Financial distress up, support cut

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By Cam Lucadou-Wells

Growing numbers of residents are being crushed by cost-of-living pressure, according to City of Greater Dandenong.

Meanwhile, there seems no plans to revive the council’s $1 million-plus Covid-19 material aid program – which was co-funded by the State Government.

Greater Dandenong community strengthening acting director Marcus Forster said support services were reporting more aid requests as well as a rise in financial distress, homelessness and mental health issues.

“The stress of and shame associated with financial distress often means people wait to seek assistance, by the time they do vulnerabilities have increased, making the chance of a timely recovery often more difficult.

“Most people with lived experience are struggling with the loss of hope, mortgage and rent pressures and lack of food security.”

Food insecurity and homelessness were the two most pressing issues in what is the second-most socio-economically disadvantaged council area in Victoria, he said.

Affordable housing stocks had declined significantly, with vulnerable people paying rent, mortgages and bills often having nothing left for food.

“Average incomes are the second lowest in the state and we have the second highest level of food insecurity.

“Socio economic disadvantage goes beyond economics, people within the community that cannot afford to participate in activities most take for granted are therefore making difficult choices.

“For example their children miss out on sport and recreation activities that would help them grow confidence.

“People that find themselves in financial distress, quite often end up socially isolated not only because they no longer can afford to participate in life but due to the shame and stigma attached to poverty.”

There had been a particular rise in suffering for residents with non-permanent visas.

“We have a high number of refugees and people seeking asylum who we know are disproportionately affected by poverty.”

The council’s Covid material aid program delivered tonnes of food and other essentials to vulnerable residents via service agencies for more than two years.

It ceased in June 2022, with state funding ending in December 2022.

Currently the council is providing supermarket vouchers, helping with energy-subsidy applications and linking people to services.

It was also partnering with Foodbank for additional Farm to Families Food pop-ups in Greater Dandenong.

The council’s Anti-Poverty Strategy – the first of its kind in Australia – aimed to help understand poverty and to work collaboratively with the community to tackle it, Mr Forster said.

“Poverty is everyone’s business, it can happen to anyone at any time throughout a lifespan, if we work together and create conditions for people to move out of poverty, we all benefit.

“Which is why Council is calling on government, business and community to come together to find solutions.”