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Poverty Free Ontario

Poverty Free Ontario has written 76 posts for Poverty Free Ontario

Now is the time to tackle Poverty in Ontario

Hope you will consider sending a letter to your MPP with copies to the Premier and Opposition Leaders via the following link urging anti-poverty action as the 2013 Ontario provincial budget negotiation process unfolds. Please share with your friends and networks.

http://e-activist.com/ea-action/action?ea.client.id=1734&ea.campaign.id=19624

Inequality is taking a deeper hold in Ontario, despite a promise by our political leaders to address poverty. Please urge our political leaders to keep their word.

PFO Bulletin #11 – PFO’s Six Point Plan for Action on Poverty Eradication

A Good Faith Start to a Social Justice Agenda:

Prior to her election as Leader of the Ontario Liberal Party and becoming the new Premier of Ontario, Kathleen Wynne declared that she wanted to be known as the “social justice premier”.   This statement raised some hopes and expectations among community advocates for low income people for serious action on social assistance reform and the minimum wage.

Since assuming leadership of the Government, Premier Wynne has not been very specific about her social justice agenda. The Throne Speech in March included only a few brief references to affordable housing and several recommendations in the recent social assistance reform report by Commissioners Lankin and Sheikh.  Besides generally referring to interest in helping social assistance recipients move into employment, the only specific recommendation that the Premier has expressed an interest in acting on is the $200 per month earnings exemption for social assistance recipients with working hours before implementation of the clawback on their earnings.

Neither has either opposition party leader has shown any greater interest in serious social justice action to this point. Mr. Hudak’s policy proposals harken back to the worst visions of workfare and punitive practices of the Mike Harris days.  Ms. Horwath has shown no inclination to go beyond the earnings exemption recommendation in her negotiation on the spring provincial budget with the Premier.  Social justice for the most vulnerable is searching for a champion among our political leadership in Ontario.

It has been almost five years since the social assistance reform was announced as one of the cornerstones of the Government’s Poverty Reduction Strategy.  Such lengthy research, consultation and study were not required for an earnings exemption to be the only specific measure under consideration.

The budget to be delivered in April offers an opportunity for the Premier to show “good faith” in her expressed intention to be the “social justice premier” for all Ontarians.  To that end, Poverty Free Ontario invited Premier Wynne to meet with PFO delegates from across Ontario for a discussion of their proposals for a social justice agenda.  Sadly, the Premier’s Office has not formally acknowledged nor responded to the invitation.

Still, more than 100 PFO leaders from more than 20 communities all across Ontario came together in Toronto for a day on March 8.   They discussed and endorsed the following Six Point Plan for a Social Justice Agenda:

  1. Increase the Basic Needs Allowance by $100/month for OW and ODSP recipients as the first step towards adequacy in social assistance rates.
  2. Index OW and ODSP rates, starting immediately, to keep up with the annual inflation rate.
  3. Ensure that all increases to social assistance or changes arising from the proposed integration of the current programs do not lead to any reductions in basic needs and housing allowances for persons currently receiving ODSP and Ontario Works, or to cuts in benefits such as the Special Diet Allowance or the Disability Worker’s Benefit.
  4. Introduce an earnings exemption for social assistance recipients with working hours so that a 50% clawback on earnings does not apply on at least the first $200/month earnings, and preferably not on the first $500.[1]
  5. Commit to the principle that the minimum wage should ensure a full time, full year worker earns an annual income 10% above the Ontario Income Poverty Line [LIM 50], and to an implementation plan that will achieve that goal.
  6. Index the minimum wage immediately to keep up with the annual inflation rate.

The PFO community leadership assembled on March 8 asked that invitations be made to the Premier and Opposition Leaders for meetings with a cross-community PFO delegation prior to the budget to discuss a social justice agenda based on the preceding Six Point Plan.   

For further information contact:

Peter Clutterbuck, SPNO Coordinator
(416) 653-7947   cell (416) 738-3228
pclutterbuck@spno.ca
Web site: www.povertyfreeontario.ca


[1]It is fitting to footnote here that Commissioners Lankin and Sheikh’s recommendation for the $200 earnings exemption in their report actually proposes that the clawback on additional earnings be increased from the current 50% to 57% — not indicated in the body of their report but in footnote #46 on page 73, reducing the benefit to recipients of even this minimal measure of reform.

PDF Version of Bulletin #11

Fair Ontario Still a Faint Hope for People in Deep Poverty

MEDIA RELEASE

For Immediate Release:
4:00 PM, Tuesday, February 19, 2013

Ontario Speech from the Throne

Fair Ontario still a faint hope for people in deep poverty

Community leaders and groups across Ontario calling on the new Premier for action on a social justice agenda to improve the living conditions of more than 1.6 million Ontarians living in poverty were offered faint hope in today’s Speech from the Throne. Reference to recommendations for social assistance reform by Commissioners Frances Lankin and Munir Sheikh did not even make the Summary of Highlights posted at the front end of the speech. http://www.premier.gov.on.ca/home/index.php

Poverty Free Ontario (PFO), a province-wide network of individuals and organizations in 25 communities across Ontario, advocates for a provincial government commitment to end the deep poverty experienced by Ontarians living on social assistance and to end the working poverty of people earning the minimum wage.

The new Government under Premier Wynne’s leadership states its commitment to implement recommendations in the Lankin and Sheikh report to help people find employment and to introduce an unspecified earnings exemption for social assistance recipients before benefits are clawed back.  The Government will make a special effort on supporting youth job creation.  The Speech also recognized the need for affordable and secure housing.

“These measures are not unimportant, but we hope they are only the first glimmers of the Premier’s social justice agenda,” says Peter Clutterbuck, PFO Coordinator, “We were really hoping to see some evidence of the Government’s intention to introduce the $100/month increase in benefits to people on social assistance as also recommended by Commissioners Lankin and Sheikh. A fair society cannot tolerate so many of its members experiencing monthly cycles of hunger and hardship at great cost to their health and well-being.”

“We remain hopeful that the Government’s first budget will more strongly reflect the social justice mission that the Premier has espoused,” adds Clutterbuck.

Poverty Free Ontario is an initiative of the Social Planning Network of Ontario (SPNO) working with local community groups across the province www.povertyfreeontario.ca

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Media Contact:

Peter Clutterbuck, SPNO,
416-738-3228 and 416-653-7947
pclutterbuck@spno.ca

PFO Media Release Feb. 19 2013 (PDF)

Poverty Free Ontario Reminds Wynne of Her Commitment to Social Justice

In a letter to Premier‐designate Kathleen Wynne, Poverty Free Ontario encourages Wynne to fulfill her promise as the “social justice” premier.

Click HERE to read the full letter sent to Kathleen Wynne on behalf of Poverty Free Ontario and anti-poverty advocates representing groups and organizations in more than 20 communities across the province.

The mission of Poverty Free Ontario is to eliminate divided communities in which too many adults and children live in chronic states of material hardship, poor health and social exclusion. An Ontario free of poverty will be reflected in healthy, inclusive communities with a place of dignity for everyone and the essential conditions of well‐being for all.

Eric Hoskins: Increase Minimum Wage to Tackle Working Poverty

“A healthy economy leaves no one behind”

Dr. Eric Hoskins, MPP for St. Paul’s and Ontario Liberal leadership candidate, launched his policy platform on Monday, December 17 with a luncheon talk at the Economic Club of Canada in Toronto. In his speech titled “A Prescription for a Healthy Economy,” he asserted that “a healthy economy leaves no one behind.” (see http://ericforleader.ca/ for his full address).

Dr. Hoskins laid out a five point program in his prescription:

  1. Transforming the health care system to get “better care for less money”.
  2. Mandating a new Metrolinx regional authority to develop and implement a 20 year transportation infrastructure plan based on The Big Move.
  3. Job creation focusing on targeted programs for youth employment and integration of skilled newcomers into the economy.
  4. Rural and northern economic development (Respect for Rural Ontario) through measures such as access to hi-speed internet and gas revenue funded infrastructure development.
  5. Tackling poverty through implementation of the key recommendations of the recent Social Assistance Review Commissioners Report, fully implementing the increases to the Ontario Child Benefit and increasing the minimum wage so that a full-time worker would earn enough to escape poverty.

Dr. Hoskins expressed support for the “key recommendations” of the Social Assistance Review Commissioners’ report recommendations, although not specific in terms of the $100/month rate increase. He did indicate that he supported integration of the OW and ODSP caseloads for a “one-stop shopping” approach and the Pathways to Employment model for helping people on social assistance move into employment, which remain subjects of much community debate.

It is notable, however, that Dr. Hoskins made a specific commitment to raising the minimum wage so that no full-year, full-time earner would live below the poverty line, clearly recognizing the imperative of ending working poverty in a healthy economy that leaves no one behind.

Dr. Hoskins did not refer in his talk to the impending cuts and changes to the Community Start-Up and Maintenance Benefit program, which threatens the health and well-being so many social assistance recipients across the province.

The inclusion of tackling poverty in his policy platform raises it to a prominence that has waned since the 2008 poverty reduction strategy. There is room for Dr. Hoskins to even further develop his anti-poverty platform. But, the question is where is the rest of the Liberal leadership field on ending deep and working poverty in Ontario with clear and specific measures?

Eric Hoskins: increase minimum wage to tackle working pvoerty

 “A healthy economy leaves no one behind”

 

Dr. Eric Hoskins, MPP for St. Paul’s and Ontario Liberal leadership candidate, launched his policy platform on Monday, December 17 with a luncheon talk at the Economic Club of Canada in Toronto. In his speech titled “A Prescription for a Healthy Economy”, he asserted that “a healthy economy leaves no one behind.” (see http://ericforleader.ca/  for his full address).

 

Dr. Hoskins laid out a five point program in his prescription:

1.      Transforming the health care system to get “better care for less money”.

2.      Mandating a new Metrolinx regional authority to develop and implement a 20 year transportation infrastructure plan based on The Big Move.

3.      Job creation focusing on targeted programs for youth employment and integration of skilled newcomers into the economy.

4.      Rural and northern economic development (Respect for Rural Ontario) through measures such as access to hi-speed internet and gas revenue funded infrastructure development.

5.      Tackling poverty through implementation of the key recommendations of the recent Social Assistance Review Commissioners Report, fully implementing the increases to the Ontario Child Benefit and increasing the minimum wage so that a full-time worker would earn enough to escape poverty.

 

Dr. Hoskins expressed support for the “key recommendations” of the Social Assistance Review Commissioners’ report recommendations, although not specific in terms of the $100/month rate increase.  He did indicate that he supported integration of the OW and ODSP caseloads for a “one-stop shopping” approach and the Pathways to Employment model for helping people on social assistance move into employment, which remain subjects of much community debate. 

 

It is notable, however, that Dr. Hoskins made a specific commitment to raising the minimum wage so that no full-year, full-time earner would live below the poverty line, clearly recognizing the imperative of ending working poverty in a healthy economy that leaves no one behind.

 

Dr. Hoskins did not refer in his talk to the impending cuts and changes to the Community Start-Up and Maintenance Benefit program, which threatens the health and well-being so many social assistance recipients across the province. 

 

The inclusion of tackling poverty in his policy platform raises it to a prominence that has waned since the 2008 poverty reduction strategy.  There is room for Dr. Hoskins to even further develop his anti-poverty platform.  But, the question is where is the rest of the Liberal leadership field on ending deep and working poverty in Ontario with clear and specific measures?

The 8th Day of Action to Stop Wage Theft

12 days of actionToday is the 8th Day of Action in the Workers Action Centre’s campaign to Stop Wage Theft against Ontario’s most vulnerable workers.

At the link following, you will find Agripina’s story. She recounts how she had to go to the Ontario Labour Relations Board to win $8,000 owed to her by her employer.

At the bottom of the page on this link, there is an email set up to send a message to the Minister of Labour demanding action to enforce protection for workers against the kind of experience that Agripina had.

http://www.workersactioncentre.org/12-days-of-action/

SPNO is sponsoring this 8th Day of Action in support of WAC’s campaign to Stop Wage Theft.

We urge you to send a message to the Minister and to promote similar action today throughout your organization and your local community networks.

The holiday season will be happier for all Ontarians when all workers receive a fair return on their labour.

 

PFO Bulletin #10 – Final Report on the Social Assistance Review: Limited Improvements, Serious Concerns

Commissioners Frances Lankin and Munir Sheikh released their long-awaited report Brighter Prospects: Transforming Social Assistance in Ontario on October 24, raising both hopes and anxieties in the community that received it. The Report proposes a major restructuring of social assistance, funded mostly by eliminating existing benefit programs in the short-term and proposed internal administrative savings in the longer roll-out, including a projected decrease in the disability caseload from 5% to 3% a year.

Poverty Free Ontario (PFO) and its community partners across the province have consistently advocated to the Ontario Government for an end to deep poverty for people on social assistance and an end to working poverty for low income earners.  PFO has urged the Commissioners to support those commitments since they assumed their task in early 2011.  While long-term social assistance system reform may be undertaken, PFO has stressed the urgency of implementing immediate action to improve the material living conditions of low income people, given that research shows they have a significantly higher incidence of death, suicides and chronic illnesses than the population as a whole (Wellesley Institute, 2008).

The Commissioners have recognized that current benefit levels to people on social assistance are inadequate and recommend a rate increase that, if implemented now, would provide some improvement in the living conditions of social assistance recipients.  The overall thrust of their report fails, however, to address the structural conditions that maintain currently high poverty levels in Ontario, and, in a number of ways, presents serious risk to the most vulnerable part of the social assistance caseload, persons with disabilities.

Several Income Improvements Proposed

There is no question that the Commissioners’ mandate was undermined by Government action in recent years to cut and reduce programs and benefits to people on social assistance (PFO Media Release, Oct. 25). These Government measures were severe enough that the Commissioners’ resolve to continue their work is admirable.  Since the 2011 provincial election, an austerity agenda introduced via the Drummond Report and the 2012 Ontario Budget has only further constrained the climate for serious positive change.

The Commissioners do recommend some measures that could make some difference in the lives of social assistance recipients if implemented now.

  • The Commissioners state that current benefit levels are inadequate to meet daily living costs and acknowledge the work of the Put Food in the Budget campaign (PFIB) and municipal council support across the province in calling for an immediate $100/month increase to all single adult recipients as a “down payment” on adequacy.[1]  At a cost of $770 million, this would be the first real income increase for people on social assistance since the 22% rate cuts in 1995. Regrettably, the Commissioners recommend that part of the cost of that increase be paid for by eliminating most of the Special Diet Allowance (SDA, $200 million) and a work-related benefit for people with disabilities ($30 million).
  • The Commissioners propose that recipients be allowed $200 in an earnings exemption above their monthly benefit before a withdrawal rate of 50% on additional earnings applies. With existing federal and provincial tax credits ($1,076) and the maximum earnings allowance ($2,400), a single adult’s annual income could reach $11,776, still in deep poverty at only 60% of the income poverty line, but a significant increase over the current benefit level.
  • The Commissioners recognize that the creation of a single standard benefit rate can negatively affect the income position of certain parts of the caseload (disabled persons under different living conditions) and recommend “grandparenting” for these situations. This provision is explicitly not recommended, however, for disabled people on SDA, who have a higher incidence of medically-related food deficiencies.
  • The Commissioners propose raising the asset limits allowable for OW recipients to the same level as ODSP recipients ($6,000 for singles and $7500 for couples), and allowing up to $60,000 asset exemption for RESPs for the children of recipients.

The following summarizes PFO’s major concerns with respect to the Report’s provisions for major transformative and structural reform of social assistance.

Propose a Minimal Subsistence Standard for Adequacy

Although the Commissioners agree that adequacy is an issue for people on social assistance, PFO has serious concerns about their perspective and approach to adequacy in a “transformed and restructured’ system. They dismiss the Low Income Measure (LIM, 50% of median income) as the benchmark for adequacy and propose a new “Basic Measure of Adequacy” (BMA), which is a subsistence measure that returns to the charity standard of a bare minimum.

The Commissioners’ dismissal of the LIM as an income measure for adequacy is specious. LIM is a measure of income deficiencies.  Both the United Nations and the European Union recognize 50% of median income as a minimum level for low income people to meet their basic living conditions and to participate in community life.  The LIM is a measure of inadequacy, not just income.

The table following compares the proposed BMA for a single person and sole parent with one child compared to the Low Income Measure, which the Ontario Government adopted as its official income poverty line in its Poverty Reduction Strategy in 2008.

 

Recipient

 

Basic Measure of Adequacy

(Proxy for Ontario, 2011)

Low Income Measure (adjusted to 2011)

Official Ontario Income Poverty Line

 

BMA as Percent of Official Income Poverty Line (LIM)

Single Adult

$13,710

$19,490

70%

Single parent with child

$19,380

$27,286

71%

The proxy BMA for Ontario used by the Commissioners in their report would keep both a single person and a single parent with one child at about 70% of the LIM, Ontario’s official income poverty line.  While the BMA would alleviate the income situation of recipients from their current depth of poverty, as a long-term measure of adequacy it would still condemn them to lives of hardship in deep poverty below 80% of the LIM.

It is a serious concern that in converting social assistance into a system that measures recipients in terms of their “distance from the labour market”, the Commissioners have sacrificed the notion of the suffering and hardship experienced by their “distance from the poverty line”.  Surely, this is the true measure of minimal adequacy in terms of both employment earnings and income supports.

Risks in a Standard Rate with “Building Blocks”

The Commissioners propose a basic standard benefit rate for social assistance recipients modified for persons sharing living accommodations (86% of the combined standard rate) with income supplements for health, disability and sole support parenthood outside the social assistance system and available to all Ontarians on low incomes.

While the Commissioners’ wish to simplify the system is understandable and their consideration of the needs of low income working people is admirable, there are risks involved in this approach that should be recognized.  People on social assistance have often been denied access to benefits when they are made available to a broader population, such as the claw-backs that occurred with implementation of the National Child Benefit in the 1990s.  There is legitimate concern that adjusting the basic rate in a way that establishes a lower standard and includes supplements for certain conditions creates more opportunities for targeted cutting or for introducing supplements in a way that do not necessarily ensure families that the “building blocks” will leave them better off than when they received a benefit based on family size.  Notably, when the Ontario Child Benefit was introduced to “take children out of the social assistance system”, the Basic Needs Allowance for parents on social assistance was reduced by the same amount (Human Dignity for All presentation, slide 11, 2011).  The OCB then became the target for austerity in the 2012 Budget when the Government decided to delay its implementation for two years.

Safeguards will be required to ensure that the standard base rate does not become just a floor of inadequacy for a set of income supplements that may be subject to variable Government commitment to maintain.  This is one of the reasons that PFO and PFIB have always argued that the $100/month Healthy Food Supplement should be incorporated into the Basic Needs Allowance rather than be separately administered, which the Commissioners have adopted in their recommendation for the rate increase.

Institutionalizing Divisive Trade-offs Among Low income People

In PFO Bulletin #9, we expressed concern about the trade-offs that the Commissioners were proposing in their Discussion Paper (February 2012) for setting a benchmark for social assistance rates.  The Commissioners now propose to institutionalize these trade-offs in terms of finding a satisfactory balance among three objectives: adequacy, fairness between social assistance recipients and low income working people, and a financial incentive to work.

Although the Report recommends removing the distinctions between OW and ODSP recipients into one harmonized pool, it wishes to retain the separation between people on the system and the working poor, when both have the same interest – access to incomes allowing stable and decent living conditions.  The balancing “trade-offs” test not only perpetuates the myth that the interests of social assistance recipients and working poor people are in conflict with each other, but it would also institutionalize this division in the restructured and transformed social assistance system.  This approach in no way challenges the Government nor the larger public to assume a moral responsibility to commit to both benefit rates and minimum wages at levels that ensure decent living conditions for all people in the bottom 30% of incomes.

The discussion of the minimum wage as a “reference wage” for determining fairness also raises concern. Referring to the upcoming review of the minimum wage, the Report argues that changes in the minimum wage should be linked to “Ontario’s economic performance, labour market conditions, and earnings distribution.” PFO contends that a true benchmark of adequacy for low income earners is an hourly minimum wage ensuring that a full-time, full-year worker earns enough to live out of poverty.

PFO continues to call for Government to set a decent floor for living conditions for all low income people in Ontario, which means:

  1. Social assistance rates that bring all recipients above 80% of the official Ontario income poverty line (i.e. out of deep poverty);
  2. Raising the minimum wage to $12.50 by 2014 so that all full-time, full-year workers earn income that would bring them 10% above the poverty line.
  3. Setting the clear objective of creating labour market conditions and job opportunities that establish a “living wage” as the true benchmark of an inclusive, healthy and equitable society.

“Embracing Workfare”?

Commenting on the Social Assistance Review, Toronto Star columnist Martin Regg Cohn (October 25) writes that the Commissioners “have implicitly embraced the once controversial goal of workfare (where possible).”  This is a disturbing conclusion for a policy journalist to come to in his analysis of the recommendations of the Social Assistance Review.

PFO does not believe that the Commissioners have any resolve to compel social assistance recipients to work for their benefits at rates well below the minimum wage, which is the truest definition of workfare. Still, Regg Cohn’s commentary illustrates the clear thrust of the Report’s recommendations towards moving people aggressively off of social assistance and into the labour market, albeit with supports. Indeed, the clear benchmark for success for all recipients is to close or at least reduce their “distance from the labour market”.  They very clearly see labour force attachment as the primary route to social assistance reform.

PFO agrees that gainful employment is the preferred way for low income people to meet their living requirements and participate fully in community life when circumstances allow them to join the workforce.   There is a concern, however, that the Commissioners’ focus on employment overemphasizes reducing the social assistance caseload and associated costs rather than ensuring recipients move into stable, decent jobs. For example, the proposed performance and accountability measures for employment services provided by a mix of public, private and non-profit providers would emphasize caseload reductions and successful labour force attachment, which will require careful vigilance against “creaming” the most job-ready candidates and safeguards against short-term job placements that don’t hold.   Managing, monitoring and evaluating progress on moving recipients aggressively into employment may well consume much of the administrative savings that the Commissioners suggest will be generated by a transition from a “surveillance” model to pay for a highly individualized labour force attachment model.

The Commissioners acknowledge the poor job market and the prevalence of precarious versus sustainable employment opportunities in today’s economy.  They have established some key relationships with the business community and indicate the readiness of a number of corporate leaders to assist with promoting the hiring of people from the social assistance caseload, including persons with disabilities.  The Commissioners think that the restructured system in addition to supporting recipients with employment training and other services should also be more responsive to the needs and requirements of employers in preparing people for the job market.

Social assistance and an integrated employment and human services support system will be expected to ensure that individualized Pathways to Employment plans are prepared and implemented for all recipients. Responsiveness to the needs and requirements of the labour market as identified by employers is also expected at the same time as a panel of corporate leaders works to create understanding and readiness in the business community for hiring and employing people ready to leave social assistance.

A key question remains, however, with respect to the quality, stability and decency of the jobs that will be available to people ready to exit social assistance.  PFO wonders as well whether the engaged business community will be as ready to support measures of adequacy for people at the low end of the labour market. For example:

  • Would the business panel support a minimum wage at a level that would ensure a full-time, full-year worker earns an income that brings her/him out of poverty?
  • Would the panel promote and contribute to job creation that establishes “living wages” as the desirable standard for employment in any community?

Most Vulnerable at Highest Risk

It is not surprising that the ODSP Action Coalition, advocating for people with disabilities on social assistance, has expressed grave reservations about parts of the Social Assistance Review Report. PFO shares those concerns.

Integration and harmonization of systems always carries greater risks of lowering the bar of benefits to the lowest common denominator than raising those at the low end towards the higher end.  People on ODSP have been recognized as having higher living costs as a result of their limiting physical or mental conditions, which has been traditionally recognized in terms of a higher Basic Needs Allowance than people on Ontario Works.  Even when the Harris Government cut OW by 22% in 1995, it froze but did not cut the ODSP rate.

In terms of the impact of even the modest improvements that the Commissioners recommend in the short-term, the real costs would be borne by part of the ODSP caseload.  ODSP recipients would receive a disability supplement on top of the new standard rate so that they would not during transition to an integrated system be worse off than what they currently receive. But, it is proposed that the $100/month increase in the standard rate to all recipients be paid for partially ($200 million) out of the elimination of Special Needs Diet, which a higher proportion of persons with disabilities count on for medically necessary nutrition. Plus, another $30 million of the rate increase cost would come from elimination of a work related benefit to persons with disabilities.  The Commissioners explicitly recommend that these income losses not be avoided through supplements nor that current SDA users be grandparented to continue receiving their medical nutrition benefit ($100-$250/ month).  The net result for many ODSP recipients will be a significant reduction in monthly income.

With this start to social assistance reform, people on ODSP are well-advised to be cautious about how transformation of the system will improve their living conditions in the long run.  There are not many targets set in the Commissioners’ Report but one clear objective is to reduce the increase in the ODSP caseload from 5% to 3% a year and there are clear savings projections made from moving people with disabilities off of social assistance into employment.

This is a sensitive area, which the Commissioners acknowledge.  Many people with disabilities on the system want to and can work with support on a full-time or part-time basis.  But the aggressive push to labour market attachment raises anxieties about narrowing the definition of disability and unreasonable expectations that threaten the loss of eligibility should recipients show any reluctance or perceived “non-compliance” with the Pathways to Employment planning process.  Plus, there is some anxiety about transferring administration of the social assistance system to the municipal level, since ODSP has been administered at the provincial level.

In many ways, the most vulnerable part of the social assistance caseload is assuming the highest risks in the proposed transformation of the system.

Conclusion

In the end, the Commissioners’ Review is just a report. There remains no Government commitment to act on any of the recommendations including the urgently needed benefit increase. First responses from the Minister of Community and Social Services indicate no willingness to do anything about social assistance rates.

And, of course, the Ontario Legislature is prorogued, unlikely to sit again until mid-winter, and even then any meaningful Government business may well be delayed further by a provincial election.

The cynical promise of social assistance reform in the 2008 Poverty Reduction Strategy was betrayed by an interminable process to set up and undertake a review on which the Government shows no interest in acting.

Regardless of further debate about the long term shape of social assistance reform, the Commissioners have, at least, clearly acknowledged the community’s consistently expressed call for a significant increase in the social assistance rates to single adults by $100/month as well as a modified rate increase ($86/month) for recipients living together as a first step towards adequacy.

While the Provincial Parliament may not be in session, there is still a political moment to demand public declarations of support by the Opposition parties, Liberal candidates for the party leadership, and all MPP backbenchers for the immediate measures in the Commissioners’ Report that will alleviate the living conditions of people on social assistance. Specifically, that would be:

  1. The $100/month rate increase to single adults and the modified rate increase for recipients living together;
  2. The $200/month earnings exemption before benefit claw-backs; and
  3. Increasing the asset limits to $6,000 and $7,500 for singles and couples on social assistance respectively.

Contrary to the Commissioners’ recommendations, the community should insist that maintaining the SDA is critical to the health and well-being of many recipients, especially those with disabilities.

PFO joins other voices in the community and the labour movement in challenging the political claims of austerity that Ontario is without fiscal capacity to address deep poverty for those on social assistance and working poverty (PFO Bulletin #4). Revenue recovery through reversing tax cuts over the past decade remains the responsible political path for a just social order in Ontario.

For further information contact:

Peter Clutterbuck, SPNO Coordinator

(416) 653-7947   cell (416) 738-3228

pclutterbuck@spno.ca                                                                  Web site: www.povertyfreeontario.ca


[1] The $100 monthly increase would be added to the current standard base rate for single recipients now at $599. Two people sharing accommodation, whether related or not, would each receive 86% of the standard rate including the increase on the grounds that sharing accommodation should reduce their living expenses.

PDF version of Bulletin #10

Commissioners Show Constraints of Austerity Climate

For Immediate Release:

3:00 PM, Wednesday, October 24, 2012

Release of Final Report on the Social Assistance Review

Commissioners show constraints of austerity climate

Social Assistance Review Commissioners Frances Lankin and Munir Sheikh released their long awaited Final Report on the Ontario Social Assistance Review today.

Community advocates for serious and immediate social assistance reform can feel some sense of achievement that the Commissioners acknowledge that OW and ODSP rates are too low to enable recipients to have access to adequate nutritious food. The Commissioners acknowledge the position of the Put Food in the Budget campaign and recommend an immediate $100/month rate increase as a “down payment” on moving toward adequacy. Regrettably, they suggest that this be partly paid for by eliminating the $230 million Special Diet Allowance to recipients with medical conditions requiring certain nutrients for their health and well-being.

“Proposing a $100 a month increase to the single rate is encouraging and the Commissioners are very clear that rates need to move towards adequacy,” says Peter Clutterbuck, PFO Coordinator,”but why does this have to mean the elimination of the Special Diet allowance? In their other proposals for moving toward a new integrated system, the Commissioners recommend maintaining supplements and existing benefits to make sure recipients are not worse off during the transition period.”

The Commissioners propose more than 100 recommendations on all aspects of social assistance that will require careful community discussion.  The Commissioners attempt to outline a vision of a more simplified and coherent social assistance system. It is clear, however, that they felt the constraints of the austerity climate that the Ontario Government introduced with its 2012 budget.

Plus, the Commissioners had to work against the tide of the Ontario Government’s action in the last few years that has continued the austerity agenda of hunger and hardship directed at people on social assistance started by the Harris Government in the mid-nineties and has included the following measures:

  • Cutting the Basic Needs Allowance for single parents by $125 a month per child after introducing the Ontario Child Benefit (another clawback called “rate restructuring”);
  • Ending the clothing and back to school allowances for children on social assistance;
  • Cutting the real incomes of people on social assistance through reducing cost of living adjustments to half the rate of inflation in the last two provincial budgets;
  • Changing the medical conditions qualifying for the Special Diet Allowance so that thousands of social assistance recipients lost access to nutritious food critical to their health;
  • Withdrawing planned increases to the OCB for two years in the 2012 budget; and
  • Cutting the Community Start-Up and Maintenance funding to municipalities for people on social assistance.

Poverty Free Ontario (PFO) has maintained a consistent focus on the need for major structural reforms to end deep poverty (incomes falling below 80% of Ontario’s official income poverty measure) and to end working poverty (minimum wage level that brings a full-year- full-time earner out of poverty).

On first review of the Commissioners’ Report, PFO is dismayed that they discount Ontario’s official income poverty measure (i.e. Low Income Measure – 50% of median income). Not only was the LIM set as Ontario’s official income measure in its 2008 Poverty Reduction Strategy, but the LIM is also internationally recognized as the income poverty measure of the United Nations and the European Union.  Notably, the proposed subsistence line set by the Commissioners’ “Basic Measure of Adequacy” would condemn a single person or a two person family to a life of deep poverty at 70% of Ontario’s official income poverty level.

Another major concern that requires further investigation is the proposed integration of Ontario Works and the Ontario Disabilities Support Program into a unified system. While the Commissioners show some care in recommending that persons with disabilities should be in no worse off income position while this transition is made, the recommendations reflect a push towards the labour market for persons with disabilities that must be watched vigilantly to avoid workfare strategies, especially given the Commissioners’ recommendation of integrating ODSP and OW administration at the municipal level.

PFO will be consulting with its community partners across Ontario in the coming days to more fully develop its response to the Commissioners’ Report.

Poverty Free Ontario is an initiative of the Social Planning Network of Ontario (SPNO) working with local community groups across the province www.povertyfreeontario.ca

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Media Contact:
Peter Clutterbuck, SPNO,
416-653-7947 and 416-738-3228
pclutterbuck@spno.ca

PDF version of media release

Ontario commission calls for integrated welfare program, including for disabled, that removes barriers to work.

TORONTO – Ontario’s $8.3 billion welfare system should be transformed into a simpler, more effective and accountable system that helps move more people, including the disabled, into jobs and out of poverty, says the long-awaited report from the province’s social assistance review commission.

Under this “transformational change,” disability benefits, children’s benefits and health benefits would be removed from social assistance and be available outside welfare to all low-income Ontarians, say commissioners Frances Lankin and Munir Sheikh in their 183-page report released Wednesday.

The commission, established in November 2010 to remove barriers and increase opportunities for people to work, was part of the province’s 2008 poverty reduction strategy.

Central to the report’s 108 recommendations is the proposed merger of Ontario Works (OW) and the Ontario Disability Support Program (ODSP) into a single, integrated program with provincial standards but delivered locally by municipalities, which already administer OW.

ODSP is currently delivered by provincial officials. But the commissioners believe municipalities are better equipped to run the new job-focused program because they have connections to local employers and already administer other supports to low-income people such as child care, housing, settlement services, public health and addiction services.

“This report charts a new course for social assistance in Ontario, a course designed to support all recipients to participate in the workforce to the maximum of their abilities and to guarantee income security for those who cannot work,” says the report, entitled “Brighter Prospects: Transforming Social Assistance in Ontario.”

Under the proposed new program, welfare benefits would be based on a standard rate for all single adults that would be adjusted for those sharing accommodations. The rate would be based on a formula that balances the competing needs of adequacy; fairness between those on assistance and low-wage earners; and financial incentive to work. And over time, increases would reflect the differences in living costs across Ontario.

In addition to the standard rate, a disability supplement for those who meet the current definition of disability under ODSP, as well as a children’s and sole-support parent’s supplement, would be available through social assistance until the new system is fully implemented, the report recommends.

Until the new disability benefit is available outside welfare, people with disabilities who get jobs would be allowed to keep a portion of their disability welfare supplement, the report adds.

“Like most of us, people with disabilities have a strong desire to work,” the report says.

“However, given the financial disincentive represented by the lack of a disability benefit outside social assistance to help cover the cost of living with a disability, many low-income people with disabilities simply cannot afford to leave the program,” it adds.

The new simplified rate structure would give case workers more time to support recipients’ transition to employment, the commissioners say. Meantime, the province would partner with corporate leaders to champion the hiring of people with disabilities and generate awareness and support for more inclusive workplaces.

Although the report acknowledges the transformation will take time, it urges Queen’s Park to move quickly to improve financial support for people on welfare.

The commissioners are calling for an immediate $100-per-month increase to $699 for single able-bodied adults — the lowest current rate category — as a “down payment on adequacy.” That amount would become the new standard rate upon which the integrated program would be built.

The rate increase would cost $770 million, but the commissioners say at least $430 million of that would be found through administrative savings and the elimination of the Special Diet Allowance and the ODSP Work-Related Benefit, which would be offset by other changes to the program.

The remaining $340 million needed is less than 5 per cent of the total program costs but crucial “to begin to address adequacy at the lowest level … buy change and create momentum in the transformation of social assistance,” the report notes.

Other first steps include increasing financial resilience by allowing everyone applying for welfare to keep more assets — up to $6,000 for individuals and up to $7,500 for couples. Currently, only people on ODSP are allowed to keep this amount.

Individuals would also be allowed to have up to $60,000 in long-term savings such as RRSPs, RESPs and to keep their primary automobile, regardless of the value.

In addition, everyone on welfare would be allowed to earn up to $200 per month without deductions and keep 50 cents of every subsequent dollar earned until their earnings exceed their welfare cheque. Now, 50 cents of every dollar is clawed back.

Under the reforms, child support would be treated the same as income. Single parents would no longer be compelled to seek child support and those who receive it would be allowed to keep 50 per cent instead of losing it all in claw backs.

Changing the definition of a spouse from three months cohabitation to one year would reflect income tax laws, the commissioners add.

The report calls for a program that moves away from a culture of surveillance to one of support for everyone on social assistance, including the disabled, to maximize their potential.

To ensure the new program is accountable to Ontarians, the report calls for provincial standards, clear outcomes and performance measures with annual reporting from both municipalities and the province.

A new provincial commissioner of social assistance would be appointed to drive change, work with municipalities, establish performance measures and tack progress. Annual progress reports from both municipalities and the province would ensure public accountability, the report says.

Who’s on social assistance*

Ontario Works (OW)

  • 477,339 individuals or about 3.6 per cent of the population
  • 171,867 are children
  • Average age: 36
  • 60 per cent of cases are singles
  • 30 per cent are single parents
  • 3 per cent are couples without children
  • 8 per cent are couples with children
  • About 75 per cent of children are in families led by single parents

Ontario Disability Support Program (ODSP)

  • 415,338 individuals or about 3.1 per cent of the population
  • 43 per cent of applicants have a physical disability, 39 per cent have a mental disability, 18 per cent have a developmental disability
  • About 60 per cent of new applicants in 2009-10 were suffering from mental illness
  • 59,403 are children
  • Average age: 46
  • 77 per cent are singles
  • 9 per cent are single parents
  • 8 per cent are couples without children
  • 6 per cent are couples with children
  • Just over half of children are in families led by single parents
Laurie Monsebraaten
Social Justice Reporter

Submissions in Response to Social Assistance Review Discussion Paper #2

The Social Assistance Review Commissioners asked for any submissions in response to their Discussion paper #2 by March 16, 2012.

Poverty Free Ontario has no central coordinating resources to enable any organizing around this but we did provide a PFO Bulletin and Call to Action resulting from our last cross-community tele-call in February.

A number of communities have used these materials and their own local discussions to get their views in, all very consistent with the conversation that we had in February. Below are links to the submissions received by PFO. (Updated March 28, 2012)

Putting a Face to Social Assistance
by the Hamilton Roundtable for Poverty Reduction

httpv://www.youtube.com/watch?v=NZx9PUahF2M

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