Australian community services, including those assisting homeless people, are facing surging demand driven by relentless cost-of-living pressures and extreme weather events, a study found.
(Bloomberg) — Australian community services, including those assisting homeless people, are facing surging demand driven by relentless cost-of-living pressures and extreme weather events, a study found.
Only 3% of the 1,470 organizations surveyed said their main service can always meet demand, down from 19% in 2020 when the government provided financial aid during the pandemic, according to the Australian Council of Social Service.
“It is clear that community services are experiencing something unprecedented,” said Edwina MacDonald, deputy CEO of ACOSS, the peak body for a range of groups that help impoverished and disadvantaged Australians.
“Intensifying financial pressures on top of disasters are really affecting people,” she said, adding services are being pushed “beyond breaking point.”
The report chimes with data showing households remain deeply pessimistic as the Reserve Bank drives up interest rates to try to curtail soaring prices. It also points to rising financial stress in a nation with a record-high debt to income ratio of 187.5%, with loan repayments expected to keep rising in 2023.
The report also highlights disparities in the A$2.2 trillion ($1.5 trillion) economy which rebounded sharply from a Covid-induced recession in 2020. Since then, consumption has been solid and corporate profits strong, yet rents are now surging in a very tight market and real wages are going backwards, stretching household finances.
The Reserve Bank of Australia has delivered its sharpest annual monetary tightening in 33 years to prevent inflation from becoming entrenched, lifting its benchmark rate to 3.1% from a record-low 0.1% in May.
The ACOSS report also found:
- Not one of the 180 housing and homelessness services said they could “always” meet demand and as many as one in 10 said they could never meet demand
- More than 60% of service providers reported increased poverty and disadvantage among their clients
- Increased demand has put extra pressure on community service employees, with 54% of organizations reporting their main service is affected by staff burnout
Australians have also been hit by natural disasters as floods have inundated large parts of the east coast in the past year.
“Our dedicated insurance and debt lawyers are never able to answer all of the calls that come through,” said Karen Cox, CEO of Financial Rights Legal Centre. “This has been particularly true following the huge loss of property in this year’s unprecedented floods.”
“On top of that, more and more people are turning to us for help as the cost-of-living crisis hits hard.”
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
