Heat supplement for Income Support clients to increase as of December 1

Paul Shelley, Minister of Human Resources, Labour and Employment (HRLE), today announced the provincial government�s latest action in response to rising fuel costs. Government is investing $3.4 million annually to double the heat supplement provided to income support clients as part of their benefits.

�As a government, we have been taking action to protect those who are most vulnerable to rising fuel costs,� said Minister Shelley. �We know that people living on income support are finding it difficult to make ends meet in the face of rising fuel prices. As of December 1, people on the island of Newfoundland receiving income support with a heat supplement are going to receive an extra $25 a month, and those in Labrador will receive an extra $45 a month. This is consistent with government�s commitment to reduce poverty and to help those who are most impacted by rising fuel costs.�

As part of their benefits, a supplement is provided to income support clients who pay for their own heat, be that oil, propane or electricity. Currently, clients living on the island portion of the province receive a $25 per month heat supplement and clients living in Labrador receive $45 a month. Today�s announcement doubles the monthly supplements to $50 and $90, respectively, for the foreseeable future.

Currently there are approximately 12,200 recipients (individuals or families) of the heat supplement, which has not increased since its introduction in the mid-1980s.

The Department of HRLE is also increasing the private vehicle rate compensated for travel to medical appointments, says Minister Shelley.

�People receiving income support, in some situations, qualify for compensation on a per-kilometre basis for travel by private vehicle to medical appointments. Effective December 1, this per-kilometre rate will also increase, from 15 cents to 30 cents,� added the minister.

This is the latest action undertaken by the Government of Newfoundland and Labrador to address the impact of rising fuel costs on low-income earners. Other initiatives include a $9 million investment in the increased Home Heating Fuel Rebate (announced on October 21) and a $6.9 million investment in the Residential Energy Efficiency Program (announced on November 22).

Media contact: Alex Marland, Communications (709) 729-4062, 690-6047

2005 11 25                                          9:20 a.m.