“Alternatives North has advocated for a real anti-poverty plan for 30 years. This report shows the way to eliminate poverty in the NWT. We need an up-front investment that provides a truly stable foundation for everyone, rather than relying on a safety net approach,” said Suzette Montreuil, Alternatives North.
Alternatives North has released a report that shows the introduction of a Basic Income Guarantee could eliminate poverty in the NWT.
A basic income is a foundation for a thriving population, not just a safety net. The approach proposed in the report would cost approximately $138 million a year. That figure would be offset by cost savings in areas such as the administration of income assistance of $6 million a year and additional rental income for Housing NWT of up to $32 million annually. Other expected benefits and savings include improved health outcomes, reduced use of the health care system, positive impacts on child development, reductions in crime, and an improved workforce through more opportunities for education and better access to jobs.
The report describes a 5 – 10 year pilot project that would replace Income Assistance. Most new funding for it would come from the federal government. Program costs were calculated using a simulation model designed to supplement incomes for individuals and families living in poverty, with payments administered through the income tax system. Cost savings were estimated and some qualitative benefits from the reduction of poverty in other jurisdictions were reviewed. Further work is needed on the simulation model to identify program costing and benefits and other aspects of economic modelling, to explore delivery models and implications for current programs (including Integrated Case Management), to design and establish a comprehensive monitoring program for before and after implementation, and to engage Indigenous governments and the public.
“We urge MLAs and Cabinet in the Northwest Territories to carry this work forward and partner with the federal government to finally eliminate poverty in the NWT.”
The report was prepared by Yellowknife consultants PlanIt North, and economist Michel Haener, with assistance from well-known basic income expert Dr. Evelyn Forget, University of Manitoba. A plain language summary was prepared by a consultant for the NWT Literacy Council.
Alternatives North undertook this report with financial support from the GNWT Anti-Poverty Fund, the Roman Catholic Diocese of Mackenzie-Fort Smith, the United Church and the Public Service Alliance of Canada Social Justice Fund.
