NDP leader Todd Hardy says changes to the territory’s social assistance (SA) program announced yesterday are a good start, but fail to address a number of key concerns.
"After 17 years of waiting for an increase in social assistance rates, it’s good to see some movement at last," Hardy said. "However, without a cost-of-living adjustment built into the rate structure, people who rely on SA will continue to fall behind as the cost of essential items such as food, shelter and utilities goes up."
Under the new rates, which take effect July 1, a single person living on social assistance in Whitehorse will receive $42 more per month for food, $15 more for clothing and $11 for incidentals. A family of four, including two children, will get $168 more for food, $46 more for clothing and $31 more for incidentals.
"That doesn’t nearly reflect how much basic costs have risen since the last SA rate increase," Hardy said. "In reality, a single person living in a hotel room with no cooking facilities will have trouble eating properly for only $201 a month. And a family with teen-aged kids will be hard-pressed to keep them adequately clothed on a monthly clothing allowance of only $216."
Hardy said he was pleased to see the earned income exemption doubled, which will allow someone on social assistance to keep up to half their monthly employment earnings without their social assistance benefits being cut. Applicants will also no longer have to wait three months to qualify for the exemption.
"Practical incentives such as this should make it easier for people to make the transition away from social assistance into full-time work, especially in periods such as this when jobs are readily available," Hardy said. "At the same time, there needs to be more attention paid to training and support programs that will help prepare people to enter, or re-enter, the workforce."
Another weakness Hardy noted in the new rate structure was the lack of an escalator clause in the fuel and utilities allowance.
"Considering how volatile fuel costs have become, this could be a serious issue for low-income families," he said. "If the government is willing to re-open contracts for bus companies, will it do the same for SA recipients who may be forced to choose between heating their homes or feeding their families properly?"