People aged 65 and older in Newfoundland and Labrador will get a one-time payout — depending on how much they earn.
Premier Tony Wakeham and Finance Minister Craig Pardy announced the $100 to $500 lump sum for cost of living relief on Monday at the Torbay common community centre.
“We’ve determined that there’s a lot of people that are out there struggling in Newfoundland and Labrador. And I think it was quite obvious that seniors needed a boost,” said Pardy.
Seniors that earn $75,000 or less will receive the full $500 payout. That amount decreases by $80 for every $5000 more in income earned.
The payment is capped at $100 for those earning $100,000. Anyone who makes above $100,000 won’t receive a payout.
The payments will be distributed in December via cheque by the finance department.
Members of the Torbay 50-plus active group were on hand for the announcement and welcomed the financial help.
“With the price of gas and food and everything else. I mean, inflation has gone skyrocketed,” said Torbay 50-plus Active Group executive, Mariette Byrne. “Sometimes people gotta make a choice, am I going to buy extra groceries this week or am I going to put gas in my car?”
Members of the Torbay 50-plus active group, Mariette Byrne and Stephen Norman, said the new payment for seniors will help. (Terry Roberts/CBC)
Another member, Stephen Norman, said the payment will help.
“It will relieve the burden of everyday life. I mean, you got gas prices, you know, hydro, oil, food… it will all make an impact on people’s lifestyle,” he said.
According to the province, the cost-of-living relief will cost provincial coffers over $64 million and will go to more than 130,000 seniors.
N.L. Premier Tony Wakeham also clarified to reporters that the payments are based on individual income — not household income.
“So two seniors, husband and wife, they both make 75 or less, they’re going to benefit each,” he said. “That’s why we’re able to help so many seniors and make this measure possible.”
In September, Pardy announced that skyrocketing oil prices have boosted Newfoundland and Labrador’s revenue. He said that 80 per cent of the extra revenues will be used against the province’s debt, and 20 percent will be used for affordability measures.
Pardy told reporters all the extra cash hasn’t been used up yet.
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“Have we exhausted what we’re projecting? No,” he said. “More to come.”
With oil revenues staying high, Pardy said the amount of money in that 20 percent envelope is growing.
“Do we have more in that envelope of 20 percent? We sure do. And so that may precipitate something thereafter the next announcement,” he said.
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