The provincial government says a new cap on some people who receive income support benefits will result in significant savings as some community groups worry about who could be left behind.

This year’s budget introduces a maximum six-month duration on Income Support Expected to Work clients “who are not meeting program obligations, with exemptions where appropriate.”

The program offers financial assistance for people who are between jobs.

“Clients who fail to meet base program obligations will be limited to six months of support, with exemptions where appropriate — for example, if a client is assessed as having barriers to work,” said Amber Edgerton, press secretary for Assisted Living and Social Services, in a statement.

According to the budget, the change is expected to save $44 million in 2026-27, with savings to increase to $177 million by fiscal year 2028-29.

Edgerton said the program is meant to offer “short-term support for Albertans who are in-between jobs, with the expectation that clients are actively seeking employment and are taking the steps as outlined in their action plan.”

The budget also includes nearly $247 million invested into career and employment services, up $60 million from last year, with the goal of supporting client case management and employment services.

The province said its “increased investment in employment services and more intensive case management support will help clients re-attach to the labour market and achieve financial independence.”

More than 40,000 clients are currently enrolled in the Income Support Expected to Work program, according to the province.

The province said it doesn’t expect a large number of clients to exceed the six-month cap and will offer exceptions where appropriate.

Still, the decision is being met with concern.

Michelle James, director of policy with anti-poverty organization Vibrant Communities Calgary, said “six months is not a very long time” for many of the program’s clients.

“We understand it’s a tough budget and, as the minister said [in his budget speech], tough choices have to be made,” James said. “[But] we believe it’s critical that those living in poverty still have access to the financial assistance that helps them meet their very basic needs.”

Workers’ Resource Centre executive director Carolyn Krahn said the province should be “cautious against adopting a one-size-fits-all model for evaluating this Expected to Work category.”

She said that means taking into account the barriers faced by clients, whether that’s health conditions or housing instability, before making any decisions on those cases.

“I’m not entirely convinced that this program will necessarily reduce the number of people on income support,” Krahn said.

Instead, she believes it may lead to the province reassessing some clients as eligible for different income support programs, like Assured Income for the Severely Handicapped (AISH) or the new Alberta Disability Assistance Program, which launches this July.

Income support pilot project

In its 2024-25 annual report, Assisted Living and Social Services outlined a pilot project launched in August 2024 aimed at supporting the cases of approximately “1,178 long-term income support recipients in Calgary.”

Those recipients were registered for mandatory job hunting workshops and given action plans to find a job within 60 days.

According to the report, about 34 per cent of the clients had circumstances that prevented them from holding a job.

As of March 31, 2025, 351 case files were closed as of March 2025. Only about 20 per cent of those clients got jobs, with the remaining 80 per cent closed for other reasons, including transitioning to other support programs or not complying with the rules.

Budget 2026 forecasts Alberta’s employment growth to go down to 1.9 per cent this year and peak at two per cent in 2027, down from 2.8 per cent growth in 2025.