Question Period Note: Affordability in Community

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• Many Indigenous individuals, especially in remote and northern communities, face higher prices for food, housing, fuel, and everyday goods.

• Indigenous Services Canada’s (ISC) on-reserve Income Assistance Program helps address the cost of living, providing financial assistance to individuals living on reserve and case management supports.

• The Government of Canada promotes awareness of other initiatives that help Indigenous individuals, living on and off reserve with affordability challenges, such as Nutrition North, Canada Child Benefit and a targeted funding for First Nations housing.

Many Indigenous communities are located far from the main population centres and as such, access to many goods and services is challenging, partly because of the lack of year-round road access. For instance, according to a 2016 report by Food Secure Canada, the average monthly expenditure for food in Attawapiskat is $1,909, more than double the $846 average monthly expense in Toronto. Although the rate of price growth has slowed since 2023, the effects of price increases over the past few years have placed further strain on household budgets for many day-to-day essentials, such as food, housing and transportation (Statistics Canada).
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), Employment Insurance (considered first payer, if eligible), and Old Age Security (Employment and Social Development Canada).

Indigenous Services Canada’s On-Reserve Income Assistance Program is a vital part of Canada’s social safety net that helps low-income individuals and families living on reserve afford essential living expenses. It provides direct financial support to individuals and families who have no other source of income, helping cover essential costs like food, housing, utilities, and clothing. This support reduces the immediate financial burden on households and helps stabilize living conditions in communities where employment opportunities may be limited.

Between April 2020 and April 2024, ISC delivered over $1.1 billion through the program to help offset the rising cost of living and pandemic-related pressures. Budget 2024 builds on this with a commitment of $927.3 million over five years, plus $169 million ongoing, aimed at enhancing affordability for low-income clients. These funds will allow access to case management and pre-employment services to continue, helping individuals not only meet basic needs but also move toward financial independence, as well as and provide additional support for recipients with disabilities..

By investing in both immediate income support and long-term pathways to employment and education, ISC’s approach strengthens affordability at both the household and community level.

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.

In 2024-25, the program had expenditures of $1.3 billion. In 2020-21, the Income Assistance program was delivered in 501 First Nations and served approximately 82,460 clients and 63,776 dependents. The on-reserve income assistance dependency rate was 26.6% compared to 5.4% off reserve with disability (excluding NWT and NU) and 2.6% without disability (only SK, QC, PE, ON, NB, BC and AB provide without disability data). In 2020-21, 7,928 clients and dependents received case management supports and approximately 2,843 exited Income Assistance.

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