The Unity Labour Party administration has increased Public Assistance to EC$360 a month, EC$140 less than what the main opposition New Democratic has said it would pay out if it wins the upcoming general election.
Prime Minister Ralph Gonsalves announced the increase, retroactive to three months, in his Independence Day address on Monday, marking St. Vincent and the Grenadines’ 46th anniversary of independence from Britain.
He said the minimum pension paid by the National Insurance Service (NIS) will be raised to the same amount, with the government contributing the additional EC$40 for each of those 1,910 pensioners, until an actuarial review is done, as required by law.
He said there are 4,646 people on Public Assistance, a social welfare programme through which the government gives a monthly payout to poor and vulnerable people, including the disabled.
Before Gonsalves’ announcement on Monday, Public Assistance recipients who are less than 65 years old received EC$280 monthly while those older than 65 got EC$300.
The prime minister said that from December, all recipients will receive EC$360 a month.
He said this is in addition to the expanding menu of social safety net assistance, including housing, rents, food packages, lump sums for particular adverse events, and medical and pharmaceutical support.
“To assist in cushioning the expenditure for persons who are receiving Public Assistance, I will be backdating this increase from Sept. 1, 2025,” Gonsalves said.
“So, for a person receiving $280 a month in Public Assistance, his or her payment from December will be $80 more, but at the end of November, he or she will receive, in addition to his or her regular $280, a backdated lump sum of $240 — the additional $80 for each of the three months of September to November inclusive.”
He said this was a kind of public assistance Cost of Living Adjustment, similar to what he announced for other categories of Vincentians.
The increase in Public Assistance for the four months September to December will cost the Treasury EC$1.246 million, the prime minister said, adding that it will be EC$3.74 million annually.
Gonsalves noted that when he came to office in 2001, Public Assistance was EC$50 a month.
“We have increased it some six times before the latest round of increases and expanded the list to accommodate more persons, particularly the elderly, the infirm and the physically challenged who are in need.”
The prime minister said any government has to be alert to the difficulty of increasing the monthly cash payment of public assistance above the minimum monthly payments for the pensioners at the NIS.
The NIS minimum pension is determined following a periodic actuarial review, as required by law.
“Currently, there are 1,910 pensioners at the NIS who are on a minimum pension, out of nearly 10,000 pensioners overall on the NIS roll,” Gonsalves said.
These 1,910 pensioners received a minimum pension of $320 monthly.
“These would have contributed to the pension fund. So, it is unfair to them, having contributed to the national insurance pension fund, that they should get less than the non-contributory Public Assistance,” he said.
He said the people on minimum pensions rightly complain whenever Public Assistance payments exceed theirs.
The prime minister said he was correcting this until the next actuarial review, adding that in addition to the minimum NIS pension of EC$320 monthly, the government will pay through the NIS an additional EC$40 to bring the minimum pension to EC$360.
“Not only that, because I give the back pay for the non-contributory pension, I’m also giving the back pay of the $40 for the three months, so they will get an additional $120 in a lump sum to help them between September and November.”
The prime minister said the cost to the treasury for this support from September to December will be about EC$250,000.
“I have to say, for completeness, those who are on the NIS have some additional benefits, such as a funeral grant for the family of a pensioner.”
The prime minister also announced that his government will increase from EC$275 to EC$400 the monthly pay-out per foster child to foster families.
“I know somebody may be saying, ‘Well, I have space for three foster children, so I’ll get $1,200.’ But remember, the ministry will vet you to see that you’re an appropriate person to be a foster mother.”
He said there are currently 165 children in foster care, either with families or with mothers who are not families or in institutional care.
He said the government will backdate this increase to September.
It’s time to go Ralph. You’ve made a tremendous contribution towards develoning Vincy. But ,you’re out of ideas. I know for a fact Vincy would not have had an international airport under an NDP administration. Seemingly,because of the foundation you’ve laid,the NDP is ready to take Vincy to greater heights.
You’ve been divisive and have victimized thausands of Vincentians. NDP says they’ll end victimisation. Their intentions are noble. Friday comes across as a weak leader,however, if the NDP works as a team,much can be accomplished. The NDP has some cansidates who are in this thing for themselves. They’ve been in the wilderness for many yrs and would selfishly enrichen themselves, under the weak leader Friday. All this being said,NDP seems to have more ideas according to many of their pundits ,who are based overseas and don’t seem to have accomplished much of anything. Lots of time on their hands..they get money from their respective governments for their kids. Nice. These people want you out of the way,Ralph and truth be told, it’s time you go. NDP deserves a chance.