Why lobby group wants energy bill debt wiped

Victoria’s peak social advocacy body is calling for drastic action to help struggling families ahead of Christmas, but not everyone is on board.

Energy bill debt could be forgiven in Victoria under the plan. Picture: istock

Unpaid energy bills would be wiped in a Christmas reprieve for struggling families under a bold proposal by the state’s peak social advocacy body.

The bill waiver is the key recommendation by the Victorian Council of Social Service in a submission to the state government ahead of the 2022 budget.

It is among a suite of proposed measures aimed at easing cost of living pressures for those hit hardest by the pandemic.

Latest data from the Essential Services Commission revealed average energy debt levels for struggling families have increased to more than $1,800 a household.

Energy debt increased during the pandemic. Picture: iStock

VCOSS chief Emma King said debts should be wiped through a new Utility Debt Demolition Payment of up to $2,000, targeted at low-income households.

The one-off payment would cover energy debts racked up during 2021.

“Unpaid energy bills ballooned during Covid. The Victorian Government could erase this debt with the stoke of a pen,” Ms King said.

“Nobody can recover after the pandemic under the weight of a giant energy debt.

“The Utility Debt Demolition Payment would help ensure every Victorian can start rebuilding on an equal footing.”

VCOSS has also called for free myki cards for kids who struggle to afford the trip to school.

“This would slash the cost of school for cash-strapped parents and help increase school attendance for kids from disadvantaged backgrounds,” Ms King said.

“This is another simple, sensible policy to ease the cost of living for struggling families,” Ms King said.

VCOSS chief executive Emma King wants families struggling with debt to get a fresh start and rebuild post-Covid. Picture: supplied

According to recent polling the cost of living has emerged as the key issue for Victorian voters a year out from the 2022 state election.

The new data by research and polling firm RedBridge revealed almost one quarter of voters, 22.7 per cent, considered the cost of living as most likely to influence their vote.

Mortgage stress also emerged as a key concern, with 75 per cent of respondents expecting interest rates to rise next year.

A $250 Victorian Government Power Saving Bonus is currently available to concession card holders.

The one-off payment, eligible to pensioners, people on Jobseeker, Austudy, Abstudy or Youth Allowance programs, Veterans’ Affairs Gold Card holders, has been accessed more than 200,000 times.

The program, available for those struggling to pay their power bills, is due to end in January.

“We are encouraging households doing it tough with energy bills to apply for the one-off $250 Power Saving Bonus payment,” Energy Minister Lily D’Ambrosio said.

“We have approved more than more than $87.5 million in payments since the program launched on 1 February 2021, which has provided immediate financial relief to more than 220,000 households.”

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