Social Development Proposes Changes To Household Income Policy

New Brunswick is looking to loosen its controversial “household income policy” for social assistance recipients.

The policy, also known as HIP, adjusts the amount of social assistance a person receives if they are living with other people.

It often leads to assistance being “refused, cancelled or decreased, depending on the particular circumstances,” according to the policy on the government’s website.

Social Development Minister Bruce Fitch said the changes will allow roommates to be assessed separately.

“We believe this measure will help them attain better housing options, reduce poverty, and help New Brunswickers reach their full potential,” Fitch said when announcing the proposed changes on Friday.

Fitch noted that HIP was put in place about 30 years ago to “create consistent criteria and a non-discriminatory process” to assess people for social assistance.

The proposed changes, he said, could help up to 2,000 New Brunswickers in need and would represent an investment of at least $4 million.

However, the policy will remain in place for spouses or partners and any children under 21 who are living together.

That means a person receiving social assistance who moves in with a partner could still see their benefits clawed back.

“We did a jurisdictional scan and we found that spouses and conjugal relationships are treated as one unit,” said Fitch.

Many advocates have called for the policy to be scrapped in its entirety, including the New Brunswick Common Front for Social Justice.

In a previous interview, provincial coordinator Abram Lutes said the policy disproportionately affects people with disabilities who are receiving social assistance payments.

According to the policy, individuals who are blind, deaf or disabled can only be assessed separately from their legal or common-law spouse if they are also blind, deaf or disabled.

“It forces people on social assistance to choose between either living with the people that they want to live with or their social assistance cheques,” said Lutes.

Fitch, meanwhile, said changes to HIP are part of the department’s ongoing efforts to reform social assistance programs.

The minister referenced a series of changes made in October, which included:

• increasing the wage exemption to $500 per month plus 50 per cent of dollars earned above that amount;
• eliminating shelter deductions;
• exempting child support payments, Canada-New Brunswick Housing Benefit and Compensatory awards related to personal injury; and
• allowing nurse practitioners to sign reports for disability applications.

“Social assistance clients can be confronted with significant obstacles but we are committed to continue exploring ways to better support them,” said Fitch.

Changes to the Household Income Policy will take effect on June 1.