January 26, 2005

The province will increase the Employment and Income Assistance (EIA) northern allowance by an additional 20 per cent for households with low incomes in northern and remote communities, Family Services and Housing Minister Christine Melnick announced today.

"The additional funding will help offset the high cost of healthy foods for northern residents," said Melnick. "We want to help people with low incomes purchase nutritious foods and will continue to build on enhancements we have made to assistance rates as well as improve service delivery throughout the province."

The additional support will reach 1,800 households and is effective Feb. 1. The northern allowance addresses higher costs in the North for essential goods and is based on a percentage of a household’s basic EIA benefits for food. The last increase was in 1999.

The increased funding for EIA participants, for example, would provide two parents with two young children with an additional $85.24 per month, a single parent with two children $77.12 per month and a single parent with one child would receive $46.02 per month.

The EIA northern allowance is for low-income households in three categories based on the remoteness of the community:

• those in or near Thompson, Flin Flon and The Pas;

• those in remote areas with direct all-weather road, rail or water access to the community; and

• households without direct all-weather road, rail, or water access to the community.

Since 1999, the province has increased the income available to EIA participants by both raising basic income assistance rates and exempting other sources of income. For example, the Manitoba government’s full restoration of the National Child Benefit Supplement ended the clawback of this benefit from families participating in EIA and resulted in $13.7 million more in disposable income for these families. Other enhancements include improved work incentives, increases to the school supplies allowance for children and the introduction of an exemption for certain lump sum payments for persons with disabilities to help improve their quality of life.

"This announcement complements other programs such as the Healthy Baby program, the Northern Healthy Foods Initiative and the work the province has done to improve the transportation infrastructure in northern Manitoba," said Aboriginal and Northern Affairs Minister Oscar Lathlin. "As part of our government’s Northern Development Strategy we are committed to making necessary improvements for people living in northern communities."

In June 2004, a single system of income assistance was introduced in rural and northern Manitoba. The province now administers all income assistance in Manitoba which provides participants with consistent benefits and offers them access to provincial training and employment readiness programs.

"We are pleased with the province's commitment to increasing the Employment and Income Assistance northern allowance for our northern communities," said Reg Meade, president of the Northern Association of Community Councils.  "This increase will help offset some of the costs individuals and families face while living in remote areas."

"MKO welcomes the changes announced today that help to make food and basic supplies more affordable for the citizens of the MKO First Nations, particularly in the remote MKO communities where costs are among the highest in Manitoba," said Grand Chief Dr. Sydney Garrioch of the Manitoba Keewatinook Ininew Okimowin (MKO). "This additional provincial support for northern families will assist to offset the high price of food in our communities."

- 30 -