The provincial government announced today that social assistance rates in Prince Edward Island will increase by more than $1Million per year. The increase is effective retroactive to April 1, 2000.
Premier Pat Binns advised that new funding will help social assistance clients with transportation costs and provide more children with opportunities to participate in cultural, sports and recreational activities.
"The programs we are announcing today are a result of our consultations with social assistance clients and their advocates. Transportation continues to the number one concern expressed by clients and community groups," said the Premier.
A transportation allowance of $14 per household, per month will assist with local transportation needs such as going grocery shopping or attending community activities. Currently, clients receive a transportation allowance for travel to employment, day care, medical and other services as needed. "However, the transportation allowance we are announcing today may be used however the client chooses. It will increase the overall assistance a family receives by $14 per month, or $168 per year," said Premier Binns.
The transportation allowance will cost approximately $600,000 per year. It is expected to benefit about 3,700 households.
A new Healthy Child Allowance will provide families with an additional $14 per child, per month to help children participate in arts, culture, sports and recreational activities.
Health and Social Services Minister Jamie Ballem advised that the benefits of growing up active and involved are well documented.
"Most children who play on teams or take lessons in their favourite activity are often from middle class, active families," said the minister. "The new Healthy Child Allowance will increase a family's household allowance by $168 per year per child, or $504 per year for a family with 3 children. With 2,350 children eligible, we hope to make an impact on the number of Island children who can take part in these activities which are so important to growing up healthy and strong."
Studies indicate that when children take part in sports, music, or other organized activities they build self-esteem, social and leadership skills. Such participation has added benefits for society such as increased education and employment rates, lower rates of youth who drop out of school, fewer teen pregnancies, and reduced rates of youth involvement in crime.
Minister Ballem also advised that government will make a $25,000 contribution to the KidSport fund. KidSport is a community organization which helps lower income families with registration fees for sporting activities. "KidSport has an excellent track record in providing opportunities for kids that they might not otherwise have. We are pleased to support the excellent work they do with many lower income families, and not just those who receive social assistance," said the minister.
The increase in social assistance rates is the second one to be implemented this year. A $1.5 million rate increase was implemented in January 2000. It included a 10 percent increase in the food allowance, two school allowances rather than one, and an increased food allowance for pregnant women.
Clients can expect to receive retroactive increases with their November cheques.