The poverty trap

''Newstart recipients falling behind as age pension nears $20,000'' (24/3) highlights the fact that anyone on Newstart is living in poverty. Serious action must be taken to increase the allowance. However, it is very concerning that the government is considering ways to adjust the pension and Newstart formulas ''to bring them closer into line''.

Providing more equity in the allowances should not have the effect of driving older people into further poverty. Our group's Home at Last service hears from thousands of older people who are paying, on average, 60 to 70 per cent of their age pension on private market rent. Many do not use their heating, cut back on food and are ''one eviction notice'' away from homelessness.

Reducing the age pension would also create massive and tragic costs in crisis housing, material aid and hospital admissions. We need dignified incomes for all as a basic human right.

Dalene Salisbury, Housing for the Aged Action Group, Melbourne