In this section you will find:
Please note that Welfare in Canada, 2024 has been updated since its original July publication to rectify errors in the calculation of the total welfare income of the unattached single with a disability household in Newfoundland and Labrador and in Overview sections relating to the analysis of changes in total welfare incomes between 2023 and 2024. The downloadable spreadsheets have also been updated to reflect the Newfoundland and Labrador data change. This may have an impact for researchers and others who are using this data.
Components of welfare incomes
In Newfoundland and Labrador, households that qualify for basic social assistance payments also qualify for:
- Recurring additional social assistance payments from the province,
- Federal and provincial child benefits for households with children, and
- Federal and provincial tax credits and/or benefits.
Together, these components form a household’s total welfare income. Households may receive less if they have income from other sources, or more if they have special health- or disability-related needs.
Table 1NL shows the value of the welfare income components of the four example household types in Newfoundland and Labrador in 2024. All four households are assumed to be living in St. John’s, receiving provincial social assistance starting January 1 and for the entire year, and earning no employment income. The child in the single-parent household is two years old and the children in the couple household are ten and 15. Other assumptions for calculating incomes are in the Methodology section.
Table 1NL: Components of welfare incomes for all example households in Newfoundland and Labrador, 2024
Total annual welfare incomes in 2024 ranged from $12,376 for the unattached single considered employable to $36,133 for the couple with two children. The income of the unattached single with a disability was $22,907 and that of the single parent with one child was $27,573.
Basic social assistance: Monthly Basic and Shelter benefit amounts remained unchanged in 2024. The unattached single households received $860, the single parent with one child received $1,251, and the couple with two children received $1,301.
The unattached single considered employable, the single parent with one child, and the couple with two children also received the Fuel Supplement of $71 per month, which remained unchanged in 2024.
Additional social assistance: The unattached single with a disability received $1,800 ($150 per month) through the Personal Care Allowance, which is paid by the Department of Health and Community Services (HCS) to social assistance clients who receive supportive services. This amount remained unchanged in 2024. In addition, the unattached single with a disability received top-ups from HCS of $6,600 ($550 per month) for rent and $2,400 ($200 per month) for utilities. Note that these amounts are rounded averages of top-ups provided to recipients in these household types, and that this data was provided by HCS.
Federal child benefits: Both households with children received the Canada Child Benefit (CCB), which increased with inflation in July from $619.75 to $648.92 per month for a child under six years of age and from $522.92 to $547.50 per month for a child aged six to 17.
Provincial child benefits: Both households with children received the Newfoundland and Labrador Child Benefit, which increased with inflation in July. The single parent with one child received $149 per month for the first six months of the year and $152.16 per month for the last six months. The couple with two children received $307 per month for the first six months and $313.49 per month for the last six months.
Federal tax credits/benefits: All four households received the GST/HST credit, which increased with inflation in July. The unattached single households received $332.50 in basic GST/HST credit, the single parent with one child received $665, and the couple with two children received $1,015.
Three households also received the GST/HST credit supplement. The unattached single considered employable received $6.91, the unattached single with a disability received $163.87, and the single parent with one child received the maximum amount of $175.
The federal Grocery Rebate, which was provided as a one-time GST/HST credit payment in response to high inflation in 2023, was not available in 2024.
All four households received the federal Canada Carbon Rebate (CCR), previously known as the climate action incentive (CAI) payment. The unattached single households received $611, the single parent with one child received $916.50, and the couple with two children received $1,222. These amounts reflected an increase over 2023.
Provincial tax credits/benefits: All four households received the Newfoundland and Labrador Income Supplement. The unattached single considered employable received $254, the unattached single with a disability received $679.18, the single parent with one child received $533.62, and the couple with two children received $864.48. These amounts were unchanged in 2024.
Cost-of-living payments: Several jurisdictions, including the federal government, provided additional payments in 2022 and 2023 related to the increased cost of living resulting from high inflation. While four provincial and territorial jurisdictions continued to provide inflation-related payments in 2024, neither Newfoundland and Labrador nor the federal government did so. See the Overview section for more information.
Changes to welfare incomes
Figures 1NL and 2NL show how the total welfare incomes for each of the four example household types in Newfoundland and Labrador have changed over time.
Note that the values are in 2024 constant dollars, not current dollars, and are calculated using the Canada Consumer Price Index (CPI). Using constant dollars takes into account the effect of inflation given that inflation reduces current dollar values over time. Also note that using the CPI for Newfoundland and Labrador would have resulted in a slightly different trendline.
Figure 1NL: Welfare incomes for example unattached single households in Newfoundland and Labrador 1986–2024, in 2024 constant dollars
The total welfare income of the unattached single considered employable was relatively stable between 1986 and 1995. The large decline that started in 1995 was the result of a policy change that gave recipients very low room and board allowances instead of market rent shelter benefits. After five years of several small annual increases to the room and board rate and a change in policy that provided shelter benefits that were more directly related to market rents, the total income of this household increased to a much higher level in 2002. Their income was more stable thereafter, with an initial decline followed by an increasing trend, a plateau from 2012 to 2015, and a generally declining trend through to 2024.
The welfare income of the unattached single with a disability generally declined from the start of the time series until 2019, with small increases in 1996–1997 and 2006–2007, and a period of stasis between 2011 and 2016. Between 2012 and 2019, the Fuel Supplement was included in the calculations of the income of the unattached single with a disability as a proxy for shelter and utilities top-ups provided by the Department of Health and Community Services (HCS). The large increase in 2020 and subsequent generally increasing trend were primarily due to the inclusion of rounded average amounts for the shelter and utilities top-ups provided by HCS. The inclusion of these amounts better reflects the actual policy regime in Newfoundland and Labrador.
The 2020 increases to both households’ total incomes were also due to COVID-19 pandemic-related benefits, and the declines in 2021 were primarily due to the loss of those payments. Increases in 2022 reflect additional inflation-related cost-of-living benefits and declines in 2023 reflect the loss of those benefits. In 2024, the small decline for the unattached single considered employable was due to the loss of the Grocery Rebate, and the small increase for the unattached single with a disability was due to an increase in the Canada Carbon Rebate.
In 2024, the total welfare income of the unattached single considered employable was $12,376, which is a 1 per cent decrease compared to 2023, and a 43 per cent increase since the start of the time series, in constant 2024 dollars. The total welfare income of the unattached single with a disability was $22,907, which is a 7 per cent increase compared to 2023, and a 41 per cent increase since the start of the time series, in constant 2024 dollars.
Figure 2NL: Welfare incomes for example households with children in Newfoundland and Labrador 1986–2024, in 2024 constant dollars
The total welfare incomes of the two households with children followed a similar trajectory, starting with a notable decline between 1986 and 1999, then hovering at about the same level from the start of the time series until 2005. This was followed by a generally increasing trend through to 2017. A notable increase in 2006 was the result of an increase to the Family Benefit rate. The rise from 2015 to 2017 was largely the result of changes to federal child benefits. After a subsequent period of decline from 2017 to 2019, both incomes increased in 2020 to their highest levels, which was largely the result of federal COVID-19 pandemic-related payments. Decreases in 2021 were primarily due to the loss of those payments, while high inflation had an impact in 2022, especially on the income of the single parent with one child. In 2023, the decline for the single parent with one child and the slight decline for the couple with two children were both due to the loss of inflation-related cost-of-living payments. In 2024, the increases for both households were due to full-year increases in the Newfoundland and Labrador Child Benefit and increases in Canada Carbon Rebate amounts.
In 2024, the welfare income of the single parent with one child was $27,573, which is a 5 per cent increase compared to 2023, and a 13 per cent increase since the start of the time series, in constant 2024 dollars. The welfare income of the couple with two children was $36,133, which is a 6 per cent increase compared to 2023, and an 18 per cent increase since the start of the time series, in constant 2024 dollars.
Adequacy of welfare incomes
The adequacy of a household’s total welfare income can be assessed by comparing it to established thresholds of poverty and/or low income.
Two measures of poverty are commonly used in Canada:
- The Market Basket Measure (MBM), Canada’s Official Poverty Line, identifies households whose disposable income is less than the cost of a “basket” of goods and services that represents a basic standard of living.
- The Deep Income Poverty (MBM-DIP) threshold identifies households whose disposable income is less than 75 per cent of the MBM.
Two measures of low income are also commonly used:
- The Low Income Measure (LIM) identifies households whose income is substantially below what is typical in society (i.e., less than half of the median income).
- The Low Income Cut-Off (LICO) identifies households that are likely to spend a disproportionately large share of their income on food, clothing, and shelter.
Note that MBM thresholds vary by province and community size, and LICO thresholds vary by community size. As such, we use the thresholds for the province’s largest city, St. John’s, in the analysis below. Note also that we use after-tax LIM and LICO thresholds, and that the LIM thresholds for 2024 are estimates based on increasing the 2023 thresholds to account for inflation.
Also note that none of the poverty or low-income measures currently in use in Canada accounts for the higher cost of living faced by people with disabilities and that these additional costs are not reflected in our analysis.
More information about the thresholds is available in the Methodology section.
A table containing comparisons of the welfare incomes of the four example household types in Newfoundland and Labrador with all four poverty/low-income thresholds is available for download.
Poverty threshold comparisons
The welfare incomes of all four example household types were below, and in some cases far below, Canada’s Official Poverty Line (MBM) in 2024, and three of the four were below the Deep Income Poverty threshold (MBM-DIP). This means that all four Newfoundland and Labrador households were living in poverty in 2024, and three of the four were living in deep poverty.
Figures 3NL and 4NL compare 2024 welfare incomes for the four example household types to the 2024 MBM and MBM-DIP thresholds for St. John’s.
Figure 3NL: Welfare incomes and poverty thresholds for example unattached single households in Newfoundland and Labrador, 2024
The unattached single considered employable had the lowest income relative to the poverty thresholds. Their income was $7,851 below the Deep Income Poverty threshold and $14,594 below the Poverty Line. This means their income was 61 per cent of the MBM-DIP and only 46 per cent of the MBM.
The unattached single with a disability fared best of all four example households relative to the poverty thresholds. Their income was $2,679 above the Deep Income Poverty threshold, but $4,064 below the Poverty Line. This means their income was 113 per cent of the MBM-DIP but 85 per cent of the MBM.
Note that the poverty experienced by people with disabilities is underrepresented because neither the MBM nor the MBM-DIP accounts for the additional costs associated with disability. See the Methodology section for more information.
Figure 4NL: Welfare incomes and poverty thresholds for example households with children in Newfoundland and Labrador, 2024
The single parent with one child had a welfare income that was $1,033 below the Deep Income Poverty threshold, and $10,569 below the Poverty Line. This means their income was 96 per cent of the MBM-DIP and 72 per cent of the MBM.
The welfare income of the couple with two children was $4,322 below the Deep Income Poverty threshold and $17,807 below the Poverty Line. This means their income was 89 per cent of the MBM-DIP and 67 per cent of the MBM.
Low-income threshold comparisons
The welfare incomes of two of the example households were below, and in one instance far below, the low-income thresholds while those of the two others were either above or below the thresholds, as shown in the table linked below.
The lowest income relative to these thresholds was that of the unattached single considered employable, whose total welfare income was 40 per cent of the LIM and 56 per cent of the LICO. The income of the couple with two children was also low relative to the thresholds, at 58 per cent of the LIM and 87 per cent of the LICO.
The highest income relative to these thresholds was that of the unattached single with a disability, at 74 per cent of the LIM and 105 per cent of the LICO. The income of the single parent with one child was 64 per cent of the LIM and 103 per cent of the LICO.
Changes to adequacy of welfare incomes
Figures 5NL and 6NL show the total welfare incomes of each of the four example household types in Newfoundland and Labrador as a percentage of the Market Basket Measure (MBM) for St. John’s, starting in 2002.
The black line at the top of each graph (i.e., the 100 per cent threshold) represents Canada’s Official Poverty Line. This means that the graphs show how far below the Poverty Line the four households’ total welfare incomes have been in each year over the past 23 years.
The grey line indicates the Deep Income Poverty threshold, which is 75 per cent of the MBM. The graphs therefore also show the relationship between total welfare incomes and deep poverty in each year over the past 23 years.
Three trendlines for each household are shown in the graphs. These lines illustrate the relationship between welfare incomes and changes made to the MBM due to “rebasing.” The two rebasings, occurring in 2008 and 2018, are indicated with a dotted vertical line. Rebasing updates the measure, including the items and costs included in the basket, to better reflect contemporary circumstances and typically creates a higher poverty threshold than that of a previous base. The trendlines demonstrate changes to household poverty levels within the years in which each base is applied. A trendline rise within those periods indicates an improvement in a household’s level of poverty while a decline indicates a deepening of their poverty. For the years in which rebasing took place (2008 and 2018), we include the percentage of welfare income relative to the MBM using both the previous and the new base to show how rebasing affects adequacy.
Note that fluctuations in the graph trendlines are due to a combination of changes in welfare incomes and the cost of living. Both factors must be considered when analyzing trends.
Figure 5NL: Welfare incomes as a percentage of the MBM for example unattached single households in Newfoundland and Labrador, 2002–2024
The welfare income of the unattached single considered employable was 62 per cent of the Poverty Line in 2002. After remaining largely static for the next 16 years – hovering between 56 and 64 per cent – their income declined to around 50 per cent after the 2018 rebasing. Their income declined further after 2020 and ended the time series in 2024 at only 46 per cent of the Poverty Line.
Overall, the welfare income of the unattached single considered employable was 16 percentage points lower relative to the Poverty Line in 2024 than it was in 2002; their income was also below the Deep Income Poverty threshold across the entire time series. This means that households in these circumstances would have experienced a significant deepening of their already very deep poverty over the last 23 years.
The welfare income of the unattached single with a disability started the time series in 2002 at 74 per cent of the Poverty Line. After some variation through to 2007, their income declined to around 65 per cent after the 2008 rebasing; it decreased further to about 60 per cent in 2011 and remained at that level until 2017. Another decline after the 2018 rebasing was followed by a significant increase to 80 per cent of the Poverty Line in 2020; this increase was due to a methodology change used in this report (see the “Changes to welfare incomes” section) as well as the addition of COVID-19 pandemic-related benefits. Their income ended the time series in 2024 at 85 per cent of the Poverty Line.
Overall, the welfare income of the unattached single with a disability was 11 percentage points higher in 2024 than in 2002, which represents an improvement in the depth of poverty of households in these circumstances over the past 23 years. However, their income was below the Deep Income Poverty threshold for the majority of the time series, only rising slightly above the threshold after 2020. This means that households in these circumstances would have lived in deep poverty for most of the last two decades.
Figure 6NL: Welfare incomes as a percentage of the MBM for example households with children in Newfoundland and Labrador, 2002–2024
The income of the single parent with one child started the time series at 85 per cent of the Poverty Line, increasing to a high of 91 per cent in 2007. A decline after the 2008 rebasing was followed by improvements between 2014 and 2017, with an additional decline after the 2018 rebasing that saw their income fall below the Deep Income Poverty threshold for the first time. A slight rebound to 77 per cent of the Poverty Line in 2020 was followed by three years of declines, and an uptick in 2024 ended the time series at 72 per cent of the Poverty Line.
Overall, the welfare income of the single parent with one child was 13 percentage points lower in 2024 than it was in 2002, and it fell under the Deep Income Poverty threshold in the later years of the time series. This means that households in these circumstances would have seen their poverty significantly deepen over the last 23 years.
The welfare income of the couple with two children started the time series at 71 per cent of the Poverty Line and followed a similar trendline to that of the single parent with one child. After spending much of the time series below the Deep Income Poverty threshold – between 65 and 74 per cent of the MBM – their income improved to 76 per cent of the Poverty Line in 2017. It declined thereafter and ended the time series in 2024 at 67 per cent.
Overall, the welfare income of the couple with two children was 4 percentage points lower in 2024 than in 2002, which represents a slight deepening of the poverty experienced by households in these circumstances across the time series. As well, given that their income was only above the Deep Income Poverty threshold for one year, households in these circumstances would have spent most of the last 23 years living in deep poverty.
Access to data
The data for Newfoundland and Labrador is available for download, including:
- Components of welfare income for all households.
- Welfare incomes in 2024 constant dollars over time for all households.
- Welfare incomes in current dollars over time for all households.
- Adequacy of welfare incomes: a comparison of each household’s welfare income with all four poverty and low-income thresholds.
- Adequacy over time: each household’s welfare income relative to the Official Poverty Line (MBM) from 2002–2024.