Help grandkids, keep working: Morrison

Forget retirement, women in their 60s should keep working because it is good for their grandchildren.

This is the message from Social Services Minister Scott Morrison, who has declared lifting workforce participation rates among older women one of his top priorities as he overhauls the welfare system.

The minister released a review of the welfare system by respected expert Patrick McClure, whose main recommendations include consolidating 20 existing welfare payments into five and tightening eligibility for disability payments.

Declaring the best form of welfare was a job, Mr Morrison warned without beginning to reform the system now, social services expenditure would swallow the Budget.

He called for an "upgrade" in the level of political debate over the social security safety net, saying he was worried there was no appetite for change.

"It is not just about whether we are better off or worse off as a result of any individual measure that is introduced," he said.

"It is about will the next generation be better off or worse off?"

While Mr McClure's report offered a long-term pathway, Mr Morrison said one of his major priorities for the coming Budget was keeping people in work longer as the population aged.

He said workforce participation rates for women in their early 60s had been rising but one area where big gains were possible were with those over 65.

"If you're healthy and happy in your work then please keep going," Mr Morrison said.

"It's good for you, it's good for your family, it's good for the country and every Christmas the grandchildren will be stoked, absolutely stoked."

Mr Morrison again ruled out including the family home in the pension assets test, saying it was impractical because it would be too hard to value homes. He also dismissed reintroducing death duties. He was keen on ways to unlock the capital people had stored in their home, which would improve their standard of living in their golden years.

Under Mr McClure's proposals, new payments would be a Supported Living Pension to replace the Disability Support Pension; a three-tiered Working Age Payment to replace the dole and for people with a disability who can do some work; a Child and Youth Payment to replace Family Tax Benefits and Youth Allowance; leaving the Age Pension and Carers Payment unchanged.

Recipients would not be worse off under the plan.