Single parent families in Queensland are being put under immense financial pressure as wage growth fails to keep up with rising inflation.
A new report by the Queensland Council of Social Service (QCOSS) has revealed that single unemployed parents and couples with two children are struggling to make ends meet, with the gap between their income and the cost of a basic standard of living being wider than ever.
The report found that single, unemployed parents with two children are facing the biggest gap in living affordability in the state, with a weekly budget deficit of around $200.53 or about $10,400 annually. This means that a single parent family is already behind by more than $10,000 a year even before taking into account other living costs such as rent, bills, food, and transport.
The data reveals an alarming trend in Queensland, where wages are not keeping up with the cost of living, leaving single parent families in a vulnerable financial situation. The report found that the basic cost of living has increased by 4.2% over the last two years, while the average wage has increased by only 2.3% over the same period.
For couples with two children, there is a weekly budget deficit of $174.40, amounting to $9,000 each year.
By the end of the year ending March 2022, inflation is expected to increase to 7.75 per cent, having grown by 6.0 per cent during the same period.
Between January and March of this year, the Australian Energy Regulator discovered that over 26,000 customers had enrolled in hardship programs to assist in repaying their electricity debt.
Of the customers surveyed, over a quarter were in debt of over $2,500. Location had a major influence on the financial standing of individuals, with Toowoomba and Cannonvale residents disproportionately being among the lowest-income earners.
Households that rely on the minimum wage are more likely to locate an affordable rental in Central Queensland, with approximately half of all rental properties being considered affordable.