Question Period Note: Income Assistance Program

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• Indigenous Services Canada’s Income Assistance Program provides funding for the essential living expenses of individuals and families living on reserve, as well as case management and pre-employment supports.
• Budget 2024 invested $927.3 million for the Income Assistance Program over five years starting in 2024-25, and $169 million ongoing to provide income support on-reserve and expand programming to meet demand.
• Budget 2024 also provided new funding to Income Assistance recipients with disabilities, ensuring they are able to cover essential living expenses, and the many other disability-related costs that prevent equal participation in their communities.
• Our government has been and will continue to invest in ways to make life affordable for First Nations and to ensure they have access to essential services to help them get ahead and be well.

The Income Assistance program provides funding to assist eligible individuals and families living on reserve or Status Indians living in Yukon with: basic needs, special needs, employment and pre-employment measures designed to increase self-reliance, to improve life skills and to promote greater attachment to the work force. Income Assistance is a program of last resort when no other sources of funds are available, operating alongside other federal support programs available on reserves, such as the Canada Child Benefit (Canada Revenue Agency), Canada Disability Benefit (Employment and Social Development Canada), Employment Insurance (considered first payer, if eligible), and Old Age Security (Employment and Social Development Canada).

Budget 2024 provided $927.3 million in investments for the On-Reserve Income Assistance program over five years starting in 2024-25, and $169 million ongoing. This investment provides additional funding to meet basic needs, continue case-management and pre-employment supports, and provides disability income supports.

If pressed on case management results
• Case management and pre-employment supports help address a client’s barriers and needs as they move towards self-sufficiency.
• Since the introduction of case management and pre-employment supports in 2013 to select communities, the national on reserve dependency rate for Income Assistance has decreased from 34.0% in 2011-12 to 29.6% in 2019-20 (the last year for which data is available).
• In 2019-20, 8,162 clients and dependents received case management supports and approximately 7,925 exited Income Assistance to employment (42.2%), to education (9.6%), or for other reasons (48.2%).

If pressed on Income Assistance engagement and reform
• A First Nation-led, regionally specific engagement process was undertaken to understand how to make the Income Assistance program more responsive to the needs of individuals and families living on reserve.
• We recognize the importance of supporting self-determination and will continue to work closely with First Nations partners towards addressing the recommendations from the engagement process.
• The provision of additional funding for Income Assistance recipients with disabilities through Budget 2024 is in line with the findings of the First Nation-led engagement on Income Assistance.

If pressed on disability income supports
• Budget 2024 provided additional funding to Income Assistance recipients with disabilities, ensuring they are able to not only cover essential living expenses, but also the many other disability-related costs that often prevent persons with disabilities from full, equal
• These investments reflect the Government of Canada’s commitment to working with our partners to support Indigenous persons – who are more likely to experience low income than others – helping them to be well, and to get ahead.

If pressed on the winding down of supplementary cost of living benefits
• Since April 2020, the Income Assistance Program has delivered over $1.1 billion in supplementary relief payments.
• We increased funding through this Program for special needs for fiscal years 2024-25 and 2025-26 to meet provincial comparability and will continue to work with First Nations partners to monitor the impacts of the high cost of living.
• We will continue to work with First Nations and Federal and Provincial / Territorial partners to promote awareness of other benefits and programs and continue to make key investments in areas that make life more affordable.

If pressed on First Nations-designed enhanced social policies in the Maritimes
• Indigenous Services Canada has provided financial support to Maritime First Nations to undertake research and engagement with an aim to develop their own enhanced social policies.
• We will continue to work with First Nations partners to advance their enhanced social policies and to better meet the essential needs of Income Assistance clients in the Maritimes.
•Indigenous Services Canada will also work with Maritime First Nations to ensure that they benefit from new funding announced in Budget 2024, including disability income supports.