COST OF LIVING

Waikato Times, Volume 128, Issue 21373, 18 March 1941, Page 3

COST OF LIVING

EFFECT ON FAMILY BUDGET COUNCIL OF WOMEN’S REPORT The following report was submitted by the Hamilton branch of the National Council of Women at its last meeting on the problem of the effect on the family budget of the cost of living, a subject studied by the branch during the year:— We are agreed that owing to the high cost of rents, and certain essential foodstuffs such as milk, oranges and other fruit, meat and fish, their consumption is seriously curtained. Secondary education is limited to one year, instead of three years, for the same reason by some people who find it impossible to go without the earnings of their children. Also, the price of clothing, especially school uniforms, is so high that it is a factor in reducing secondary education. Statistics we have seen show that in the average small wage earner’s budget 38 per cent goes on food, 17 per cent goes on housing, seven per cent goes on fuel and lighting, total 62 per cent. Therefore it is obvious that when the cost of these rises, and wages are stationary, then the amenities of life suffer. For example, less can be spent on clothes, sports have to be restricted or given up, entertainments and cultural activities reduced, and holidays shortened or omitted. War conditions have increased the price of many commodities, e.g., sewing cotton and materials (boiling silk has gone up more than 100 per cent, from 6d to Is lid a yard). This seriously affects the budget of the small wage earner and home dressmaker. Five Per Cent on Wrong: Side Groceries figure largely on the family budget, and here we find that although the prices of many things are high there has not been an allround rise. Certain fancy things (such as tinned salmon) have risen, but several ordinary household commodities such as flour and soaps and cleansers have actually fallen in price in the last ten years. Packed are dearer, due in the main to the ten per cent sales tax but by buying these goods in the loose form this can be mainly overcome. The ten per cent sales has increased the price of many different things and although wages have been increased by five per cent for those receiving £3OO or less, this still leaves a margin of five per cent on the wrong side of the family budget. An offset to the rise in the cost of living, and a great benefit to the family budget is the Social Security. The maternity benefit is a great help to the wage earners in general, and the benefit derived from increased pensions and sickness payments helps to compensate for the increased expenditure.

In the last ten years the price of coal has increased from 3s 3d to 4s lid a bag. We think this is unduly hard on the average family. Part of this is due to the rise in the cost of freight, which also adversely affects the cost of many other things.