase based on the higher fortnightly pension payment, but there is no guarantee that incorporated community housing won't take a cut of the extra money before the end of the year.

When the Rudd Government first announced it was considering a pension increase it assured the electorate that the additional income would be exempt from consideration by nursing homes, aged care hostels, and supported accommodation when factoring accommodation costs. No ifs, buts or maybes.

One now wonders if even these pensioners will actually be getting the full benefit of the additional payment.

The Rudd Government had within its power the ability to make this pension increase an exempt fortnightly allowance or exempt pension supplement for other pensioners but it chose not to do so.

I suspect that this failure to quarantine the increase was a deliberate pandering to state interests and Rudd, Swan, Macklin et al hoped that pensioners would keep quiet as greedy state governments cut into their payments to subsidise fiscal mismanagement.

If Ms. Macklin has a red face as the Brisbane Times cartoonist infers - it's probably only due to media scrutiny and a caught-out Treasurer Wayne Swan needs to do more than threaten to take on the states over this issue - he needs to act this week.

Shame, Rudd & Co, shame - you have treated single old age, disability and other pensioners living independently in the community as though they are the undeserving poor.

What I think of the Rees Government is of course unrepeatable in polite company.

What I think of a virtually silent federal and state Coaltion Opposition defies description (I'm particularly looking at you Nationals MP for Clarence Steve Cansdell, who thought previous NSW rent increase tactics were fair).