The Government of Newfoundland and Labrador’s Poverty Reduction Plan is helping improve the overall well-being of Newfoundlanders and Labradorians. Now in its second year of a phased plan, it is an important element of achieving the province’s Health Accord goal of becoming one of Canada’s healthiest provinces by 2031.

Since its announcement in November 2023, there have been significant increases in child benefits for low-income families, and meaningful accomplishments in key areas of the Poverty Reduction Plan which are outlined in the backgrounder below.

Today, the Government of Newfoundland and Labrador announced improvements to the Income Support Program, marking the next phase of its Poverty Reduction Plan. Changes announced today are designed to simplify the Income Support benefit structure, increase monthly support for those receiving the lowest benefits, and reduce barriers to financial assistance.

Key Income Support changes to be implemented by September 2025:

• Increased monthly support: Each eligible adult will receive the same monthly individual benefit amount, regardless of living arrangements. This means two adults living together will receive $561 per month each, rather than a reduced combined amount.
• Improved housing support: All eligible one-adult households will receive a maximum amount of $522 per month and two eligible adults living together will receive $299 each ($598 combined), regardless of their relationship to one another.
• Back-to-school support: A new $100 payment per school-aged child will be issued each August to help with school-related expenses.
• Vision care access: Enhanced benefits to cover the cost of a basic eye exam (up to $100) and eyeglasses ($290 for single vision and $350 for bifocals).

These changes build on previous improvements to the Income Support program, including streamlining and improving board and lodging rates and enhancing employment incentives to support workforce attachment.

Starting in July, persons with disabilities who are eligible to receive up to $600 per month through the Newfoundland and Labrador Disability Benefit ($400) and the Canada Disability Benefit ($200) can also keep the full Income Support benefits to which they are entitled.

These initiatives focus on the key areas of the Poverty Reduction Plan: reducing childhood poverty, encouraging meaningful employment, and improving the Income Support program. Combined with the Seniors Health and Well-Being Plan, these initiatives support the goals outlined in the Health Accord.

Quotes
“Our Poverty Reduction Plan reflects extensive consultation with community organizations, advocates and, most importantly, people with lived experience. With these changes, we are leading the country in creating a more equitable and responsive Income Support program, and we will continue to work towards making meaningful improvements. Thank you to all our community partners and people with lived experience of poverty who have helped inform these changes.”
Honourable Jamie Korab
Minister of Families and Affordability, Minister Responsible for the Status of Persons with Disabilities, Minister Responsible for the Community Sector

“The Poverty Reduction Strategy has been a positive move towards affordability for low-income families in our community. Families we work with at McSheffrey Resource Centre continue to benefit from programs such as the Newfoundland and Labrador Child Benefit and the Prenatal Early Childhood Nutrition Supplement.”
Jim Crockwell
Executive Director, McSheffrey Resource Centre

“The challenges facing today’s single-parent families in our province have never been higher, as food insecurity rates grow exponentially due to the increased cost of living. The Single Parents Association of Newfoundland and Labrador applauds the additional steps taken in today’s announcement, providing much needed supports to those who are struggling most. Our organization is especially happy to see the recognition of the high cost of the Back-to-School season, and the government’s action in supplementing the community programs delivered by nonprofits like ours during this particularly stressful time of year.”
Danielle Seward
Executive Director
Single Parent Association of Newfoundland and Labrador

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BACKGROUNDER

Key Accomplishments of the Poverty Reduction Plan

• The Newfoundland and Labrador Child Benefit has had a 300 per cent increase with qualifying families receiving up to between $152 and $186 per month, per child. Since January 2024, each month about 9,200 low-income families with about 15,600 children who qualify have benefited from this.
• The extension of the Prenatal Early Childhood Nutrition Program up to a child’s fifth birthday provides $150 per month per child for about 3,400 low-income families monthly with about 4,000 children. These benefits are making a meaningful difference to families. For example, combined, these two benefits provide $7,362 annually to a low-income family with two children under the age of five.
• School food programs are being expanded to all children pre-kindergarten to Grade 9. In the 2024/25 school year, an additional 6,000 students gained access to school lunches under a pay-what-you-can model, reaching a total of 22,000 students. The expansion will continue to all remaining Pre-K to Grade 9 schools.
• With a focus on supporting access to meaningful employment, the Working Opportunities program was launched in June 2024 and provides people who are non-EI eligible with the same access to funding and supports for training and employment as people who are EI eligible. To date, over 80 people have been supported to receive training that will allow them to become employed.
• In addition, we have expanded the Employment Stability Pilot province-wide so that all Income Support recipients in the province are now eligible for enhanced financial supports and employment incentives aimed at improving labour market attachment. Currently, each year, approximately 1,000 people work and receive Income Support as a supplement to their earnings, and as a result, have higher overall monthly incomes, reduced dependency on Income Support and are experiencing improved self-sufficiency. In the last year approximately 250 people have become no longer reliant on Income Support.
• Full implementation of a Targeted Basic Income for Seniors aged 60–64 who are both in receipt of Income Support and supportive services from Newfoundland and Labrador Health Services Community Supports Program. Through the pilot, about 200 individuals are receiving monthly benefits equivalent to federal seniors’ support.
• Full implementation of a Targeted Basic Income Program for Youth in need of protection who receive residential services, now receive enhanced financial and wraparound supports, with 265 enrolled.
• Starting in July 2025, qualifying persons with disabilities who have the Disability Tax Credit are eligible for up to $600/month in additional income from the Newfoundland and Labrador Disability Benefit ($400 per month) and Canada Disability benefit ($200 per month) combined, which is in addition to Income Support.