March 26, 1998
(Human Resources and Employment)

Minister announces new income support and employment initiatives

Julie Bettney, Minister of Human Resources and Employment, announced today a number of income support and labour market initiatives to help individuals move into paid employment.

The new initiatives will help the department further its goals of creating employment opportunities, reducing child poverty, encouraging self reliance in clients and removing barriers to employment.

"With services for children and families moving to Health and Community Services, the new Department of Human Resources and Employment will be able to focus more on proactive measures to help individuals remain in the labour market," said Minister Bettney. "These new initiatives are a first step to achieving our goal of improved services to our clients."

During 1998/99 Government will implement a number of initiatives designed to address the income support needs of clients.

Effective May 1, 1998, an additional $3 M will be provided to increase the rates for regular assistance (food, clothing, fuel, household maintenance) and Board and Lodging for all clients by 2%.

Effective May 1, 1998, $400,000 will be used to provide a monthly $150 Cost of Living Allowance for families with dependent children residing in Coastal Labrador Communities.

Effective June 1, 1998, $500,000 will be provided to revise the earnings exemption for families with dependent children to a maximum monthly exemption of $150.

Another $500,000 will go towards a pilot project to explore income support supplementation for single parents to help them secure employment.

In addition to initiatives related to the redesign of income support programs, the Department will be actively pursuing the redesign of employment related programming to meet the needs of both income support clients and other client groups.

Government recognizes the problems faced by young people as they try to make the difficult transition from school to work. In this regard, there will be a major focus on youth and post secondary students.

Over $7.5 M will be directed towards youth programs, targeting post secondary students, youth "at risk" of becoming dependant on long term income support and youth seeking a first job and work experience. Over 2,500 jobs will be supported through wage subsidy initiatives.

Within the youth component, $2.1 M will support student employment through the Student Work and Services Program (SWASP). The program will be available to private sector employers, Memorial University and the College of the North Atlantic. About 1,750 student jobs will be created.

The Department of Human Resources and Employment and HRDC, through the Opening Doors Program, have committed an additional $1 M over the next two fiscal years to create new public sector employment opportunities for persons with disabilities in this province.

Contact: Karen Kelloway, Communications, (709) 729-4062.

1998 03 26 5:40 p.m.