The newest report from United Way Bruce Grey (UWBG) reveals that income is still falling short, as energy expenses are often not fully included in housing costs, particularly in rural communities.
UWGB has just put out its first Energy Poverty Brief, which takes a detailed look at local housing affordability by analyzing 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, noted that overall household income isn’t sufficient.
“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 showed that between 2019 and 2023, the number of residential electricity accounts in Ontario increased by only 4.1 percent, but residential arrears dollars surged by 118.7 percent.
In our area, Westario experienced a similar trend with account numbers rising just 3.1 percent while the total value of arrears climbed by 73.7 percent.
The report mentions that although Ontario expanded eligibility for LEAP in 2024 so more households could qualify, the program only assists those already behind on payments. This means unpaid bills continue to accumulate due to insufficient income.
Dobbyn pointed out that this only covers electricity too; many rural homes don’t use it for heating. A typical household may need between $1,200 and $1,500 worth of wood for winter heating.
“People are spending anywhere from 80 to 110 percent (of their income) on their housing costs by the time there’s rent or mortgage payments, home insurance, all the energy costs; that’s what we see driving homelessness in the region,” she said.
The rising prices of furnace oil resulted in more people seeking local assistance last winter.
Interestingly enough, while typically there’s an increase in accounts overdue each year, Westario’s data indicated a decrease in 2022. Dobbyn attributed this drop to less poverty during the pandemic thanks to Canada Emergency Response Benefit and an extended 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.”
Right now, someone on ODSP can receive just over $1,400 a month while those accessing Ontario Works can get only $733.
The latest living wage calculation for Bruce Grey stands at $4,300 monthly. United Way plans to update this figure later this year.
To learn more about energy poverty, visit the UWBG website.
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