Some welfare recipients attempting to transfer from Newstart to the aged pension are reportedly facing delays of weeks or even months in what the main public sector union says is a "horrible and completely avoidable situation".
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When a recipient of the unemployment payment Newstart turns 65, they are no longer eligible for the payment, but are then eligible to receive the aged pension.
The Community and Public Sector Union said a change in Centrelink's protocols meant the change was no longer automatic, but subject to an application process where delays have resulted in people missing out on payments.
"Our members working in Centrelink are distressed at the impact this unnecessary change is having on some of the most vulnerable people in our community," CPSU deputy secretary Melissa Donnelly said.
"Experienced staff who previously would have acted quickly to ensure clients continued to receive Centrelink payments are now worried they'll face disciplinary action if they help."
The delays are being caused because call centre staff are no longer able to transfer clients onto the payment, as well as issues with the work allocation system not working properly.
The union says transfer applications are waiting to be processed for too long, and are then sometimes assigned to staff who aren't trained to deal with them, dragging the process out further.
"Previously almost any Centrelink call centre staff member could transfer clients from Newstart to the age pension in just a few minutes, ensuring there was no break in payments," Ms Donnelly said.
"Our members say they're now seeing cases where clients have waited weeks and sometimes months to be transferred across, and they've potentially had no income to support themselves in the meantime. It's a horrible and completely avoidable situation."
Ms Donnelly called for Centrelink to remove restrictions on which staff can process the applications and to address issues with how the work is allocated. They want all transfers processed before Newstart payments are cut off.
The Department of Human Services has denied there has been a change in process, even though claims are processed by specialist processing staff using a dedicated system. A spokeswoman said all eligible customers already receiving a payment were contacted 13 weeks week before they turned 65 and told they needed to have their claim assessed, and reminded four weeks before they turned 65.
"Transfers are prioritised for people who may become ineligible for their existing payments," the spokeswoman said.
"We prioritise claims for anyone experiencing financial hardship and urge people in this situation to contact us."
