Southlake's Incorporated and Samaritans charities fearful of influx as recession hits, government welfare payments reduce

Lake Macquarie-based food care organisation Southlake's Incorporated has experienced a 300 per cent increase in demand, according to CEO Christine Mastello.

"Five days ago, we had given out 360 pre-cooked meals and 240 food boxes for free in the previous 14 days," she said.

"If you go back to 2016, that would have lasted us a whole year."

It comes as the Federal Government confirmed on Wednesday that Australia has plunged into its first recession since the early 1990s after coronavirus restrictions caused the economy to shrink by seven per cent in the June quarter

Treasurer Josh Frydenberg said Australia's economic performance was among the top developed nations, but warned the road ahead would be long and bumpy.

Prime Minister Scott Morrison also said in Parliament the path to recovery "will not be paved with endless support of the government'.

The government had previously confirmed it would scale down the JobKeeper payment from $1500 to $1200 a fortnight for full-time workers on September 28, before it drops to $1000 on January 4.

The JobSeeker coronavirus supplement will also reduce from $550 a fortnight to $250 on September 24 but will wrap up completely at the end of December.

Ms Mastello said she feared for the effect that would have on people this festive season.

"How are people going to feed their families at Christmas?" She said.

Samaritans client services manager Tracy Jackson said, surprisingly, there had not been a huge increase in demand for the Newcastle-based charity's services.

But she said she was also waiting for a rush when the welfare changes come into effect later this month.

"Our expectation was that we were going to get to the point where we may have to shut the door," she said.

"But we haven't been inundated.

"JobSeeker and JobKeeper were announced and put in place quite quickly. If they weren't in place we would have been hammered.

"But when they start to roll back we will definitely pick up.

"It's like tsunami - you can see it and it's coming."

Ms Mastello said Southlake's had dealt with many different people affected by the pandemic, including a couple in their 60s who had worked their whole lives but have now been forced to sell their home to get by.

"One woman we spoke to is about to become homeless," she said.

"We're hearing story after story. It's endless.

"And it's not always the people you would expect.

"All of us are really affected by the stories.

"A big thing is the feeling of helplessness - it doesn't go away."

Ms Mastello said the pandemic had also exposed a real issue with the welfare system.

She said people who previously relied on government benefits before the virus felt they could finally pay their bills because of the $550 supplement, but that's all about to change.

"It's going to take that dignity away from them again," she said.

"They're going to have to access charities.

"It's going to be a real, real worry for them.

"Why can't the government at least leave the payment at that amount?"

Ms Jackson said while Samaritans had not experienced a huge increase in demand for help, she believed there may be issues bubbling away under the surface for many in the community.

Both Ms Jackson and Ms Mastello said they were afraid for people who had deferred mortgage and rent payments.

Ms Jackson said she believed some of those people may not know they have to pay it all back when their deferral period ends.

"There's been safety nets people have drawn on to keep their heads above water," she said.

"People may feel like they're comfortable now, but then they'll have to pay X amount of money to get back on top.

"Even things like Afterpay - they might be okay to pay it now, but once the payments reduce they'll be in panic mode straight away.

"People have made commitments they won't be able to keep.

"I'm not saying it's wrong, but things are going to change when the roll back kicks in, particularly for young people."

"We're just waiting for the phone calls."

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Ms Jackson said she encouraged people in these situations to reach out and contact the Samaritans, even just to find out their options. She said she believed there may be people out there struggling financially who haven't reached out for help.

"We are here to help, whatever that may look like, and if we can't help we can refer onto services who can," she said.

"We've done an advertising campaign and found that people don't know we're here.

"Prior to the pandemic, contacting a charity was not something some people would think about.

'But it's what we're here for.

"We're still open - it's business as usual for us."