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Winnipeg Free Press
2 days ago
- Business
- Winnipeg Free Press
Reverse changes to two-tier Rent Assist: prof who helped design program
One of the designers of Manitoba's Rent Assist program a decade ago says changes made under the former Tories need to be reversed in order for the NDP government's homelessness strategy to work. The program was set up by then-NDP premier Greg Selinger in 2014 to support people transitioning from 'welfare to work,' while also increasing benefits for those who rely on government supports for their income, said University of Manitoba economics and labour studies associate professor Jesse Hajer. In the years since, changes to the program have seen benefits clawed back, which has made it more difficult for low-income Manitobans to make ends meet, Hajer said. RUTH BONNEVILLE / FREE PRESS FILES University of Manitoba economics and labour studies associate professor Jesse Hajer says changes made to Manitoba's Rent Assist program under the former Tories need to be reversed in order for the NDP government's homelessness strategy to work. RUTH BONNEVILLE / FREE PRESS FILES University of Manitoba economics and labour studies associate professor Jesse Hajer says changes made to Manitoba's Rent Assist program under the former Tories need to be reversed in order for the NDP government's homelessness strategy to work. In a report released Thursday for the Canadian Centre for Policy Alternatives, Hajer, who was on the planning and priorities committee of cabinet while Selinger was in power, noted the Rent Assist shortcomings will make it difficult for the NDP to meet its goal of ending chronic homelessness by 2031. The report calls on the province to reverse changes to Rent Assist made by the previous Progressive Conservative government that discriminated 'between the 'deserving' and 'undeserving' poor, by introducing higher benefits for those not' on social assistance. 2015 $806 2016 $852 2017 $877 2018 $912 2019 $947 2020 $982 2021 $1,000 2022 $1,030 2023 $1,080 2024 $1,149 — source: CMHC Rental Market Survey 'Rent Assist is an important benefit with a wide reach in Manitoba,' Hajer said in an interview. 'Low-income Manitobans have been hurt the most by high inflation in recent years, including rapidly increasing rents.' Manitoba's Your Way Home strategy, unveiled in January, relies on moving people from encampments into social housing, while moving those in social housing into the private market. If those being moved out of social housing cannot afford private market rent, the strategy risks housing some while creating homelessness for others, the report says. When Brian Pallister's Tories came into power after the 2016 election, they increased the proportion of net income that people were expected to pay towards rent to 30 per cent from 25 per cent. A few years later, after calls for a Rent Assist increase, the province increased the percentage of median market rent to which Rent Assist was indexed to 77 per cent for those on social assistance and 80 per cent for low-income workers, essentially creating a two-tier program. Hajer said reversing those cuts and returning to a model where maximum benefits are the same for all eligible Rent Assist recipients would help a large amount of people quickly. In Winnipeg, the median rent for a one-bedroom apartment has increased 35 per cent over the last decade, the Canada Mortgage and Housing Corporation Rental Market Survey shows. 'Until a massive amount of new social housing is built,' programs like Rent Assist are needed to keep the housing affordability crisis from getting worse, Hajer said. PC housing, homelessness and addictions critic Carrie Hiebert defended the stance of providing higher benefits to Manitobans not on social assistance. 'We are encouraging independence, resilience and empowerment,' Hiebert said in a statement. 'Our goal should always be to encourage a path forward for our families, friends and loved ones to make sure meaningful employment and secure housing are within their reach.' Housing, Addictions and Homelessness Minister Bernadette Smith was not available for an interview, but a prepared statement provided Friday said: 'Our government is investing in social housing, supporting renters, and ensuring Manitobans have safe, affordable, and dignified homes.' The statement noted the PCs cut Rent Assist while this year's provincial budget increased the program by $27.8 million. Hajer's report said in 2019, under the PCs, Rent Assist cash benefits to Manitoba's low-income renters increased to $140 million from $100 million, when the program was fully implemented by the NDP in 2016. Weekday Mornings A quick glance at the news for the upcoming day. The government said Friday that it has restored the renter's tax credit cut and blamed the PCs for selling off social housing units. (The Tories sold 387 units to for-profit companies, including 374 units at 185 Smith St. for $16.2 million and 13 units at 356 Assiniboine Ave. for $1.45 million). 'Expanding the supply of non-market housing needs to be the priority,' said Right to Housing Coalition member and University of Winnipeg chair of urban and inner-city studies Prof. Shauna MacKinnon. 'Rent assist should not be the default and it should not be expanded in the absence of strong rent regulations,' said MacKinnon. 'It is too easy for landlords to increase rates to Rent Assist levels, which we know is happening and especially problematic for the lowest income renters who end up paying ridiculous rents for substandard housing.' Rent assist report Carol SandersLegislature reporter Carol Sanders is a reporter at the Free Press legislature bureau. The former general assignment reporter and copy editor joined the paper in 1997. Read more about Carol. Every piece of reporting Carol produces is reviewed by an editing team before it is posted online or published in print — part of the Free Press's tradition, since 1872, of producing reliable independent journalism. Read more about Free Press's history and mandate, and learn how our newsroom operates. Our newsroom depends on a growing audience of readers to power our journalism. If you are not a paid reader, please consider becoming a subscriber. Our newsroom depends on its audience of readers to power our journalism. Thank you for your support.
Winnipeg Free Press
30-06-2025
- General
- Winnipeg Free Press
Letters, June 30
Opinion Eyes up here Now that Portage and Main is open to pedestrians: since we have lots of education for drivers to put down their cellphones when driving, can we now have similar education for pedestrians to put away their phones when walking? At another busy intersection downtown, Ellice Avenue and Route 62 just behind the University of Winnipeg, I watched as a parent or guardian walked across, hands and eyes on their cellphone. The two little children with that adult were crossing the intersection without any parental control, running on their own. One driver, who had the light to turn, had to hit the brakes to prevent what could have been a terrible accident. The adult with the children did not look up at all. Winnipeg needs some regulations to keep pedestrians aware of their surroundings and aware of their children when crossing streets. Judy Herscovitch Winnipeg Sidewalk safety Where can pedestrians walk safely? I have spent the last year in recovery from a broken hip caused by a fall incurred from a hit from behind by an adult male who was rushing to get into a store. I have incurred expenses in walkers and physiotherapy. Manitoba Health had the cost of my stay in hospital and in rehab. I expect to use sidewalks for their purpose — that is, for pedestrians. Yet I encounter many adults who ride bicycles on the sidewalks and ignore bike lanes a few metres away. Now I have to avoid stealthy electric bikes. Where will this end? Catherine Collins Winnipeg Protect necessary services Currently in Manitoba there is a 12-week processing time for Rent Assist re-applications, up from 10 weeks last year. More applications, but not more staff. In the late 1980s in Ontario, after large-scale federal government downsizing, clients waited up to six months to receive their very first unemployment benefit payment. At the same time in Ontario, after the provincial government gutted its frontline personnel levels, its vital statistics branch ended up many months behind in providing birth and marriage certificates, name change documentation and other documents, causing very serious problems for citizens travelling outside of Canada. Federally at that time, the government responsible was Progressive Conservative, and the provincial government that implemented the cuts was NDP. We see drastic, mindless government cuts south of our border, but fail to see our own attacks and omissions affecting provincial, territorial and federal services. We all need basic and necessary services in a timely, reliable manner. Holly Bertram Winnipeg MPI rate hike costly Re: MPI applies for 2.07 per cent rate hike, June 25 Manitoba Public Insurance's proposed increase to basic auto insurance rates could potentially push the average private vehicle premium up by $21 annually, starting April 1, 2026. For years, Manitobans have seen fluctuating rate decisions shaped by both MPI proposals and Public Utilities Board (PUB) interventions. Last year, MPI requested a three per cent hike but the PUB imposed an even steeper 5.7 per cent increase, citing MPI's own financial data that pointed to a need for a 6.77 per cent rise. This pattern raises questions: are MPI's projections consistently underestimating actual needs, or is this a strategic move to temper public backlash? To the average Manitoban, MPI's assurance that they're 'committed to affordability' may ring hollow. Auto insurance is mandatory, and for families already burdened by inflation and a rising cost of living, even minor increases are unwelcome. The fact MPI is now eliminating the $750 deductible and replacing it with a $1,000 option — albeit marketed as a cost-saving choice — adds another layer of complexity. Critics might argue it's simply shifting more risk to the consumer under the guise of 'flexibility.' There are also concerns about how equitable these changes are. While good drivers could benefit from the new top-tier Driver Safety Rating level, which offers up to 53 per cent in savings, what about those who have had minor infractions or whose incomes don't allow them to risk higher deductibles? The merit system, while intended to reward safe driving, might inadvertently deepen the financial gap between drivers. MPI's extension product line — covering rental insurance and additional liability — will also see a two per cent increase. This suggests that not only is basic insurance becoming costlier, but the safety net and supplementary protections are also inching upward. Despite these planned increases, the PUB has a history of making independent assessments. It rejected MPI's 2023 freeze proposal and imposed a five per cent hike instead, citing long-term financial stability concerns. Still, many Manitobans remember the $400 million in rebates given in 2021 and 2022. With such recent generosity, why are rate hikes suddenly back on the table? It's not simply a $21 increase. It's a broader pattern of inconsistency, limited transparency and rising financial pressure. While MPI's intentions to offer options and maintain long-term solvency are valid, public trust hinges on whether those intentions are matched by transparency and tangible value for customers. Yog Rahi Gupta Winnipeg Perchance to dream Re: Canada to meet NATO spending target with critical minerals, June 25 Clearly, too many countries are struggling to meet the NATO targets, or cannot even try. The money spent to protect ourselves from other countries is clearly mind-blowing. The solution is clear: everyone can start getting along, stop fighting, stop the hate and the need for defence will disappear. The money can be used to make each and every person educated, healthy and with hope to live a fabulous life free of fear. I know: it sounds like a far-fetched dream; but if something doesn't change, the dream will become a really bad nightmare. Louise Hedman Winnipeg Intersection options Re: Carberry residents blast plan for Highway 5, June 25 A potential price tag of $100 million or more for an overpass? That is a big number. The city of Winnipeg, with the province partnering, is building a number of overpasses on the Perimeter Highway, and they are well needed based on the amount of traffic flow. This will cost more than a few of those 'big numbers.' The recently completed St. Mary's Road overpass at the south Perimeter comes to mind. Not having driven south of the U.S. border for some time, I can only assume nothing has changed on I-29 going to Fargo, N.D. Seems pretty much every small community between here and there has an off-/on-ramp system, with stop signs at the overpass crossing. Effective, pretty easy to understand, and probably a lot less expensive than the aforementioned big number. They take up a lot less farmland than the latest overpass design and would be an easier build than the overly complex St. Mary's project was. The project the province is proposing, an RCUT, simply does not make sense; if it did, the Perimeter would be getting them as well. Want to do it right, do it once and do it affordably? I hate to say it but, look south. Bob Haegeman St-Pierre-Jolys Is it reasonable to build a $100-million overpass for Highway 5, for a population of 1,800, at a cost of about $55,000 per person in that community, when there is a design that will make the intersection safe at one-fifth the cost? Robert Hill Winnipeg
