Community Services Minister Brendan Maguire at his swearing-in ceremony in February with Lt.-Gov. Arthur LeBlanc and Premier Tim Houston. (Communications Nova Scotia)

The Nova Scotia government will index social assistance payments after all.

The province announced Wednesday that it would index all income assistance payments annually based on the consumer price index. In 2024-25, rates will be indexed by 2.5 per cent.

The Progressive Conservative government was criticized earlier in March after it unveiled its budget, with no provision for indexing income assistance.

Community Services Minister Brendan Maguire pushed for indexing the rates when he was a Liberal opposition member. But he told reporters in early March that it wasn’t on the table right now.

On Wednesday, though, Maguire said it’s “another action being taken by government to help vulnerable Nova Scotians find success.”

The change will be implemented on July 1, with retroactive payments to April 1. Almost 24,000 Nova Scotians were collecting assistance as of Feb. 1. Indexing will cost about $7 million in 2024/25.

Photo Ed Halverson

The committee tasked with setting the minimum wage has proposed to raise the rate to $15/hour six months sooner than planned.

In its annual review the Nova Scotia Minimum Wage Review Committee recommends reaching the $15/hour mark by November of 2023.

It also proposes tying future increases to the national consumer price index plus one percent.

By using CPI plus one percent the committee is attempting to ensure minimum wages keep pace with inflation.

When the rate of inflation goes up quicker than CPI it means those on minimum wage make less money even though they’re paid the same wage.

During a press availability following Thursdays cabinet meeting, Premier Tim Houston thanked the committee for their work and said government will take that recommendation into the communities to see if it meets the needs of minimum wage workers and allows employers to prepared for the increase.

The committee is recommending the current minimum wage of $13.60 be increased by 90 cents to $14.50 on April 1 and will hit $15 with a 50-cent increase October 1.

According to the report, most minimum wage employees work in the retail and hospitality sectors accounting for seven percent of Nova Scotia’s workforce or 28,500 people.

E-mail: edhalversonnews@gmail.com
Twitter: @edwardhalverson

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