Unprecedented number of Aussies in hardship due to Labor’s cost of living crisis
The number of Australians on energy bill
hardship programs is now higher than the peak of the Covid-19 pandemic, with
the greatest concern for customers being the risk of another interest rate
rise.
Representatives from
EnergyAustralia, AGL Energy and Origin Energy told the Cost of Living Committee
at its hearing in Perth that there has been a “significant increase” in the
number of customers on hardship plans.
One energy retailer
reported that the number of customers on hardship plans had almost doubled from
the peak of the pandemic, and they expected the number to increase into the
future.
The Committee heard
that “more supply is critical” to reducing energy prices, but that the Albanese
Government’s interventions in the gas market “tend to discourage supply”.
An “unprecedented
demand” in the number of Australians seeking charitable assistance is also
being reported across various organisations in the West Australian charity
sector.
Foodbank WA said
they were now providing food assistance to dual income households, a
demographic they said they “never expected to support”, with the number of
eligible Foodbank cardholders recently skyrocketing from 5,000 to 14,000 due to
the cost of living crisis.
The Salvation Army
said it had seen a 60% increase in wage earners seeking assistance, while the
Anglicare WA said employed people coming to it for assistance had tripled in
the last three months.
Exasperating the
challenges charities are facing is the fact that the sector is not seeing
donations increase at the same rate as requests for assistance, and it is
harder to find volunteers.
Chair of the
Committee Senator Jane Hume said that the increase in the number of Australians
accessing hardship programs and charities, shows the very real impact the cost
of living crisis is having on families.
“Labor went to the
election promising a plan to lower the cost of living and reduce energy bills
by $275, but the evidence we heard today is that energy bills are going up, and
Australians are struggling to cope.
“The fact that there
are now more Australians on hardship programs than during the peak of the
pandemic and the fact that charities are now servicing dual income households,
show that Australians are not better off under Labor.”
Shadow Assistant
Minister for Competition, Charities and Treasury Dean Smith said the charities
and non-profits sector is operating in a perfect storm of record demand and
rising overheads.
“Charities are
working in overdrive, but their own costs are up – one told us today they’ve
spiked 66% – while both donations and the supply of volunteers are generally
down,” Senator Smith said.
“And a light is now
being shone on ‘hidden’ hardship, households with two working parents, not
eligible for Government financial and housing support, but living in cars with
their kids and relying on food support.”
“These are the very
human faces of the Albanese Government’s cost of living crisis.”