P.E.I. Welfare Incomes Decline Due to End of Federal Carbon Tax Rebates

A recent report by Maytree found that social assistance incomes on Prince Edward Island (P.E.I.) either declined or stagnated in 2025. The main driver of this income loss was the discontinuation of federal carbon tax rebates, which ended in spring 2025. This 'carbon rebate gap' resulted in substantial losses for low-income households, who received more from rebates than they paid in carbon taxes.

According to the report, an unattached single individual living on social assistance drew a yearly income of $18,216 in 2025, a three per cent decrease compared to 2024. An unattached single individual with a disability drew $20,234 in 2025, a two per cent decrease from 2024.

The report found that the end of federal carbon tax rebates caused these decreases for both household types. Maytree calculated inflation using the Canada consumer price index (CPI), and values were calculated in 2025 constant dollars to account for it.