Province unveils new affordability measures for low-income people

The Higgs government announced new measures Tuesday to help low-income New Brunswickers cope with the high cost of living.

But Premier Blaine Higgs warned that there may not be enough money for broader, more generous programs to help more people.

Social Development Minister Jill Green told the legislature that low-income seniors who already receive a $400 benefit will get an extra $200, an increase that will be made permanent in next year's budget. 

People on social assistance and youth who receive a benefit because they can't live at home will receive an extra $200 per month, starting in February.

"We know New Brunswickers need help now … and that's why our government is not only talking or listening, but taking concrete action to deliver assistance now," Green said in the legislature. 

The province will also reduce the cap on how much household income must go to nursing home or special care home payments, from 60 per cent to 40 per cent.

Opposition parties welcomed the new supplements but said the province should be doing more to help those not considered low income.

"There are New Brunswickers who are on the verge of falling into poverty, who can't pay their bills now but aren't on social assistance," said Liberal Leader Susan Holt.

She again called for the province to take the provincial part of the harmonized sales tax off electricity bills and to repeal a law that passes the cost of federal clean fuel regulations — 3.87 cents per litre of gas this week — onto consumers at the pumps.

But Higgs told reporters that broader measures may not be in the cards now that the government has lowered its projection of a budget surplus this year.

The latest quarterly fiscal update projected a surplus of $35.3 million, down from the $199-million projection earlier in the year, and far lower than the $1-billion surplus recorded last year.

"Anything we do will be in the context of not needing to raise taxes and continuing to run a balanced budget," Higgs said.

"It's kind of an ongoing analysis of where we are and what the costs are." 

He pointed out that the government's restrained spending had reduced the provincial debt, lowering interest payments on that debt by about $75 million — enough to cover the $65-million annual cost of the low-income supplements Green announced.

Higgs also suggested there may be a less urgent need for broader measures because, he said, inflation appears to have "levelled out right now." 

Green Party MLA Kevin Arseneau said the new supplements are "greatly needed," but questioned why the one for social assistance recipients will only begin in February.

"It's late, and to announce it's going to be available in three months is just exacerbating the problem," he said.

Higgs said it wasn't possible to do it any sooner and noted the increases would normally be announced in next March's provincial budget for implementation at the start of the next fiscal year on April 1.

But Green and Higgs said the government understand people needed the help sooner than that. 

"We actually moved it ahead two months," he said.