Aussies feeling the heat of rising energy costs

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 rampaging energy prices have left low-income families worse 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.

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

“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 forgoing heating to pay their bills.”

The ANU modelled electricity and gas cost impacts for a range of household types from June 2008 to June 2018.

A quarter of those dependent on the Newstart unemployment payment and similar allowances now spent at least 9.7 per cent of their income on energy, it estimates.

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.