ALBERTA (AB)

  • AB is one of three jurisdictions (BC & SK) without any government action towards a poverty reduction strategy
  • Adoption of poverty reduction strategy recommended by Standing Committee on the Economy in late 2010
  • One of 3 provinces that exempts RRSPs as an asset (plus Newfoundland and Labrador, and Quebec)
  • AB's AISH program provides the highest level of support for a single person with a disability.  However, we do not use AISH in our national analysis because it is not a needs-tested program

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
AB Income Support program 2009 WI $7,241 $9,433 $15,749 $22,101
Rank** among provinces 6 6 8 6
% of MBM 47% 61% 78% 71%
% of After-tax LICO 39% 51% 70% 63%
% of After-tax median income
24%
31%
37%
23%
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)

* AB also has a distinct program for persons with severe and permanent disabilities:  the Assured Income for the Severely Handicapped (AISH) program.  AISH is not a needs-tested program like all other welfare programs.  AISH clients are provided with a flat rate living allowance benefit which is not contingent on family size.  Total 2009 income: $14,297
** #1 rank is the highest

CHANGES IN WELFARE INCOMES FROM 1986 TO 2009

  • All household types had their low year between 2005 and 2008.
  • Peak year (highest over time) was in 1986, except single person with a disability, which was in 1991.
  • When adjusted for inflation, the increase between 2008 and 2009 in the welfare income of a single employable was the highest in the country, at 33%.    

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
WI 2009 – AB Income Support   $583   $1,530   $1,062   $1,533
WI 1989 adjusted to '09 for inflation $76 $4,587 $3,823 $382

 

 

 

 

 


*AISH 2009 liquid asset exemption = $100,000 

  • AB liquid asset exemption levels are linked to its rate structure. The only other province that does this is Ontario.
  • Both a single person with a disability and a lone parent with one child have seen their asset exemption levels, once adjusted for inflation, decrease substantially over the past 20 years  (66% and 72% respectively).
  • AB is one of three provinces that exempt RRSPs (Newfoundland and Labrador and Quebec also do).  Up to $5,000 per adult is exempt.   

 

EARNINGS EXEMPTION POLICY

  • a combination of a flat rate amount plus a percentage of excess earnings.
Single employable person Single person with a disability*  Lone parent with a 2-year-old child Couple with two children aged 10 & 15
$230 plus 25% of remainder $115 plus 25% of remainder for each adult

 

 

 

 

 *AISH = $400 plus 50% of remainder up to $1,500 for a maximum of $950.

 

EXAMPLE

Treatment of monthly earnings of $400
  Single Person Lone Parent
Amount exempted $272.50 $272.50

Remainder of income is deducted from welfare cheque. 

  • AB used the federal WITB model for 2007 and 2008.  In 2009, AB implemented its own WITB model.  
  • A single employable welfare recipient with $400 earnings/month would have been eligible for $360 in WITB in 2009 ($30/month).

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Date de modification :
2012-09-27