Affordability crisis in NSW reveals a changing face of poverty; more households forced to miss meals and skip healthcare

MEDIA RELEASE

Affordability crisis in NSW reveals a changing face of poverty; more households forced to miss meals and skip healthcare

Rising cost-of-living expenses are pushing working and middle-income households into poverty, forcing more people to go without essentials including food, healthcare and housing security.

The Affordability Crisis Snapshot, compiled by the New South Wales Council of Social Service (NCOSS), reveals almost one-in-three households experiencing poverty have only felt it in the past few years.

Other key findings in the Affordability Crisis Snapshot include;

• One in three Households experiencing poverty in NSW only began struggling in the past few years
• 47 percent Households experiencing poverty in NSW include people in regular paid work
• 47 percent People experiencing poverty in NSW are skipping meals
• 61 percent People experiencing poverty are missing medical or dental appointments due to cost
• 74 percent People experiencing poverty are in housing stress
• 85 percent People experiencing poverty report feeling socially isolated (due to financial constraints)

NCOSS CEO, Cara Varian, said the research shows clearly that the cost-of-living crisis is no longer affecting only the most vulnerable in our communities – it is pushing working households and middle-income earners into poverty.

“People are not cutting luxuries; they are cutting essentials – skipping meals, avoiding medical care and struggling to keep a roof over their heads.

“These findings show the cost of living crisis is fundamentally reshaping poverty in NSW. Financial hardship doesn’t just impact household budgets, it isolates people from their communities and chips away at their mental health and wellbeing. And it attacks community connection and resilience.

“The social and community sector can only do so much, and already our organisations are turning people away due to lack of funding or resources. Unfortunately, what we’re seeing isn’t a once-off crisis- it is an established trend and is showing that NSW is becoming a more unaffordable place to live.

“Secure, ongoing and place-based funding for the social service sector will allow us to have a rapid response to the areas in need, particularly rural and regional areas that are already suffering. Targeted financial and social supports are required to reach the broader cross-section of the communities, including those experiencing poverty for the first time,” Ms Varian said

Sarah Marland from Community Legal Centres NSW (CLCNSW) said rising housing, energy and everyday costs are leaving more households financially strapped and unable to access legal support for increasingly complex problems.

“This report confirms what community legal centres across NSW are seeing every day. More people are being pushed into financial hardship, housing insecurity and crisis, while the cost of legal assistance remains out of reach for many households.

“When people can’t afford a lawyer, problems like debt, tenancy disputes, family violence, employment issues and fines can quickly spiral, leading to even greater financial stress.

“Community legal centres are often the last safeguard preventing legal problems from becoming a financial catastrophe. Early legal help can keep people housed, protect incomes and stop problems from escalating, but too many people are missing out because demand is exceeding available services.

“Economic justice should not depend on a person’s ability to pay for a lawyer. At a time when more people are experiencing financial stress, investment in free legal assistance and community services is more important than ever.

Di Kapera, Mission Australia State Director NSW & ACT said more investment is needed in the early intervention and prevention services that help people avoid homelessness.

“We know that intervening early, before people have reached a crisis point, is key to preventing homelessness. The evidence is clear; almost all the people (98%) assisted by our tailored tenancy support services are able to stay in their homes and avoid the trauma of homelessness.”

SSI CEO Violet Roumeliotis said the fact that a majority of respondents feel socially isolated due to financial constraints is a wake-up call.

“Australia’s social cohesion has long been a strength but it is under growing pressure. When financial stress and inequality rise, they erode the trust, sense of belonging and participation that hold communities together, particularly for those already facing disadvantage.

“Poverty is not just an economic issue; it is a social issue. Poverty means people are excluded, disconnected and unable to fully participate in community life, weakening the social bonds that bring us together.

“Poverty has no place in NSW. If we are serious about strengthening social cohesion, we must tackle the financial hardship and exclusion that prevent people from fully participating in community life. Without concerted action, we risk deepening social divides that will affect the strength and cohesion of our communities for generations to come.”

John Engeler from Shelter NSW said housing instability is having a knock-on effect for people struggling to pay for the basics.

“With a growing number of people, including those on moderate and higher incomes, experiencing housing stress, the situation has become critical – especially in NSW, the country’s largest state which is experiencing more than its fair share of housing duress. We need to do even more now, not wait until this situation becomes irreversible.”

Leo Patterson-Ross from the NSW Tenants Union said housing stress is pushing more people to the brink of homelessness.

“There are only so many compromises on their location, size or quality that people can make before reaching breaking point. The cost of living crisis is driven by a housing system that is not set up to adequately house people. Protecting the community against rising rents leading to loss of home and loss of community should be a priority for any government.

Tenants Advice and Advocacy Services are experts in helping people navigate difficult renting situations, avoiding unnecessary disputes and preventing evictions and homelessness. But in 2026 we are only funded to assist the same number of people as we were in 2008, so tens of thousands of renters are missing out on the support they need each year.”

The Affordability Crisis Snapshot was compiled by NCOSS based on research from 89 Degrees East, and included an advisory panel of:

Community Legal Centres NSW (CLCNSW)

Mission Australia

Relationships Australia NSW

St Vincent De Paul

Settlement Services International (SSI)

Shelter NSW

Tenants Union of NSW

Uniting NSW/ACT

Wesley Mission

 

The Affordable Crisis Snapshot is the first data release under a research project conducted called Voices of Poverty: Experiences below the poverty line in NSW.

**At the time of research design, the poverty line in NSW was an equivalised weekly household income (after tax and housing costs) of less than $572 per week for a single household and $1,201 for a couple with two dependent children.