Service Nova Scotia: We provide heating rebate options, government makes decisions

Service Nova Scotia officials say they provide program options for the provincial heating assistance rebate and government decides which option to go with.

“We are very proud of this program,” Joanne Munro, deputy minister of Service Nova Scotia, said in wrapping up a public accounts committee meeting Wednesday morning.

“As of Jan. 8, we have received nearly 126,000 applications, our staff have worked very hard, particularly over the holidays, to process as many applications as possible so people get their rebates.”

Munro said the department is working to make it easier for people to apply.

“We know many Nova Scotians are struggling with the increased cost of living and we’re working to ensure this rebate is delivered as quickly as possible to those who qualify.”

The amount of the rebate and the qualification threshold are issues that concern struggling low-income Nova Scotians and people who advocate on their behalf.

In December 2022, the Tim Houston-led Progressive Conservative government responded to the significant needs of Nova Scotians by announcing an additional $100 million investment for HARP to provide for a one-time rebate increase for the 2022-23 heating season of $1,000, up from the $200 maximum rebate that had been in place.

The government in December 2022 also expanded the income eligibility, increasing it to an $85,000 household income from the previous $29,000 threshold for a single-person household and $44,000 for a multiple-person household. Those maximums and application thresholds had existed since the program was introduced in 2009.

Clawed back

But the $85,000 threshold and $1,000 maximum rebate were slashed significantly this past October, with the maximum rebate dropping to $600 and the income eligibility thresholds moving to $75,000 for a family and $55,000 for a single-income household, whether they owned or rented.

Opposition MLAs serving on the public accounts committee asked department witnesses how they could justify a 40 per cent decrease year over year in the maximum heating rebate, coinciding with a time of skyrocketing cost-of-living burdens. 

“We understand that many Nova Scotians are challenged with the affordability crisis and energy costs,” Munro said. “We certainly review the program annually. The $1,000 last year was offered as a one-time boost during a very difficult time and we’re still in a very difficult time, I do get that, and Nova Scotians are struggling.”

Munro said the job of department staff is to provide program options for the government to consider.

“I can say that the $600 (this year) is a one-time … but it is three times what it has been for 17 years prior to that,” she said.

Munro said department staff provided every plausible option for the support levels in the program for this year, including maintaining the $1,000 rebate.

“At the end of the day, we provide options and government needs to make the decision, which they have,” she said. 

‘Know the pressures’

The premier told reporters in October after the HARP adjustments were announced for this heating season that such decisions are not easy to reach.

“We know the pressures that people are under,” Houston said at the time. “We have to remember that this was a $200 program that we moved up to $1,000 and we changed the threshold around it. We did that significant increase and, of course, this year, it’s $600, which is obviously significantly more than it was before we started with the increase.”

Houston said the government is doing what it can to make sure people can keep the heat on this winter.

“We always want them (rebates and supports) to be higher and higher and higher but we have to be conscious of the financial capacity of the government,” the premier said. “We have to try to reach as many people as we can with as much as we can.”

Munro said analysis from last year with the $1,000 rebate and the $85,000 eligibility threshold showed that applications dwindled sharply at the $75,000 income mark.

“That was helpful for us to understand where in the threshold we (can) maximize our help to Nova Scotians,” Munro said. 

Like government, Munro talked about other affordability programs available to Nova Scotians, including the seniors care grant, heat program for emergencies and others.

Clear communicaitons

Brendan Maguire, the Liberal MLA for Halifax Atlantic, said Nova Scotians who received the $1,000 last year expected the same amount this year and budgeted accordingly.

“It’s year to year, when we are setting up the $1,000 rebate, we can’t say it’s going to be $600 next year,” replied Rodger Gregg, executive director of Service Nova Scotia.

“We were very clear in our communication that this was a one-time, it was a bump up, especially where it happened mid-program … we did a lot of work to be able to get bump ups to people who had already received their rebates.”

Gregg said the department reaches out to previous recipients directly to try to get them to reapply the following year.

Munro said as of Jan. 8, 125,783 Nova Scotians had applied for this year’s rebate, including 41,000 first-time applicants. Of that number, 111,000 applications have been processed with 103,920 applicants approved.

The New Democratic Party issued a news release before the hearing, saying numerous Nova Scotians are still waiting for the HARP help they applied for and desperately need.

“The lack of compassion and attention to these issues is heartbreaking,” NDP Leader Claudia Chender said in the release. 

Delays, cold homes

“We already had concerns over the Houston government’s decision to cut back who was eligible for HARP and the reduction in the amount people will receive,” Chender said. “Days before Christmas, we heard that people haven’t even received the money in the time they expected. These delays would have meant a lot of cold homes and heartache over the holiday season.”  

The department estimated there would be about 135,000 applicants this year but received 80,000 applications in the first week when the program opened in October. Munro said the sheer volume of applicants has resulted in some processing delays, adding that some applications can be approved quickly when all information is filled in properly. 

“Other times our staff may need to follow up,” she said.

“We do some temporary hiring for programs like HARP,” Munro said, adding that three dozen temporary hires came on board to process this year’s applications.

“With staffing challenges and the volume, that did lead to processing delays, which none of us like to have,” Munro said.

Munro said the department strives to meet the eight-week service standard for processing and application turnaround. 

“It was longer than we wanted but we took action, we cross-trained people, we offered overtime and weekend work and they worked very hard over the holidays to process as many applications as we could. We need to get the dollars out the door and we’ve been very, very efficient over the years.”

She said close to 90 per cent of the applications received have now been processed.

Gregg said the program had traditionally paid out 44,000 to 45,000 rebates each year from October to March. There were 155,000 applicants last year, with the $1,000 rebate offered, and the program budget went from $10 million up to about $155 million during the 2022-23 heating season. The current budget is $82 million.

“We do really, really encourage people to apply online,” Munro said. “It’s simple, fast, easy and they get their rebate quicker than doing the paper route.”

The deputy minister said 80 per cent of applications are now submitted online.