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Newcastle Herald
Newcastle Herald
Jessica Belzycki

Cost of living bites, more than half forgo food and medication

Port of Newcastle. File picture.

More than half of low income and below the poverty line households in Newcastle and Lake Macquarie are going without healthcare or meals to make ends meet, a new report has found.

Four-in-five people were experiencing housing stress, meaning they spent more than 30 percent of their income on housing, while almost one-third could not afford to travel for essential reasons and had no money set aside for emergencies.

The report also found 47 per cent used Buy Now Pay Later for goods such as food and transport.

Commissioned by the NSW Council of Social Services (NCOSS), the University of Technology Sydney surveyed 1086 people across the state for the Impossible Choices: Decisions NSW Communities shouldn't have to make report.

Conducted between March and April 2024, the survey found that cost of living pressures that sharply increased in 2023 have not improved.

Compromising on safety and wellbeing

NCOSS CEO Cara Varian said families should not be forced to choose between paying for food or medication.

"The basics of life should not be considered a luxury that most low-income families cannot afford," she said.

"These impossible choices make every day a challenge and, most disturbingly, we are setting up intergenerational disadvantage. We must do better."

Despite people on low incomes working and taking on extra jobs, she said many were still going backwards.

"Even those who received a pay rise could not match the increase to their costs of living," she said.

Rising interest rates, increased rents, and the rising costs of groceries, transport and utilities were among the reasons forcing people to compromise on their safety and wellbeing, the survey found.

"The ripple effects of these sacrifices are profound, causing increased stress and tension within households, affecting relationships, mental health and wellbeing, and child development outcomes," Ms Varian said.

In the Hunter Valley, low-income houses and those below the poverty line were similarly struggling to meet financial needs.

More than half went without prescribed medication or healthcare and couldn't afford travel for essential reasons while two-thirds had no money to set aside for emergencies.

The report found 45 per cent went without meals and almost 70 percent were in housing stress.

Throughout the state, single parents were the hardest hit cohort with nine-in-ten single parents going without essentials over the last 12 months.

Easing the 'crushing pressure'

Ms Varian said the NCOSS had a list of recommendations that would "significantly ease the crushing pressure that is pushing people to breaking point".

Their recommendations include increasing income support for Jobseeker, Youth Allowance and Parenting Payments, raising the rate of Commonwealth Rent Assistance, and implementing universal early childcare.

The peak body also suggested ensuring 10 per cent of NSW housing is social and affordable, introducing universal school food programs, increasing funding for emergency food services and improving bus networks in regional, rural and remote communities.

"These are complex issues, but governments have the power to change it," Ms Varian said.

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