The latest report from United Way Bruce Grey (UWBG) shows that income continues to fall behind, as energy costs often aren't fully captured in housing expenses, especially in rural areas.
UWGB recently released its first Energy Poverty Brief, which takes a closer look at local housing affordability by examining data from Ontario's electricity arrears and Low-income Energy Assistance Program (LEAP), Westario Power, and the local Utility Assistance Program.
Francesca Dobbyn, Executive Director, said they found that overall, household income doesn't go far enough.
"People simply do not have the income to cover housing costs anymore, let alone groceries and gas to get to work," said Dobbyn. "This is what this study is about: we're seeing a massive jump in arrears in the utility world, because people just don't have the income to pay bills anymore."
The study found that between 2019 and 2023, the number of residential electricity accounts in Ontario grew by just 4.1 per cent, but residential arrears dollars increased by 118.7 per cent.
Locally, Westario saw a similar increase, with the number of accounts going up just 3.1 per cent, but the value of arrears increased by 73.7 per cent.
The report notes that while Ontario expanded limits so more households could qualify for LEAP in 2024, the program only helps people that are already in arrears, meaning unpaid bills are piling up because income doesn't go as far.
Dobbyn said that just covers electricity too, which many rural properties don't rely on for heat, meaning a typical household may need $1,200 to $1,500 worth of wood to get through a winter.
"People are spending anywhere from 80 to 110 per cent (of their income) on their housing costs, by the time there's rent or mortgage, home insurance, all the energy costs, and that's what we see is driving homelessness in the region," she said.
The rising costs of furnace oil led to a spike in people accessing local assistance last winter.
Interestingly enough, while most years the number of accounts in arrears have grown, data from Westario showed a drop in 2022. Dobbyn pointed to a dip in poverty during the pandemic due to the Canada Emergency Response Benefit, as well as an extension on the disconnection ban.
"Basically what CERB was saying is, people need $2,000 a month at minimum to keep going, and we keep coming back to that as a universal basic income amount," said Dobbyn. "This is what people need to live on, and that's part of what's in this report. People on Ontario Works and ODSP (Ontario Disability Support Program) want to pay their bills, they just do not have the income to pay those bills."
Currently, the maximum one person on ODSP can collect is just over $1,400 a month, while a person accessing Ontario Works can collect just $733.
The most recent living wage calculation for Bruce Grey was $4,300 a month. United Way will be updating that number later this year.
To learn more about energy poverty, visit the UWBG website.
