In this section you will find:
Components of welfare incomes
In the Northwest Territories, households that qualify for basic social assistance payments also qualify for:
- Recurring additional social assistance payments from the territory,
- Federal and territorial child benefits for households with children, and
- Federal and territorial 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 2024, all example households in the Northwest Territories received additional payments from the territorial government related to the increased cost of food due to inflation. These payments are included in the table below.
The Northwest Territories created a new program in 2024 for seniors and people who qualify as a person with a disability according to specific criteria. The Income Assistance for Seniors and Persons with Disabilities (IASPD) program came into force in July 2024. At the same time, additional supports for those with disabilities were removed from the Income Assistance (IA) program. Our example unattached single with a disability household is therefore assumed to be receiving benefits from IA between January and June and from IASPD between July and December. We are not including calculations for an unattached single with a disability who may not qualify for IASPD because they would have received the same total welfare income as an unattached single considered employable in the IA program.
Table 1NT shows the value of the welfare income components of the four example household types in the Northwest Territories in 2024. All four households are assumed to be living in Yellowknife, receiving territorial 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 1NT: Components of welfare incomes for all example households in the Northwest Territories, 2024
Total annual welfare incomes in 2024 ranged from $29,281 for the unattached single considered employable to $56,749 for the couple with two children. The income of the unattached single with a disability was $34,200 and that of the single parent with one child was $40,608.
Basic social assistance: With the introduction of Income Assistance for Seniors and Persons with Disabilities (IASPD) and changes to Income Assistance (IA) in July 2024, the Food and Clothing allowances were collapsed into one Basic Benefit Allowance. As such, the example households received the Food and Clothing allowances for the first six months of the year, and the new Basic Benefit Allowance for the second six months.
Food and Clothing allowance amounts were unchanged in 2024. The Food Allowance provided $343 per month to households with one adult and $480 per month to those with two adults. The Clothing Allowance provided $79 per month to one-adult households and $110 to two-adult households.
The new IA Basic Benefit Allowance provided $573 per month to the unattached single considered employable and the single parent with one child, and $810 per month to the couple with two children. These figures represent an increase of 36% compared to 2023 for the unattached single considered employable and the single parent with one child, and 37% for the couple with two children.
The new IASPD Basic Benefit Allowance provided $866 to the unattached single with a disability who met the eligibility criteria. Although this figure represents a significant increase over the previous IA Food and Clothing allowances, it actually only corresponds to the total of those allowances and the two additional social assistance benefits that this household received from IA in the first six months of the year (see “Additional social assistance” below).
In the Northwest Territories, the benefits paid for the costs of shelter, fuel, and utilities are based on the actual costs of each recipient household. The Accommodation Allowance is included in our calculations because we assume our example households live in market rental housing (see the Methodology section). This amount is a maximum based on average market rents that are calculated annually by the Canada Mortgage and Housing Corporation. These amounts increased in 2024 for all four households. Note that the Accommodation Allowance is only provided to those households who provide proof that their name is on the waitlist for low-cost/public housing. The fuel and utilities components are an average of the amount paid in 2024 to program recipients in each of our household types, and are provided by the Department of Education, Culture and Employment. These average amounts increased in 2024 for all households except the single parent with one child, given that there were fewer recipients of this household type; these averages fluctuate based on the real costs of utilities provided to recipients from year to year.
All four households continued to receive the Furnishing Allowance in 2024 due to a 2020 policy decision to enroll all clients in the “Wellness: Self-Care” Productive Choice activity option in response to the COVID-19 pandemic. The unattached singles received $175, the single parent with one child received $323, and the couple with two children received $567. These amounts were unchanged in 2024 and delivered before the program changes that started in July; at that point, the benefit was discontinued in the IA program along with Productive Choice activity requirements for eligibility.
All households also received a One-Time Additional Benefit to assist with the higher costs of food in the North. The benefit amount was dependent on each household’s region of residence; for our example households, who are assumed to be living in Yellowknife, the benefit amount was $343; it was paid in March.
Additional social assistance: Only the unattached single with a disability received additional social assistance benefits, in the form of both the Disabled Allowance of $405 per month and the Incidental Allowance for Persons with Disabilities of $39 per month. These amounts also remained unchanged in 2024 and were delivered for the first six months of the year, when the household was receiving benefits from IA. These amounts were essentially moved into the IASPD Basic Benefit Allowance amount starting in July. Note that these allowances were discontinued in IA with the program changes that started in July.
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. The couple with two children received the full $1,045.83 per month for the January to June period but a reduced monthly amount of $1,089.70 for the July to December period based on prior years’ income.
Territorial child benefits: Both households with children received the Northwest Territories Child Benefit. The single parent with one child received the maximum amount of $67.91 per month (i.e., the amount provided for one child under the age of six) for the January through June period, but a reduced monthly amount of $67.20 for the July to December period based on prior years’ income. The couple with two children received a reduced monthly amount in both six-month periods of $90.81 from January to June and $84.17 from July to December, based on prior years’ income. The maximum amounts for this benefit remained unchanged in 2024.
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 households and the single parent with one child each 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.
Territorial tax credits/benefits: All four households received the Northwest Territories Cost-of-Living Offset, which helps offset the cost of the NWT carbon tax. Households received four quarterly payments in 2024: two $110.25 payments ($220.50 total) per adult and two $123.25 payments ($246.50 total) per child under 18 for the 2023–2024 benefit year, and two $110.25 payments ($220.50 total) per adult and two $126.25 payments ($252.50 total) per child under 18 for the 2024–2025 benefit year. These amounts were specific to Yellowknife as these payments were calculated based on area of residence.
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. In 2024, the Northwest Territories was one of only four provincial or territorial jurisdictions that continued to provide these payments. Federal inflation-related cost-of-living payments were discontinued in 2024.
As noted above, all four households received a One-Time Additional Benefit in the amount of $343 paid in March. Households living in other areas of the territory received different amounts, as the benefit amount was dependent on a household’s region of residence.
See the Overview section for more information on cost-of-living payments.
Changes to welfare incomes
Figures 1NT and 2NT show how the total welfare incomes for each of the four example household types in the Northwest Territories 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 the Northwest Territories would have resulted in a slightly different trendline.
Figure 1NT: Welfare incomes for example unattached single households in the Northwest Territories 1993–2024, in 2024 constant dollars
The welfare incomes of the unattached single considered employable and the unattached single with a disability followed a nearly identical pattern since the time series began in 1993. A substantial decline in 1997 was followed by a gradual increase until 2008 and a slight decrease thereafter until 2013. Large fluctuations followed until 2018, which were the result of the way that utility and shelter costs were calculated for the purposes of this report rather than changes to benefit program policy. Increases through 2020 resulted in the high point for both households’ incomes. Decreases through 2022 were followed by slight increases in both 2023 and 2024.
Increases between 2018 and 2020 were due to three main changes: a significant increase in utilities costs in the Northwest Territories and a corresponding increase in the average amounts paid for those costs; a 2019 increase in maximum shelter amounts; and the implementation of the NWT Cost-of-Living Offset and COVID-19 pandemic-related payments from both territorial and federal sources. The decline in 2021 was primarily due to the loss of most of those payments, and, in the case of the unattached single with a disability, a decline in average monthly utilities amounts. The decline in 2022 was largely due to a much lower average utilities amount, as well as to the impact of high inflation on benefit rates. The increase in 2023 was largely due to a rebound in average monthly utilities amounts for each of the households. In 2024, the increase for the unattached single considered employable was due to a combination of factors, including increased Basic Benefit Allowance and average utilities amounts and the One-Time Additional Benefit. The slight decrease for the unattached single with a disability was primarily due to the loss of the federal Grocery Rebate coupled with a decrease in the annual average utilities amount.
In 2024, the welfare income of the unattached single considered employable was $29,281, which is a 4 per cent increase compared to 2023, and an increase of 34 per cent since the start of the time series, in constant 2024 dollars. The welfare income of the unattached single with a disability was $34,200, which is a 2 per cent decrease compared to 2023 but an increase of 39 per cent since the start of the time series, in constant 2024 dollars.
Figure 2NT: Welfare incomes for example households with children in the Northwest Territories 1993–2024, in 2024 constant dollars
After a decline in their total welfare incomes through the 1990s, the households with children saw increases in 1999, followed by a lengthy period of relative stability with some fluctuations (especially for the single parent with one child) until 2013–2014. The drop in 2007 was primarily the result of a significant decline in the level of basic social assistance benefits in that year. After 2014, a generally increasing trend lasted until 2020, which was the high point for both households across the time series. Two years of declines through 2022 were followed by increases in 2023. The trendlines diverged in 2024, with the single parent with one child experiencing a decrease and the couple with two children experiencing an increase.
Increases after 2015 were largely due to changes in federal child benefits, while those in 2020 resulted from the addition of COVID-19 pandemic-related payments from both territorial and federal sources. Declines in 2021 primarily resulted from the loss of COVID-19 pandemic-related supports, as well as the impact of inflation on unchanged social assistance benefit amounts. The steeper drop in 2022 resulted from the loss of pandemic-related supports available to the single parent in 2021, a significant decline in average utilities amounts, and the impact of high inflation. The increases in 2023 were largely the result of a rebound in average monthly utilities amounts for both households. In 2024, the slight decrease for the single parent with one child was due to the significant decline in average monthly utilities amounts for this household, which was due to the lower number of program recipients in this example household type. The increase for the couple with two children was due to a combination of factors, including increased Basic Benefit Allowance and average utilities amounts and the One-Time Additional Benefit.
In 2024, the single parent with one child had a welfare income of $40,608, which is a 2.1 per cent decrease compared to 2023 but a 39 per cent increase since the start of the time series, in constant 2024 dollars. The couple with two children had a welfare income of $56,749, which is a 5 per cent increase compared to 2023, and a 19 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. The Market Basket Measure (MBM) was adopted as Canada’s Official Poverty Line in 2018; however, to recognize the specificity of various aspects of life in the North, the Government of Canada subsequently designated the Northern Market Basket Measure (MBM-N) as the official Poverty Line for the territories.
We use two measures of poverty to assess the adequacy of total welfare incomes in the Northwest Territories:
- The Northern Market Basket Measure (MBM-N), Canada’s Official Poverty Line for the territories, 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-N-DIP) threshold identifies households in the territories whose disposable income is less than 75 per cent of the MBM-N.
Note that MBM-N thresholds vary by territory and community size. As such, we use the thresholds for the territory’s largest city, Yellowknife, in the analysis below.
Note also that although we use the Low Income Measure (LIM) and the Low Income Cut-Off (LICO) for adequacy comparisons in the provinces, they do not appropriately reflect life in the North and, as such, such Statistics Canada does not produce LIM or LICO thresholds for the territories. Thus, as in past reports, we do not provide adequacy comparisons for households in the territories using these measures.
As well, note that none of the poverty 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 the Northwest Territories with the two poverty thresholds is available for download.
Poverty threshold comparisons
The welfare incomes of all four example household types in the Northwest Territories were below Canada’s Official Poverty Line (MBM-N) in 2024, meaning that all four households were living in poverty. However, the welfare incomes of all four households were above the Deep Income Poverty threshold (MBM-N-DIP), which means that none of the households was living in deep poverty in 2024.
Figures 3NT and 4NT compare 2024 welfare incomes for the four example household types to the 2024 MBM-N and MBM-N-DIP thresholds for Yellowknife.
Figure 3NT: Welfare incomes and poverty thresholds for example unattached single households in the Northwest Territories, 2024
The welfare income of the unattached single considered employable was $1,968 above the Deep Income Poverty threshold but $7,136 below the Poverty Line. This means their income was 107 per cent of the MBM-N-DIP but only 80 per cent of the MBM-N.
The welfare income of the unattached single with a disability was most adequate relative to the poverty thresholds among the four households. Their welfare income was $6,887 above the Deep Income Poverty threshold and $2,217 below the Poverty Line. This means their income was 125 per cent of the MBM-N-DIP and 94 per cent of the MBM-N.
Note that the poverty experienced by people with disabilities is underrepresented because neither the MBM-N nor the MBM-N-DIP accounts for the additional costs associated with disability. See the Methodology section for more information.
Figure 4NT: Welfare incomes and poverty thresholds for example households with children in the Northwest Territories, 2024
The welfare income of the single parent with one child was $1,983 above the Deep Income Poverty threshold but $10,893 below the Poverty Line. This means their income was 105 per cent of the MBM-N-DIP but 79 per cent of the MBM-N.
The couple with two children had the least adequate income relative to the poverty thresholds. Their welfare income was $2,124 above the Deep Income Poverty threshold and $16,084 below the Poverty Line. This means their income was 104 per cent of the MBM-N-DIP and 78 per cent of the MBM-N.
Changes to adequacy of welfare incomes
Figures 5NT and 6NT show the total welfare incomes of each of the four example household types in the Northwest Territories as a percentage of the MBM-N for Yellowknife, starting in 2018.
The black line at the top of the graphs (i.e., the 100 per cent threshold) represents the MBM-N, which is Canada’s Official Poverty Line for the North. This means that the graphs show the relationship between the four households’ total welfare incomes and the Poverty Line over the past seven years.
The grey line indicates the Deep Income Poverty threshold, which is 75 per cent of the MBM-N. The graphs therefore also show the relationship between total welfare incomes and deep poverty in each year over the past seven years.
The trendlines in these graphs demonstrate changes in the example households’ levels of poverty across the seven-year time series. A rise in the trendline indicates an improvement in their level of poverty while a decline indicates a deepening of their poverty.
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 5NT: Welfare incomes as a percentage of the MBM-N for example unattached single households in the Northwest Territories, 2018–2024
The income of the unattached single considered employable started the seven-year time series at 74 per cent of the Poverty Line in 2018, moving to a high point of 89 per cent of the Poverty Line in 2020, and declining to 78 per cent in 2022. A slight increase over the subsequent two years saw their income end the time series at 80 per cent in 2024.
Overall, the income of the unattached single considered employable increased by 6 percentage points relative to the Poverty Line across the time series. Although this is an improvement, households in these circumstances would still have been living below the Poverty Line across the entire seven-year period. It is notable, however, that households in these circumstances would have lived above the Deep Income Poverty threshold for six of the past seven years, which means that although they would have been living in poverty, they would not have been living in deep poverty for most of the time series.
The Income of the unattached single with a disability was most adequate relative to the Poverty Line of the four example households. It followed the same general trajectory as that of the unattached single considered employable between 2018 and 2023 but diverged in 2024. Their income started the time series at 92 per cent of the Poverty Line, increased to a peak of 109 per cent in 2020, and fell to 95 per cent in 2022. After a slight increase in 2023, a slight decline saw their income end the time series at 94 per cent of the Poverty Line in 2024.
Overall, the income of the unattached single with a disability increased by 2 percentage points between 2018 and 2024, which represents a slight improvement in the poverty experienced by households in these circumstances. It is important to note that households in these circumstances would have lived above the Deep Income Poverty threshold in all seven years and above the Poverty Line for three of those years. This means that households in these circumstances would not have lived in deep poverty in any of the last seven years and would have lived out of poverty for slightly less than half of those years.
Figure 6NT: Welfare incomes as a percentage of the MBM-N for households with children in the Northwest Territories, 2018–2024
The welfare income of the single parent with one child started the time series at 81 per cent of the Poverty Line, increased to a high point of 89 per cent in 2020, and fell to 79 per cent in 2022. After an increase to 81 per cent in 2023, their income ended the seven-year time series in 2024 at 79 per cent of the Poverty Line.
Overall, despite improvements between 2019 and 2021, the income of the single parent with one child fell by 2 percentage points relative to the Poverty Line over the seven-year period, indicating no real progress on the poverty experienced by households in these circumstances. It is notable, however, that households in these circumstances would have lived above the Deep Income Poverty threshold in every year, which means that although they would have been living in poverty, they would not have been living in deep poverty in any of the last seven years.
The total welfare income of the couple with two children was least adequate relative to the Poverty Line of the four example households. Their income started the time series in 2018 at 76 per cent of the Poverty Line, increased to a high point of 82 per cent in 2020, and fell to a low point of 72 per cent in 2022. Two years of increases saw their income end the time series in 2024 at 78 per cent of the Poverty Line.
Overall, the income of the couple with two children increased by 2 percentage points relative to the Poverty Line over the seven-year period. This indicates a slight improvement in the level of poverty experienced by households in these circumstances. As well, they would have lived above the Deep Income Poverty threshold in six of the seven years of the time series: their income fell below the threshold in 2022 but rose back to the level of the threshold in 2023. This means that although households in these circumstances would have been living in poverty for all of the past seven years, they would have been living above the threshold of deep poverty in all but one of those years.
Access to data
The data for the Northwest Territories is available for download, including:
- Components of welfare income for all households, with a breakdown of cost of living-related payments.
- 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: Comparisons of the welfare incomes of each household with the two poverty thresholds applicable in the North.
- Adequacy over time: Welfare income relative to the Official Poverty Line (MBM-N) for each household from 2018–2024.