Northern News Services

Yellowknife (Nov 23/01) - A new harmonization of the NWT's two main social safety net programs will bring more benefits to those who need the most help, the government says.

Barb Mahood: seniors don't object to paying their fair share.

"What we're doing is redistributing the money," said Gary McLellan of the Northwest Territories Housing Corporation.

Those living in public housing will feel the biggest impact of the changes. Public housing rents now depend on social status rather than actual need. Seniors, for example, pay no housing costs regardless of their income. As well, students and income assistance clients pay $32 per month.

Under the new program, rents will be determined by a formula that considers total net income and the cost of living in the community.

The formula will result in increased rents for seniors and students who can afford to pay. Those increases will be used to reduce the rents of those with less ability to pay.

The executive director of the NWT Seniors Society said seniors who live in public housing and can afford to pay some rent have little objection to doing so.

Barb Mahood said the changes will help correct the inequity that existed between seniors in public housing and those who live in their own homes.

"Seniors want to see those who are most in need looked after," said Mahood. Seniors are still concerned about the shortage of public housing, she added.

Bruce Evelyn, the Department of Education, Culture and Employment's lead official on the harmonization initiative, said the government does not have the money to offset inequities that result from a shortage of housing, but the changes will make the system fairer than it is right now.

"People in public housing are still going to get a better deal (than those in private housing)," said Evelyn.

The changes will come into effect April 1, 2002. The government spends $50 million each year on income support and public housing rental subsidies.

As it will be in the formula for public housing rents, total income will also be more of a factor in calculating income assistance.

Under the old system, 40 per cent of income was not considered when determining income support levels, McLellan said. Under the proposed changes, there will be flat rate income exemptions of $150 for a single person and $300 per family.