Kempsey Neighbourhood Centre is at the frontline of the alarming inflation trend

The facility distributes emergency relief across the region, and manager Shirley Kent said the need for help had been steadily growing since the start of the year, but even more so in the last month.

Emergency relief consists of food, petrol vouchers, or paying small bills that cannot be covered.

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"A lot of the people who come to us are homeless or seeking housing, and we have noticed many people who have not been in that situation before," Ms Kent said.

"We have also seen an increase in people who would not have needed to in the past, seeking financial counselling,"

"They are people who've been reasonably solvent but now find themselves unable to pay bills and unable to keep up.

"I had a couple the other day who both had jobs and have been renting for years. One of them lost their job when their employer went under due to COVID, and they are basically living in their car because the landlord sold the house they were living in."

The recent stratospheric rise in house prices has also exacerbated the situation, Ms Kent said.

In Crescent Head, the median house price has risen more than 81 per cent in the last 12 months, resulting in the town being billed as the number one suburb for growth in regional NSW in 2021.

"And that has had an impact," Ms Kent said.

"A lot of rental properties are being sold, and a lot of people are being evicted with a no-cause notice, then the place is put back on the market for a significantly higher weekly rate. That is something we have been observing quite a bit."

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Ms Kent said the temporary accommodation options were limited in the area, and there were families with four or five children living in motels.

"We've also currently got a number of people who now are living in cars," she said.

"I saw a family the other day who are paying $300 a week just for a site in one of Kempsey's caravan parks, and they're living in a camper trailer."

The region has always had a large proportion of people doing it tough and struggling, Ms Kent said, and the current rise in costs is crippling an already vulnerable group.

"There's a lot of people on benefits of various kinds, which aren't enough to live on," she said.

"For example, there's an old motel that's been converted to a boarding house.

"It's $220 a week for a room, with a shared bathroom and a shared kitchen. So if you're on a benefit, that leaves you a very small amount to survive on. And that's one of the cheapest accommodations around."

Many people who have recently lost their jobs or find themselves suddenly in need of support can get help at the centre instantly. And the cost of delivering this increases as food and fuel prices change daily.

Ms Kent has worked in the social services sector for decades, and she said in her experience, the situation is getting much worse than it has ever been.

"We have a philosophy that we will help anyone out with two or three days worth of food with no questions asked - they don't have to prove anything to us," Ms Kent said.

"We've got a huge amount of poverty in this area. And the housing crisis, the loss of small businesses due to COVID, and floods and fires have had a big impact.

"Even for people who have employment.

"I was talking to a guy the other day who has just got a job, and he is very excited about it. But the job is in Port Macquarie, and he lives in Kempsey, so it is going to cost him $90 a week in fuel - and that is an outrageous amount given it is only a low-income position."

With Port Macquarie about 60 kilometres away and the base for most medical specialists - fuel prices are also impacting health care.

"The cost of petrol to attend a specialist appointment or the difference between the Medicare rebate and the cost of specialist appointments means people aren't keeping those appointments or following up on their referrals because they simply can't do it," Ms Kent said.

The social benefit payments are too low, according to Ms Kent and increasing them would ease pressure on lower-income families - and this is more important now than ever before, she said.

"At the centre, we get a fortnightly grocery order which normally costs about $600," Ms Kent said.

"That's gone up to $800, and it is the same basic stuff that we usually buy - things like pasta, cereals and baked beans.

"If we paid people adequate money, it would help. We really noticed a difference when people were being paid extra COVID supplements. Our demand went down."

Ms Kent said the centre's emergency relief expenditure has doubled in the last 12 months, and its budget is in deficit.

"But our funding certainly hasn't doubled," Ms Kent said

"We're fortunate in that we have a cohort of people who raise money for us.

"And we also have some really wonderful people who donate food to us.

"But that's not ideal, and my argument is always that we should not have to do that.

"That could end at any moment, and then we wouldn't be able to assist half the people that we do. "

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