Carbon compo ‘not enough’ for poorest households
Updated May 04, 2012 16:10:06
Families and pensioners will soon be getting the first round of compensation for the incoming carbon tax, but there are fears it will not be enough for some low income households.
A new report into Australia’s spending habits found that while incomes have kept up with cost of living pressures across the board, electricity prices were growing more sharply than other costs.
NATSEM research fellow Ben Phillips told the ABC this week that most people are spending a similar proportion of their income on power bills, but have cut back on how much power they use.
But not everyone is finding it easy to cut back.
The Physical Disability Council of New South Wales says over the last year it has been inundated with calls from people who are struggling to afford electricity.
The council’s executive officer, Ruth Robinson, says people are already facing the choice between eat or heat.
“We find that people are doing really serious things that compromise their health and wellbeing,” she told Radio National.
“We’ve met people who aren’t prepared to use their stoves anymore because they’re frightened that that will keep their bills up. We’ve met people who sit around at night with candles on because they’re not game enough to have their lights on at night.
“We’ve met lots of people who are no longer going out to visit their family members or getting out and about and living everyday lives because they’re trying to conserve all of their money to pay electricity, as distinct to catching an accessible cab somewhere. So we’re finding that people are becoming more and more isolated.”
We’ve met people who sit around at night with candles on because they’re not game enough to have their lights on at night.
Ruth Robinson
‘Huge disparity’
In the last five years, electricity prices in New South Wales increased by 80 per cent as average weekly earnings rose about 18 per cent.
The spike in prices has been caused by rising transmission and distribution costs, for example, building new power poles and wires.
Lynne Chester from the Department of Political Economy at the University of Sydney says people on low incomes have been lost in the discussion about a carbon tax.
“We know it’s coming but we don’t understand the impact of these electricity price increases on low income households which have significantly outstripped any increase in pensions and incomes,” she said.
“And now we’re going to add on a further impact from a carbon tax.
“I don’t think we are doing enough. The size of these increases, and the amount that is provided to assist those in energy hardship, there is just a huge disparity between the two.”
Significant assistance
Climate Minister Greg Combet says Treasury has forecast the cost of the carbon tax will be $3.30 per week, and compensation will be worth $10.10.
Mr Combet says reports the Government is looking at ways to soften the impact of the tax are incorrect.
He says the household assistance package, which is about to be rolled out, is already very significant.
“Nine out of 10 households will receive assistance through tax cuts or pension increases or other Commonwealth payments,” he said.
“But in fact 4 million households in the lowest income households in the country will receive assistance that’s at least 20 per cent more than the expected average price impact.”
But Ms Robinson says people with disabilities are not finding the Government’s promises reassuring.
“For the people with physical disability around the state that we know of, it’s causing incredible anxiety,” she said.
“We already know of people who are cutting back of having medications filled and taking medications that they need, simply because they are desperately desperately trying to pay their bill.
“If that’s what we’ve been finding with people over the last 12 to 15 months, the outlook is extremely grim for some people.”
Listen to Alison Carabine’s report from Radio National Breakfast.
Topics:climate-change, welfare, poverty, environment, electricity-energy-and-utilities, industry, business-economics-and-finance, australia, nsw
First posted May 04, 2012 14:44:18
Updated May 04, 2012 16:10:06
Families and pensioners will soon be getting the first round of compensation for the incoming carbon tax, but there are fears it will not be enough for some low income households.
A new report into Australia’s spending habits found that while incomes have kept up with cost of living pressures across the board, electricity prices were growing more sharply than other costs.
NATSEM research fellow Ben Phillips told the ABC this week that most people are spending a similar proportion of their income on power bills, but have cut back on how much power they use.
But not everyone is finding it easy to cut back.
The Physical Disability Council of New South Wales says over the last year it has been inundated with calls from people who are struggling to afford electricity.
The council’s executive officer, Ruth Robinson, says people are already facing the choice between eat or heat.
“We find that people are doing really serious things that compromise their health and wellbeing,” she told Radio National.
“We’ve met people who aren’t prepared to use their stoves anymore because they’re frightened that that will keep their bills up. We’ve met people who sit around at night with candles on because they’re not game enough to have their lights on at night.
“We’ve met lots of people who are no longer going out to visit their family members or getting out and about and living everyday lives because they’re trying to conserve all of their money to pay electricity, as distinct to catching an accessible cab somewhere. So we’re finding that people are becoming more and more isolated.”
We’ve met people who sit around at night with candles on because they’re not game enough to have their lights on at night.
Ruth Robinson
‘Huge disparity’
In the last five years, electricity prices in New South Wales increased by 80 per cent as average weekly earnings rose about 18 per cent.
The spike in prices has been caused by rising transmission and distribution costs, for example, building new power poles and wires.
Lynne Chester from the Department of Political Economy at the University of Sydney says people on low incomes have been lost in the discussion about a carbon tax.
“We know it’s coming but we don’t understand the impact of these electricity price increases on low income households which have significantly outstripped any increase in pensions and incomes,” she said.
“And now we’re going to add on a further impact from a carbon tax.
“I don’t think we are doing enough. The size of these increases, and the amount that is provided to assist those in energy hardship, there is just a huge disparity between the two.”
Significant assistance
Climate Minister Greg Combet says Treasury has forecast the cost of the carbon tax will be $3.30 per week, and compensation will be worth $10.10.
Mr Combet says reports the Government is looking at ways to soften the impact of the tax are incorrect.
He says the household assistance package, which is about to be rolled out, is already very significant.
“Nine out of 10 households will receive assistance through tax cuts or pension increases or other Commonwealth payments,” he said.
“But in fact 4 million households in the lowest income households in the country will receive assistance that’s at least 20 per cent more than the expected average price impact.”
But Ms Robinson says people with disabilities are not finding the Government’s promises reassuring.
“For the people with physical disability around the state that we know of, it’s causing incredible anxiety,” she said.
“We already know of people who are cutting back of having medications filled and taking medications that they need, simply because they are desperately desperately trying to pay their bill.
“If that’s what we’ve been finding with people over the last 12 to 15 months, the outlook is extremely grim for some people.”
Listen to Alison Carabine’s report from Radio National Breakfast.
Topics:climate-change, welfare, poverty, environment, electricity-energy-and-utilities, industry, business-economics-and-finance, australia, nsw
First posted May 04, 2012 14:44:18
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