Housing and poverty advocates say budget 'doesn't inspire much confidence'

Anti-poverty advocate Mark Nichols fears the 2023 budget doesn't contain enough to help people struggling with rising costs.

Nichols – a community organizer with the Workers' Action Network of Newfoundland and Labrador – said the budget took necessary steps to improve health care but did little to address the health impacts of social services.

“I haven’t seen much that would make a significant difference in their lives,” Nichols said, referring to people struggling to make ends meet.

The Department of Children, Seniors and Social Development's total budget increased from $376,530,900 to $381,549,900. These include five percent increases in income supplements and senior pensions in the form of quarterly payments. Income support rates will also increase by five percent, which was announced last November.

Nichols was hoping for more because income support rates had remained consistent over the past decade, even though inflation was around 24 percent during that period.

“So a five percent increase is nowhere near making up the ground they lost over that time,” Nichols said. “And I would just add that last year the consumer price index was 6.4 percent. So it doesn’t even correspond to inflation.”

Nichols hoped to see more investment in the province's prescription drug plan and housing programs to expand eligibility for those benefits to people currently sitting outside the boundaries. As the minimum wage rises but inflation pushes more people into poverty, Nichols worries that people will find themselves in need but ineligible for assistance.

The housing advocate hoped for more

The province's housing construction budget was significantly increased, increasing by 55 percent from $47,080,500 last year to $73,061,500 next year.

Doug Pawson, executive director of End Homelessness St. John's, said much of that money is intended to fund things that have been planned for several years as part of the National Housing Strategy with the provincial and federal governments.

While he is pleased with the significant investment in healthcare and recognizes the social benefits it brings, Pawson said he wants more to address worsening problems in the social sector.

“It doesn’t inspire a lot of confidence on the social policy side,” Pawson said.

The province is committing $30 million to a new health and housing center in Happy Valley-Goose Bay to help ease the homelessness crisis in the small Labrador town. Money will also be made available to build 850 new affordable housing units.

Pawson hopes the investments will help ease the burden on emergency shelters, demand for which has reached unprecedented levels in the province.

“The breakdown of what these homes will look like and where they will be is really important,” Pawson said.

“And I only say that because in the past, when they have announced affordable housing projects and initiatives, they have often lumped together emergency housing as well. That's why I'm curious to see how many more emergency accommodations are among the 850 affordable accommodations that have been announced.

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