In this section you will find:
Components of welfare incomes
In Nunavut, 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 tax credits and/or benefits.
Together, these components form a household’s total welfare income. Households may receive less if they have income from other sources, or more if they have special health- or disability-related needs.
Table 1NU shows the value of the welfare income components of the four example household types in Nunavut in 2024. All four households are assumed to be living in Iqaluit, 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 1NU: Components of welfare incomes for all example households in Nunavut, 2024
Total annual welfare incomes in 2024 ranged from $12,571 for the unattached single considered employable to $38,648 for the couple with two children. The income of the unattached single with a disability was $15,629 and that of the single parent with one child was $22,559.
Basic social assistance: After a significant increase in Monthly Basic Allowance amounts midway through 2023, no changes were made to benefit amounts in 2024. Total welfare incomes for all example households increased in 2024 because the households received these higher benefit amounts for the full year.
The Shelter Benefit amount that we use is based on rental amounts in Nunavut public housing, and this amount did not change in 2024.
The Utilities Benefit amount that we use is based on average monthly amounts that each example household type paid for electricity in public housing. This data was provided to us by the Department of Family Services for the purposes of our analysis.
Note that, given that approximately 95 per cent of households receiving social assistance in Iqaluit live in public housing, the example households are assumed to be living in public housing rather than private market housing. This means that the basic social assistance amounts in the table reflect the amounts that households received after most of their housing costs have been paid. In Nunavut, social assistance recipients in public housing do not pay fuel, water, sewage, garbage, and/or municipal needs, and their electricity costs are heavily subsidized.
Additional social assistance: In addition to basic assistance, the unattached single with a disability also received $3,000 ($250 per month) through the Incidental Allowance, which remained unchanged in 2024.
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.
Territorial child benefits: Both households with children also received the Nunavut Child Benefit, which increased in July from a per-child amount of $28.92 per month ($347 per year) to $29 per month ($348 per year). The single parent with one child received $347.50 in 2024 while the couple with two children received $695.
Federal tax credits/benefits: All four households received the GST/HST credit, which increased with inflation in July. The unattached single households received $332.50 in basic GST/HST credit, the single parent with one child received $665, and the couple with two children received $1,015.
Three households also received the GST/HST credit supplement. The unattached single considered employable received $2.98, the unattached single with a disability received $49.82, and the single parent with one child received the maximum amount of $175.
The federal Grocery Rebate, which was provided as a one-time GST/HST credit payment in response to high inflation in 2023, was not available in 2024.
Territorial tax credits/benefits: The Nunavut Carbon Credit came into effect as of July 1, 2023, and is a non-taxable payment intended to help people in Nunavut offset the price of carbon-based fuels. Each household received four payments in 2024, totalling $204 for the unattached single households, $408 for the single parent with one child, and $816 for the couple with two children.
Cost-of-living payments: Several jurisdictions, including the federal government, provided additional payments in 2022 and 2023 related to the increased cost of living resulting from high inflation. While four provincial or territorial jurisdictions continued to provide inflation-related payments in 2024, neither Nunavut nor the federal government did so. See the Overview section for more information.
Changes to welfare incomes
Figures 1NU and 2NU show how the total welfare incomes for each of the four example household types in Nunavut 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 Nunavut would have resulted in a slightly different trendline.
Figure 1NU: Welfare incomes for example unattached single households in Nunavut 1999–2024, in 2024 constant dollars
The total welfare incomes of both the unattached single considered employable and the unattached single with a disability followed a similar pattern: an initial gradual decline between 1999 and 2005, an increase in 2006 that was primarily due to increases in the Food Allowance, a steep incline in 2007, two further years of smaller inclines followed by a slight decline between 2009 and 2011, and then a considerable decline in 2012. The increase in 2007 and decline in 2012 were the result of changes to the methodology used in this report rather than a policy change by the territorial government. Specifically, the increase in 2007 was primarily due to the addition of an average monthly fuel payment in report calculations, while the decline in 2012 was due to shelter amounts becoming calculated based on public housing rents rather than private market rents (see the Components of welfare incomes section). Between 2013 and 2017 incomes were stable. The increase in 2018 was due to the introduction of the Basic Allowance, which combined and increased the previous Food and Clothing allowances; the additional increase in 2020 was due to federal COVID-19 pandemic-related payments. The declines through 2022 were due to the loss of these payments and the impact of inflation on unchanged social assistance benefit amounts. The increase in 2023 was due to the significant increase in those benefit amounts as well as the introduction of the Nunavut Carbon Rebate and the one-time federal Grocery Rebate. Incomes only modestly increased in 2024, as the loss of the federal Grocery Rebate offset much of the 2023 social assistance Monthly Basic Allowance increases.
In 2024, the unattached single considered employable had a welfare income of $12,571, which is a 3 per cent increase compared to 2023 but a 30 per cent decline since the start of the time series, in constant 2024 dollars. The welfare income of the unattached single with a disability was $15,629, which is a 2 per cent increase compared to 2023 but a 28 per cent decline since the start of the time series, in constant 2024 dollars.
Figure 2NU: Welfare incomes for example households with children in Nunavut 1999–2024, in 2024 constant dollars
Welfare incomes for households with children followed a similar pattern to the unattached single households. After a period of decline between 1999 and 2005, the increase in 2006 was primarily the result of improvements to the Food Allowance. The sharp increase in 2007 and decline in 2012 were due to changes in report methodology: starting in 2007, we included an average monthly fuel payment and, starting in 2012, we based shelter amounts on public housing rents instead of private market rents (see “Components of welfare incomes” section). Increases between 2015 and 2019 were the result of changes to federal child benefits and the 2018 introduction of the Basic Allowance, which combined and increased the Food and Clothing Allowances. The increase in 2020 was due to federal COVID-19 pandemic payments, and the 2021 and 2022 declines were largely due to the loss of those payments as well as the effect of inflation on unchanged social assistance benefit amounts. The increase in 2023 was due to a significant increase in those benefit amounts as well as the introduction of the Nunavut Carbon Rebate and the one-time federal Grocery Rebate. Incomes only modestly increased in 2024, as the loss of the federal Grocery Rebate offset much of the 2023 social assistance Monthly Basic Allowance increases.
In 2024, the welfare income of the single parent with one child was $22,659, which is a 1 per cent increase compared to 2023 but a 54 per cent decrease since the start of the time series, in constant 2024 dollars. The welfare income of the couple with two children was $38,648, which is a 3 per cent increase compared to 2023 but a 35 per cent decline 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 Nunavut:
- 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.
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 also that MBM-N thresholds vary by territory and community size. As such, we use the adjusted thresholds for the territory’s largest city, Iqaluit, in the analysis below. As well, MBM-N thresholds for Nunavut are based on a five-person household, and thus the equivalence scale used to adjust for household size is different than the one used in all other jurisdictions.
Also note 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 Nunavut with the two adjusted poverty thresholds is available for download.
Poverty threshold comparisons
The welfare incomes of all four example household types in Nunavut were below the adjusted Official Poverty Line in Canada (MBM-N) in 2024, meaning that all four households were living in poverty. As well, the welfare incomes of all four households were also below the adjusted Deep Income Poverty threshold (MBM-N-DIP), which means that all four households were also living in deep poverty in 2024.
Figures 3NU and 4NU compare 2024 welfare incomes for the four example household types to the adjusted 2024 MBM-N and MBM-N-DIP thresholds for Iqaluit.
Figure 3NU: Welfare incomes and adjusted poverty thresholds for example unattached single households in Nunavut, 2024
The unattached single considered employable had the least adequate welfare income relative to the adjusted poverty thresholds. Their income was $21,942 below the adjusted Deep Income Poverty threshold and $33,447 below the adjusted Poverty Line. This means their income was 36 per cent of the adjusted MBM-N-DIP and only 27 per cent of the adjusted MBM-N.
The welfare income of the unattached single with a disability was $18,884 below the adjusted Deep Income Poverty threshold and $30,388 below the adjusted Poverty Line. This means their income was 45 per cent of the adjusted MBM-N-DIP and only 34 per cent of the adjusted 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 4NU: Welfare incomes and poverty thresholds for example households with children in Nunavut, 2024
The welfare income of the single parent with one child was $26,150 below the adjusted Deep Income Poverty threshold and $42,419 below the adjusted Poverty Line. This means their income was 46 per cent of the adjusted MBM-N-DIP and only 35 per cent of the adjusted MBM-N.
The couple with two children was most adequate relative to the adjusted poverty thresholds among the four households. Their welfare income was $30,379 below the adjusted Deep Income Poverty threshold and $53,387 below the adjusted Poverty Line. This means their income was 56 per cent of the adjusted MBM-N-DIP and 42 per cent of the adjusted MBM-N.
Changes to adequacy of welfare incomes
Figures 5NU and 6NU show the total welfare incomes of each of the four example household types in Nunavut as a percentage of the MBM-N, which is Canada’s Official Poverty Line for the North, starting in 2018. Note that in Nunavut the MBM-N thresholds have been adjusted to account for subsidized housing, as explained in the Methodology section.
The black line at the top of the graphs (i.e., the 100 per cent threshold) represents the adjusted MBM-N. As such, the graphs show the relationship between the four households’ total welfare incomes and the adjusted Poverty Line over the past seven years.
The grey line indicates the adjusted Deep Income Poverty threshold, which is 75 per cent of the adjusted 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.
Also note that MBM-N thresholds vary by territory and community size. The MBM-N thresholds used here are for Iqaluit. More information is in the Methodology section.
Figure 5NU: Welfare incomes as a percentage of the MBM-N for example unattached single households in Nunavut, 2018–2024
The income of the unattached single considered employable started the seven-year time series at only 19 per cent of the adjusted Poverty Line in 2018; it rose to 24 per cent in 2020, declined to 22 per cent in 2022, and ended the time series at the high point of 27 per cent in 2023 and 2024.
Overall, the income of the unattached single considered employable increased by 8 percentage points relative to the Poverty Line across the time series. Although this represents a slight improvement in the depth of poverty experienced by households in these circumstances, their income was below both the Poverty Line and the Deep Income Poverty threshold for the entire seven-year period. This means that households in these circumstances would have been living in deep poverty for the entire time series.
The income of the unattached single with a disability started the time series at the slightly higher level of 26 per cent of the adjusted Poverty Line in 2018; it rose to 31 per cent in 2020, declined to 29 per cent in 2022, and ended the time series at the high point of 34 per cent in 2023 and 2024.
Overall, the income of the unattached single with a disability increased by 8 percentage points relative to the Poverty Line across the time series, which represents a slight improvement in the depth of poverty experienced by households in these circumstances. However, as with the unattached single considered employable, their income was below both the Poverty Line and Deep Income Poverty threshold for the entire seven-year period, which means that households in these circumstances would have been living in deep poverty for the entire time series.
Note that this analysis likely overstates the depth of these households’ poverty, as explained in the Methodology section.
Figure 6NU: Welfare incomes as a percentage of the MBM-N for example households with children in Nunavut, 2018–2024
The welfare income of the single parent with one child started the time series at 31 per cent of the Poverty Line, increased to 35 per cent in both 2020 and 2021, declined to 32 per cent in 2022, and ended the time series by returning to 35 per cent in both 2023 and 2024.
Overall, the income of the single parent with one child increased by 4 percentage points relative to the Poverty Line across the time series, which represents a slight improvement in the level of poverty experienced by households in these circumstances. However, their income remained below both the Poverty Line and Deep Income Poverty threshold for the entire seven-year period, which means that households in these circumstances would have been living in deep poverty for the entire time series.
The total welfare income of the couple with two children started the time series at the slightly higher level of 36 per cent of the Poverty Line, increased to 38 per cent in 2020, declined to 36 per cent in both 2021 and 2022, and ended the time series at the high point of 42 per cent in 2024.
Overall, the income of the couple with two children increased by 6 percentage points relative to the Poverty Line across the time series, which represents a slight improvement in the depth of poverty experienced by households in these circumstances. However, as with the single parent with one child, their income remained below both the Poverty Line and Deep Income Poverty threshold for the entire seven-year period, which means that households in these circumstances would have been living in deep poverty for the entire time series.
Note that this analysis likely overstates the depth of these households’ poverty, as explained in the Methodology section.
Access to data
The data for Nunavut is available for download, including:
- Components of welfare income for all households.
- Welfare incomes in 2024 constant dollars over time for all households.
- Welfare incomes in current dollars over time for all households.
- Adequacy of welfare incomes: Comparisons of the welfare incomes of each household with the two adjusted poverty thresholds applicable in the North.
- Adequacy over time: Welfare income relative to the adjusted Official Poverty Line (MBM-N) for each household from 2018–2024.