Leaders from the Salvation Army and City Mission say 93 per cent of people presenting to financial relief and emergency support services are struggling to keep up with household costs.
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The Salvation Army Red Shield report released in June found an increased demand in their services, with 73 per cent reporting that they could not afford the cost of food and 52 per cent reporting regularly skipping meals.
Salvation Army corps officer Roderick Brown said it was a "desperate situation for many."
"We certainly could do more in helping people secure their housing," Mr Brown said.
"I certainly have the view that if we can prevent people from losing their home or their tenancy, that's much better than them having go into their home situation and then being supported to come back out of that."
Salvos put a call out in September for more donations, as the charity has received noticeably fewer second-hand clothing donations this year.
Mr Brown said the Launceston community had still been "very generous."
"But as those costs rise, those donations don't go as far as they previously did," Mr Brown said.
He predicted pressure on their services to remain consistent going into the summer.
"Typically it's always increased demand heading into the winter period," Mr Brown said.
"I think it will remain consistent, perhaps a lesser demand for sleeping bags and camping gear because it's a bit warmer to sleep out, but that demand is still there."
Chief executive of City Mission Stephen Brown said they gave approximately 300 interviews for crisis and emergency relief support each month.
"We're bouncing between 250 to 280 turn-aways so it's sort of 50-50 at the moment," Mr Stephen Brown said.
"That doesn't mean that the needs not fully unmet, but it means it's not met on the day."
He said City Mission provided between $100 to $110 per visit but the average needs of people had grown.
"The people of Launceston have responded, our winter relief appeals are up by about 20 per cent," he said.
Tasmanian Labor leader Rebecca White said the cost of living was impacting both households and the community services sector.
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"We firmly support our community service organisations, they play a vital role right across Tasmania," Ms White said.
"However, they can only keep doing that if they're properly supported and resourced... that's why a Labor government would look to cap electricity prices to take some off the pressure of household budgets."
Energy Minister Nick Duigan also told The Examiner last week that Labor's electricity caps were not the answer to lowering prices.
"Adding more renewable energy will have the effect of more jobs, more economic activity and more investment, but ultimately lower power prices," Mr Duigan said.
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