Poor must fry or freeze as energy costs bite deeper into family income

HUNDREDS of thousands of Australians are suffering energy stress as higher costs eat into more of their income, a welfare body says.

HUNDREDS of thousands of Australians are suffering ­energy stress as higher costs eat into more of their income, a welfare body says.

An investigation has exposed how rising energy prices have left low-income families worst off.

Some households now devote more than 10 per cent of disposable income to electricity and gas bills, according to Australian National University analysis.

The Australian Council of Social Service and Brotherhood of St Laurence commissioned the research.

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Some households now devote more than 10 per cent of disposable income to electricity and gas bills, according to Australian National University analysis.

“Very high levels of income spent on energy is leading to hundreds of thousands of people being stressed by their bills,” said Damian Sullivan, the Brotherhood’s head of energy, equity and climate change.

“On very hot summer days, we know some older people in poor health who need cooling will go without it, just so they can afford to pay their bills. This risks their health and wellbeing.

“Winter is the same with too many households foregoing heating to pay their bills.”

The ANU modelled the impact of electricity and gas costs on a range of household types from June 2008 to June 2018. One-quarter of those dependent on the Newstart unemployment payment and similar allowances now spend at least 9.7 per cent of their income on energy, it estimates.

Some single parents, pensioners and renters were also highly vulnerable.

ACOSS chief executive Dr Cassandra Goldie. Picture: John Appleyard

On average, the nation’s poorest families spent about 6.4 per cent of their income on electricity and gas — up from 5.9 per cent a decade ago. In comparison, Australia’s most affluent households spent 1.5 per cent, up from 1.4 per cent.

ACOSS chief executive Dr Cassandra Goldie said in ­addition to urgently tackling energy prices, governments should increase the Newstart allowance, mandate energy ­efficiency standards in rental properties, and improve energy concessions.

Disability support pensioner and part-time school crossing supervisor Michael McGrath, 60, said electricity prices were putting ridiculous strain on people relying on modest incomes.

“There’s three of us on one income. We had a broken ­electric heater over winter but even if it had been fixed we can’t afford to run it as much as you’d want to,” he said.

“You put an extra doona on and wear socks and gloves and a beanie to bed. People don’t realise how bad it is getting.”

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