N.B. sees setback in poverty reduction as cost of living soars

New Brunswick lost years of progress reducing poverty as pandemic supports ended, housing costs soared and inflation ticked up, a new report shows. 

The Economic and Social Inclusion Corporation, a provincial Crown corporation, released its 2025-30 poverty reduction plan on Wednesday. 

The document shows the province recorded years of declines, from a peak of 126,000 in 2015, to 51,000 in 2021.

Stéphane Leclair, CEO of the Crown corporation, said they had met a goal to cut poverty in half. But the number shot up to 85,000 in 2022, the most recent figure available. 

"We reached the goal, but since then the numbers went backwards because of the economic crisis that we're in," Leclair said during an event in Campbellton unveiling the new plan. 

• Read the report

The document says the province's population growth also "added pressure to existing systems that were already struggling to function properly."

The new plan keeps the same goal as the previous one: a 50 per cent reduction in poverty levels by 2030. 

The report was released at a time of even more economic uncertainty over a potential trade war started by the United States. 

WATCH | 'We don't have a choice,' minister says of poverty goals as tariff threat looms:

Minister says trade war threat could push back N.B. poverty reduction goals

2 days ago

Duration 1:05

A New Brunswick Crown corporation launched a plan to cut the number of people living in poverty in half by 2030. The province's Social Development minister says it's a goal that could be affected by a potential trade war with the United States.

Cindy Miles, the province's Social Development minister, said tariffs threatened by President Donald Trump could affect the goal. 

 "It's a concern for everything, it's a concern for every sector," Miles said about tariffs. 

Premier Susan Holt previously said a universal 25 per cent tariff on Canadian goods going to the U.S. would cost the province 4,000-6,000 jobs.

Miles said the province doesn't have a choice but to continue toward its poverty reduction goal. 

"People are depending on us to do this, and as a community we can do this and we will do this," Miles said. 

The plan released Wednesday was the fourth by the Economic and Social Inclusion Corporation, which is mandated to develop, oversee, co-ordinate, and implement strategic initiatives and plans to reduce poverty in the province. 

The plan includes 16 actions to meet the goal developed after consultantations last spring. Many are high-level, such as increasing general awareness of existing programs. 

The 16 priorities are:

• Increase food security.
• increase access to affordable and accessible transportation.
• Ensure access to affordable child care.
• Support the province's housing plan.
• Study options for paid sick leave program cost-shared between government, businesses and employees.
• Increase awareness of prescription drug programs.
• Increase awareness and access to provincial and federal benefits.
• Improve financial literacy.
• Improve working conditions for people with a low income.
• Make changes to improve access to income and resources for people with disabilities.
• Review of asset exemption thresholds Social Development programs and services.
• Explore increasing income security through an advisory committee.
• Explore ways to reduce barriers to access government information and programs.
• Review and improve sensitization training to reduce the stigma of seeking government services.
• Expand services for youth aging out of care to ensure they have access to housing and education.
• Support the non-profit sector.

Asked about the potential costs of implementing the priorities, Leclair said it's not something he could answer. 

The report says more than 40 per cent of comments received through consultations last spring related to housing, with a common call for a rent cap. 

In a video message played during the plan's release, the premier highlighted steps the province has already taken that could address some of the priorities. 

These include a rent cap that took effect Feb. 1, a school breakfast program, a 10 per cent rebate on power bills, and a 10 per cent rebate on HST on multi-unit housing construction.

Leclair said that if the province meets its poverty reduction goal before 2030, a new target will be set. 

Poverty rates in the report are based on data from the Canadian Income Survey produced by Statistics Canada. The 2023 data is expected to be released this spring. 

The province says a website will be regularly updated tracking the progress toward meeting the poverty reduction goal.