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Yukon government cuts Pioneer Utility Grant for high-earning seniors

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The Yukon government is "modernizing" its Pioneer Utility Grant, cutting the subsidy for Yukon seniors who don't need it.

The grant, which pays Yukon seniors just over $1,000 a year to subsidize winter heating costs, has become more popular than ever, leading to necessary restrictions, according to the Mike Nixon, the territory's minister of social services.

"In Yukon, especially, our seniors population is certainly increasing," said Nixon, "so it's not necessarily about cost savings up front, it`s more about the sustainability of the program."

Under the program's new guidelines, applicants will now be income tested on a sliding scale. Grants will be pro-rated for seniors with incomes over $40,000, while individuals earning more than $117,000 won't qualify at all. Couples with combined incomes over $165,000 are also ineligible for the grant under the new rules.

"It will be very few," said Nixon. "I believe we can count on two hands, probably, the number of seniors who make over $117 thousand."

The Pioneer Utility Grant cost the Yukon Government almost $2 million last year. Applicants must be 65 years of age, and prove residency in the territory for at least 3 months of the winter.