Read The Times Australia

Daily Bulletin

'I can't save money for potential emergencies': COVID lockdowns drove older Australians into energy poverty

  • Written by: Sara Wilkinson, Professor, School of the Built Environment, University of Technology Sydney

Many of us who endured lockdowns in Australia are familiar with the surge in energy bills at home. But for older Australians who depend on the Age Pension for income, lockdowns drove many deeper into “energy poverty”. Some faced up to 50% higher bills than in 2019, as a result of COVID.

Energy poverty involves low-income households restricting their energy consumption by avoiding certain activities like showering, spending high proportions of their income on energy and, sometimes, being unable to pay bills.

A 2015 report from the Brotherhood of St Laurence found an estimated 28% of Australian households experience energy poverty on at least one measure. A third of this was made up of older households (headed by someone aged 65 or older) on the measure of income versus energy spending.

For our ongoing qualitative research, we interviewed 22 older (65 plus) low-income Australians in NSW and Victoria and analysed their bills, before and during COVID lockdowns. They present a heartbreaking picture of energy poverty and the loneliness that comes with it. It remains a neglected consequence of the pandemic.

The consequences of energy poverty

Prior to COVID, energy costs were a major concern for older Australians with many having to use a substantial proportion of their income to remain connected.

During COVID, many older Australians spent almost all their time at home. Our research, which is not yet published, found lockdowns caused their energy consumption and bills to swell 15-50% higher than in 2019, making a bad situation even tougher for already vulnerable community members.

'I can't save money for potential emergencies': COVID lockdowns drove older Australians into energy poverty Lockdowns led to 15-50% higher bills than in 2019 for older people on the Age Pension in Australia. Shutterstock

Energy poverty has serious consequences for quality of life. To compensate for potentially higher bills, people changed their behaviour and cut consumption of other essential, and non-essential items.

For example, COVID severely curtailed their social activities through the closure of community centres, which intensified their feelings of loneliness and social exclusion.

Iris, aged 78, said prior to COVID she kept her bills low by spending time at her community centre.

I try to go out so that I don’t need to use energy […] If I don’t stay [at home], and then I don’t use it. If I become too hot, I go to common room [with] the air conditioner.

In response to COVID, the community centre closed. Iris has health issues and is reluctant to go out. Her energy bill increased by A$50 to $60 per quarter. She told us:

Before COVID, I used to be extremely social. I’d be outside my home every day. Now I think the increase in my energy costs are being compensated by not going out anymore and not socialising, as I’m still afraid of exposing myself to the virus.

I’m old you know. I can’t [afford to] get sick. But even though I’m saving some money by not socialising, I can’t save money for potential emergencies as before. With the higher electricity bills and the new medical expenses, my capacity to save [has] reduced a lot.

People may also reduce their heater use in winter, and fan or air-conditioning use in summer. This is major problem during extreme weather events such as heatwaves or storms, which can have serious health consequences for older people at home. In turn, public health infrastructure is tested as more people need to see their GP or require emergency treatment.

Another overlooked problem is the connection between energy poverty and food insecurity. With a limited Age Pension income, vulnerable households may have to choose between heating or eating healthily.

Read more: Too many Australians have to choose between heating or eating this winter

We identified three reasons why. First, they try to buy the cheapest, usually unhealthy, food. Second, they purchase food that is easily prepared, which is usually more processed, to avoid using electricity or gas in cooking. And third is the need to get food from charities and food banks which, in many cases, is food that’s unwanted by others.

‘Since COVID has come in, everything has gone up, up, up’

Many of those we interviewed between February and December 2020 confirmed their bills had increased during COVID lockdowns. This included Vania, 67, who had difficulty linking her higher bills to increased consumption.

This issue of energy literacy and ability to engage with the energy market recurred in the interviews. She told us:

I think since COVID has come in, everything has gone up, up, up. I don’t understand what the bill [says]. Why are they [the energy bills], you know, going up so high? Doesn’t make sense to me.

Anthony, 69, changed his lifestyle dramatically in response to COVID.

I went from eating out, every hot meal was eating out. And then from March onwards, every hot meal was eating in […] I was out of the house one hour a week in March, April, May and June. I was home 167 hours a week.

His energy consumption increased significantly, despite trying to minimise usage. For instance, to compensate for a 15-50% increase in energy usage on heating, cooling and cooking, Anthony reduced hot water consumption by around 12%, by showering less.

His remarkably accurate records in the graphs below show consumption for different uses (he had separate meters) before and during COVID in summer, autumn and winter.

A good quality of life for pensioners

Energy poverty is a complex, multifaceted problem with no single, easy solution.

We need to advocate for increased government pensions that ensure a good quality of life for pensioners, one that guarantees pensioners aren’t living below the poverty line after housing and energy costs are deducted.

Government schemes to retrofit existing houses with better energy efficiency are also urgently needed. This could be through installing solar panels or retrofitting secondary glazing for insulation.

Read more: As power prices soar, we need a concerted effort to tackle energy poverty

There are also many ways to reduce energy costs for older people who may be spending unnecessary amounts.

First, reducing confusing paperwork so older low-income households can access rebates on domestic appliance replacements. The range of appliances should include portable heaters and coolers.

Second, a low and fair single rate for low-income households across all energy retailers should be established, to ensure they’re on the best possible energy scheme. It should not depend on an individual’s energy literacy.

And finally, energy literacy training online and offline among older low-income households through community centre events and organisations, such as Council on the Ageing (COTA) NSW would be beneficial.

Read more: If you need a PhD to read your power bill, buying wisely is all but impossible

Authors: Sara Wilkinson, Professor, School of the Built Environment, University of Technology Sydney

Read more https://theconversation.com/i-cant-save-money-for-potential-emergencies-covid-lockdowns-drove-older-australians-into-energy-poverty-153096

Business News

Everything You Need to Know About Getting Support from Optus

Whether you've been an Optus customer for years or you've just switched over, at some point you'll probably need to contact their support team. Maybe your bill looks different from what you expected. ...

Daily Bulletin - avatar Daily Bulletin

The Marketing Strategy That’s Quietly Draining Sydney Business Owners’ Bank Accounts

Sydney businesses are investing more in digital marketing than ever before. The intention is clear. More visibility should mean more leads, more customers, and steady growth. However, many business ...

Daily Bulletin - avatar Daily Bulletin

Why Mining Hose Solutions Are Essential For High-Performance Industrial Operations

In environments where the ground itself is constantly shifting, breaking, and being reshaped, every component must be built to endure. Mining operations are among the most demanding in the industria...

Daily Bulletin - avatar Daily Bulletin

The Reason Talented Teams Underperform

If you’re in business, you might have seen it before. A team of capable and smart people just suddenly slows down, and things start spiraling out of control. On paper, everything looks perfect, but ...

Daily Bulletin - avatar Daily Bulletin

Why More Aussie Tradies Are Moving Away From Paid Ads

Across Australia, a lot of tradies are busy. There’s no shortage of demand in industries like plumbing, electrical, landscaping, and building. But being busy doesn’t always mean running a smooth or...

Daily Bulletin - avatar Daily Bulletin

Why Careers In The Defence Industry Are Growing Rapidly

The defence sector has evolved far beyond traditional roles, opening doors to a wide range of opportunities across technology, engineering, intelligence, and operations. This is where defense industry...

Daily Bulletin - avatar Daily Bulletin

Strategic partnerships to enable global acceleration for Aussie fashion brands: SHEIN Xcelerator launches

SHEIN Xcelerator is introducing a more agile, demand-led operating model, allowing brands to scale while retaining control over creative direction and identity. For fashion brands, the pressure t...

Daily Bulletin - avatar Daily Bulletin

Tips for Avoiding Probate Delays

Probate can be a lengthy process at the best of times, and delays often compound the stress that comes with managing a loved one's estate. Many of those delays are avoidable with the right preparati...

Daily Bulletin - avatar Daily Bulletin

Integrating Marketing Automation Workflows with Headless CMS: Creating a Unified Engine for Scalable Growth

Marketing automation is a necessary component of modern engagement with customers. Automated emails, triggered campaigns, lead nurturing and lifecycle messaging enable brands to scale their messagin...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

Australia’s Best Walking Trails and the Shoes You Need to Tackle Them

Australia is not short on spectacular walks. You can follow ocean cliffs in Victoria, cross ancien...

Why Pre-Purchase Building Inspections Are Essential Before Buying a Home in Australia

source Have you ever walked through an open home and started picturing your furniture, family d...

5 Signs Your Car Needs Immediate Attention Before It Breaks Down

Car problems rarely appear without warning. In most cases, your vehicle gives clear signals before...

Ensuring Safety and Efficiency with Professional Electrical Solutions

For businesses in Newcastle, a safe and fully functioning workplace remains a key part of day-to-d...

Choosing The Right Bin Hire Solution For Hassle-Free Waste Management

When it comes to managing waste efficiently, finding the right solution can save both time and eff...

Why Cleanliness Is Critical In Childcare Environments

Children explore the world with curiosity, often touching surfaces, sharing toys, and interacting ...

What to Look for in a Reliable Australian Engineering Partner

Choosing an engineering partner is rarely just about technical capability. Most businesses can fin...

How to Choose a Funeral Home That Supports Families with Care

Choosing a funeral home is rarely something families do under ideal circumstances. It often happen...

Why Premium Coffee Matters in Modern Hospitality Venues

In hospitality, details shape perception long before a guest consciously evaluates them.  Lightin...