THE federal government is defending sweeping reforms that could lead to disability pensioners having their payments cut off, arguing that it would be irresponsible not to do anything about a "dysfunctional" system.
A government-released draft report into the welfare system calls for thousands of disability support pensioners to be moved onto a lower, new working-age payment.
Only those with permanent disabilities would have access to the pension.
Social Services Minister Kevin Andrews defended the proposal, saying it would stop people on unemployment benefits getting themselves onto the more generous disability pension.
He said the $300 gap in the fortnightly rate between the two "creates an enormous incentive for people on unemployment benefits to test their eligibility for the DSP".
The new payment would better reflect people's work capabilities, so if their impairment reduced or ended, they would be "in a good position to return to employment".
Another proposal would quarantine the welfare payments of disadvantaged families for rent, food and bills.
