List of recommendations

2.114The Committee recommends that ParentsNext be abolished at the end of its current contract and be replaced with a new pre-vocational service.

2.117The Committee recommends that the Australian Government:

extend existing ParentsNext contracts for the shortest time possible to allow for the co-design and implementation of a replacement service; and

make significant changes on an interim basis to the current ParentsNext program to address the serious concerns outlined in this report, with a particular focus on limiting participation and reporting requirements and reducing the impacts of the unreasonably harsh compliance regime.

2.126The Committee recommends that the service which replaces ParentsNext value caring for children as important, and focus on:

assisting parents to identify future aspirations and education and employment goals that will lead to secure, meaningful work that fits with their caring responsibilities;

supporting parents to progress towards their skills and education goals and to access suitable employment opportunities; and

supporting parents to access other services and supports to help them to care for their family and advance and address barriers to their education and employment goals, taking account of caring responsibilities.

2.127The Committee recommends that complementary and alternative programs delivered by not-for-profit entities be recognised as fulfilling participation requirements for ParentsNext and for any service which replaces it. Participants should also be enabled to use the Participation Fund, as well as funding allocated to the proposed ‘Skills Passport’, to support participation in programs deemed appropriate and beneficial.

2.130The Committee recommends that the Australian Government design and implement a specific program focused on young and teenage parents. The program should have the objective of assisting young and teenage parents to complete their studies and improve their long‑term prospects, as well as the long‑term prospects of their children.

2.133The Committee recommends that the program to replace ParentsNext, as well as the program to support teenage parents, be co‑designed with key stakeholders, including:

parents, carers, and their advocates;

service providers, including in family and domestic violence support;

employer organisations;

policy experts;

First Nations communities and First Nations‑led organisations; and

people from culturally and linguistically diverse (CALD) backgrounds and multicultural organisations.

2.136The Committee recommends that where budget limitations restrict the ability to implement key recommendations, the Australian Government prioritise, at least initially, a higher quality service to a narrower group of parents rather than compromise on critical service design principles.

2.139The Committee recommends that the service to replace ParentsNext, as well as the program to support young and teenage parents, be subject to robust and transparent and monitoring and evaluation, accompanied by open data sharing, which also enables external scrutiny and evaluation.

3.134The Committee recommends that the co-design process for the service to replace ParentsNext expressly consider eligibility criteria that:

capture the needs of parents and carers, and ensure that parents and carers are not referred to the program where they have no capacity to benefit; and

enable opt-in (voluntary) participation in the program by individuals who are not in receipt of Parenting Payment, such as:

oindividuals in receipt of Carer Payment; and

oover time, low income or unemployed parents who are not in receipt of either Parenting Payment or Carer Payment.

3.135The Committee recommends that Services Australia immediately reframe its initial contact with prospective participants, so when people are referred to ParentsNext they understand the objectives, role and benefits of the program and do not suffer undue stress and anxiety. This should include ensuring that:

letters to prospective participants clearly set out the reason for the contact and explain the role, function, and benefits of the program;

text messages to parents notifying an interview with Services Australia are unambiguous as to the reason for the contact and explain the purpose of the interview;

if possible, outbound calls show a dedicated phone number, so that the recipient knows who it is from, acknowledging that there may be concerns regarding spoofing, spam and fraud that make this impractical at present; and

the initial interview conducted by Services Australia explains the purpose and benefits of ParentsNext, and accurately and comprehensively assess the participant’s needs and circumstances.

3.136The Committee recommends that the Australian Government amend the criteria for exemptions from ParentsNext, to provide a broad discretion to both Services Australia and providers to exempt a person from the program if is determined that they have no capacity to benefit. Providers and Services Australia should also provide additional training to their frontline staff to ensure that this discretion is exercised appropriately and effectively.

3.153The Committee recommends that the service which replaces ParentsNext include graduated requirements depending on the age of the participant’s youngest child. The Committee proposes the following draft design components for refinement:

Participation in the service be fully voluntary for parents with young children under a specified age (such as three years old).

Participation requirements for parents with a youngest child aged three years or over should simply be to:

oattend regular appointments; and

oparticipate meaningfully in the program.

Services Australia conduct an interview with a parent around six to 12 months before participation requirements begin to apply, to explain the service and its benefits, promote the incentives and supports which are available, and screen for key risk factors.

3.154The Committee recommends that the development of a ‘Skills Passport’ be considered as part of the service which replaces ParentsNext. This ‘Skills Passport’ should be tied to the individual participant (not pooled) and given on a ‘use it or lose it’ basis. The ‘Skills Passport’ should be an annual credit, for example $500-$1,000, which could be used to assist with out-of-pocket expenses such as fees, books, and licences essential to the attainment of skills, including soft-skills and formal qualifications.

3.163The Committee recommends that funding and payment structures be reviewed as part of the co-design process for a service to replace ParentsNext, to ensure they represent appropriate incentives for a pre-vocational program.

3.164The Committee recommends that the rules governing the Participation Fund be reviewed to ensure they are not acting as a barrier to participants accessing necessary resources.

3.165The Committee recommends the Australian Government urgently pursue systemic action by State and Territory Governments so that the varying rules requiring minimum hours for Learner drivers stop being a barrier for disadvantaged people.

3.166The Committee recommends that a clear default principle be established that providers are not permitted to use the Participation Fund to pay for activities, services, or programs that they deliver, or which are delivered by a related entity, except with express approval from the department. Guidelines should also be developed to clarify the circumstances in which approvals may be given.

4.53The Committee recommends that the Australian Government amend legislation and adjust IT systems to enable a partial payment withholding (‘holdback’) as an alternative to the blunt instrument of harsh payment cancellations or suspensions. This ‘holdback’ should apply to only a small percentage (for example, 25 to 30 per cent) of the participant’s payment.

4.54The Committee recommends that the Australian Government:

end automatic payment cancellations where a person has:

ofailed to re-engage with ParentsNext after their payments have been suspended (or provide a valid reason for the compliance failure); or

ofailed to meet their income reporting requirements;

require Services Australia to formally inform the person of the intention to cancel the person’s payments, subject to a reasonable notice period (for example, 28 days); and

retain these safeguards in the service which replaces ParentsNext.

4.55The Committee recommends that the Targeted Compliance Framework not apply to participants in the service which replaces ParentsNext. A new framework should be implemented that includes the following suggested features:

Income support payments for parents will no longer be cancelled or suspended.

If a participant does not meet a participation requirement, the time to re-engage be substantially longer than the current two business days (seven business days suggested).

If a participant does not re-engage then a provider does not have the power to impact their payment. The provider will simply make a report to Services Australia.

All decisions that affect income support payments must be made by a staff member within Services Australia, and not automatically by the system.

A partial payment withholding (‘holdback’) of a small percentage (for example 25 to 30 per cent) of a person’s payment be the maximum sanction available to Services Australia, with the holdback paid back to the participant in full as soon as re-engagement occurs.

4.58The Committee recommends that the Australian Government consider options to allow parents caring for very young children and who do not intend to work to report their employment income less frequently (for example, every two or three months rather than fortnightly).

5.112The Committee recommends that—in relation to both ParentsNext and any replacement service—the Department of Employment and Workplace Relations, the Department of Social Services, and Services Australia review the information on their websites and in any promotional material, to ensure that:

the information is comprehensive and accurate, and is consistent across all government agencies; and

the information fully explains the role and operation of the program and its potential benefits.

5.117The Committee recommends that Services Australia consider the establishment of a dedicated advice and information service for parents.

5.122The Committee recommends that Services Australia establish a dedicated point of contact for providers, including a dedicated phone contact service, as a matter of urgency.

5.132The Committee recommends that the co-design process for a pre-vocational service to replace ParentsNext expressly consider the commissioning model for providers, with the aim of minimising competition and promoting greater collaboration between providers.

5.133The Committee recommends that, as part of the pre-vocational service to replace ParentsNext, government actively support communities of practice, and mandate participation by service providers to enable information-sharing between stakeholders and to ensure that providers input into policy and program evaluation and design.

5.138The Committee recommends that the Australian Government, as part of the design process for a new pre-vocational service to replace ParentsNext, seriously consider having a public sector agency deliver the service in at least a few Employment Regions.

5.146The Committee recommends that the co‑design process for any pre-vocational service to replace ParentsNext include development of minimum competency standards for frontline staff and a typology of staff capabilities for providers. The standards must require frontline staff to be culturally competent and able to respond to experiences of family violence, and should capture the following matters:

Specific skills, qualifications, and competencies frontline staff are expected to hold.

A typology of a broad ideal skills mix in a high-quality service region.

The extent to which providers may recruit staff who do not possess formal qualifications, including measures to enable providers to:

orecruit staff with lived experience in or experience delivering pre-employment or employment services; and

osupport staff to gain formal qualifications post-commencement.

5.151The Committee recommends that the pre-vocational service which replaces ParentsNext has the built-in capacity to trial, experiment with and evaluate alternative service delivery arrangements. All such arrangements should be subject to rigorous co‑design with key stakeholders including participants, providers, peak bodies, and academic and policy experts, and should be subject to robust monitoring and evaluation.

6.15The Committee recommends that the Australian Government develop and publish a transition plan for ParentsNext by July 2023, outlining:

changes that can be made immediately and in the short and medium term to the current ParentsNext program, pending a replacement service being implemented;

changes that cannot be made until a replacement service is in place;

a timeframe for contract extensions to be determined; and

the process and timelines for co-design process for a new ‘Your Future Planning’ pre-vocational service to replace ParentsNext.