Social Development Minister Kelly Lamrock says \Social Development Minister Kelly Lamrock says "basic human decency" required an increase in social assistance rates. (CBC)

The minimum social assistance rate in New Brunswick has been increased to $537 from $286 a month, the provincial government announced Friday.

Social Development Minister Kelly Lamrock told the house Friday that the increase was effective as of Jan. 1.

"As we remember what other countries who have far less than we do are going through, it's always worth remembering that we are blessed enough that nobody has to have less than they need to live on," he said, alluding to the earthquake in Haiti.

"We could do better than letting people live on $286 a month. No matter our challenges, our blessings and our basic human decency meant we owed each other more."

The most recent figures available show that in April 2009, more than 39,000 New Brunswick residents were living on social assistance, about 35 per cent of them children.

Lamrock announced the increase on Nov. 13, along with other sweeping changes to the social assistance system, as part of a new poverty-reduction plan.

Under the changes, people on social assistance will also be able to live with a roommate without having their benefits clawed back.

Health-care cards, which help pay for prescription drugs, dental and vision care, will also be extended for up to three years for those people on social assistance who find work.

The plan — Overcoming Poverty Together: The New Brunswick Economic and Social Inclusion Plan — is expected to cost up to $30 million over five years.

A 2008 report by the National Council of Welfare found New Brunswick paid the lowest amount by far to single, employable adults in 2007 — $3,258 a year. That rate would have to double to reach the average in the Atlantic provinces, the report said.