In this section you will find:
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.
In 2023, all example households in Newfoundland and Labrador received additional payments from the federal government related to the increased cost of living due to high inflation. These payments are included where applicable in the table below.
Table 1NL shows the value of the welfare income components of the four example household types in Newfoundland and Labrador in 2023. 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, 2023
Total annual welfare incomes in 2023 ranged from $12,241 for the unattached single considered employable to $33,357 for the couple with two children. The income of the unattached single with a disability was $20,975 and that of the single parent with one child was $25,702.
Basic social assistance: Monthly Basic Benefit amounts remained unchanged in 2023. Shelter Benefit and Supplemental Shelter Benefit amounts were combined as an administrative adjustment starting in July 2023 to help streamline the program. Although this applied to the unattached single considered employable, the single parent with one child, and the couple with two children, it did not apply to the unattached single with a disability because our assumptions mean they were not eligible for the Supplemental Shelter Benefit amount; instead, they were eligible for the rent and utilities top-ups provided by the Ministry of Health and Community Services. Note that this administrative change resulted in a restructuring of, rather than an increase to, these amounts. 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 2023.
Additional social assistance: All four households received additional benefits. The unattached single considered employable, the single parent with one child, and the couple with two children received $900 ($150 per month from January to June) through the Supplemental Shelter Benefit which, as noted, was combined with the regular Shelter Benefit as of July. This amount remained unchanged in 2023.
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 receiving supportive services. This amount remained unchanged in 2023. In addition, the unattached single with a disability received top-ups from HCS of $6,600 for rent and $2,400 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.
The One-time Benefit of $200 per single-person household and $400 per family, paid in April 2022 to assist with the increased cost of living due to high inflation, was not available in 2023.
Federal child benefits: Both households with children received the Canada Child Benefit (CCB), which increased with inflation in July 2023 from $583.08 to $619.75 per month for a child under six years of age and from $491.91 to $522.91 per month for a child aged six to 17.
Provincial child benefits: Both households with$9 children received the Newfoundland and Labrador Child Benefit, which increased with inflation in July 2023. The single parent with one child received $35.17 per month for the first six months of the year and $37.25 per month for the last six months. The couple with two children received $72.50 per month for the first six months, and $76.75 per month for the last six months.
Federal tax credits/benefits: All four households received the GST/HST credit, which increased in July 2023 with inflation. The unattached single considered employable and the unattached single with a disability received $315.50 in basic GST/HST credit, while the single parent with one child received $631 and the couple with two children received $963.
Three households also received the GST/HST credit supplement. The unattached single received $14.87, the unattached single with a disability received $155.03, and the single parent with one child received the maximum amount of $166.
All households also received the Grocery Rebate, which was an additional one-time GST credit payment related to the increased cost of living due to high inflation, paid in July 2023. The unattached single considered employable received $162.29, the unattached single with a disability received $226.97, the single parent with one child received $386.50, and the couple with two children received $467.
Starting in July 2023, residents of Newfoundland and Labrador became eligible for the federal climate action incentive (CAI). Both unattached single households received $328, the single parent with one child received $492, and the couple with two children received $656.
Provincial tax credits/benefits: All four households received the Newfoundland and Labrador Income Supplement, which increased in July 2023. The unattached single considered employable received $121 in the first half of the year and $127 in the second half, the unattached single with a disability received $289.59 in the first half and $339.59 in the second half, the single parent with one child received $224 in the first half and $266.81 in the second half, and the couple with two children received $401.68 in the first half and $432.24 in the second half.
The One-Time Cost-of-Living Relief payment paid in October 2022 was not available in 2023.
Cost-of-living payments
As mentioned earlier, all four households received payments from the federal government related to the higher cost of living resulting from high inflation in 2023. The federal Grocery Rebate was paid in July 2023 and was equivalent to the two regular GST credit (and credit supplement if applicable) payments received in the first half of 2023. These amounts are included in, and are not in addition to, the benefits described in the Components section above.
Note that although the increase to the Newfoundland and Labrador Income Supplement in 2023 has been included in announcements regarding inflation-related cost-of-living measures, it is not included in Table 2NL because it is an ongoing increase to the supplement and not a one-time or time-limited payment.
Table 2NL: Cost-of-living payments for all example households in Newfoundland and Labrador, 2023
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 2023 constant dollars, not current dollars, calculated using the Canada 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 result in a slightly different trendline.
Figure 1NL: Welfare incomes for example unattached single households in Newfoundland and Labrador 1986–2023, in 2023 constant dollars
The total welfare income of the unattached single considered employable was relatively stable between 1986 and 1995. The large decline in the late 1990s was the result of a policy change that gave recipients very low room and board allowances instead of market rent shelter benefits. After nearly a decade that included 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 than in the 1990s. Their income was more stable thereafter and until the end of the time series, with an initial decline followed by an increasing trend, a plateau from 2012 to 2015, and a generally declining trend through to 2023.
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 comparatively high levels of income 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 2023, the total welfare income of the unattached single considered employable was $12,241, which is a 4 per cent decrease compared to 2022 and a 50 per cent increase since the start of the time series in constant 2023 dollars. The total welfare income of the unattached single with a disability was $20,975, which is a 1 per cent decrease compared to 2022 and a 32 per cent increase since the start of the time series in constant 2023 dollars.
Figure 2NL: Welfare incomes for example households with children in Newfoundland and Labrador 1986–2023, in 2023 constant dollars
The total welfare incomes of the two households with children followed a similar trajectory, hovering at about the same level from the start of the time series until 2005, then following 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 2023, the welfare income of the single parent with one child was $25,702, which is a 2 per cent decline compared to 2022 and a 12 per cent increase since the start of the time series in constant 2023 dollars. The welfare income of the couple with two children was $33,357, which is a 0.2 per cent decrease compared to 2022 and a 16 per cent increase since the start of the time series in constant 2023 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 2023 are estimates based on increasing the 2022 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 2023, 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 2023, and three of the four were living in deep poverty.
Figures 3NL and 4NL compare 2023 welfare incomes for the four example household types to the 2023 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, 2023
The unattached single considered employable had the lowest income relative to the poverty thresholds. Their income was $7,648 below the Deep Income Poverty threshold and $14,278 below the Poverty Line. This means their income was 62 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 $1,086 above the Deep Income Poverty threshold, but $5,544 below the Poverty Line. This means their income was 105 per cent of the MBM-DIP but 79 per cent of the MBM.
Note that the poverty experienced by people with disabilities is underrepresented because neither the MBM nor the MBM-DIP account 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, 2023
The single parent with one child had a welfare income that was $2,425 below the Deep Income Poverty threshold, and $11,801 below the Poverty Line. This means their income was 91 per cent of the MBM-DIP and 69 per cent of the MBM
The welfare income of the couple with two children was $6,420 below the Deep Income Poverty threshold and $19,679 below the Poverty Line. This means their income was 84 per cent of the MBM-DIP and 63 per cent of the MBM.
Low-income threshold comparisons
The welfare incomes of the example households were also below, and in some instances far below, the low-income 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 41 per cent of the LIM and 57 per cent of the LICO. The income of the unattached single with a disability was highest relative to the LIM at 70 per cent; their income was also 98 per cent of the LICO.
The income of the single parent with one child was highest relative to the LICO, at 99 per cent; their income was also 61 per cent of the LIM. The income of the couple with two children was 56 per cent of the LIM and 82 per cent of the LICO.
The LIM and LICO thresholds used are for after-tax income, as noted above.
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), 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 22 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 22 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 MBM thresholds vary by province and community size. The MBM thresholds used here are for St. John’s. More information is in the methodology section.
Figure 5NL: Welfare incomes as a percentage of the MBM for example unattached single households in Newfoundland and Labrador, 2002–2023
The welfare income of the unattached single considered employable was lowest of all households relative to the Poverty Line across the time series. Their income 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 2023 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 2023 than it was in 2002, which represents a significant deepening of their poverty over the last 22 years. As well, their income was below the Deep Income Poverty threshold across the entire time series, meaning that they would have consistently lived in deep poverty for the last 22 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 2023 at 79 per cent of the Poverty Line.
Overall, the welfare income of the unattached single with a disability was 5 percentage points higher in 2023 than in 2002, which represents a modest improvement in this household’s depth of poverty over the past 22 years. However, their income was below the Deep Income Poverty threshold for the majority of the time series, only getting slightly above the threshold after 2020. This means that this household 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, 2002–2023
The single parent with one child fared best of all the example households relative to the Poverty Line. Their income 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. The income of this household ended the time series in 2023 at 69 per cent of the Poverty Line.
Overall, the welfare income of the single parent with one child was 18 percentage points lower in 2023 than it was in 2002 and fell under the Deep Income Poverty threshold in the later years of the time series. This means their poverty significantly deepened over the last 22 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 — their income improved to 76 per cent in 2017, falling thereafter and ending the time series in 2023 at 63 per cent.
Overall, the welfare income of the couple with two children was 8 percentage points lower in 2023 than in 2002, which represents a deepening of their poverty across the time series. As well, given that their income was only above the Deep Income Poverty threshold for one year, this household would have spent most of the last 22 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, with a breakdown of cost-of-living payments.
- Welfare incomes in 2023 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 2002–2023.