This section is an overview of welfare incomes across all 13 Canadian jurisdictions in 2023. It includes a summary of total welfare incomes, an analysis of changes to welfare incomes from the previous year, a summary of income adequacy relative to Canada’s poverty measures, and an analysis of income adequacy by household, for both the provinces and territories.

We have separated the analysis for the provinces and the territories because there are significant differences in the cost of living and the nature of income security programs in the North.

Provinces

Total welfare incomes: Provinces

Table 1CA shows the maximum total welfare incomes that each of the example household types in each province would have received in 2023. All households are assumed to be living in the province’s largest city, 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.

Note that although we look at four example households in most jurisdictions, we have added three new example households in this year’s report:

• In Manitoba, we have added the unattached single with a disability receiving Manitoba Supports for Persons with Disabilities (MSPD), which is distinguished from the existing unattached single with a disability receiving Medical Barriers to Full Employment (MBFE) benefits.
• In Quebec, we have added the unattached single considered employable receiving the Manpower Training measure (MAN) benefits, which is distinguished from the existing unattached single considered employable receiving Aim for Employment (AIM) benefits.
• Also in Quebec, we have added the couple with two children receiving Manpower Training measure (MAN) benefits, which is distinguished from the existing couple with two children receiving Aim for Employment (AIM) benefits.

For more information on these new example households, please consult the Manitoba and Quebec sections of the report.

Table 1CA: Total welfare incomes for all example households in each province, 2023

Unattached single considered employable: The highest total welfare income in 2023 was for the household receiving the Manpower Training measure (MAN) in Quebec at $26,368, the second highest was in Prince Edward Island at $18,250, and the third highest was the household receiving the Aim for Employment Program (AIM) in Quebec at $14,484. Five provinces followed with total incomes between $13,251 and $11,262. The lowest welfare incomes for this type of example household were in Ontario at $10,473, Nova Scotia at $9,204, and New Brunswick at $8,690.

Unattached single with a disability: The highest total welfare income in 2023 was for the household eligible for the Assured Income for the Severely Handicapped (AISH) program in Alberta at $23,473. The second highest was in Newfoundland and Labrador at $20,975, the third highest was in Prince Edward Island at $20,104, and the fourth highest was in British Columbia at $19,089. Four provinces followed with welfare incomes between $17,148 and $14,957. The three lowest welfare incomes for this type of example household were in Alberta through the Barriers to Full Employment (BFE) program at $12,820, in Nova Scotia at $12,406, and in New Brunswick at $11,648.

Single parent with one child: The highest total welfare income in 2023 was for the household in Prince Edward Island at $32,294. Six provinces followed with incomes between $28,001 and $25,702. The lowest welfare incomes for this type of example household were in Ontario at $23,815, in New Brunswick at $22,985, and in Nova Scotia at $21,969.

Couple with two children: The highest welfare income in 2023 was for the household in Prince Edward Island at $50,930. The next highest were the households in Quebec at $47,794 (MAN) and $44,680 (AIM), then British Columbia at $40,758 and Alberta at $39,279. These were followed by four provinces with incomes between $36,212 and $34,235. The lowest welfare incomes for this type of example household were in Newfoundland and Labrador at $33,357 and New Brunswick at $30,395.

In summary:

• The highest total welfare income for the unattached single considered employable households was in Quebec for the household receiving Manpower Training measure (MAN) benefits.
• The highest welfare income for the unattached single with a disability households was in Alberta for the AISH recipient.
• The highest welfare incomes for both the single parent with one child and the couple with two children households were in Prince Edward Island.
• The lowest total welfare incomes for three household types were in New Brunswick: the unattached single considered employable, the unattached single with a disability, and the couple with two children.
• The lowest income for the single parent with one child was in Nova Scotia.

Cost-of-living payments

Additional one-time financial supports related to the higher cost of living resulting from high inflation were made available to all households in the provinces in 2023, as shown in Table 2CA. The federal government provided one benefit that was available to all example household types in every jurisdiction. In addition, four of the ten provinces provided cost-of-living payments through social assistance benefits or as a refundable tax credit/benefit.

The 2020 and 2021 Welfare in Canada reports included COVID-19 pandemic-related payments; however, no such payments were made in 2023. Also, note that cost-of-living related payments were also made in 2022, but only the payments in New Brunswick remained the same in 2023. All other 2023 one-time cost of living-related payments were new, with different amounts, eligibility criteria, and distribution schedules.

The Methodology section outlines the methodology used to determine which benefits were included in our calculations and how we accounted for benefit changes related to the higher cost of living in 2023. Note that cost-of-living payment amounts in Table 2CA are included and not in addition to the amounts in the “Total welfare incomes” section above.

Table 2CA: Cost-of-living payments for all example households in each province, 2023

All households in every province received cost-of-living payments from the federal government in the form of a one-time Grocery Rebate, which was paid in July 2023 and was equivalent to the two regular GST/HST credit payments received in the first half of 2023. These payments amounted to $153 for the unattached single considered employable and unattached single with a disability households, $386.50 for the single parent with one child households, and $467 for the couple with two children households.

The one-time Grocery Rebate included an additional credit supplement amount for those who qualified. Seventeen of the 23 unattached single households qualified for this additional amount, which was up to $80.50. Note that the single parent with one child households automatically received the maximum supplement, which is counted in the $386.50 mentioned above.

Four provinces — Alberta, British Columbia, New Brunswick and Prince Edward Island — provided additional cost-of-living payments that were consistent with our methodology and as such were included in our analysis. These payments were available to all example household types in those jurisdictions.

Of the four provinces providing cost-of-living payments, Alberta paid the highest amounts, giving an additional $600 to the unattached single households, $1,200 to the single parent with one child, and $1,800 to the couple with two children. Prince Edward Island provided an additional $500 to both unattached single households, and $1,000 to both households with children. British Columbia provided an additional $328 to the unattached single households, $831 to the single parent with one child, and $1,170 to the couple with two children. Lastly, New Brunswick provided an additional $225 to both unattached single households and $450 to both households with children.

Changes to welfare incomes

Table 3CA compares the 2022 and 2023 total welfare incomes of households for each province without adjusting for inflation. The cost of living increased by about 3.9 per cent in 2023 nationally. (Source: Statistics Canada. (2024, January 16). Consumer Price Index, annual average, not seasonally adjusted.) As such, households whose total welfare incomes increased by less than 3.9 per cent would have been worse off in 2023 than in the previous year.

Although the Consumer Price Index (CPI) measure of inflation reflects changes in consumption patterns and remains the most robust indicator of changes to living costs, it is important to recognize that high inflation in 2023 and the increased cost of living may have impacted the households in very different ways depending on their circumstances. Note that the national CPI is used instead of regional CPIs.

Table 3CA: Change in total welfare incomes between 2022 and 2023 for all example households in each province, in current dollars

* The national rate of inflation between 2022 and 2023 was 3.9 per cent, as discussed above.

Note: BFE refers to the Barriers to Full Employment category of Alberta’s Income Support program. AISH refers to Alberta’s Assured Income for the Severely Handicapped program. MBFE refers to the Medical Barriers to Full Employment category of Manitoba’s Employment and Income Assistance program. MSPD refers to the Manitoba Supports for Persons with Disabilities program. AIM refers to Quebec’s Aim for Employment program. MAN refers to Quebec’s Manpower Training measure.

• Total welfare income decreases: Four of the 44 households, or about 9 per cent, saw their total incomes decrease in real dollars between 2022 and 2023:
  • The unattached single considered employable households in Newfoundland and Labrador and Nova Scotia, and
  • The unattached single with a disability households in Nova Scotia and Quebec.

The main reason for these income declines was the elimination of provincial one-time cost-of-living supports in Newfoundland and Labrador, Nova Scotia, and Quebec, as well as the elimination of Hurricane Fiona-related supports in Nova Scotia, paired with the stagnating value of provincial social assistance benefits in these jurisdictions.

The steepest declines were for the unattached single considered employable and the unattached single with a disability in Nova Scotia at -3.0 per cent and -2.2 per cent, respectively.

• Total welfare income increases below inflation: Just over a third of the example households — 16 out of 44, or 36 per cent — saw their total incomes increase in real dollars between 2022 and 2023, but those increases were at a rate below the 3.9 per cent inflation increase, which means that their incomes did not keep up with the rising cost of living:
  • Three unattached single considered employable households: Ontario, Quebec (for the household receiving AIM), and Saskatchewan,
  • Two unattached single with a disability households: Newfoundland and Labrador and Saskatchewan,
  • Five single parent with one child households: Newfoundland and Labrador, Nova Scotia, Ontario, Quebec, and Saskatchewan, and
  • Six couple with two children households: Manitoba, Newfoundland and Labrador, Nova Scotia, Ontario, Quebec (for the household receiving AIM) and Saskatchewan.

The below-inflation nominal increases for the households in Manitoba, Newfoundland and Labrador, Nova Scotia, Quebec, and Saskatchewan were primarily because investments to improve social assistance and child benefit increases/indexation were countered by the loss of 2022 provincial one-time cost-of-living supports.

In Ontario, however, the story is different because the province had not provided widely available one-time supports in 2022. As such, the below-inflation nominal increases for the households in Ontario were the result of stagnating social assistance benefits outweighing indexation of child benefits and tax credits and increases to the federal climate action incentive.

• Total welfare income increases above inflation: More than half of the example households in the provinces — 24 out of 44, or about 55 per cent — saw welfare incomes rise by more than the cost of living between 2022 and 2023:
  • All households in Alberta, British Columbia, New Brunswick, and Prince Edward Island;
  • All households except the couple with two children in Manitoba;
  • The unattached single with a disability in Ontario; and
  • The unattached single considered employable (MAN) and the couple with two children (MAN) in Quebec.
• The highest percentage increase was for the unattached single considered employable (MAN) in Quebec, at 26.1 per cent. The five households in Alberta and the unattached single considered employable in Manitoba followed with increases between 10 and 15 per cent. The other 17 increases ranged between 4.2 and 8.8 per cent. The reasons for these increases varied:
  • Above-inflation increases for households in Alberta were due to provincial one-time cost-of-living payments in 2023, paired with social assistance benefits that increased because of indexation.
  • In British Columbia, increases were due to higher social assistance shelter benefit amounts in 2023, and higher one-time cost-of-living payments in 2023 than in 2022.
  • In Manitoba, higher total welfare incomes came from the impact of a full year of higher Basic Necessities benefits introduced in November 2022 for the unattached single households, as well as increases to RentAssist amounts due to indexation.
  • In New Brunswick, increases were mainly due to higher social assistance benefits because of indexation, and because households became eligible for the federal climate action incentive.
  • For the unattached single with a disability in Ontario, increases came from receiving a full year of higher benefits introduced in 2022, and increases to those benefits in 2023 due to inflation indexing.
  • In Prince Edward Island, increases were due to the impact of a full year of higher social assistance benefits introduced in 2022, higher one-time cost-of-living payments in 2023 than in 2022, and because households became eligible for the federal climate action incentive.
  • In Quebec, the above-inflation increases for both households receiving MAN was because they accessed MAN benefits for the full year in 2023, as they only accessed them for the last six months of 2022.

Breakdown of changes

Changes to provincial social assistance benefits

• Eight provinces increased basic or additional social assistance benefit amounts in 2023:
  • Alberta increased basic and additional social assistance amounts with inflation for all households as of January 1.
  • In British Columbia, the Shelter Allowance increased by $125 per month for each of the household types as of July. The “Christmas Supplement” was renamed the “Winter Supplement” in August and the amount was increased by $25 for the unattached single households, $60 for the single parent with one child, and $70 for the couple with two children. Also in August, the School Start-Up Supplement increased from $100 to $120 for children aged five to 11, and from $175 to $210 for children aged 12 to 18.
  • In Manitoba, Rent Assist benefits increased in January due to a change in the indexation increase formula, and increased with inflation in July for all households. As well, Manitoba introduced the new Manitoba Supports for Persons with Disabilities (MSPD) program in January, which provides people who have “severe and prolonged” disabilities with higher benefits than the existing Medical Barrier to Full Employment (MBFE) category of the Employment and Income Assistance program. MSPD Monthly Income Support amounts increased with inflation in July.
    
    Source: Government of Manitoba. (n.d.). Manitoba Supports for People with Disabilities.
  • New Brunswick increased basic social assistance amounts with inflation for all households as of April.
  • Nova Scotia increased the annual School Supplies Supplement to $80 per child between the ages of 5 and 12 and to $160 per child between the ages of 13-18 as of August 2023.
  • In Ontario, basic social assistance amounts increased with inflation for the unattached single with a disability as of July, due to the indexation of ODSP benefits for all recipients.
  • In Quebec, basic program allowances increased with inflation as of January for the four households receiving the Aim for Employment and Social Solidarity programs: the unattached single considered employable (AIM), the unattached single with a disability, the single parent with one child, and the couple with two children (AIM). Manpower Training measure benefits, which are provided to the other two households, are not indexed to inflation.
  • In Saskatchewan, the three households receiving benefits from the Saskatchewan Income Support (SIS) program saw an increase to their basic social assistance benefits in May. The Adult Basic Benefit increased by $30 per month for the unattached single considered employable and the single parent with one child, and by $60 per month for the couple with two children. The Shelter Benefit increased by $30 per month for all three households. The Living Income Benefit provided by the Saskatchewan Assured Income for Disability (SAID) program, which the unattached single with a disability received, saw a $30 per month increase in May.

• Two provinces provided one-time cost-of-living support payments through additional social assistance benefit payments:
  • In Alberta, all households received the Alberta Affordability Payment, a monthly amount provided from January to June. In total, the unattached single households received $600, the single parent with one child received $1,200, and the couple with two children received $1,800.
  • In New Brunswick, all households received a one-time Emergency Food and Fuel Benefit between mid-January and early February. The unattached single households received $225 and the households with children received $450. The same benefit was provided in 2022 in the same amounts.
• Three provinces no longer provided one-time cost-of-living support payments through social assistance even though they provided them in 2022:
  • In Newfoundland and Labrador, households did not receive the One-Time Benefit, which was available in 2022 in the amount of $200 for the unattached single households and $400 for the households with children.
  • In Nova Scotia, households no longer received the two cost of living support payments that were available in 2022. The first was $150 per individual and the second was $250 per household.
  • In Prince Edward Island, households no longer received the One-Time Inflation Top-Up Payment, which had provided $150 per individual in each household in 2022.
• Only five provinces had at least some social assistance benefits indexed to inflation in 2023:
  • Social assistance benefits increased in line with inflation for all households in Alberta, New Brunswick, and Quebec. In Manitoba, the shelter component (RentAssist) of social assistance increased with inflation for all households, but only the unattached single with a disability receiving MSPD had their Monthly Income Support amounts increase with inflation. In Ontario, only the unattached single with a disability had their social assistance benefits increase with inflation, as indexing was applied to ODSP benefits (for all recipients) although not to Ontario Works benefits.

Changes to other provincial benefits

• Two provinces provided one-time cost-of-living supports outside of social assistance through tax credits, benefits, or enhancements in response to high inflation in 2023:
  • In British Columbia, the BC Affordability Credit, which was an enhancement to the January and April BC Climate Action Tax Credit payments, provided an additional $328 to the unattached single households, $656 to the single parent with one child, and $820 to the couple with two children; only half of these amounts were provided in 2022. British Columbia also provided the BC Family Benefit Temporary Enhancement to the households with children, which was $58.33 per child per month from January to March.
  • In Prince Edward Island, all households received a one-time inflationary support payment in January in the amount of $500 for the unattached single households and $1,000 for households with children. In 2022, one-time amounts of $150 for the unattached single households and $300 for households with children were provided.
• Four provinces no longer provided one-time cost-of-living support payments through tax credits, benefits, or enhancements in 2023 even though they provided them in 2022:
  • In Manitoba, households with children no longer received the Family Affordability Benefit, which provided $250 for the first child and $200 for the second child in 2022.
  • Newfoundland and Labrador no longer provided the One-Time Cost-of-Living Relief benefit in the amount of $500 per adult in all four households that was available in 2022.
  • Quebec no longer provided the two cost-of-living payments totaling $1,100 per adult, which were available to all households in 2022.
  • In Saskatchewan, all households no longer received the Saskatchewan Affordability Tax Credit, which had provided $500 per adult in 2022.
• Two provinces increased their refundable tax credits or benefit payments:
  • Newfoundland and Labrador increased the Newfoundland and Labrador Income Supplement in July. Households saw increases above the 2022 calendar year amount ranging from $17 for the unattached single considered employable to $67 for the couple with two children.
  • In Nova Scotia, the Nova Scotia Child Benefit increased in July from $106.25 to $127.08 per child per month.
• Nova Scotia and Prince Edward Island no longer provided payments that were provided in 2022 to assist with the impact of Hurricane Fiona. In Nova Scotia, this meant households no longer received the $150 payment. In Prince Edward Island, this meant households no longer received the Hurricane Fiona one-time relief payment that had provided $150 for each adult and dependant, nor did they receive the one-time payment of $250 through the Red Cross.
• Households in Prince Edward Island were no longer eligible for the one-time Carbon Rebate, which provided them with $140 in 2022. Note that this was offset by the federal climate action incentive (CAI) payment, which households in Prince Edward Island became newly eligible for in 2023.
• Automatic annual inflationary increases to provincial tax credits and benefits occurred in some, but not all, jurisdictions. Tax credits in three provinces are indexed to inflation: the Ontario Trillium Benefit, the Solidarity Tax Credit in Quebec, and the Saskatchewan Low-Income Tax Credit. Provincial child benefits in Alberta, Newfoundland and Labrador, Ontario, and Quebec are also indexed to inflation. Note that provincial child benefit rates are not indexed in British Columbia, but the income eligibility threshold is indexed. For more information, see the Indexation of benefits and credits section.

Changes to federal benefits

• Amounts from two federal government programs — the GST/HST credit and the Canada Child Benefit — were slightly higher in 2023 due to automatic annual inflationary increases. These increases take effect in July of each year.
• The federal government also provided the Grocery Rebate in July, which was a one-time cost-of-living support. The payment amount was equivalent to the two regular GST/HST credit (and credit supplement if applicable) payments received in the first half of 2023.
• Households received the federal government’s climate action incentive (CAI) payments in eight provinces. Households in Alberta, Saskatchewan, Manitoba, and Ontario have been receiving the CAI since 2019, and payment amounts increased in 2023 for all household types in these provinces. Households in New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island became eligible in July 2023. Payments are delivered quarterly in January, April, July, and October.

Adequacy of welfare incomes

Table 4CA shows how the 2023 total welfare incomes of each example household type in the provinces compared to the Market Basket Measure (MBM), which is Canada’s Official Poverty Line, and the Deep Income Poverty (MBM-DIP) threshold.

The MBM-DIP is equivalent to 75 per cent of the Official Poverty Line. It was included for the first time in Welfare in Canada, 2020 to identify which example households are living in deep poverty. As noted in a 2020 Institute for Research on Public Policy report, “Living in deep poverty means that individuals and families must use all of their income to meet basic necessities such as shelter and food, making it virtually impossible to address other needs or plan for their future.” (Source: Herd, D., Kim, Y., & Carrasco, C. (2020, September 15). Canada’s forgotten poor? Putting singles living in deep poverty on the policy radar. Institute for Research on Public Policy.)

To demonstrate the range in the adequacy of total welfare incomes across Canada’s provinces, Table 4CA shows the provinces with the highest and lowest welfare incomes relative to the two poverty thresholds. The total welfare income and both poverty thresholds in the table are for the largest city in each province.

Please note that neither the MBM nor the MBM-DIP accounts for the higher cost of living faced by people with disabilities and that these additional costs are not reflected in our analysis.

Table 4CA: Highest and lowest adequacy of example household total welfare incomes among the provinces in 2023

Overview

The welfare incomes of 43 out of the 44 example households receiving social assistance in the provinces were below Canada’s Official Poverty Line — that is, 98 per cent of households were living in poverty in 2023. The only exception was in Quebec, where the welfare income of the unattached single considered employable (MAN) was 109 per cent of the poverty threshold.

In addition, 35 of the 44 example households— or 80 per cent— were living in deep poverty in 2023. These households had welfare incomes that were between 45 and 93 per cent of the MBM-DIP.

Between 2022 and 2023, the welfare income of one household increased above the poverty line: the unattached single considered employable (MAN) in Quebec. Also, the welfare income of one household increased above the MBM-DIP threshold: the unattached single with a disability in Prince Edward Island.

Adequacy by household

Unattached single considered employable

Figure 1CA shows the relationship between the total welfare incomes of the example unattached single considered employable households in the provinces and both the Official Poverty Line (MBM) and the Deep Income Poverty threshold (MBM-DIP).

Figure 1CA: Adequacy of total welfare incomes for example unattached singles considered employable in each province, 2023

Ten of 11 unattached single considered employable households in the provinces had incomes below the MBM and as such were living in poverty in 2023. The only exception was the unattached single considered employable receiving the Manpower Training measure in Quebec, who had a welfare income that was 9 per cent above the poverty line.

Furthermore, all ten of these households had incomes below the MBM-DIP and were therefore not only living in poverty but in deep poverty. Among these households, the two that came closest to the Deep Income Poverty threshold were the household in Prince Edward Island, at 92 per cent, and the household in Quebec receiving the Aim for Employment program, at 80 per cent.

The welfare incomes of the remaining eight households were below 50 per cent of the Poverty Line; the lowest were in Ontario at 36 per cent, in New Brunswick at 34 per cent, and Nova Scotia at 33 per cent.

Unattached single with a disability

Figure 2CA shows the total welfare incomes of the example unattached single with a disability households in the provinces relative to both the Official Poverty Line (MBM) and the Deep Income Poverty Threshold (MBM-DIP).

Figure 2CA: Adequacy of total welfare incomes for example unattached singles with a disability in the provinces, 2023

In 2023, all 11 of the example unattached single with a disability households were living in poverty, and eight of the 11 were living in deep poverty.

The household in Alberta receiving AISH had the highest income relative to the MBM at 81 per cent, followed by the household in Newfoundland and Labrador at 79 per cent, and the household in Prince Edward Island at 76 per cent. These three households were the only ones with welfare incomes above the MBM-DIP.

The example unattached single with a disability households with the least adequate welfare incomes were the Alberta household receiving BFE at 44 per cent of the Poverty Line, followed by Nova Scotia at 45 per cent, and New Brunswick at 46 per cent.

Single parent with one child

Figure 3CA shows the total welfare incomes of all the example single parent with one child households in the provinces relative to both the Official Poverty Line (MBM) and the Deep Income Poverty Threshold (MBM-DIP).

Figure 3CA: Adequacy of total welfare incomes for example single parents with one child in the provinces, 2023

All ten example single parent with one child households in the provinces were living in poverty in 2023, and eight were also living in deep poverty.

The household living in Prince Edward Island had the most adequate welfare income, at 86 per cent of the MBM. The household living in Nova Scotia had the least adequate welfare income, at 57 per cent of the Poverty Line and 75 of the Deep Income Poverty threshold, followed closely by the household in Ontario, at 59 per cent of the Poverty Line and 78 per cent of the Deep Income Poverty threshold.

In only two of the ten provinces — Prince Edward Island and Quebec — the welfare incomes of the example single parent with one child households were above their respective Deep Income Poverty thresholds.

Couple with two children

Figure 4CA shows the total welfare incomes of all example couple with two children households in the provinces relative to both the Official Poverty Line (MBM) and the Deep Income Poverty threshold (MBM-DIP).

Figure 4CA: Adequacy of total welfare incomes for example couples with two children in the provinces, 2023

All 11 example couple with two children households in the provinces lived in poverty in 2023, and eight of those lived in deep poverty.

The household in Quebec receiving MAN had the welfare income that was closest to the poverty line, at 99 per cent. The other two households with incomes below the MBM but above the MBM-DIP were the household in Prince Edward Island at 96 per cent, and the household in Quebec receiving AIM at 92 per cent.

The households living in New Brunswick and Ontario had the least adequate welfare incomes at 60 per cent of the poverty line.

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Territories

Total welfare incomes

Table 5CA shows the maximum total welfare incomes that the example households in each territory would have received in 2023. As mentioned earlier, although we calculated the incomes in the territories using the same methodology that we used for the provinces, the provinces and territories are not directly comparable due to significant differences in the cost of living and the nature of income security programs in the North.

Table 5CA: Total welfare incomes for all example households in each territory, 2023

Welfare incomes in the Northwest Territories and the Yukon were generally higher than those in the provinces, reflecting the higher cost of living in the territories. However, welfare incomes in Nunavut were considerably lower than in the other two territories; this is because many households who receive social assistance in Nunavut also live in public housing where rent and other housing costs are highly subsidized. Note: See “Components of welfare incomes” and “Changes to welfare incomes” in the Nunavut section of this report for further information.

The highest total welfare incomes for the example unattached single considered employable and unattached single with a disability households were in the Northwest Territories at $27,600 and $33,939, respectively. The highest welfare incomes for the example single parent with one child and couple with two children households were in the Yukon at $41,386 and $61,391, respectively. As noted above, Nunavut had the lowest total welfare incomes for all household types, which is in part because they are assumed to be living in subsidized housing instead of receiving full housing benefits.

Cost-of-living payments

Additional one-time financial supports related to the higher cost of living resulting from high inflation were made available to all households in the territories in 2023, as shown in Table 6CA. The federal government provided one benefit that was available to all example household types in every jurisdiction. In addition, one of the three territories provided cost-of-living payments through social assistance benefits.

The 2020 and 2021 Welfare in Canada reports included COVID-19 pandemic-related payments; however, no such payments were made in 2023. Also note that cost of living-related payments were also made in 2022, but they were different than the ones provided in 2023.

The Methodology section outlines the methodology used to determine which benefits were included in our calculations and how we accounted for benefit changes related to the higher cost of living in 2023. Note that cost-of-living payment amounts in Table 6CA are included in and not in addition to the amounts in the “Total welfare incomes in 2023” section above.

Table 6CA: Cost-of-living payments for all example households in each territory, 2023

All households in the territories received cost-of-living payments from the federal government in the form of a one-time Grocery Rebate, which was paid in July and was equivalent to the two regular GST/HST credit payments received in the first half of 2023. These payments amounted to $153 for the unattached single households, $386.50 for the single parent with one child households, and $467 for the couple with two children households.

The one-time Grocery Rebate included an additional credit supplement amount for those who qualified. Five of the six unattached single households qualified for this additional amount, which was up to $80.50. Note that the example single parent with one child households automatically received the maximum supplement, which is counted in the $386.50 mentioned above.

In addition, one territory — the Yukon — provided additional cost-of-living payments that were consistent with our methodology and as such were included in our analysis. These payments included an additional $900 to both unattached single households, $1,800 for the single parent with one child, and $3,600 for the couple with two children.

Changes in total welfare incomes: Territories

Table 7CA compares the 2022 and 2023 total welfare incomes of households in each territory without adjusting for inflation. The cost of living increased by about 3.9 per cent in 2023 nationally.  As such, households whose total welfare incomes increased by less than 3.9 per cent would have been worse off in 2023 than in the previous year.

Although the Consumer Price Index (CPI) measure of inflation reflects changes in consumption patterns and remains the most robust indicator of changes to living costs, it is important to recognize that high inflation in 2023 and the increased cost of living may have impacted the households in very different ways depending on their circumstances. Note that the national CPI is used instead of regional CPIs.

Table 7CA: Change in total welfare incomes between 2022 and 2023 for all example households in each territory, in current dollars

* The national rate of inflation between 2022 and 2023 was 3.9 per cent, as discussed earlier.

Trends in changes between 2022 and 2023

• Total welfare income decreases: None of the households in the territories saw their total incomes decrease in 2023.
• Total welfare income increases below inflation: None of the households in the territories saw their total incomes increase below the rate of inflation in 2023.
• Total welfare income increases above inflation: All 12 households in the territories saw their total incomes increase above 3.9 per cent between 2022 and 2023.

The highest percentage increase was for the unattached single considered employable in Nunavut, at 23.5 per cent, followed by the unattached single with a disability and the couple with two children in Nunavut, at 17.8 per cent. Four other households saw total income increases at or above 10 per cent. The five other households saw increases between 5.6 and 9.6 per cent.

The increases in Nunavut were primarily due to a significant increase to the Basic Allowance, the introduction of a new Nunavut Carbon Credit, and a small increase to the amount paid for utilities.

The increases in the Yukon are due to the territory’s regular indexation of social assistance benefit amounts, combined with an increase in the monthly Yukon Child Benefit amount for households with children and new one-time cost-of-living payments in 2023, which were higher than those paid in 2022.

The increases in the Northwest Territories were due to an increase in the average cost of utilities in 2023.

Breakdown of changes

Changes to territorial social assistance benefits

• Social assistance benefits increased in all three territories in 2023:
  • In the Northwest Territories, the value of basic benefits remained the same in 2023 except for the Utilities Benefit, which increased because of a higher average in the real cost of water and electricity paid by social assistance recipients.
  • In Nunavut, monthly Basic Allowance amounts increased significantly in 2023, by 18% for the single parent with one child and by 34% for all three other household types. Also, the amount for utilities increased as it is based on the average cost of electricity paid by social assistance recipients in the territory.
  • The Yukon increased basic and additional social assistance amounts with inflation for all households as of November 1.
• The Yukon was the only territory to introduce a cost-of-living payment in 2023. The Inflation Relief payment provided $100 per person per month from April to December. This totalled $900 for both unattached single households, $1,800 for the single parent with one child, and $3,600 for the couple with two children. However, households in the Yukon no longer received the one-time inflation support payment that was available in 2022, which provided $150 per individual in a household including dependants.

Changes to other territorial benefits

• Nunavut introduced the Nunavut Carbon Credit on July 1. All households in the province were eligible, and the credit provided $77 per individual per quarter.
• As of July 1, the Yukon indexed the Yukon Child Benefit to inflation. No other territorial tax credits and benefits included in our calculations were indexed to inflation in 2023. For more information about indexed benefits, see the Indexation of benefits and credits section.

Changes to federal benefits

• Amounts from the two federal government programs — the GST/HST credit and the Canada Child Benefit — were slightly higher in 2023 due to automatic annual inflationary increases. For more information about indexed benefits, see the Indexation of benefits and credits section.
• As in the provinces, households in all three territories received the Grocery Rebate in July 2023 from the federal government, which was a one-time cost-of-living support. The payment amount was equivalent to the two regular GST/HST credit (and credit supplement if applicable) payments received in the first half of 2023.

Adequacy of welfare incomes

In November 2022, Statistics Canada released the finalized Northern Market Basket Measure (MBM-N) thresholds for the Northwest Territories and the Yukon. The thresholds for Nunavut were released in November 2023. Since then, it has become possible to assess the adequacy of welfare incomes in the territories using the Official Poverty Line (MBM-N), and the Northern Deep Income Poverty (MBM-N-DIP) threshold, which is 75 per cent of the MBM-N. The total welfare income and both poverty thresholds in this section are for the largest city in each territory.

As explained in the Methodology section, the MBM-N thresholds we use for Nunavut have been adjusted to include the subsidized rental unit type rather than the non-subsidized rental unit type that is generally used in MBM and MBM-N thresholds, given that our example households are assumed to be living in social housing. Because even the adjusted thresholds are not fully representative of the actual shelter benefits received by our example households, which are very low given that social housing shelter costs are heavily subsidized, it is likely that our calculations overestimate the depth of poverty of the example households in Nunavut.

Note that neither the MBM-N nor the MBM-N-DIP accounts for the higher cost of living faced by people with disabilities and that these additional costs are not reflected in our analysis.

Overview

Of the 12 households in the territories, none had a total welfare income that was above the MBM-N in 2023. Seven of the 12 households had incomes that were below the MBM-N but above the MBM-N-DIP. Five households had incomes that were below the MBM-N-DIP. This means that all of the households were living in poverty in 2023, and five were living in deep poverty.

The welfare income of one household increased above the MBM-N-DIP in 2023: the couple with two children in the Northwest Territories.

Adequacy by household

Unattached single households

Figure 5CA shows the total welfare incomes of all the example unattached single considered employable and unattached single with a disability households in the territories relative to both the Official Poverty Line (MBM-N) and the Deep Income Poverty Threshold (MBM-N-DIP).

Figure 5CA: Adequacy of total welfare incomes for example unattached single households in the territories, 2023

All six unattached single households in the territories lived in poverty in 2023 and, of those, three lived in deep poverty.

The household with the highest income relative to the MBM-N was the unattached single with a disability living in the Northwest Territories at 97 per cent. The two households with the least adequate welfare incomes were both in Nunavut, with the unattached single considered employable at 27 per cent of the MBM-N and 36 per cent of the MBM-N-DIP, and the unattached single with a disability at 34 per cent of the MBM-N and 45 per cent of the MBM-N-DIP.

Households with children

Figure 6CA shows the total welfare incomes of all example single parent with one child and couple with two children households in the territories relative to both the Official Poverty Line (MBM-N) and the Deep Income Poverty Threshold (MBM-N-DIP).

Figure 6CA: Adequacy of total welfare incomes for example single parents with one child and couples with two children in the territories, 2023

All six households with children in the territories lived in poverty in 2023 and, of those, three lived in deep poverty.

The couple with two children in the Yukon had the most adequate welfare income at 99 per cent of the MBM-N, followed by the single parent with one child in the Yukon at 94 per cent of the MBM-N. As with the single households, Nunavut had the least adequate welfare incomes for households with children, with the single with one parent at 35 per cent of the MBM-N and 46 per cent of the MBM-N-DIP, and the couple with two children at 41 per cent of the MBM-N and 55 per cent of the MBM-N-DIP.

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Access to data

All Welfare in Canada, 2023 data is available for download, including:

1. Components of welfare income for all households, with a breakdown of cost-of-living payments.
2. Welfare incomes in 2023 constant dollars over time for all households.
3. Welfare incomes in current dollars over time for all households.
4. Adequacy of welfare incomes: a comparison of each household’s welfare income with all four poverty and low-income thresholds in the provinces, and with the two poverty thresholds in the territories.
5. Adequacy over time: each household’s welfare income relative to the Official Poverty Line (MBM or MBM-N) in the provinces from 2002 to 2023, and for each household in the territories from 2018 to 2023.