People on financial assistance will receive an increase as the rates have been changed to meet the high cost of living in Bermuda.

Minister of Culture and Social Rehabilitation, Dale Butler, announced the Department of Financial Assistance realised the current maximum rates on the Table of Allowable expenses were not meeting the needs of its clients as they were last amended January 2005.

The Financial Assistance Amendment Regulations 2008 will be published on Friday and will be effective from April 1 increasing the maximum monthly rates.

Mr. Butler said: "It is our view that the changes to the Financial Assistance Regulations will bring much needed relief. The Department of Financial Assistance is closely linked with the interests of its clients, and this Government is very sensitive to their needs. These increases are overdue, and we have no doubt that these overall and across the board increases will provide further assistance to our clientele."

The first example the minister gave was electricity. The current allocation for one to two people was $85 a month. That amount has been increased to a maximum rate of $150.

As the cost of rent has risen, the new rates are in line with the new costs of rent.

They have been increased based on an amount determined by rent control. Payment for a studio was $900 a month and has been increased to $1,400 while the rate for a one-bedroom apartment was $1,100 and has been changed to $1,800. The cost for home care for seniors and or disabled people has also been increased by $500. The department has added new line items or services such as podiatry, dental care, auditory exams and equipment for the hearing impaired.

The new regulations will also include ex-foster children who once they turn 18 are no longer provided for under the Children Act 1998.