Cost of living crisis hits unwanted milestone, according to Lifeline data

Startling new data has revealed how Australians are struggling to deal with cost of living pressures in increasing numbers.

The full scope of Australia’s cost of living crisis on people’s mental health has been revealed in new data.

Lifeline released figures on Monday morning that showed record activity through their website for help and support.

Data from the organisation’s search engine revealed more than 26,000 searches for assistance and support in January 2023 across Australia, the highest on record.

Referral searches by Lifeline’s helpline counsellors specifically relating to financial issues and homelessness also went up 49 per cent between August 2022 and January 2023.

Lifeline chief executive Colin Seery said people who had never experienced financial stress before were contacting the service.

Lifeline Australia chief executive Colin Seery said the surge in people needing support could be linked to Australia’s climbing cost of living.

“Many of these centres are reporting a significant increase in demand for financial support, including food distribution. We are seeing this happen right now, all across the country,” Mr Seery said.

“Our centres are reporting an increase in help seekers who have never experienced financial stress before. And we know cost of living pressures also disproportionately impact the most vulnerable, including people who are unemployed, renters and young families.”

Lifeline Australia chief research officer Anna Brooks said financial stresses were not isolated to those with a mortgage.

Instead, she said interest rate increases could flow through to generate higher rental costs and other economic pressures.

Australians are contacting Lifeline in increasing numbers for support. Picture: iStock

“Financial stress and uncertainty can contribute to mental ill health,” Dr Brooks said.

“There is also evidence to suggest that people can experience distress and suicidal thoughts when facing financial stress and uncertainty.”

The new data follows ABS figures released earlier this month that found Australian households spent an average of 11.2 per cent more in December 2022 than in the same month the previous year.

Spending on goods rose a relatively minor 2.7 per cent, driven by increases in food, other goods, alcoholic beverages and tobacco.

Spending on transport increased by 31 per cent, while spending at hotels, cafes and restaurants went up by 21.8 per cent.

Wages rose by 11.6 per cent over the past year in total, according to the ABS.