The New Brunswick government has stopped penalizing social assistance recipients who have roommates.

It has eliminated a decades-old policy that clawed back the benefits of low-income clients who live with someone else to pool their financial resources, Social Development Minister Kelly Lamrock announced Wednesday.

"I am pleased to announce that, since Jan. 1, clients in non-spousal relationships have been able to share accommodations with clients or non-clients and receive separate cheques," he said.

"Clients in spousal relationships will continue to receive one cheque for the household."

Lamrock had committed to change the province's household income policy last November, as part of sweeping changes to the social assistance system.

The new policy, which only applies to clients who were in receipt of assistance as of Jan. 1, represents a $5-million investment this fiscal year, he said.

It is an interim measure that will help existing clients economically until social assistance reform, including a significant overhaul of the household income policy, is complete in mid-2011, Lamrock said.

People who are currently applying for social assistance may also qualify for the exemption, he said.

Last month, the province increased the minimum social assistance rate to $537 from $286 a month.

In April 2009, more than 39,000 New Brunswick residents were living on social assistance, about 35 per cent of them children.