January 27 2022
National Party leader Christopher Luxon spoke to media this afternoon about the latest inflation figures.
A local food charity says they may end up living on the streets and could be forced to close the service if rents increased anymore.
Meanwhile, the local budget service says more people are wanting KiwiSaver hardship withdrawals.
It comes as annual inflation hit a 30-year high in December, with the consumer price index up 5.9 per cent from December 2020, pushing up the cost of living to impossible for many.
Stats NZ also revealed the price of food was up 15 per cent compared with five years ago, and petrol was up 35 per cent.
The Ministry of Social Development also provided 9528 food grants in December, the highest it had been since March.
Rotorua Whakaroa's Elmer Peiffer said he and his wife, Gina, had to take in boarders just to be able to keep supporting the community.
Elmer Peiffer of Rotorua Whakaroa. Photo / File
The couple received the supported living payment and all their income went to rent, power, insurance, phone and internet.
"The whole situation of living in a home as a family unit or couple has pretty much gone out the window, you have to bring in other family and friends just to financially get through week by week," he said.
The median weekly rent in Rotorua was $480 last month, up 4 per cent year-on-year. While demand was up by 7 per cent in that same time, supply dropped by 15 per cent.
"We are not disillusioned that if we have any more rent increases, we could very well be looking at living out of our van or on the streets ... that's a very real possibility," Peiffer said.
"It's always in the back of your mind. I'm stretched to the limit, beyond my limit and I'm just surviving. I'm not living, I'm existing."
He said if they couldn't afford rent, the couple would have to look at shutting the charity because they donated a lot of their board money to operations.
Elma (left) and Gina Peiffer of Rotorua Whakaora. Photo / File
The couple was trying to restructure the charity to ensure it stayed open.
The rising costs of living was also affecting those they support, and more people were using other people's names to get food more than the once allowed per person per week.
"If all of your money is going on rent, utilities, and whatever the costs of living are and you've got nothing left, of course you're going to try to free up some money somewhere."
The demand continued to increase, and Tuesday saw 180 families arrive at the store, up from the usual 120 to 150.
He said: "Everybody is really worried."
Rotorua Budget Advisory Services manager Pakanui Tuhura said in his 12 years in the job, he's never seen the cost of living this high.
His biggest fear was the suffering of families, particularly children.
More people wanted Kiwisaver hardship withdrawals when Covid hit last year, and this was increasing as Omicron spread.
According to Inland Revenue, $8.8 million of KiwiSaver funds were withdrawn for financial hardship nationwide in November last year.
Rotorua Budget Advisory Service manager Pakanui Tuhura. Photo / File
This would impact the future society, Tuhura said, especially if the cost of living kept rising and baby boomers left the workforce.
This risked larger, poorer generations as money set aside for retirement was used now for essential living costs.
Most of the service's clients had already reduced non-essential spending and were now turning to community organisations to help with the basics given the rising cost of living.
Some people who normally would tough it out are getting help from Work and Income to get by, others were putting their pride aside to get help from friends, family and social services, he said.
He said although times were hard, the jobs available appeared to be on the rise.
"Everyone in our community will be affected ... most people, other than the mega-rich, will be looking to lead simpler, cheaper lives."
He said the impacts of Covid on supply chains, rising food costs, increasing housing and rent prices were pushing up the cost of living.
"The cost of food is impacted by what is happening globally and while we are told that access to food won't be an issue, for many they can no longer afford the very basics."
Rotorua Salvation Army corps officer Captain Hana Seddon said families were cutting back on the basics which meant decent kai was a struggle to put on the table.
Rotorua Salvation Army corps officer Hana Seddon. Photo / Supplied
She said the pressures had a physical, emotional, mental and spiritual impact and for many, the cracks were beginning to show.
This could manifest in anything from completely withdrawing and struggling with depression, to addiction, family harm and relationship difficulties.
The unvaccinated would really feel the impacts of rising living costs, as it's compounded with unemployment and being on a benefit for the first time in their lives, she said.
She said with good support and access to resources it was absolutely possible to stay on track through times like this.
Tauranga's Socialink general manager Liz Davies said many services had waiting lists with up to triple the number they're funded for seeking help.
Other organisations were tightening referral criteria to avoid wait lists due to the risk of having someone waiting without getting help, she said.
SociaLink general manager Liz Davies. Photo / File
She said the sector "isn't able to cope with all the needs".
She said it was likely crime would increase with people "stealing to survive" which would criminalise people trying to get by.
She feared social stability and cohesion would be affected as the gap between the well-off and those struggling widened.
Ministry of Social Development regional commissioner Mike Bryant said the agency increased staff numbers by 1200 in the country between June last year and the year prior to meet demand.
The agency's main focus is employment, financial and housing support and it monitored need in the community to respond quickly when needed, he said.
In April, family support will be increased by $20 a week, families with children will get an additional $15 per adult per week, and student allowance and student loan costs for living will increase by $25 per week.
