Nova Scotia is expanding and refining its rent supplement program, implementing changes to increase eligibility and ensure fairer distribution.
Effective August 23, the eligibility threshold for low-income residents has been lowered, allowing those who spend 40 per cent or more of their household income on rent to qualify for rent supplements. Prior to the change the threshold was 50 per cent.
How the amount of rent supplement payouts are calculated is also changing.
Previously, the supplement was based on the average rent in an area, without taking into account the actual rent paid by recipients. This sometimes led to overpayments. The new formula corrects this by tying the supplement directly to the actual rent, capped at the area’s average monthly rent, minus 30 percent of the household income.
For new applicants, the updated calculation method will apply immediately.
Existing clients who currently receive more in supplements than they pay in rent will see their benefits adjusted starting December 1.
While the changes represent a significant shift in the program’s operation, they have not been without criticism.
NSNDP Leader Claudia Chender acknowledged the expansion as a “step in the right direction,” but highlighted concerns about the program’s previous restrictions. Chender pointed out that the Houston government’s earlier decision in January 2023 to raise the eligibility threshold to 50 percent had excluded many Nova Scotians from accessing the support they needed. She emphasized the need for deeper investments in affordable housing and stronger renter protections, viewing the rent supplement as a temporary measure rather than a long-term solution.
Despite the critique, the adjustments are set to generate savings that will be reinvested into the program, enabling the province to offer up to 1,000 additional rent supplements. For 2024-25, Nova Scotia will spend over $69 million in rent supplements, assisting approximately 8,500 households.
The new formula will be fully implemented for all clients by August 1, 2027.
