The Yukon's just-under 750 social assistance recipients could be seeing some major changes to their rates as early as next month.

This morning, Health and Social Services Minister Brad Cathers unveiled three major changes proposed for the system, including rate increases.

Before the cabinet approves the three recommendations coming out of a review of the system, however, the territory must consult with first nations and the federal Department of Indian and Northern Affairs (DIAND).

'It is a proposal at this point in time,' Cathers told a news briefing, adding he's asked first nations and Ottawa if they have any ability to expedite the process to do so.

The changes would see rates rise across the board, though the percentage increase varies, depending on what category a person falls in.

As an example, he pointed to the rates for a single person in Whitehorse.

Monthly increases would see food allowances go from $159 to $200, clothing from $56 to $70, incidentals from $40 to $50, shelter from $390 to $490 and utilities from a maximum of $400 to $439.

Another change, which Cathers argues would push the system well ahead of social assistance in other jurisdictions, would see changes to the earned income exemption.

Under the current structure, social assistance recipients can also work, with their pay being clawed back so they receive $1 for every $4 earned.

Recipients are taken off social assistance when their income reaches a maximum. Cathers did not have that maximum number available at this morning's news briefing.

The proposal would see a new structure, which would eliminate the three-month waiting period for the exemption when every dollar earned is clawed back, and allow recipients to keep $2 for every $4 earned.

There would be a three-year maximum period for the earned income exemption before recipients would be taken off social assistance (provided they don't meet the income threshold first), compared to the unlimited time period that exists now.

The move was done in an effort to encourage recipients to get back into the workforce and keep building their own financial resources so they can remain working.

The review found that almost 70 per cent of recipients have been in the system more than once, often because they don't have the money available for unforeseen major expenses such as vehicle or furnace repairs.

By its nature, the system compells dependency, the minister said.

'We believe it will make our system the best in the country,' Cathers said of the changes.

The other major reform announced today would see a reduction in red tape for the approximately 70 people in the system suffering from a severe disability who are unlikely to work.

The change means they wouldn't have to fill out the monthly paperwork they currently do to receive assistance. Instead, it would be a yearly process, saving them paperwork as well as administration costs, he said.

Depending on the consultation with first nations and DIAND, Cathers said, the changes could come into effect in December or January.

Another announcement made last month from the review of social assistance rates will see the child care subsidy climb.

Cathers said there will also be another announcement coming forward from the review in early December. He would not give out any detail on it except to say it will assist low-income families and will likely be implemented in January.

Unlike the three announcements today, he said, the upcoming initiative doesn't require consultation and is separate from the others.

It's expected the proposed changes announced today will cost the government $1.7 million.