Province to spend up to $8M on poverty reduction plan
Published Saturday November 21st, 2009
FREDERICTON - Social Development Minister Kelly Lamrock says the province will spend in the range of $5 million to $8 million putting the first stages of the poverty reduction plan in place.
Lamrock made the comment after he detailed the new measures in the legislature on Friday.
Lamrock said a transition team soon will be appointed to help put in place the components of the plan.
The poverty reduction plan, announced earlier this month, was welcomed by all members of the legislature - Liberals and Progressive Conservatives.
It provided a rare show of political unity in a House divided over the issue of energy.
"These are the most significant social policy reforms in quite some time," Lamrock said.
"All politicians want to be part of it."
The plan aims to reduce the number of working poor in the province by 25 per cent by 2015.
Lamrock said he anticipates the cost to be $5 million to $8 million in the first year. He said continuing to pay health care coverage to people who leave social assistance will cost an additional $3 million in the first months.
Health benefits will be extended to people leaving social assistance for up to three years, until a prescription drug plan is introduced for all uninsured citizens by 2012.
"Going out, certainly the prescription drug card is a huge cost driver but we're talking about that being shared by government, employers and to some extent there will be co-pays from individuals who can pay and subsidies for those who can't. So it will be a significant cost."
New Brunswick's first-ever poverty reduction plan, over a year in the making, is the culmination of a public engagement exercise that saw the involvement of more than 2,500 New Brunswickers from all walks of life.
Bigger social assistance cheques represents an increase of nearly $240 for people who now live on less than $300 a month.
From now on, the household income policy for those on social assistance won't discriminate against people with roommates and, come April 1, 2011, vision and dental care will be provided for children in low-income families.
The minimum wage will be increased to the Atlantic average by the fall of 2011 - that would represent an increase from the current rate of $8.25 to about $10.
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