Rates of homelessness double among financial counselling clients
On the eve of Homelessness Week, WAs largest collective of financial counsellors reports client rates of homelessness doubling in the last 5 years.
4% of the Financial Wellbeing Collective’s financial counselling clients are experiencing homelessness, while a further 8% are at imminent risk of homelessness, with both rates doubling since 2019.
Mostly affected are women.
56% of clients experiencing homelessness are women – a third of which are affected by family domestic violence.
65% of those at imminent risk of homelessness are women, mostly single females or mothers, with the majority being private renters.
Delivering financial counselling to 6,000 clients a year, the Financial Wellbeing Collective’s General Manager Helena Jakupovic says any number over zero is one too many when it comes to homelessness.
“Every Western Australian deserves the right to stable, safe accommodation but with cost-of-living pressures and a housing crisis many in our community are becoming vulnerable to housing instability.
“To be seeing our client numbers of homelessness double in one of the wealthiest states in the country is simply not acceptable.”
Working the frontline of the cost-of-living crisis, financial counsellors are seeing firsthand the economy’s devastating impact on people’s housing stability.
One client, a single mother escaping family domestic violence, has been struggling to afford life essentials. Living in a private rental, her rent takes up a large proportion of her jobseeker income. Using emergency relief to put food on the table, her financial position is simply not sustainable with the high cost of rent and living.
Another female client, an aged pensioner living with her 20 year old son, has little money essentials after paying rent. With utility and credit card debts and a car loan, she regularly uses emergency relief for food. Her financial position has further worsened with another rent increase making rent payments 65% percent of her income.
Financial counsellors are also seeing a shift in household dynamics as clients pivot to cope with financial pressures.
Ms Jakupovic says rates of boarding and lodging have doubled among their financial counselling clients in the last 5 years.
“Skyrocketing rents have pushed clients, particularly single people on a low-income, into shared housing and even then, we hear stories of clients paying exceptionally high rates to rent a room.”
On average, 38% of the Financial Wellbeing Collective’s financial counselling clients’ household income is going to housing costs, greater than the 30% classification that deems housing stress.
Ms Jakupovic says housing availability and affordability will continue to have an enormous impact on the community.
“With the current housing shortage our clients are prioritising their rent and mortgage payments at the detriment of other living essentials such as food, utilities and fuel. Sadly, many of the people we see are having to make very hard decisions simply to keep a roof over their head.
“With housing prices and rents continuing to rise, only more Western Australians are going to become vulnerable to housing instability.
“We urge anyone experiencing financial difficulty to seek help early. There are range of free support services available including financial counselling.”
Homelessness Week runs from 5 – 11th August. It’s thought 9,700 people across Western Australia are experiencing homelessness. (Census, 2021).
Western Australians experiencing financial difficulty are encouraged to reach out to:
Financial Wellbeing Collective: ☎️ 1800 932 050 🌐 thefwc.org.au
