UNEASY RIDER: Motorcyclist Gary McPhee turns out an empty wallet. Like other riders he faces hefty increases in ACC levies from today.
Struggling Wairarapa families have tagged today Black Thursday as petrol and power prices are hiked to satisfy the demands of the Emissions Trading Scheme.
Petrol is expected to rise by about 3c a litre at the pump and power will increase for most customers by about a cent a unit.
Vehicle registrations also rise today as a result of an increase in the ACC levy, hitting motorcycle riders particularly hard.
Wairarapa Free Budget Advisory Service manager Grant Howard said the Government was letting the people down on many financial fronts.
The ETS price increases were just another nail in the coffin for families, especially those on low incomes.
Rises in vehicle registration fee combined with petrol hikes would mean only ''the rich'' would be able to afford to run their cars.
''It has already got to the stage where people are leaving their cars in the shed,'' Mr Howard said.
''Workers are trying to find ways to car pool but that's not always possible.''
Mr Howard said commuters taking the train to Wellington were not immune as fares had recently risen and the outlook was ''very disheartening'' for many people.
GST was going up by 2.5 per cent in October _ half a per cent more than increases in pensions _ and tax cuts meant to compensate workers would still be many months away.
The budget service is already flat-out but Mr Howard said even more demand on the service was now inevitable.
This year had been the busiest on record, he said, and his appointments diary was fully booked for the next three or four weeks.
''That's how long it is taking me to get to see some people.''
Mr Howard said distraught families had to be interviewed in the first instance for about two hours and their finances arranged in a priority listing.
''Rent, power and food come first, all other debts can wait.''
Mr Howard said as finances became more and more stretched families who were battling became very disheartened.
That just added to the problems they faced.
He said they felt they could not absorb any more costs and the big picture became very bleak.
The latest ETS price rises are anticipated to add between $165 and $200 to average household expenditure a year.
Mr Howard said he constantly lobbied politicians, asking for more consideration to be given to families.
He also wants to see GST on food and electricity scrapped.
''I would email Parliament once a week but we keep on losing ground.''
He said central government was just not cutting the mustard and economists who preached that things were improving were wrong.
Prime Minister John Key has spoken out over his concern that power companies would claim ETS was a reason for hiking prices up by double digits. Mr Key said electricity prices should at most increase by 5 per cent.
An average power bill for Wairarapa homes at this time of the year is $220 a month, meaning an increase as foreseen by Mr Key would add $11 a month.