Northwest Territories 2026 Poverty Report Card

 The territory’s 2025/26 budget outlines the Government’s priorities, with an emphasis on balancing fiscal sustainability. Challenging conditions in this region, including heavy snow in some places and forest fires and drought in others, combined with high transportation costs in remote areas, create additional financial pressures to repair and support infrastructure and supply chains.  

 
Housing and food costs remain two of the most endemic public policy challenges facing the Northwest Territories. Last year, the NWT announced the addition of 100 new housing units for the first time in decades. This year, through Housing Northwest Territories, the government completed a Territorial Housing Needs Assessment (THNA), a comprehensive review that emphasizes community and regional perspectives. This assessment should assist the government in planning affordable and attainable housing development.  

 
The NWT does not have rent control, although renters are protected from eviction for a certain period. The territory should consider adopting a more comprehensive policy framework as it continues to act on expanding affordable housing and addressing challenges through the completion of the housing assessment.  

 
There is significant economic potential in the NWT, although the short- to medium-term outlook appears dim. The territory has traditionally benefited from high employment and wage growth, but it offers limited sources of new investment. Economic growth is stagnating and declines in diamond mining and the oil and gas sector have reduced employment in the private sector. Meanwhile, government services and public sector employment have expanded since the COVID-19 pandemic, which has increased pressure on public funds. 

 
Although it is still focused on fiscal sustainability, the 2025 budget announced several capital projects to improve transportation and energy corridors and a three-year investment for Housing Northwest Territory to replace and repair existing rental housing units. These projects act as an important economic anchor that can boost local economic activity and provide well-paying jobs for residents who might otherwise be at risk of falling into poverty. 

 
More coordinated investment between the territorial and federal governments is urgently needed to make the most of the economic opportunities that major projects, both public and private, could bring to the region.  

 
We have previously noted how a lack of access to broadband and Internet is a significant challenge in the territory. The 2026 budget does not earmark connectivity as a priority, placing residents behind most of the rest of Canada.  

 
The NWT increased the minimum wage last year and decided to tie minimum wage increases to the CPI. Despite this move, the minimum wage is still $1.05 an hour below the federal standard.  

 
The territory has one of the most generous welfare programs in the North. Absent from this year’s budget was the one-time top-up to income assistance provided last year to help address ongoing inflation and affordability concerns. Instead of direct financial support for individuals, the budget included an additional $62 million for health care and social services, including $809,000 in new funding to support the delivery of the Transitional Housing Addiction Recovery Program in Yellowknife and Inuvik. The NWT faces no significant fiscal issues with an essentially 0% debt-to-GDP ratio.  

Affordability 

Raise the minimum wage. 

The NWT’s minimum wage remains a full dollar below Ontario’s, despite a market basket threshold that is 24% higher in Yellowknife than in Toronto. The minimum wage should be at least 25% higher than Ontario’s and indexed to inflation from this level going forward. In 2025/26 this would translate into a minimum wage of $22.50 per hour. 

Develop a formal municipal matching fund for rental unit construction. 

The NWT should use Yukon’s successful municipal rental construction fund as a model to investigate the creation of a municipal/territorial grant-matching model to assist developers of purpose-built rental unit construction. The fund could be developed with a small pool of capital funding to begin with and scaled over time as dedicated funding is established. 

Income Security 

Increase and index the earned income exemption for people who receive Income Assistance. 

In 2024, the NWT strengthened its Income Assistance program by increasing the earned income exemption to $350 per household per month, so households could retain more of their earnings. This was a positive step. Increasing the exemption to $500 and indexing it to inflation would better reflect current living costs and ensure the policy remains effective over time. A higher, indexed exemption would support greater income stability and make it easier for recipients to benefit from employment without facing immediate reductions in assistance. 

Increase Income Assistance, the NWT Child Benefit, and all other benefit payments by 15% over the next three years, then index them to inflation moving forward. 

Given the surge in inflation experienced since 2021, the lack of indexing has forced the NWT to intervene with temporary help rather than rely on an automatic stabilizer to assist residents in times of need. 

Labour Market Reform 

Update the 2023–28 Education Reform plan to take advantage of Prime Minister Carney’s recent announcement of $35B in Northern investment. 

With the resurgence of global commodity prices, increased interest in Canadian mining, and new investments in defence infrastructure, the NWT is well positioned to be a key partner in initiatives in these sectors. We recommend that it work with the Federal Government to update its 2023–28 Education Renewal plan to ensure that this generational investment benefits young people preparing for and building their careers. 

Addressing Inequities 

Invest in Indigenous communities to enhance data collection and sovereignty to support poverty reduction measures. 

The NWT Government should provide dedicated, long-term resources to Indigenous communities to strengthen data collection, governance, and sovereignty — recognizing that meaningful poverty measurement must be grounded in community trust, self-determination, and cultural relevance. 

This investment should include funding for Nation-based data coordinators and statistical capacity, as well as support for communities to develop their own data governance frameworks aligned with principles such as the First Nations principles of OCAP (Ownership, Control, Access, and Possession) or the Global Indigenous Data Alliance's CARE Principles. Enhanced data capacity, built on a foundation of trust and sovereignty, is essential to accurately measure poverty across the territory and develop targeted, community-driven solutions that reflect the lived realities of Indigenous Peoples.