Budget Backgrounder: Direct Assistance Program Improved

Finance Minister Don Downe today confirmed a plan to improve the delivery of the Direct Assistance Program to eligible Nova Scotians. In his 1999-2000 budget speech, Mr. Downe announced changes to the program, including automatic payments to eligible candidates.

"This government is proud of its track record in helping those who need a helping hand, not a handout," said Mr. Downe. "We want to make it easier now for people to access help they need."

Beginning in the spring of 2000, those eligible for the Direct Assistance Program will no longer have to apply for benefits. They will automatically receive them by filing a tax return. This will ensure that every eligible candidate receives a payment. In addition, more Nova Scotians will now qualify for the program.

The Direct Assistance Program currently reaches about 16,000 applicants each year. However, officials believe there are 59,000 individuals and families eligible for the program who haven't applied. The proposed HST Credit Program would reach these people and add approximately 30,000 beneficiaries.

"We worry that people aren't applying for the program who could use this assistance," said Mr. Downe. "By changing the system to make the HST Credit Program an automatic benefit to those who meet the criteria, we feel we can help many more people."

The Direct Assistance Program is a provincial lump-sum payment of $90 for single people with a net income below $9,500, and $125 per family with a net family income below $16,500. Payments under the HST Credit Program will now be phased down gradually for income levels over these amounts as they become eligible for the province's Low Income Tax Program.