The recently announced rise in interest rates threatens to push those already facing a bleak future to the edge of despair – but NFPs remain committed to assist wherever possible.
Uniting WA’s Co-CEO Michael Chester acknowledges that the pressure on vulnerable people and working families across Western Australia has never been greater.
“More and more people are experiencing the challenges associated with the rising cost of living pressures,” he said.
“The rise in rates makes for a bleak outlook compounded by more people likely to default on their repayments, or turning to payday lenders to purchase essentials, or using Buy Now Pay Later products and credit lines.”
NFPs, like Uniting WA, will likely experience higher demand for support across all areas such as emergency relief, financial counselling, homelessness support and family and domestic violence support services.
“At Uniting WA, we know these issues and, importantly, we know how they can be addressed,” said Mr Chester.
“While we do not shy away from complex challenges, we know our role in advocating for vulnerable people is even more critical.”
Those who struggle to make their voices heard may also be assailed by other issues arising from financial pressures as an increase in domestic violence and family breakdown impacts, resulting in a greater need for crisis accommodation and associated services.
Nevertheless, NFPs like Uniting WA will continue to give a voice to those who fight to be heard above the noise.
“We will continue to amplify the voices of people who are experiencing hardship and share their stories to advocate for a fairer and more just society,” said Mr Chester.
Anglicare WA CEO Mark Glasson has also witnessed an uptick since the beginning of the year in terms of the support services offered by the organisation.
“Calls have increased by 20% to our Emergency Relief and Food Access Service, a telephone triage service delivered by Anglicare WA to connect people struggling with cost-of-living pressures, with services like Foodbank WA or the Hardship Utility Grant Scheme,” he said.
“In the last month alone, we supported nearly double the number of people compared to the previous month, with most having no money left to put food on the table.”
As the effect of the new bank interest rate rise begins to hit hard, Mr Glasson anticipates this demand will only increase.
“We are preparing for demand to escalate in coming months as home-owners struggle to keep up with rising interest rates, which will further stretch the available emergency relief funding,” he said.
To fill the gap, it’s essential for corporate entities to continue their work with NFPs and ensure those most in need are not left out in the cold – literally and figuratively.
“Corporate support for our emergency relief assistance will be vital to ensure we can continue to deliver this service as the cost-of-living worsens both in metropolitan and regional Western Australia,” said Mr Glasson.
Services such as financial counselling – which is free and available state-wide – can be of great assistance to help clients work to reduce their financial stress, manage debt and help themselves to get back on track – but funds are required to help support these essential networks.
The knock-on effect of rising fuel costs not only impacts individuals working out how to afford to get to work but also up the chain to filling up the tanks of the Royal Flying Doctors WA’s aircraft; and as pressure builds on continuing to offer essential emergency services like this, it’s not hard to see how WA’s greater community could all end up paying a high price for the rising costs of living.
The dichotomy of witnessing a state with the lowest unemployment rate in the country see people unable to afford to keep a roof over their head or put food on the table is an unfolding scandal which NFPs like Anglicare WA and Foodbank WA are witnessing occur at an increasing pace each day.
Kate O’Hara, CEO of Foodbank WA, is bracing for a surge in demand for services too.
“Demand for food assistance has already grown significantly over the past two years but as more people are pushed into financial stress, this in turn pushes them into food stress,” she said.
“Research shows that the first item people will trim in a tightening budget is their spend on food. So that’s when we need people to think of Foodbank WA and know that they can get a referral to our services.”
In addition to essential food items, Foodbank WA can also offer other items like household cleaning and personal hygiene products, meaning the weekly shop can be secured for a lot less than on the high street.
Contacting Foodbank WA should be a priority for those who anticipate being badly affected by the rise in interest rates, and the earlier steps can be taken to managing the household budget, the easier it will be to rebalance costs and take steps to weather this particular financial storm.
“We advise people to think about the support they can turn to including Foodbank WA,” said Ms O’Hara.
“We aren’t a supermarket, but we do have all the essentials as well as some ‘surprise and delight’ items. Reducing grocery bills for many people could be the difference that enables them to pay rent or a mortgage and remain in their homes.”
Foodbank WA also offers nutrition and cooking programs which help people improve their skills to plan, prepare and cook a healthy meal on a budget.
“We cover topics such as meal planning, budgeting, reading food labels and busting the myth that a takeaway dinner is cheaper than a home-cooked meal.”
St Patrick’s Community Support Centre (St Pat’s for short), a specialist homelessness service that has been working side-by-side with vulnerable people in the community for half a century, sees first-hand the impact the increase in cost of living pressures is having on those it helps – particularly in view of WA’s extremely tight rental market.
“If homeowners are forced to pass the cost through rental increases, this could put even more properties in the private rental market out of reach of people on low incomes, increasing pressure on our understocked social housing pool as well as on homelessness support services like St Pat’s,” said St Pat’s CEO Michael Piu.
“Winter is always a busy time at St Pat’s, but we’re anticipating that we’ll see a further increase in the number of people who have never had to navigate the community and social services system to help them to make ends meet.”
It’s perhaps this new cohort of the community – those who are new to requiring urgent assistance, whether it’s financial, food-based or housing – which is the biggest cause for concern. For instance, they may not know that services exist to give them a helping hand, or perhaps are resistant to reaching out for reasons of pride or shame.
“We urge anyone who finds themselves struggling to reach out as early as possible for help,” said Mr Piu.
“It’s possible that we can help reduce the impact on people if we can assist them before they reach crisis point.”
St Pat’s has pioneered a “community connector” service delivery approach through Library Connect Fremantle and their Community Store, which brings service delivery and support into the community, making it easy and flexible to access for people from all walks of life who find themselves in need.
“Ultimately, we seek to provide the right support at the right time in the right way – for some, it will be about retaining stable housing and having the tools to overcome challenges where they arise, while others will need more intense assistance including housing support,” said Mr Piu.
St Pat’s assists people across Perth, right through to Rockingham and Mandurah, and has a Day Centre in Fremantle where people can access support and health services, as well as food, meals, showers and other necessities.
Housing and day-to-day living costs are in the firing line thanks to rising living costs, and as the trickle-down effect continues, other issues which used to be affordable, like dental or health charges, may be the first to become completely unaffordable.
“When budgets tighten, dental hygiene is often a low priority next to things like rent, bills and petrol,” said Mr Piu.
“However, poor oral health is linked to a number of chronic and serious health issues and currently, St Pat’s Dental Clinic has a waitlist of over 200 people needing dental assistance. We expect this number to grow as cost-of-living pressures continue to mount.”
The key message from NFPs working at the frontline with those facing urgent crises and looming challenges is a simple one: get in touch and they will help.
“Our services are available for any household facing stress,” said Foodbank WA’s Ms O’Hara.
“Simply contact one of our many charity partners for a referral; you will be welcomed and there is a large range of food to suit your needs and tastes.”
Uniting WA’s Michael Chester agrees.
“There is nothing wrong with asking for help. No one should ever feel ashamed about the situation that they may find themselves in and the sooner people ask for help, the sooner we can support them to start sorting out their situation.”
“Avoiding burying one’s head in the sand and facing an oncoming issue face on may be hard but it will ultimately make the difference between riding out possible short-term challenges and going under”, says Anglicare WA’s Mark Glasson.
“Anglicare WA is focussed on encouraging anyone starting to feel the pinch from the recent interest rate increases to seek help as soon as possible, to prevent them from spiralling further into debt.”
For corporates who already support the work of NFPs, it’s never been more important to continue that line of investment and funding. Organisations that may not be offering frontline services to people experiencing disadvantage but still look to corporates for support are also anticipating a period of pain over the next few months.
Awesome Arts CEO Jenny Simpson is hoping that those who invest in the important work they do in the arts’ sector will remain focused on the long term rather than pushing the panic button.
“The rise in the interest rate places further pressure on low income earning families and challenges us, as a major family event, to ensure that what we offer remains financially accessible,” said Ms Simpson.
“We rely heavily upon our corporate partners to subsidise the AWESOME Festival to the extent that over 50% of the program is free and the remaining ticketed content is affordably priced. It is our ambition to be the most accessible international festival in the world and so we will continue to appeal to our corporate partners to support us in this objective, which in such a tough environment for families is absolutely crucial.”
The funding required to keep Foodbank WA’s shelves filled is more vital than ever, and Ms O’Hara is appealing to corporate supporters to keep funding intact, despite external pressures from rising rates and other looming financial threats.
“Any support they can provide so we can ensure we have full shelves of food for West Australians who rely on us to get them through this tough time, is greatly appreciated,” said Ms O’Hara.
With some commentators suggesting the cash rate could hit 2.5 per cent by the end of 2022, the work – and continued funding – of NFPs in WA has never been more vital, as effects spread to parts of the community-at-large who have previously escaped unscathed.
“We are moving into a challenging economic period,” said Uniting WA’s Michael Chester.
“Leadership, empathy, respect, and innovation should be our collective guiding principles to deliver real outcomes for people who need it the most.”
