The Youth Network of Tasmania says young people are foregoing food and medical treatment due to the inadequate level of Centrelink payments.
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A senate committee will visit Launceston on Friday to hear presentations from social service groups on the adequacy of Newstart and Youth Allowance payments from Centrelink.
YNOT chief executive Tania Hunt said young people had told the organisation decisions had to be made between paying rent and paying for food, electricity, heating, transport and medical costs. "There is a plethora of evidence already available that tells us that these income support payments are too low, that they have not kept up with the cost of living and that they are forcing people to live below the poverty line," she said.
"Sadly, we have heard reports of young Tasmanians going hungry; skipping meals all together or relying on free food programs from community services to fill their empty stomachs.
"We have heard reports of young Tasmanian's borrowing money from others to pay their bills, becoming entrenched in an ongoing cycle of debt that is near impossible to break."
Ms Hunt said young people had neglected medical and dental treatment which had resulted in poor physical and mental health outcomes.
She said young people struggled to find work because they could not afford appropriate clothes for an interview, public transport, internet access or phone credit.
"Inadequate Newstart and Youth Allowance payments contribute to young people living in poverty and experiencing significant disadvantage, stigmatisation and social isolation,"
"Young people should not be forced to live in poverty as they look for work, complete their apprenticeship or continue their studies."
Tasmanian Labor senator Anne Urquhart is a member of the Senate committee examining the issue.
The party has argued Newstart needed to be increased to reflect the cost of living.
Senator Urquhart said the committee had so far heard harrowing stories on what Newstart recipients needed to do to survive.
She said an increased Newstart allowance would allow recipients to live a more dignified life and would benefit their local economy.