14 Mar 2022

Elderly, students going without food to afford rent, petrol

6:54 pm on 14 March 2022

Sharply increasing costs of living are forcing vulnerable members of society to go without food as their budgets are squeezed.

Woman shopping with trolley, holding receipt of grocery items, with food in handing, checking prices.

File photo. Photo: 123RF

Older people, students and those under other financial pressures are among those slashing food budgets, advocacy groups say.

Pain at the pump has driven petrol prices over the $3 a litre mark, while food prices rose 6 percent in the year to February.

On top of that, forecast interest rate rises are expected to push up the cost of servicing mortgages, while rents are ever-increasing.

Benefit and pensions payments are due to increase on 1 April, and winter energy payments come in on 1 May.

The government today announced a three-month cut to fuel taxes and decrease in public transport fares.

Grey Power New Zealand president Jan Pentecost said the cost of living increase was hitting the organisation's most vulnerable members the hardest.

"[They] are finding life pretty tough at the moment, especially if they don't own their own property and they live alone.

"It's mainly the cost of rent, and they are trying to pay the extra costs for food and fuel."

It was too early in the year for the effects of higher energy prices for heating to hit, while many older people were isolating during the Omicron wave, so hadn't yet been affected by higher petrol prices.

But there was a risk that could mean some people remained isolated if they could not afford to drive and had no access to public transport, Pentecost said.

The food budget was commonly the first thing trimmed.

"I do believe that often older people, if their rent and other fixed accounts [are increasing], they will cut down on food."

Fiona Govender has been a budget adviser at the Pakuranga and Howick Budgeting Service in Auckland for four years.

She said more people had sought budgeting advice after the onset of Covid-19 two years ago, and numbers had kept increasing.

Now, the service was seeing people from all walks of life, including homeowners and business people.

Housing costs were the most common for getting people into financial trouble.

Govender had also noticed that food budgets suffered when other costs rose.

"Food gets squeezed, basically. People pay their rent first and they have to get to work and use petrol, so what they have left for food, it can be very sad. It's not doable."

There was a greater demand for food banks, although that was a short-term help, and getting payments under control was key.

When that was not possible, people were going without eating.

"There are people that are cutting back, but that's not such an issue. That issue is really people that just don't have it in their budget once they've paid their rent and petrol and bills."

If the cost of living kept increasing, budgeting services would get busier, Govender said.

Students were also going without food, said New Zealand Union of Students' Associations president Andrew Lessells.

Student allowances did not cover rent for many, so students had to borrow for living costs such as food and heating, which could be high in cold student housing.

"We are really worried about how students are going to afford to live," Lessells said.

"Food is the first thing that gets sacrificed when it comes to students."

The union was hearing stories about people dropping out of study or studying remotely to save money.

It was also aware of high demand for food packages from student associations throughout New Zealand.

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