'Insulting': students say $40 welfare rise will do little for struggling young people

The Albanese government announced a $14.6 billion cost-of-living relief package on Tuesday, which included the boost in income support payments and a 15 per cent rise in Commonwealth Rent Assistance.

National Union of Students President Bailey Riley described the $40 increase as "insulting", adding "$2.80 won't even buy you are a loaf of bread".

The maximum rate of Youth Allowance currently sits at $562.80 a fortnight, which NUS argues should be increased to $684.

NUS Welfare Officer Grace Franco told The Canberra Times the cost-of-living crisis had put a strain on students, with some having to switch to part-time study so they could take on more paid work.

One such student is Aidan Hill, who dropped down to one subject at ANU this semester so he could work full-time and save money.

Despite receiving the maximum Youth Allowance payment, working up to three days a week, and carefully balancing his budget, the 22-year-old struggled at times.

"During exam season was probably [the hardest]," he told The Canberra Times.

"I couldn't work for five days a week, and then if I couldn't work on the weekend, it was a case of like 'do I need to fill up my car?'."

He said that he didn't travel home on two occasions because the round-trip drive would cost $160. In the end, his parents ended up having to give him the money for fuel.

"I'm quite fortunate that my parents would support me if it was like an urgent thing. Not everyone has that luxury," he said.

But Mr Hill said he wants to be independent from his parents.

"I've made a choice to move to Canberra, but it is still something that is a bit hard sometimes," he said.

"The fact that I'm at a point where I feel like I have to ask for money because I can't afford to is pretty crazy - like the fact that I was on Youth Allowance and still working two or three days a week and still couldn't afford everything I needed to, like basic necessities.

"It's tough because I'd never thought I'd have to sacrifice, you know, completing my education in a timely manner just to be able to make ends meet."

While Mr Hill acknowledged, "$40 to some people will make a real difference, it might give them meals for a few more days", he said the money won't "address every problem".

"I think it's a bit more of a token gesture in my opinion."

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Ms Franco said that students who dropped classes to take on additional paid work were delaying their degrees and unintentionally increasing their HECs debt.

"They delay getting a graduate job that allows them pay off their HECs debt, and their HECs debt is being indexed in that time [that they are delaying finishing their degree]," she said.

She added that a key problem with Youth Allowance was that students under the age of 22 have to prove they are independent, or else be means tested according to their parents' incomes.

A report from NUS last year found more than 450,000 students are being excluded from Youth Allowance payments because they are under 22, and therefore seen as dependent.

Mr Hill said while he was deemed independent by Centrelink and qualified for Youth Allowance, his brother was not.

"We both had the same parents, nothing that separates us ... he met all the criteria and he failed the first two times [he applied] for Youth Allowance ... " Mr Hill said.

But Mr Hill said he was happy to see the government will triple Medicare bulk billing incentives to encourage GPs to provide free consultations.

"That stood out the most for me [in the budget]," he said.

He said that doctor's visits would leave him $60 out of pocket, "which doesn't sound like a lot, but that's my groceries for three days, four days, five days even".

"If bulk billing can be implemented, especially in Canberra where it's really hard to find a bulk billing clinic, that's awesome. Just feeling like I can go to the doctor, I think will be less of a burden for myself," Mr Hill said.

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