NEWFOUNDLAND & LABRADOR (NL)
|
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 | |
|---|---|---|---|---|
| NL 2009 WI | $9,593 | $11,123 | $19,297 | $22,339 |
| Rank* among provinces | 1 | 3 | 1 | 5 |
| % of MBM | 64% | 74% | 99% | 75% |
| % of After-tax LICO | 62% | 71% | 102% | 76% |
| % of After-tax median income | 48% |
56% |
64% |
27% |
| Highest 2009 WI | $9,593 (NL) | $12,905 (ON) | $19,297 (NL) | $24,045 (PE) |
| Lowest 2009 WI | $3,773 (NB) | $8,665 (NB) | $14,829 (MB) | $19,775 (NB) |
* #1 rank is the highest
CHANGES IN WELFARE INCOMES FROM 1986 TO 2009
- Top rank since 2004 for single employable and a lone parent with one child.
- 2009 is peak year (highest over time) for single employable and lone parent with one child.
- #3 rank for a single person with a disability since 2006.
- Single person with a disability rate peaked in 1997 and had its low year in this decade (2005).
- The only jurisdiction where welfare benefits increased more than the cost of living over the past 19 years. This was for the single employable person. (Note that this was due to a policy change in 2002 where singles no longer received room and board rate rather than a rate increase per se).
LIQUID ASSET 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 | |
|---|---|---|---|---|
| 2009 exemption | $500 | $3,000 | $1,500 | $1,500 |
| 1989 exemption adjusted to 2009 for inflation | $61 |
$4,587 |
$3,823 |
$153 |
- Asset levels over past 20 years:
-
- No change for a single person with a disability, resulting in considerable erosion due to inflation;
- A decrease for a lone parent with one child, so further erosion due to inflation;
- Increase for both a single employable and couple with two children.
- RRSPs less than $10,000 are exempt for the first 90 days on welfare.
EARNINGS EXEMPTION POLICY
- Flat rate amount plus a percentage of earnings.
| Single employable person | Single person with a disability | Lone parent with a 2-year- old child | Couple with two children aged 10 & 15 |
|---|---|---|---|
| $75 plus 20% of remainder | $150 plus 20% of remainder | ||
EXAMPLE
| Treatment of monthly earnings of $400 | ||
|---|---|---|
|
|
Single Person | Lone Parent |
| Amount exempted | $140 | $200 |
Remainder of income is deducted from welfare cheque.
- NL uses the federal WITB model. Because NL’s welfare benefits are more generous, welfare clients who work do not receive the maximum WITB.
- A single employable welfare recipient with $400 earnings/month would have been eligible for $180 in WITB in 2009 ($15/month).