New Brunswick

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NEW BRUNSWICK (NB)

Poverty Reduction Strategy announced in November 2009
NB has ranked lowest in the provinces for the single employable and couple with two children since 2004
NB has ranked lowest in the provinces for the single person with a disability since 2006
In January 2010, NB eliminated the Interim Assistance category. This resulted in a substantial benefit increase for single employable persons – from $294/month to $537. This is an increase of over 80%.

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
*NB 2009 WI*	*$3,773*	*$8,665*	*$16,171*	*$19,775*
**Rank among provinces***	10	10	7	10
% of MBM	26%	60%	87%	69%
% of after tax LICO	24%	56%	85%	67%
% of after tax median income	18%	41%	55%	26%
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

2009 was the peak year (highest over time) for both family types with children.
Peak years were 1989 for a single person with a disability and 1991 for a single employable.
Increases over time (1990-2009) of 20-25% for both family types with children (below inflation).
Decreases (1990-2009) for a single employable and a single person with a disability of 15% and 23% respectively. A single person with a disability saw a decrease in income of nearly $2,700.

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*	*$1,000*	*$3,000*	*$2,000*	*$2,000*
1989 exemption adjusted to 2009 for inflation	$765	$1,529	$1,529	$1,529

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
Applicants	No exemption
Recipients	$300	$250	$200	$200

EXAMPLE (recipient on welfare for 3 months)

Treatment of monthly earnings of $400
	Single Person	Lone Parent
Amount exempted	$300	$200

Remainder of income is deducted from welfare cheque.

NB uses the federal WITB model.
A single employable welfare recipient with $400 earnings/month would have been eligible for $360 in WITB in 2009 ($30/month).