More support for income assistance clients

All Nova Scotians deserve a chance to build a better life for themselves and their families. That is why Nova Scotians living on low incomes will get more financial support in 2020.

Starting Jan. 1, part two of the Standard Household Rate will be implemented, increasing the amounts people on income assistance receive and making the process simpler for them.

The Standard Household Rate replaces the Personal Allowance and Shelter Allowance, which currently provide clients with money for housing and basic needs.

Under those allowances, some clients do not receive the maximum amount because portions of the assistance are based on actual expenses. Under the new standard rate, all clients’ assistance will be raised to the maximum allowable.

The amounts under the new standard rate will still differ between clients, based on living situation and family size.

The new rate will also have an additional increase of two per cent or five per cent for all clients. Single clients who own or rent, and, are disabled, fleeing an abusive situation, have a chronic mental, cognitive, or physical condition that limits participation in employment services, are 55 years of age or over or are youth aged 16-18, will see a five per cent increase. All others will get a two per cent increase.

The increase will be reflected on Dec. 27 payments.

“We know that people who struggle to provide food, shelter, and transportation for themselves and their families want to be self-sufficient,” says Kelly Regan, Minister of Community Services “These changes will result in higher monthly payments and help clients who need it most.”

Government is also increasing the eligibility threshold for the Poverty Reduction Credit for the 2020 tax year. The new income threshold will be $16,000, up from $12,000. Eligible clients will start receiving the credit in July 2021 after they file their 2020 income tax return.

The increase will ensure anyone who receives the credit now will continue to get it after assistance rates go up with the introduction of the Standard Household Rate. The change also mans that hundreds of new clients will be eligible.

“We’re pleased the Department of Community Services is making these changes,” said Nick Jennery, executive director, Feed Nova Scotia. “Single, individuals and couples without children make up a large percentage of those relying on food banks for support. Knowing that this change will get more money into the hands of this vulnerable population, we’ll be working with our member agencies to help make sure people who are eligible know about the benefit.

More information on the Poverty Reduction Credit can be found at: https://novascotia. ca/coms/noteworthy/PovertyReductionCredit.html