In the lead-up to the federal budget, there’s much focus on what the government will do to address cost-of-living pressures for households amid rising inflation and interest rates.

Research shows where those cost-of-living stresses are greatest. It’s not the vast bulk of middle-income Australia, but working-age welfare recipients.

It’s against this backdrop that the Economic Inclusion Advisory Committee recently handed its 2026 report to government. It’s the fourth report in a row to recommend a substantial increase to JobSeeker: the payment that around 900,000 mostly unemployed, working-age Australians receive.

As everyday essentials get more expensive, this is the cohort that requires the most urgent attention in next week’s budget.

Read more: What does disadvantage look like in Australia? New research shows who’s struggling most

$272 extra per fortnight

The JobSeeker payment is the social security payment that is paid to working-age people, many of whom are unemployed. Some recipients are employed (likely on a part-time or casual basis) and some are not in the labour force.

The payment is heavily means-tested with a tight income test, an assets test and a liquid assets test, ensuring people eat away at their savings before receiving it.

While on the payment, recipients are often subject to “mutual obligations” requiring them to look for work and undertake training or other related activities.

In each of its last four reports, the Economic Inclusion Advisory Committee has given the government the same........

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