Allan was raised in MacGregor, Manitoba, and was educated at MacGregor Collegiate. From 1990 to 1994, she was director of development for the Canadian Diabetes Association. She worked for the Manitoba Motion Picture Industries Association from 1994 to 1995, and then as a consultant for small business and non-profit organizations from 1995 to 1999. She has also taught two continuing education courses at the University of Winnipeg.
During her term as education minister, Allan introduced anti-bullying legislation: Bill 18, the public schools amendment act (safe and inclusive schools). Religious organizations criticized the legislation, claiming it infringed on freedom of religion by requiring faith-based schools to support the creation of gay–straight alliances if initiated by students. The federal Minister of Public Safety at the time, Vic Toews, said that he believed the bill violated the Canadian Charter of Rights and Freedoms.[2] The bill passed into law in September 2013.[3]
On October 18, 2013, Nancy Allan was removed from the post of education minister by Premier Greg Selinger.[4]