Electricity is eating into food budgets for struggling households

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By Dylan Bettencourt

  • Prepaid electricity costs now take a significant portion of a minimum wage income.
  • Many households are forced to prioritise electricity and transport before buying food.

The rising cost of electricity is making it harder for low-income households to afford enough food each month, according to the latest Household Affordability Index.

The data shows that prepaid electricity has become one of the biggest unavoidable expenses for working families.

For households earning the national minimum wage, electricity costs take up a large share of income before food is even considered.

After paying for transport to get to work and buying electricity, workers are left with far less money to cover food and other essentials. This often means food is bought last, once the lights are on and the commute is secured.

The report shows that households treat electricity as non-negotiable. Without power, food cannot be cooked, stored, or prepared safely.

As a result, families prioritise buying electricity even when it leaves too little money for groceries.

This pressure forces households to cut back on food quantity and quality. Protein, fruit and vegetables are often reduced so that meals can stretch across the month.

Pictured above: Electricity cables.

Image source: Pexels

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