South Australia’s emerging working poor: ‘We’re seeing people who never thought they’d need us’

WE all know utility and health costs in South Australia have risen in the past decade — but by how much? These astonishing infographics show the full extent of our hip pocket pain.

• FOOD: How your grocery bill has changed in 10 years
• CARS: Why the trusty Corolla has never looked better
• ALCOHOL: Why now’s the time to buy SA wine

SKYROCKETING utility costs are helping to fuel an increase in the “working poor” in South Australia, says the head of the state’s peak welfare association.

Australian Bureau of Statistics data shows that in the past decade the state’s electricity costs have increased by 136 per cent, water and sewerage was up 75.4 per cent and gas has risen by 89.1 per cent.

Property rates and charges were also up 77.6 per cent, the figures, crunched by The Advertiser and Sunday Mail as part of our Cost of Living: Decade of Difference series, show.

The surge in costs compares to the state’s overall CPI inflation of 25.1 per cent for the same time frame.

The data also shows health costs have soared in the past decade, with medical and hospital services up 65.5 per cent in South Australia.

Dental costs have gone up 34.9 per cent, whereas pharmaceutical products have risen by just 15.2 per cent.

And the flow-on effects, such as increased private health costs, are hurting many families, says consumer advocacy group Choice.

Choice Australia CEO Alan Kirkland says health costs – including health insurance – persistently emerges as a concern in his organisation’s quarterly Consumer Pulse surveys, which track cost-of-living pressures on households.

In the most recent Consumer Pulse report, the cost of private health insurance was second only to electricity as the top cost-of-living concern. The data shows 77 per cent of Australians are struggling with health insurance costs.

Choice has also found 70 per cent of those who don’t have private insurance say it’s because it is too expensive.

Choice has devised a quiz to help people find out if private health makes good financial sense for them and their family. Check out the ‘Do I need health insurance?’ quiz here.

South Australian Council of Social Services chief executive officer Ross Womersley said the state had seen a marked increase in the number of people struggling to make ends meet, despite having a job.

“There are households where people might be working but they’re not working at a level that enables them to get sufficient income to live a reasonable lifestyle,” he said.

“Some of these people are in highly casualised employment, many are doing ‘the gig economy’ kind of roles – Uber drivers and so on – and some are people that have managed to get themselves a small amount of work but not nearly enough to keep them going.”

Mr Womersley said housing costs were one of the biggest challenges.

“We know the biggest pool of expenses still goes on housing, and this is especially taxing for those households that are renting.”

According to the ABS data, rent costs in SA have risen by 30.5 per cent in the past 10 years.

“I hate the term ‘working poor’ but haven’t yet come up with an alternative,” Mr Womersley said.

“(Worryingly) this group of people is really starting to shine through.”

South Australians are being hit by rising electricity costs.

South Australian Financial Counsellors’ Association executive officer Wendy Shirley said there had been an “alarming increase” in demand for counselling in the past year, pushing the number of people seeking help up to 35,000 annually.

“(Increasingly we are seeing) people who never thought they would have financial difficulties and high levels of debt (but) are now needing help,” she said.

Ms Shirley attributed the situation to sluggish wage growth and spiralling costs of living.

“Much of this (increase) is demand from working families,” she said.

“They have seen their wages remain static while costs continue to increase. Underemployment (also) continues to be a major problem in this state.”

Ms Shirley called on state and federal governments to provide urgent extra funding to provide more financial counselling appointments for South Australians.

The Australian Medical Association said it had the private health industry in its spotlight.

“If affordability is not addressed, membership rates will continue to fall, threatening the viability of the entire health system,” national president Michael Gannon says.

Five ways to ease utility bill pain

The Advertiser Personal Finance Writer Anthony Keane suggests ways you can reduce your utility bill costs:

1. Get quotes from other providers or comparison websites so see if you’re being ripped off.

2. Demand a better deal — new customers get bigger discounts than existing customers, so threaten to switch.

3. Reduce your use — there are plenty of free online tips to cut energy, phone and other common bills.

4. Spread the costs out by staggering big bill payments throughout the year.

5. Review at least annually. Competition is fierce and you can save hundreds or thousands of dollars annually by shopping around.

Top ways to reduce your health spend

Choice explains how your family can save on health insurance:

1. If you need cover, a top level hospital cover with an increased excess is often better value

than reducing your cover.

2. Check to see if you can join a restricted membership health fund for your industry.

3. Think of extras cover as a budgeting tool – if your annual payouts are less than the cost of

your policy, it may not be worth the money.