Starting this year, income assistance in N.S. to be tied to consumer price index

CITYnews halifax / By Lyndsay Armstrong, The Canadian Press

HALIFAX — Nova Scotia’s decision to start indexing income assistance is a positive step, but it isn’t enough to lift people out of poverty, says the head of a non-profit that supplies 140 food banks in the province.

Income assistance rates rose by 3.1 per cent on Jan. 1 and will be adjusted annually based on the consumer price index.

“I don’t foresee the 3.1 per cent (raise) lifting people out of poverty,” Ash Avery, executive director of Feed Nova Scotia, said Thursday, adding that many people are struggling to afford food and housing because of the cost of living crisis.

The non-profit feeds more than 23,000 people each month by supporting 140 food banks, shelters, soup kitchens, and meal programs across Nova Scotia. That number represents 52 per cent more people than the non-profit supported in 2022.

Avery said indexing income assistance is a good move because it “acknowledges the reality of the growing cost of living … It’s helpful, but it certainly falls short of what’s needed.”

Of those who rely on Feed Nova Scotia to feed themselves and their families, more than 58 per cent reported that government financial support is their primary income source, Avery said. This shows that income assistance isn’t enough to cover essentials, forcing people to turn to food banks as a safety net, she said.

Scott Armstrong, minister of opportunities and social development, said in a statement Thursday that the government knows many Nova Scotians are struggling with the rising cost of essentials like rent and groceries. He added that the new indexing system offers reliable support for the 37,280 people who receive income assistance.

The 3.1 per cent boost instituted this month is on top of a 2.5 per cent increase to income assistance rates that came into effect in July. The department said the rise in rates reflects the government’s commitment to supporting Nova Scotians facing financial challenges that are amplified by inflation.

Avery said that in order to make a meaningful difference, the province should introduce “bold” policies to establish a living wage, increase access to essentials and tackle the dire lack of affordable housing. “It is a moral failure that we have this level of poverty in our province,” she said.

“We have a government that we just elected here in Nova Scotia, and I would put the onus on them to step up and figure out what bold action looks like and to action it.”

This report by The Canadian Press was first published Jan. 2, 2025.

Lyndsay Armstrong, The Canadian Press