The latest findings from United Way Bruce Grey (UWBG) reveal that income continues to lag behind, with energy costs often not fully accounted for in housing expenses, particularly in rural communities.
UWBG has just its first Energy Poverty Brief, which examines local housing affordability by looking at data from Ontario’s electricity arrears and the Low-income Energy Assistance Program (LEAP), Westario Power, and the local Utility Assistance Program.
Francesca Dobbyn, Executive Director, noted that they discovered overall household income isn’t stretching 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 report indicated that from 2019 to 2023, the number of residential electricity accounts in Ontario grew by only 4.1 percent, while residential arrears dollars surged by 118.7 percent.
In our area, Westario experienced a similar trend, with accounts increasing by just 3.1 percent but arrears rising by 73.7 percent.
The report mentions that although Ontario expanded eligibility for LEAP in 2024 so more households can qualify, the program only assists those already behind on payments. This means unpaid bills keep piling up because incomes aren’t sufficient.
Dobbyn explained that this only covers electricity too; many rural homes don’t use it for heating. As a result, an average household might need between $1,200 and $1,500 worth of wood to last through winter.
“People are spending anywhere from 80 to 110 percent (of their income) on their housing costs; once you factor in rent or mortgage payments, home insurance, and all energy expenses-this is what drives homelessness in our region,” she said.
The increasing costs of furnace oil caused more individuals to seek local assistance last winter.
Interestingly, while there’s usually an increase in accounts overdue each year, Westario recorded a decrease in 2022. Dobbyn attributed this drop partly to reduced poverty during the pandemic due to the Canada Emergency Response Benefit (CERB) and an extension on disconnection bans.
“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; that’s part of what’s included in this report. People on Ontario Works and ODSP (Ontario Disability Support Program) want to pay their bills-they just do not have enough money.”
At present, the maximum amount one person can receive through ODSP is slightly over $1,400 monthly while someone on Ontario Works gets only $733.
The most recent living wage calculation for Bruce Grey stood at $4,300 per month. United Way plans to update this figure later this year.
To find out more about energy poverty issues visit the UWBG website.
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