Meeting housing costs is getting very difficult

THERE have been some excellent articles in the Otago Daily Times about the housing crisis, particularly the piece by Kitty Cresswell Riol (Opinion, 1.2.21).

With rising rents and soaring house prices, house ownership is becoming a fading dream for many — particularly for those on one income.

Retired people over 65 in a rental are particularly hardhit. Many are not eligible for an accommodation supplement.

A great deal of misinformation surrounds the accommodation supplement. In most of the lower South, the maximum payable is $70. It is also income and asset tested.

A single person over 65, living alone, receives $424 superannuation. If rent is $300, this leaves them $124 a week. Kiwi-Saver funds are supposed to provide a better quality retirement. However, any funds over a low threshold are deemed to be a cash asset. This means they do not qualify for any accommodation supplement.

Any rent increase will have a profound impact on their standard of living.

It is surely time to update the accommodation supplement to reflect the current rental situation. Otherwise, as Ms Riol explains, adult poverty will continue to grow.

Carol Sheldon

Invercargill