Lowering the cost of living in the Northwest Territories will help reduce many challenges in the economy and is a vital support for Northwest Territories residents in their daily lives. This budget proposes an additional $4.2 million in increased support for income assistance, including $2.2 million because of the increased number of income assistance recipients and $2 million to increase allowances to address higher prices for food and other basic necessities.
Not every family that struggles to make ends meet uses the Income Assistance Program. This budget provides an additional $750,000 in support for the NWT Child Benefit. This funding depends on approval of the amendments to the NWT Income Tax Act proposed in the 2016-17 budget and will be used to enhance direct support for children in families to $1.9 million in 2017-18 and $2.2 million annually in the following years. When fully phased-in, this enhancement will add $1 million to the current program and will provide benefits to more than 2,000 NWT families with children whose annual income is under $80,000. This compares to the current program that completely eliminates benefits for a one-child family at an annual income of $41,000 and a five-child family at an annual income of $61,000.
We will also continue to provide $22 million in tax relief to NWT residents through the refundable Cost of Living Tax Credit to help defray the high cost of living in the North. This budget proposes adding another $250,000 to cover the expected increased cost of this credit as employment income for low to middle income earners rises.
Government programs support many aspects of this Assembly’s mandate and the proposed $500,000 in this budget to provide a home repair program that assists seniors with income below the core need threshold to make necessary repairs to their residences is one such example. This new program will provide help for repairs to make a senior’s home healthier, safer and more energy efficient and that in turn will help these seniors to live independently for as long as possible in their home community with a support system of their families and friends.