Cost of living pressures have become a cost of living crisis in the last six months, report says

The Foodbank chief executive says “a job is no longer a shield against a cost-of living crisis”, as more working Aussies seek help from charities.

Cost of living pressures have “worsened” into a crisis over the past six months, according to damning Senate committee findings, as more desperate and cash-strapped Aussies turn to charities for support.

The Albanese government is set to unveil a suite of measures to help people feeling the crunch when the budget is released on Tuesday.

But an interim report from the Coalition-established Cost of Living committee states claims that Australians will be “better off” under Labor have yet to materialise.

“Rather, cost of living pressures have worsened into a cost of living crisis in the last six months,” the report states.

Desperate Aussies are turning to charities for support. Picture: Wayne Taylor

“Compounding the significant impact of increasing costs of living has been the failure of wages to keep pace with inflation.”

The struggle to cover the basics such as rent and mortgages, health, utilities and food has more people seeking support from charities and social services, the committee heard.

Foodbank CEO Brianna Casey said a “job is no longer a shield against a cost-of living crisis”, as 54 per cent of food insecure households in Australia have someone in paid work.

Wesley Mission CEO Reverend Stu Cameron said the face of financial stress and poverty was changing, with it seeing double-income families that were in need of support.

Foodbank CEO Brianna Casey says a job is no longer a shield against a cost-of living crisis. Picture: AAP

The report raises concerns about the crisis had Australia’s charity and not-for-profit sector, which was facing the perfect storm, as demand for its services grows while it also bears the brunt of mounting costs and pressures on revenues.

Its workforce is also fatigued from responding to “disaster after disaster” for years, it states.

The committee heard that levels of assistance that had historically been provided by governments would no longer be sufficient.

In two dissenting reports, Labor and the Greens said the committee heard that the crisis had not emerged overnight but had been growing for decades.

“The cost of living crisis that began before the 2022 Federal Election was compounded by the policy of the previous Government to intentionally limit wage growth,” the government’s report states.

“The Labor Government’s steps to deliver wage increases for some of the lowest paid Australians was noted as a real step to address working poverty after a decade of neglect.”

Originally published as Cost of living pressures have become a cost of living crisis in the last six months, report says