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(Image: Australian Currency by Krug6 on Flickr)

People on unemployment benefits are entrenched in a cycle of poverty, limiting their chances of getting a job, according to a report by Major Church Providers of social services in Australia. As the Senate inquiry hearings into Newstart and Youth Allowance begin in Melbourne today, more evidence has been released supporting claims that these benefits are simply not enough. Recipients of the unemployment benefits are so focused on keeping up with the cost of living, and the costs associated with finding a job, that they are becoming more entrenched in the welfare trap.

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