A pair of Manitoba organizations is sounding the alarm about cuts to a provincial program that could affect thousands of low-income renters.
Make Poverty History and Right to Housing Coalition said cuts to Rent Assist will hit 7,000 homes starting on July 1.
Manitobans affected by the cuts include minimum wage workers, students, newcomers, families and seniors, the organizations said in a news release.
An increase in Rent Assist is mandated by July 1 each year to make up for rising rents. However, the organizations said this year families will see a cut in benefits or reduction in the planned increase.
“These cuts will put affordable housing further out of reach for low-income renters in Manitoba. Rising housing costs in Manitoba mean families have to put more of their money towards rent, leaving less available for food and other necessities,” the news release said.
“The province only informed affected recipients in a letter last week that there would be changes to the program, directing them to contact the department for more information about how these would affect their benefits.”
The province said it is restricted from giving exact details on the changes due to the upcoming Point Douglas byelection. However, it said changes are being made to ensure the Rent Assist program continues to help Manitobans who are most in need.
“The impact of these changes on each household will depend on the household’s income. Recipients with the lowest incomes will benefit due to the increase in maximum benefits, while those with higher incomes may experience a reduction in benefits due to changes in the formula,” the province said in a statement.
The province said effective July 2017, the formula will change in two ways – all enrolled households will contribute a deductible set at 28 per cent of their income towards rent, which is up from 25 per cent, and the median market rent will be increased to maintain indexation to 75 per cent.
The province confirmed about 7,000 enrolled households will see an increase.
