Presbyterian Support Otago social work team leader Jollene Warrington said the price of rent, electricity and groceries remained a major issue.
"This is a genuine struggle for most people at the moment, more so at this time of year when whānau face the additional start of year costs of things such as school uniforms, stationary, sports fees and school transport," Mrs Warrington said.
"Covering these expenses means that for many, there is no money left for food or power.
"It also means that some children miss out on participating in extra curricular activities due to the financial restraints on whanau combined with the additional costs of team uniforms and transport to and from practice and games."
Tenants faced annual rent hikes and homeowners experienced pressure from rising interest rates, meaning unexpected events often pushed residents to the brink.
"When you factor into this an unexpected change in circumstances e.g. an accident at work requiring ACC and therefore drop in income, illness with no sick days or annual leave left, a car needing to have some work done for a warrant, a house needing a repair — then this tips the balance.
"Many families have little to no savings and it is a struggle to make ends meet.
"There is a rising reliance on credit cards and ‘buy now pay later’ services to manage daily expenses."
A recent $29,000 donation from the Foodstuffs South Island Community Trust would help keep meals on the table for those hit hardest by soaring expenses.
"This funding allows PSO to be able to continue to meet the growing demand we are seeing in the community.
"We have seen a drop in our donations of fresh produce and fresh meat donations which means we now have to purchase these at significant cost.
"Without donations like this we would not be able to continue to meet the needs of our community."
Looking ahead, conditions were expected to remain difficult.
"There is a lot of hardship in the community and it doesn’t seem to be easing.
"People are struggling with mental health and wellbeing due to the financial pressure of how ... to meet their basic needs."
