Demand for hardship grants soars

The demand for food parcels and hardship grants is soaring as Kiwis struggle with the economic fallout from the coronavirus pandemic.

A new report by the Salvation Army has also predicted ‘‘serious financial hardship’’ in a few months, when people who have lost their jobs run out of savings.

The Covid-19 Social Impact Dashboard Report found demand for foodbanks has jumped by a third nationwide and the number of daily hardship grants paid out by Work and Income has doubled to more than 12,000.

It comes as Stuff reports on food charities struggling to feed the vulnerable during lockdown and hastily arranged emergency accommodation for the country’s homeless. Some individual food charities have said demand has risen fourfold during lockdown.

The Salvation Army claimed the Government’s action in terms of debt and financial hardship had been muted and lacked a co-ordinated strategy, something it said must change quickly.

‘‘Most government action has involved banks, which is understandable. But other key parts of the financial sector must also be given attention to ensure the most vulnerable do not fall into greater financial hardship.’’

Benefit advocates had reported that people were finding it difficult to get through to Work and Income to access support, and some of those who couldn’t readily access online services were left waiting hours.

‘‘The Government has not made any announcements around car loans, credit-card repayments, payday lenders or mobile traders. These are areas requiring urgent action and innovative regulation.’’

There had been a 50 per cent increase in the number of people accessing the budgeting advice website FinCap’s Money Talks in the first week of lockdown, compared to the previous week.

‘‘Also, we have reports of ... people contacting their providers asking questions about withdrawing their KiwiSaver savings for financial hardship.’’

The Salvation Army also raised real concerns for workers who lose their jobs and don’t have savings buffers.

‘‘In two to three months’ time, there will likely be some serious financial hardship from this group.’’