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Rising cost of kids sending middle-class families backwards faster than the people on Job Seeker

West Australians are relatively better off if they’re single and unemployed, according to analysis that found families are bearing the brunt of the cost-of-living crisis. A report released by the WA Council of Social Services on Thursday found that so-called “middle-class” working families have exhausted their savings and are now going backwards financially, for the first time in 20 years. The State’s peak body for social services found even dual-income families are struggling to afford a “reasonable” standard of living, falling into debt and relying on emergency relief services. “People are skipping meals, rationing medication, missing medical appointments, and forgoing heating and cooling of their homes to stretch their weekly budget,” WACOSS chief executive Louise Giolitto said. “Community support services, which are critical to well functioning and fair societies, have been underfunded for years and are being forced to cut outreach programs and reduce staff hours.” Single parents working part-time fared worst with a weekly shortfall of $94.12 to meet “basic living costs” ahead of two-parent family’s with expenses exceeding a dual income by $60.77. Unemployed singles are “teetering on the edge” with costs totalling 15¢ more than their expenditure. Exmouth mother-of-two Michelle said families were doing it tough as there are “more mouths to feed”. “Food prices, housing, insurance, petrol, everything is just insane,” she said. “We don’t eat out a lot and I don’t drink ... We had salary increases, but it doesn’t help. It just feels like you’re working more and spending more.” Despite her dual-income family’s efforts to prioritise savings, Michelle said an unexpected bill would mean having to “redraw from the mortgage”. Single-parent Kathryn Messom is currently looking for work, but was concerned she would still be struggling on a single income. “I’m on a single-parent pension and it’s not worth it,” she said. “I get $960 a fortnight, so it’s a very, very tight budget ... Everything continues to go up except for wages. “It’s excruciatingly hard, especially with a little one and trying to live by ourselves. “The basic necessities are more expensive now than they ever have been. It makes it really unbearable as a parent.” Perth’s tight rental market is having an impact on older West Australians, with a stark contrast identified between age pensioners who own their home and have $46.18 left over each week compared with tenants who are falling $55.25 short. Expenditure has increased faster than household income in all categories, resulting in a decline in real living standards. It’s prompted an urgent call for cost-of-living relief to be better targeted, ahead of the State Government’s mid-year economic review on Monday. “If we are going to build a fairer WA it is time for urgent and targeted action,” Ms Giolitto said. “It is clear that our systems are not working for far too many Western Australians and our community does not have equitable access to life’s essentials.. “In the short term, improving outcomes for households on low income requires the State Government to invest in targeted cost of living relief that directly relieves pressure on the weekly budget. This includes supports that significantly lower the cost of essential items such as housing, transport, food and utilities.” Premier Roger Cook has previously called cost-of-living relief his “top priority” and trumpeted the delivery of a second power bill credit worth $350, that has been added to most Synergy and Horizon Power accounts in December. Free summer public transport started on Saturday, but requires a SmartRider card. The WACOSS report praised both measures as “good progress”, but said more was needed, with concerns an 85 per cent cap on the Hardship Utility Grant Scheme is resulting in a debt trap. The report also called for school breakfast and lunch programs to be expanded to all WA schools to ease pressure on family budgets at the supermarket checkout. Rent stabilisation was another key recommendation, with high prices and low vacancy rates the “biggest budgetary burden” for tenants.

The West Australian exclusiveRising cost of kids sending middle-class families backwards faster than the people on Job Seeker

exclusive
Rising cost of kids sending middle-class families backwards faster than the people on Job Seeker