Welfare groups say rental rates are strangling immigrant families

– Shaun Inguanzo
BOOMING rental prices have been blamed for an explosion of welfare call-outs in Springvale.
The Springvale Benevolent Society this week said the city’s poorest residents were paying an average of $250 to rent in Springvale and Noble Park, particularly if they had a larger family.
Society volunteer and Springvale North Ward councillor Alan Gordon said private rental prices had boomed, creating a ‘noose around the neck’ feeling for poorer families.
Cr Gordon said that among those struggling the most were newly arrived refugees who could not yet find a job, and relied on welfare payments to survive.
“On average, refugee families pay about $1000 a month for rental and are getting $2000 in government payments,” he said.
“That leaves only $1000 a month to cover bills, clothing and food for a husband and wife who might have up to six kids.
“That money doesn’t stretch too far.”
The result is an increase in call outs for the benevolent society which already struggles to give poorer families $40 food vouchers each week.
“We’re getting more and more calls to a wider range of people,” Cr Gordon said.
“It is putting a lot of pressure on the society.
“If I get called out to a husband and wife I will usually give a food voucher for the $40 mark.
“But if we get called out to a larger family, with, say, eight people in the house, they can’t survive on that, so we have got to give them $70 or $80.”
Cr Gordon said rental subsidy during the price boom would alleviate the strain on the society by freeing up more funds for families.
“It’s an area (all governments) should look at,” he said.
“We are bringing refugees in but need to look at a whole package to fully engage them.
“We can’t just bring them in and put them on the private rental market and its extra financial pressure.”