Cost of living pressures impact Australian education

Trish Riley
Trish Riley

Australian cost of living pressures and poverty are impacting children’s educational outcomes, but for the Smith Family CEO says that, in a wealthy country like Australia, “it doesn’t add up”.

A national Community Attitudes Survey released by children’s education charity The Smith Family has revealed most Australians believe cost-of-living pressures pose a greater threat to child poverty than COVID-19. The impact has made it harder for students experiencing poverty to progress with their education. More than 80 per cent of those surveyed agreed that addressing child poverty should be a top priority for Australia.

Poverty has a significant impact on children’s academic performance, achievement, and overall school experience. With 1.2 million young Australians currently experiencing disadvantage, the national children’s education charity said students are struggling to keep up at school with cost-of-living pressures impacting their learning.

The Smith Family’s latest survey also found Australians believe the current cost-of-living crisis is having a much broader impact than COVID-19.

Key findings about the impact poverty has on education

  • Cost-of-living increases are seen as having a larger impact on child poverty than the COVID-19 pandemic. Close to three-quarters (72 per cent) of respondents believe child poverty has worsened as a result of the cost-of-living crisis. In a similar survey done by The Smith Family in December 2020, just over half, or 56 per cent of respondents agreed they had seen child poverty worsen due to the COVID-19 pandemic.
  • Of the respondents, 81 per cent expect child poverty will rise in the next year due to the rising cost of living and eight in ten (or 81%) agreed cost-of-living increases have made it harder for students experiencing poverty to progress with their education.
  • Just over eight in ten of those surveyed, agreed that helping children and young people overcome poverty should be a top priority for Australia, and 78 per cent agreed students experiencing poverty should be given extra support with their education. 
  • 79 Per cent of Australians agreed a computer and reliable internet access are now essential for any child’s education. 

More Australian children experiencing homelessness

The survey comes as the Australian Bureau of Statistics (ABS) reports an alarming increase in the number of children experiencing homelessness, with housing instability having a significant impact on a student’s ability to engage with learning. Nearly a quarter (23.0 per cent) of the 122,494 people experiencing homelessness in the last Census were aged from 12 to 24 years (28,204 young Australians).  
 
Students and families are increasingly reporting their concerns regarding cost-of-living increases, particularly in relation to housing, petrol, and food.


Rental pressures have contributed to families having to move, often large distances, and there has been an increased reporting of families living in insecure housing, including caravans. Such instability can significantly disrupt a child’s learning journey, both academically and socially and result in poorer life outcomes. Research shows the negative impact of student mobility on academic achievement with it also increasing the likelihood of students dropping out of school (Centre for Education Statistics and Evaluation 2016). 

Struggling to cover the cost of education

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CEO of The Smith Family Doug Taylor said as more families are pushed to the brink, a family’s ability to afford everything needed for their child’s education will collapse due to the pressure to put food on the table, pay utilities, and put petrol in the tank this winter. 

“Everyone is feeling the effects of the cost-of-living crisis. But it is not felt equally. The organisation operates in over 760 schools nationally and works with 60,000 children, so the teams on the ground get to see the effects of poverty on a child’s education daily,” Mr Taylor says.

“We’re seeing how families experiencing disadvantage are having to make difficult choices about how they spend their limited resources. Children are missing out on things like excursions, books, and digital devices and the extra learning programs and support they might need. And sadly, without the things they need for their learning, they are at risk of falling behind at school,” he says. “We live in one of the wealthiest countries in the world and it simply doesn’t add up that Australian children are missing out on the chance to succeed at school because of family poverty. While the survey shows there is a broad understanding in the community about poverty and its impacts, there is a growing need for community awareness to translate into more Australians taking action to help.”

But Mr Taylor believes there is hope – and that education holds the key.
“When we give a child a chance to learn today, they can change their tomorrow for the better,” he says. “The ripple effect goes beyond the child, to positively impact their family, their community, and society as a whole – all benefit.”

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Trish Riley is a Zimbabwean-born writer and communications specialist. With experience in journalism, and public relations, Trish has been developer and editor of several trade publications and regularly contributes articles for diverse sectors including aged care, animal care, construction and education.