Tasmanian welfare sector demand will not be met, support services may close: report

Demand for welfare support services in Tasmania will not be met this Christmas and some organisations may face closure in the new year, a national report warns.

A national report has found welfare groups are struggling to respond to growing needs in the community and they fear federal budget cuts will force some of them to shut their doors.

The Australian Council of Social Services commissioned research which found 80 per cent of community services could not meet demand.

Almost 1,000 community service workers Australia-wide were interviewed for the study, including Tasmanians.

The Tasmanian Council of Social Services (TasCoSS) chief executive, Tony Reidy, said 15 per cent of Tasmanian households were living below the poverty line.

He urged the State and Federal governments to reconsider budget cuts or policy proposals that would inflict deeper pain.

He said demand for social services was growing in the state,which had the nation's highest unemployment and underemployment rates, and the highest youth unemployment rate.

"It's a very concerning report overall, because it confirms our understanding that something in the vicinity of 80 per cent of the organisations who are working in the community sector will not be able to meet the demand coming through their doors now and into the future," he said.

"It's a real wake up call for governments and community generally that there are tens of thousands of households in Tasmania that are really struggling under financial hardship."

"We have reports from our TasCoSS member organisations that the percentage of people approaching charitable organisations for assistance for the very first time in their lives is increasing quite significantly."

Pressures increase at end of year

Mr Reidy said it was a difficult time of year and charities were strained to the limit.

"There is no question the demand that comes to the door will not be met," he said.

"We know that 80 per cent (of welfare groups) are unable to meet the demand which comes through the door, and what's worse is that those services that prioritise people on low incomes... 50 per cent of them can't meet demand."

A broad range of community services were interviewed for the report, including from housing and homelessness to mental health services.

He said there is a growing need for education and training to help Tasmania's youth transition to employment.

"With the highest youth unemployment in the nation, we have so many young people in Tasmania who need to approach organisations for assistance, whether it's for support in training or education or to general assistance in getting them organised and back into the workforce," he said.

The other areas of demand were housing and legal services.

Cloud over funding future

Mr Reidy said Federal Government funding to some parts of the sector was not assured past next February.

"We have a very difficult situation in Tasmania at the moment because many of the organisations operating in the community sector in Tasmania because many of them rely on federal funding," he said.

"The Federal Government funding process is under way at the moment and there is complete uncertainty.

"Many of the organisations have had their funding temporarily extended until February next year, but they don't know what happens beyond that time."

The Tasmanian Government announced a cut to the Department of Health and Human Services budget earlier this year.

It has not been confirmed whether that will extend to community service organisations.

"On the state level, we understand the State Government has made it clear that it will, over the period of the forward estimates, and the years to come, be cutting $100 million from the budget of the Department of Health and Human Services," he said.

"When we have budget cuts of that nature they always disproportionately affect those people who are on low incomes or are disadvantaged."

A spokesman for Tasmania's Minister for Human Services, Jacquie Petrusma, said the Government recognised that appropriate funding levels were vital for the community sector.

He said an additional $9 million had been provided in the state budget over four years on the top of an annual 2.25 per cent indexation which would deliver $5.3 million next year.