Nova Scotia 2026 Poverty Report Card

Nova Scotia elected Premier Tim Houston’s Progressive Conservatives for a second consecutive term in November 2024. They won 43 of the legislature’s 55 seats, giving them a supermajority. Despite this renewed mandate, Nova Scotia has not updated its poverty reduction strategy since it was first introduced in 2009. The absence of an updated strategy or clear poverty reduction targets limits accountability for reducing poverty and food insecurity in the province. This gap is significant, as affordability continues to be an issue. Food prices alone have have increased by approximately 30% since 2021.  

Budget 2026/27 projects a deficit of approximately $1.19 billion. Early announcements included approximately $130 million in grant reductions that will affect a wide range of social programs and community organizations, including education and employment supports, disability services, and programs serving African Nova Scotian and Mi’kmaq communities. Following strong public criticism, the government reinstated $53.6 million in funding for a number of these programs, but several employment and training initiatives remain reduced or eliminated.  

The government has also emphasized tax relief as a key affordability measure. To continue last year’s taxation change, $681.2 million has been allocated to increasing the basic personal amount, indexing tax brackets to inflation and maintaining the HST at 14%. While these measures reduce costs for households, the largest benefits accrue to higher-income earners who receive greater value from tax reductions. People with very low incomes often see limited benefit because the basic personal amount functions as a non-refundable tax credit. By comparison, programs specifically targeted at households with low incomes receive much smaller investments. The budget allocates $15 million to expand the rent supplement program and $32.5 million to expand the Heating Assistance Rebate Program. Increasing these targeted supports could have a stronger impact on poverty reduction than broad-based tax relief.  

The decision to index social assistance to inflation is an important and welcome step, with rates increasing by 1.6% in 2026. Indexation helps benefit levels maintain their purchasing power over time as prices rise, but indexing rates that are already far below the poverty line will leave recipients in deep poverty unless base benefit levels are also increased. Although the government has taken meaningful action to raise wages for workers, it has not yet addressed the adequacy of social assistance.  

Housing is a central focus of provincial policy through the government’s Action for Housing plan. The plan aims to support the construction of 42,000 new housing units over five years and improve affordability for more than 17,000 households. Notably, the strategy places significant emphasis on public housing and supportive housing, including investments in new rent-geared-to-income units and supportive housing developments. This focus is important, as government-owned and supportive housing play a critical role in ensuring there are stable and affordable housing options for low-income households and those facing complex housing challenges.  

Budget investments reinforce this direction. Nova Scotia has committed $25.2 million to create 378 supportive housing units and $9.6 million to expand emergency shelter capacity. Additional funding will increase rent supplements to additional 10,500 households. These investments represent positive steps toward addressing housing needs, particularly for people who are experiencing or are at risk of homelessness.  

However, many renters continue to struggle with high housing costs. The Canada–Nova Scotia Targeted Housing Benefit is intended to help renters facing affordability challenges, but its design limits its reach. Eligibility is restricted to households that spend more than 50% of their pre-tax income on housing, even though core housing need begins when households spend more than 30% of their income on housing. As a result, many renters who are facing significant housing cost pressures are not eligible for support.  

Expanding the housing benefit could help address this gap. Increasing eligibility and benefit levels would provide immediate relief to renters while Nova Scotia continues to build more affordable and supportive housing. A stronger rental benefit could act as a bridge — helping households maintain stable housing today while longer-term supply solutions are being developed.  

Nova Scotia has also expanded school food programs, investing $100.4 million to support school lunch and breakfast initiatives across the province. These programs help ensure children have reliable access to nutritious meals during the school day and provide an additional support for families facing rising living costs.  

Nova Scotia has taken important steps to address affordability through wage increases, expanded housing investments, and food programs. Strengthening income supports and expanding targeted housing benefits alongside these efforts could further reduce poverty and help ensure that households struggling today are supported while longer-term housing solutions are being developed. 

Affordability 

Restore and increase the Heating Assistance Rebate Program. 

The Heating Assistance Rebate Program has been reduced from $600 to $400, and eligibility thresholds have also been lowered. Given rising energy costs and the program’s importance to households with low incomes, Nova Scotia should restore the benefit to at least its previous level and expand eligibility. 

Expand the Targeted Rental Benefit and improve tenant protections. 
The Targeted Rental Benefit should be expanded to operate as a portable rent supplement available to anyone in the private rental market whose shelter costs exceed 30% of income, rather than the current 40% threshold. This would align the program with the design of the federal Canada Housing Benefit. Fixed-term leases should also be eliminated to ensure leases default to periodic tenancies. 

Income Security 

Increase social assistance rates to improve their adequacy. 
In 2025, Nova Scotia introduced indexing for social assistance, ensuring the value of rates in real terms no longer erodes because of inflation. This was an important step, but base rates remain inadequate. A single person who is considered employable receives only $9,415 annually, and a single person with a disability receives $15,117. Both rates are far below the poverty line of $28,006 and the deep poverty threshold of $21,005. Rates should be increased to at least meet the deep poverty threshold. 

Reverse proposed cuts and expand the Poverty Reduction Credit. 
The Poverty Reduction Credit is unique in Canada in that it specifically targets people with low incomes who do not have dependent children. The credit has not been increased since 2018 and currently provides $500 per year, delivered quarterly. It is available only to individuals who earn under $16,000 annually. However, Budget 2026 proposes reducing the program’s funding by $1.398 million from a total budget of $6.99 million, significantly weakening one of the province’s few targeted supports for adults without children. 
The province should reverse these proposed cuts, double the credit, and index it to inflation to preserve its value over time. Expanding eligibility above the current income cut-off should also be explored as part of a renewed provincial poverty reduction strategy. 

Labour Market Reform

Reduce earnings clawbacks in income-tested benefits. 
Under the current program rules, individuals who receive income assistance and earn more than$350 per month see their benefits clawed back. These clawbacks undermine financial stability and discourage labour market participation. Nova Scotia should increase earnings exemptions to $500 and review interactions between earned income and income-tested benefits. 

Restore funding for employment and skills training programs. 
Budget 2026 reduced funding for several employment and training initiatives, including the Skills and Learning Grant, Workplace Initiative Employer Supports, Nova Scotia Apprenticeship Agency programs, Nova Scotia School for Adult Learning, and Co-op and Summer Skills program. With overall unemployment in the province approaching 7% and youth unemployment rising, the province should reinstate and expand these programs to strengthen workforce participation. 

Addressing Inequities 

Commit to reducing inequalities experienced by Mi’kmaq and Black Nova Scotians. 
Mi’kmaq and Black Nova Scotians experience disproportionately high poverty rates. Nova Scotia should ensure that programs serving these communities are not disproportionately reduced and should commit to achieving measurable progress in closing poverty gaps between these communities and the broader population. 

Implement a new provincial poverty reduction strategy, including a target to reduce food insecurity. 
Nova Scotia’s current poverty reduction strategy has not been updated since 2009. It should undertake a new strategy with measurable targets and a clear plan to reduce poverty over the medium and long terms. Particular attention should be paid to populations that face heightened poverty in the province, including children, Mi’kmaq and Black Nova Scotians. Nova Scotia has the highest child poverty rate among the Atlantic provinces.