The prevalence of mental disorders among income support recipients: An important issue for welfare reform

Objective: To estimate the prevalence of mental disorders and psychological distress among Australian income support recipients. Methods: Data from the 1997 National Survey of Mental Health and Wellbeing were used to examine measures of mental health, disability and use of mental health services, comparing working-age people in receipt of government payments to those with other main sources of income. Results: One-quarter of all income support recipients had experienced substantial levels of psychological distress during the previous four weeks and almost one in three had experienced a diagnosable mental disorder during the previous 12 months. Around 45% of unpartnered women with children in receipt of income support payments were identified with a mental disorder. In contrast, around 10% of people not receiving welfare reported substantial psychological distress and 19% had a diagnosable mental disorder. The prevalence of physical and mental disability was also greater among income support recipients. There was no difference in service use between recipients and non-recipients. Conclusions: Mental illness is a significant issue among income support recipients. The presence of a mental disorder is a substantial barrier to work and other forms of social participation. Mental health is an issue with relevance beyond the health portfolio, with implications for many domains of social policy and service delivery. Understanding and better assisting income support recipients with mental health problems will be important in welfare reform and in the introduction of a more active welfare system.