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WELFARE INCOMES IN THE TERRITORIES ARE CONSIDERABLY HIGHER THAN IN THE PROVINCES DUE TO THE HIGHER COSTS OF LIVING IN THE NORTH
Yukon (YK)
- Yukon completed a review of its social assistance program in 2008. Changes included enhancements to earnings exemptions, rate increases and annual indexing of its rates. YK also increased the Yukon Child Benefit.
- End of 2009, Yukon Government announced it would be creating a Social Inclusion Strategy – release anticipated for March 2011.
Northwest Territories (NT)
- Early 2010, a motion passed calling on government to develop an anti-poverty strategy. Government responded by developing overarching discussion paper with the help of an advisory committee.
- NT's asset exemption levels for a single disabled person increased to $50,000 in September 2010.
Nunavut (NU)
- Early in 2010, the Nunavut Government declared it would develop a strategy to reduce poverty (joined by Nunavut Tunngavik Inc in late 2010) – release anticipated at the end of 2011.
CURRENT SITUATION
| Single employable person | Single person with a disability | Lone parent with a 2-year-old child | Couple with two children aged 10 & 15 | |
|---|---|---|---|---|
| YK 2009 WI | $15,369 | $18,402 | $25,489 | $35,340 |
| % of After-tax median income | 51% | 61% | 65% | 37% |
| NT 2009 WI | $17,316 | $21, 518 | $26,450 | $33,522 |
| % of After-tax median income | 52% | 65% | 78% | 31% |
| NU 2009 WI | $43,826 | $46,066 | $48,873 | $52,380 |
| % of After-tax median income | 139% | 146% | 224% | 78% |
Median income is the only measure of adequacy used in Welfare Incomes that is available for the territories.
- Welfare incomes were much higher in all three territories than at the provincial level due to higher costs of living.
- NU's welfare incomes were the highest. This is due to high average monthly rents.
CHANGES IN WELFARE INCOMES FROM 1986 TO 2009
YK
-
Increased welfare and their child benefits rates in 2008-2009:
- Had the highest increase in welfare incomes for a single person with a disability and couples with two children.
- From 1990 to 2009, had the highest increase in welfare incomes for a single person with a disability and a lone parent with one child.
- All welfare incomes peaked (highest over time) in 2009.
NT
- No rate increase for any household type in 2008-2009. Due to the increase in the cost of living over that same period, welfare incomes have decreased in value.
- The peak year for a single employable and single person with a disability was 2008. The lone-parent with one child and couple with two children peaked in 1993 and 1999 respectively.
NU
- Increases since 2007 are due to a change in the calculation of shelter costs. Prior to 2007 subsidized shelter rates were used in Welfare Incomes. Since then Welfare Incomes has used the average rental costs. In 2009, these were in excess of $2,800/month.
LIQUID ASSET EXEMPTION POLICY
| Single person with a disability | Single employable person | Lone parent with a 2-year-old child | Couple with two children aged 10 & 15 | |
|---|---|---|---|---|
| YK | $1,500 | $500 | $1,000 | $1,600 |
| NT | $5,000 | $300 | $380 | $560 |
| NU | $5,000 | No exemption | ||
We were not able to look at asset levels over time for the three territories.
- Along with Ontario and Nunavut, NWT has the highest asset exemption for a single person with a disability.
- Other than for persons with disabilities, NT and NU have some of the lowest liquid asset exemption levels in the country.
EARNINGS EXEMPTION POLICY
| Single employable person | Single person with a disability | Lone parent with a 2-year-old child | Couple with two children aged 10 & 15 | |
|---|---|---|---|---|
| YK | Applicants: $100 | Applicants: $150 | ||
| Recipients: 50% of gross income for first 36 months; 25% afterwards | ||||
| NWT | $200 plus 15% of remaining earned income | $400 plus 15% of remaining earned income | ||
| NU | $200 | $200 | $400 | $400 |
- YK has lower earnings exemption levels for people applying for welfare than for those already receiving welfare.
EXAMPLE (recipient on welfare 3 months)
| Treatment of monthly earnings of $400 | ||
|---|---|---|
| Amount exempted | Single Person | Lone Parent |
| YK | $200 | $200 |
| NT | $230 | $400 |
| NU | $200 | $400 |
Remainder of income is deducted from welfare cheque.
- Welfare clients in all the territories with earnings of $400/month were not eligible for the WITB due to high welfare income levels.
- Nunavut has had its own WITB model since 2007.