Interest rate cuts will do very little to ease the growing demand for frontline crisis support, according to Samaritans Emergency Relief (ER).
While many people welcomed the Reserve Bank of Australia’s (RBA) decision to lower the percentage by 25 basis points to 4.1% on Tuesday 18 February, there are plenty of others throughout the Hunter who’ll continue to struggle financially.
The RBA reduction marks the start of a much-anticipated monetary easing cycle following 13 rises since May 2022, which left interest rates at their highest level in 15 years.
The big four banks – Westpac, ANZ, NAB and the Commonwealth Bank – also announced they would pass on the cuts in full to variable rate home loans, effective 28 February.
But, it still might not be enough for local residents.
“We’ve had a 30% increase in people and families coming to see us compared to this time last year,” ER coordinator Beth Hanna said.
“That’s just the number we’re able to see as well – the demand is even greater.
“The people we are seeing are vulnerable; they’re mostly renters or in social housing… or worse.
“They don’t have a mortgage or a house, so rate cuts won’t help them.
“Many are choosing to do without medication and prioritising food and rent.”
Samaritans, the social welfare arm of Newcastle Anglican, boasts ER centres at Broadmeadow, Toronto, Cessnock, Taree, Gorokan and Rutherford.
They provide support through food vouchers and parcels, electricity and gas coupons, chemist assistance, and clothing and financial options.
Ms Hanna admitted “buy now, pay later” schemes had left many families in dire financial situations post-Christmas.
“People on lower incomes are finding it difficult to manage their budgets with children returning to school,” she said.
“They’re getting trapped with buy now, pay later.
“A lot of people are turning up at our ER centres as soon as they get their Centrelink payment because they’ve got so many bits and pieces coming out of their payment.
“There’s also been a rise in requests for electricity and gas vouchers.
“That’s a state government scheme we administer but we’re struggling to keep up with demand.”
If you need support, visit the website: https://www.samaritans.org.au/services/community-support/emergency-relief.
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