Non-profits brace for increased demand as cost of living rises

The average Victorian person was more than $800 worse off last year as costs outstrip wage growth. And it’s set to get a lot worse.

Non-profits and community support organisations are bracing for increased demand on their services as the cost of living for ordinary Victorians rises.

Figures coming from the Australian Council of Trade Unions suggest the average Australian was more than $800 worse off in 2021 compared to the previous year as costs outstrip wage growth.

Already Victorian social welfare organisations are warning rising fuel prices and inflation will have a flow on effect, impacting the prices of goods and services.

This impact is going to be most pronounced in outer growth areas, according to National Growth Areas Alliance chair Matthew Deeth who said 52% of these residents were struggling to pay at least one bill – leaving them in “financial survival mode”.

“Locals in Victoria’s growth areas are living without adequate access to doctors, hospitals, schools and other social infrastructure, as well as access to local job opportunities,” he said.

“Throughout the pandemic, we have seen Australia’s growth areas become the hardest hit. As a steady stream of new residents continue to pour into Victoria’s growth areas, the pressure will be heightened on the already scarce vital infrastructure within these communities.”

Coordinator of The Bird Cage community store Christine Mackaness with food relief hampers. Picture: The Bird Cage community store.

In Wyndham, co-ordinator of The Birdcage community store, Christine Mackaness, said she was already seeing higher demand for food relief hampers as a result of financial stress on residents.

“We started this in 2020 because we were worried about the impact the pandemic was going to have on our community,” she said.

“When we started we were delivering about 40 parcels each week, since then it’s grown to 170.

“People come and go, we do see some regularly when they face crises in their lives. There’s no doubt the impact on cost of living will lead to more people seeking help.”

Ms Mackaness said the support organisation expected demand to continue to rise as families face increased financial pressure.

“There’s lots of young families and pensioners in the area who are struggling,” she said.

“At the same time we are having to rely on donations from the community more as Foodbank is facing its own supply struggles.”

Gurpreet Singh, Secretary of the Sikh community of Western Victoria, said volunteers had been providing free vegetarian meals in Melbourne’s western suburbs since the pandemic began.

“I don’t think we’ve see much change at this stage, many people have been able to find themselves working again as the government implements the new Covid normal,” he said.

“But if needed we’re prepared to step up our volunteer work to make sure no one goes hungry.”

Mr Deeth believes the mounting economic struggles faced by residents in municipalities such as Wyndham, Whittlesea, Hume and Mitchell Shire will become a key focus on the upcoming federal election, calling on political parties to commit to a Growth Areas Minister.

“Growth areas have long been overlooked by the government, but as more of these suburbs appear in Victoria, their influence on the state’s future and voting outcomes will only increase,” he said.