Budgeting services are in a growing demand with a new wave of families needing advice to help get by.
But the increasing need comes as budgeting services are facing the potential of losing the additional funding which got them through Covid.
Budget First Hastings manager Kristal Leach said there had been a growth in clients who earned between $50-70k a year.
Services say losing their extra funding at a time when they’re seeing a spike in demand from Kiwis. (Source: 1News)
“We will have an additional 10 or 20% of clients over the next year and we are not going to be able to keep the number of staff that we currently have," she said.
“We didn't see the spike in 2020, we started to see the spike in 2021 and we expect it to keep growing."
She said the budgeting service could lose around 40% of its funding.
READ MORE: Budgeting service sees record number of Kiwis struggling
Many budgeting services have written letters to the Government pleading to keep their funding, and have called the situation a cost-of-living crisis.
Minister of Social Development Carmel Sepuloni said the sector had already received significant funding.
“I have been made aware of some of the pressures on some of the budgeting services and recognise the importance of the role they are playing. I am certainly cognisant of some of the funding demands out there."
Josian Morrell is a solo mum looking after her children, grandchildren and mother. She works full time picking up extra shifts when she can.
Morrell said she started using budgeting services five years ago.
“I had huge debts and they helped me sort them, we are now comfortable," she said.
“I need to be working full time, being on a benefit won't cut it for most families when you have rent, power, petrol and food, the cost of living has skyrocketed.”
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