The Accord,Wages Policy and Social Security

The Accord remains the key policy commitment of the Government. Whilst the operation of the Accord encompasses many policy areas, in practice the Accord has been fundamentally a wages policy. As such, other policy commitments of the Accord, such as those in the area of social security, have become secondary to the maintenance of a sustainable wages policy which produces the ‘correct’ macroeconomic outcomes. In this context two ‘objective’ social security objectives of the Accord are assessed — the indexation of benefits, and the targetting of single benefits to 25 per cent of average weekly male earnings. Both objectives have been compromised by the trade-offs and deals carried out to sustain the wages regulation component of the Accord. Alternative criteria for indexing benefits and for adjusting benefits relative to other income claims are outlined.