Checking Activation at the Door: Rethinking the Welfare-Work Nexus in Light of Australia’s Covid-19 Response

Abstract

Public health measures to address the COVID-19 pandemic have disrupted welfare regimes around the world. The Australian government suspended activation requirements for millions of social security clients and substantially increased payment levels. Both measures go against the dominant policy logic over the past several decades in Australian social policy. When these changes were made, many advocates and academics called for a permanent increase in the rate of payment and a relaxation of activations requirements. The Australian Government insisted the stimulus package was temporary and that there would be a gradual return to the pre-pandemic policy settings. In this article, we examine what was learned during this natural experiment of unconditional higher payments, which temporarily lifted millions of households out of poverty. We argue that a return to pre-pandemic policy settings should not go unchecked as there remains an opportunity to consider alternative approaches to the welfare-work nexus in Australia.