Social Assistance Changes in Ontario - April 2019 Forecasting the Impact of the Government of Ontario's Proposed Reforms - Feed Ontario

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Social Assistance Changes in Ontario - April 2019 Forecasting the Impact of the Government of Ontario's Proposed Reforms - Feed Ontario
Social Assistance
Changes in Ontario
Forecasting the Impact of the Government
of Ontario’s Proposed Reforms

April 2019
In This Report
About Feed Ontario                     03

Executive Summary                      04

Social Assistance and Food Banks       05

A Brief History of Social Assistance   06

Social Assistance Today                07

Planned Changes to the System          09

 Ontario Works                         09

 Ontario Disability Support Program    11

Recommendations for Change             14
Feed Ontario (formerly the Ontario Association of Food Banks) is a
                                                                 network of 130 direct member food banks and over 1,100 affiliate hunger-
                                                                 relief agencies that are united in their work to address and prevent hunger
                                                                 and poverty.
FEED ONTARIO Social assistance changes in ontario (April 2019)

                                                                 Through emergency food support, innovative programming, and a
                                                                 commitment to investigating long-term solutions to poverty, the provincial
                                                                 food bank network works tirelessly to improve the health and well-being of
                                                                 the adults and families it serves.

                                                                 Feed Ontario works to achieve its mission in three key ways:

                                                                 FeedON                    Feed Possibility          Feed Change

                                                                 The provincial food       We feed possibility by    We      feed    change
                                                                 bank network provides     providing food banks      by researching the
                                                                 adults, children, and     with     resources   to   root-causes of food
                                                                 seniors with nutritious   grow their capacity to    insecurity,      raising
                                                                 food throughout the       distribute fresh food,    awareness of hunger
                                                                 year, including dairy     to collaborate and        in our province, and
                                                                 products,      protein,   develop best practices    advocating on behalf
                                                                 and produce. With         that drive change, and    of     evidence-based
                                                                 the support of our        to invest in innovative   solutions to poverty.
                                                                 partners,         Feed    programming         for   It is only through our
                                                                 Ontario     distributes   people facing hunger      collective action that
                                                                 the equivalent of 4.5     in their communities.     we will end hunger and
                                                                 million meals annually.                             poverty in Ontario.

              3
Executive Summary

                                                                 I
                                                                      n November 2018, the provincial government
                                                                      announced a number of reforms to Ontario’s social
                                                                      assistance programs, Ontario Works and the Ontario
                                                                      Disability Support Program, with the intention of
                                                                      helping recipients break the cycle of poverty.
FEED ONTARIO Social assistance changes in ontario (April 2019)

                                                                 As two-thirds of food bank clients          at minimum wage, making it
                                                                 cite social assistance as their             more difficult to move ahead
                                                                 primary source of income, reforms
                                                                 to these programs can have a            •   Ontario Disability Support
                                                                 significant impact on food banks.           Program: The proposed
                                                                 This report discusses the history           alignment of the program’s
                                                                 of social assistance in Ontario and         definition of disability with
                                                                 the impact that previous changes            the federal guidelines may
                                                                 to the system have had on poverty           exclude individuals with
                                                                 and food insecurity in this province,       episodic disabilities (such
                                                                 and analyzes the proposed reforms.          as multiple sclerosis or
                                                                 In summary, this analysis found             Parkinson’s disease) from
                                                                 that while the reforms included a           accessing the support they
                                                                 number of improvements to the               need
                                                                 current set of policy directives,
                                                                 some of the changes are cause for
                                                                                                         To avoid these problems, Feed
                                                                 concern:
                                                                                                         Ontario recommends that the
                                                                                                         Government of Ontario maintain the
                                                                 •   Ontario Works: Despite              earnings-related clawbacks at 50
                                                                     the proposed increase               percent and retain ODSP’s current
                                                                     to earnings exemptions              definition of disability. In addition, to
                                                                     from $200 to $300, the              ensure that more Ontarians do not
                                                                     corresponding increase in           have to make the difficult choices
                                                                     clawbacks to subsequent             between necessities like food and
                                                                     earnings from 50 to 75              shelter, Feed Ontario recommends
                                                                     percent would leave                 the provincial government invests
                                                                     recipients with less net            into the development of more
                                                                     income compared to the              affordable housing and a portable
                                                                     current system after working        housing benefit.
                                                                     more than 8 hours per week

            4
Social Assistance                       of adults that access Ontario’s food
                                                                                                         banks throughout the year. With 30
                                                                 and Provincial                          percent of clients being recipients
                                                                                                         of the Ontario Disability Support
                                                                 Food Bank Use                           Program (ODSP) and 29 percent of
                                                                                                         Ontario Works (OW), any changes
                                                                                                         made to how these essential

                                                                 B
                                                                                                         programs work will undeniably
                                                                          etween April 1, 2017, and
                                                                                                         have an impact on the people that
                                                                          March 31, 2018, Ontario’s
                                                                                                         food banks serve.
                                                                          food     banks     provided
                                                                          support to over 227,300
                                                                 households, inclusive of 501,590        The intention of OW is to assist
                                                                                                         recipients while they work to recover
FEED ONTARIO Social assistance changes in ontario (April 2019)

                                                                 adults, children, and seniors. While
                                                                 the circumstances that resulted         from a job loss or rebuild their
                                                                 in these individuals and families       life after an emergency situation.
                                                                 needing support are diverse, the        ODSP is meant to provide support
                                                                 fundamental reason that people          to recipients that are living with a
                                                                 turn to food banks is because they      disability that restricts their ability
                                                                 do not have sufficient income to        to work, and is presently inclusive of
                                                                 afford all of their basic necessities   both continuous disabilities (such
                                                                 each month.                             as a developmental disability) and
                                                                                                         recurrent/episodic disabilities (such
                                                                                                         as cancer or multiple sclerosis).
                                                                 Reforms      to    Ontario’s   social
                                                                 assistance      programs     are   a
                                                                 significant concern in the food bank    Both programs were created to
                                                                 network because it is the primary       provide individuals and families
                                                                 source of income for the majority       with support when unexpected
                                                                                                         challenges or unavoidable health
                                                                                                         issues occur, and give them the best
                                                                                                         possible chance for getting back on
                                                                                                         their feet and a good quality of life.

                                                                                                         Unfortunately, there have been a
                                                                              59%                        number of changes to Ontario’s
                                                                                                         social assistance programs since
                                                                                                         the early 1990s that have made
                                                                                                         it increasingly more difficult for
                                                                                                         recipients of the programs to
                                                                                                         afford even their most basic needs,
                                                                      of food bank clients cite          such as food and shelter, much less
                                                                                                         establish a foundation that would
                                                                       social assistance                 allow them to move out of poverty.
                                                                 as their primary source of income

              5
A Brief History of                     1956   The Unemployment
                                                                                                               Assistance Act creates the
                                                                                                               first permanent program for
                                                                 Social Assistance                             funding social assistance
                                                                                                               after pressures from
                                                                                                               charities and the provinces,
                                                                                                               which can no longer support
                                                                                                               the cost of relief after WW2
                                                                 1874   Provincial governments                 and a period of increased
                                                                        begin to support charitable            unemployment7
                                                                        institutions with regular
                                                                        grants1                         1958   Ontario passes the General
                                                                                                               Welfare Assistance Act to
                                                                 1890   Ontario passes the                     assist during temporary
                                                                        Houses of Refuge Act,                  distress8
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                                                                        which provides county
                                                                        governments with grants to      1965   The Canada Pension Plan,
                                                                        construct buildings for the            a national compulsory
                                                                        ‘deserving poor’2                      contributory pension plan, is
                                                                                                               established9
                                                                 1903   The province passes new
                                                                        legislation that requires       1966   Ontario passes Family
                                                                        every county in Ontario to             Benefits Assistance Act to
                                                                        have a house of refuge3                help individuals in need for
                                                                                                               long periods of time
                                                                 1914   Ontario’s Workmen’s
                                                                        Compensation Act is             1967   The Department of Welfare
                                                                        Canada’s first compulsory              changes its name to the
                                                                        contributory social insurance          Department of Social and
                                                                        law, and provides support              Family Services
                                                                        to individuals who suffer
                                                                        workplace injuries or           1971   The federal government
                                                                        contract occupational                  substantially expands
                                                                        diseases4                              Unemployment Insurance
                                                                                                               and broadens the National
                                                                 1920   The Ontario Need Mothers’              Housing Act to cover co-
                                                                        Allowance Act provides                 operative and non-profit
                                                                        support to deserted and                assistance10
                                                                        widowed women after WWI
                                                                                                        1972   The Department of Social
                                                                 1930   The federal government                 and Family Services
                                                                        provides the provinces with            becomes the Ministry of
                                                                        grants to provide relief               Community and Social
                                                                        during the Great Depression            Services
                                                                        and creates a new
                                                                        Department of Welfare5          1977   The Family Benefits
                                                                                                               Assistance becomes the
                                                                 1940   Federal Unemployment                   Ontario Disability Support
                                                                        Insurance is established               Program and General
                                                                        to provide protection                  Welfare Assistance becomes
                                                                        against loss of employment             Ontario Works
                                                                        earnings6

             6
Social Assistance:                                 choices between expenses, leaving
                                                                                                                    them with no other choice but to
                                                                 1990 to Today                                      turn to food banks for support.

                                                                 I
                                                                                                                    This is a trend that has continued to
                                                                       n Ontario, two out of three                  grow year over year, as illustrated
                                                                       individuals that access food                 in Figure 1. Due to the rising cost of
                                                                       banks are social assistance                  living and stagnant social assistance
                                                                       recipients. This statistic has               rates, program recipients are falling
                                                                 remained consistent for as long as                 into deeper levels of poverty as
                                                                 food banks have been collecting                    the “poverty gap” between social
                                                                 this data.                                         assistance income and the Low
                                                                                                                    Income Measure (LIM) continues to
FEED ONTARIO Social assistance changes in ontario (April 2019)

                                                                 One of the primary reasons that                    grow.
                                                                 social assistance recipients access
                                                                 food banks is that Ontario Works                   In 1990, a single ‘employable
                                                                 (OW) and the Ontario Disability                    person’ would have received $623
                                                                 Support Program (ODSP) do not                      per month ($1,027 in 2019 dollars),
                                                                 provide sufficient support for an                  and a person with a disability would
                                                                 individual to afford all of their basic            have received $876 per month
                                                                 necessities each month, like rent,                 ($1,434 in 2019 dollars). The poverty
                                                                 hydro, transportation, and food.                   gap for these individuals was 30
                                                                 Frequently, individuals on these                   percent and 2 percent respectively.
                                                                 programs have to make difficult

                                                                 FIGURE 1: Historical OW and ODSP rates11 compared to the low income
                                                                 measure*12, adjusted to 2018 dollars

                                                                  $25,000

                                                                  $20,000

                                                                  $15,000

                                                                  $10,000

                                                                   $5,000

                                                                        $-
                                                                                1990     1995     2000      2005     2010     2012      2014     2016     2018
                                                                                                      ODSP          OW         LIM

                                                                 *The Low Income Measure (LIM) is the most commonly used definition of poverty and is set at 50%
                                                                 of median adjusted household income. This chart references the LIM after taxes for a single person
                                                                 household.

              7
Today, a single person on OW                                         modest increases have been made
                                                                 receives $733 per month and                                          to social assistance rates since then,
                                                                 experiences a poverty gap of                                         they have never recovered from
                                                                 63 percent, and an individual on                                     the initial cuts in 1995. The chart in
                                                                 ODSP receives $1,169 per month,                                      Figure 2 illustrates how difficult -
                                                                 experiencing a poverty gap of 40                                     or even impossible - it can be for
                                                                 percent.                                                             someone on OW or ODSP to afford
                                                                                                                                      all of their monthly expenses today.
                                                                 This growing gap can be explained
                                                                 in part by the austerity measures                                    Alongside       inadequate     rates,
                                                                 put in place by the Government of                                    these programs are governed by
                                                                 Ontario, starting in 1995 with a 21.6                                punitive and complicated policy
                                                                 percent cut in support available                                     directives that make navigating the
FEED ONTARIO Social assistance changes in ontario (April 2019)

                                                                 for recipients that were considered                                  system a challenge and building a
                                                                 ‘employable persons’. This was                                       foundation to move out of poverty
                                                                 followed by all social assistance                                    nearly impossible. Though the
                                                                 rates being frozen until 2003,                                       purpose of these programs are
                                                                 causing the income provided by                                       to help recipients regain financial
                                                                 both programs to lose value each                                     stability, every time they try, they
                                                                 year due to inflation. Although some                                 get knocked back down.

                                                                 FIGURE 2: SINGLE PERSON HOUSEHOLD EXPENSES versus income

                                                                                                                                        Ontario Disability      Full-Time
                                                                                                                    Ontario Works                            Minimum Wage
                                                                                                                                        Support Program      (Net, 31 Hours14)

                                                                 Monthly Income                                       $733.00    13
                                                                                                                                            $1,169.00          $1,623.00
                                                                                     Rent16                           $959.00               $959.00             $959.00
                                                                                     Bachelor Apartment

                                                                                     Bills/Utilities                   $179.08               $179.08            $179.08
                                                                  Basic Expenses15

                                                                                     Electricity, Phone, Internet

                                                                                     Personal Care Items
                                                                                     Clothing, Cleaning Supplies,      $191.17               $191.17             $191.17
                                                                                     Toiletries

                                                                                     Health Care
                                                                                     Medication, Health Care            $0*                    $0*               $113.58
                                                                                     Supplies and Equipment

                                                                                     Transportation                    $150.00               $150.00            $150.00
                                                                                     Total                            $1,479.25             $1,479.25          $1,592.83
                                                                 Income Left For Food and
                                                                                                                      ($746.25)             ($310.25)            $30.17
                                                                 All Other Expenses

                                                                 *OW and ODSP includes access to some health benefits

              8
Planned Changes                                FIGURE 3: proposed Changes to
                                                                                                                Earning exemptions, Ontario
                                                                                                                works
                                                                 to the System
                                                                                                                                  Current    Proposed
                                                                                                                                  System     Changes

                                                                 F
                                                                        ood banks have long-
                                                                                                                 Clawbacks of
                                                                        advocated       for      social            Supports         50%        75%
                                                                        assistance reform, including              Income Above
                                                                                                                    Exemptions
                                                                        increases to social assistance
                                                                 rates to reflect the cost of living,               Earnings
                                                                 reducing red tape and improving                   Exemption       $200       $300
                                                                 accessibility to the programs, and                 Per month
FEED ONTARIO Social assistance changes in ontario (April 2019)

                                                                 reforming the policy directives that            Waiting Period
                                                                 govern the system.                                For Earnings   3 months   1 month
                                                                                                                   Exemptions

                                                                 In November 2018, the provincial
                                                                                                                increased focus on employment
                                                                 government announced a number
                                                                                                                services, improved access to
                                                                 of changes to Ontario’s social
                                                                                                                wrap-around supports, making it
                                                                 assistance programs17, as well
                                                                                                                easier for recipients to pursue self-
                                                                 as the introduction of the Low-
                                                                                                                employment, and a simplified rate
                                                                 Income Individuals and Family Tax
                                                                                                                structure. However, there are a
                                                                 (LIFT)* credit18, with the intention
                                                                                                                number of proposed changes that
                                                                 of assisting low-income workers.
                                                                                                                are cause for concern, such as the
                                                                 At first glance, many of the reforms
                                                                                                                proposed changes to the earnings-
                                                                 appear to be improvements to
                                                                                                                related clawback.
                                                                 the social assistance programs;
                                                                 however, a closer look reveals that
                                                                 some of the proposed changes may               Currently, an OW recipient can
                                                                 actually work against the intended             earn up to $200 per month without
                                                                 outcome.                                       impacting to their benefits. This is
                                                                                                                known as an ‘earning exemption’
                                                                                                                and is applied after three months
                                                                 Ontario Works                                  of receiving assistance. Once $200
                                                                 The provincial government has                  has been earned, 50 percent of
                                                                 proposed a re-design of Ontario                every dollar earned is clawed back
                                                                 Works (OW), with a stated goal of              from their monthly benefit.
                                                                 helping recipients find and keep
                                                                 jobs and achieve better outcomes19.            The reforms announced by the
                                                                 Some of the potentially positive               Government of Ontario (outlined
                                                                 changes announced included an                  in Figure 3) included increasing
                                                                                                                the earnings exemption for OW to
                                                                 *The LIFT credit refunds the provincial
                                                                 personal income tax for low-income Ontarians
                                                                                                                $300 per month and decreasing

             9
the waiting period for earning               changes mean that their net income
                                                                 exemptions to apply to one                   will be lower than at present. After
                                                                 month.20 While these are moves in            23 hours of work, recipients will stop
                                                                 the right direction, the changes also        receiving OW benefits altogether,
                                                                 included increasing the earnings             versus the current cut-off point of
                                                                 clawback to 75 percent.                      33 hours.

                                                                 Though the intention of these                Moreover, OW comes with access
                                                                 changes is to assist recipients              to health benefits21, such as the
                                                                 in transitioning back into the               Ontario Drug Benefit and assistance
                                                                 workforce, it is arguable that the           with the cost of medical supplies.
                                                                 increase to clawbacks, despite the           As extended health care benefits
                                                                 increase to earning exemptions, will         are often not offered to low-income
FEED ONTARIO Social assistance changes in ontario (April 2019)

                                                                 create further barriers to moving            workers, particularly those working
                                                                 out of poverty.                              part-time, lowering the point where
                                                                                                              individuals become ineligible for
                                                                 To illustrate, the graph in Figure 4         financial assistance on OW means
                                                                 shows that the proposed changes,             recipients lose access to these
                                                                 inclusive of the LIFT credit, give a         important benefits earlier and
                                                                 slight advantage to OW recipients            when they are in a more precarious
                                                                 working between 4 to 8 hours per             financial state.
                                                                 week on average versus the current
                                                                 system without the LIFT credit. Yet          When considering the impact of
                                                                 if the recipient works more than             both the clawbacks and the loss
                                                                 8 hours per week, the proposed               of extended benefits, like medicine

                                                                 FIGURE 4: MONTHLY net income (Earnings and Ontario work support,
                                                                 after taxes) by hours worked (Minimum wage)22,23,24,25,26

                                                                  $2,000

                                                                   $1,800       Low Income
                                                                                  Measure
                                                                   $1,600

                                                                   $1,400

                                                                   $1,200

                                                                   $1,000

                                                                    $800                                                              Average Rent,
                                                                                                                                      Bachelor Apt
                                                                    $600
                                                                            0        4        8        12     16        20       24      28      32

                                                                                             Current System        Proposed Changes

 10
FIGURE 5: Sample net monthly               encourage employment by allowing
                                                                 income of Ontario Works                    for greater income flexibility and
                                                                 Recipient
                                                                                                            fluctuation throughout the year.27
                                                                                Current        Proposed
                                                                                System          System      However, much like the changes
                                                                                                            to OW, some of the proposed
                                                                   Hours
                                                                                    23            23        changes to ODSP are cause for
                                                                   Worked
                                                                                                            significant concern, particularly the
                                                                   After Tax      $1,218        $1,242
                                                                               (without LIFT   (with LIFT   intention to align the program’s
                                                                    Income        credit)        credit)    definition of what consitutes an
                                                                   Max OW                                   eligible disability with federal
                                                                                  $733           $733
                                                                   Support                                  guidelines. While there is no single
                                                                                                            federal definition of disability,
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                                                                  Clawbacks      -$509          -$707
                                                                                                            the most common definitions are
                                                                  Remaining                                 significantly narrower and more
                                                                     OW           $224           $26        restrictive than what is currently
                                                                   Support                                  being used by ODSP, and may
                                                                 Net Income      $1,442         $1,269
                                                                                                            exclude many individuals with a
                                                                                                            disability who need it.

                                                                 and medical supplies, the proposed         One of the most significant
                                                                 changes to OW leave recipients             differences between the commonly
                                                                 who are working to move out of             used federal definitions of disability
                                                                 poverty with less net income than          and ODSP’s definition is in how each
                                                                 under the present system. This             consider the length and frequency
                                                                 makes it even more difficult for           of impairment. Currently, one is
                                                                 individuals to establish sufficient        eligible for ODSP if their disability is
                                                                 income to move towards financial           either “continuous or recurrent”28,
                                                                 independence.                              whereas the two most common
                                                                                                            federal guidelines require the
                                                                 Ontario Disability Support                 impairment to “regularly stop you
                                                                 Program                                    from doing any type of substantially
                                                                                                            gainful work”29 (Canada Pension
                                                                 Alongside changes to Ontario               Plan-Disability) or that it must be
                                                                 Works      (OW),    the  provincial        “present all, or substantially all the
                                                                 government announced a number              time”30 (Disability Tax Credit).
                                                                 of positive changes to the Ontario
                                                                 Disability Support Program (ODSP),
                                                                                                            These federal guidelines exclude
                                                                 including switching the financial
                                                                                                            individuals with episodic disabilities,
                                                                 review from a monthly to an annual
                                                                                                            which are chronic conditions
                                                                 basis and increasing the earnings
                                                                                                            marked by periods of health that
                                                                 exemption from $200 per month
                                                                                                            are interrupted by episodes of
                                                                 to $6,000 per year, helping to

         11
disability. Examples of episodic                   As outlined in Figure 7, while
                                                                 disabilities include conditions such               there are many disability support
                                                                 as cancer, multiple sclerosis, HIV/                programs available to Ontarians,
                                                                 AIDS, and Parkinson’s disease (see                 there are many challenges when
                                                                 Figure 6 for more examples).                       it comes to accessing them. Most
                                                                                                                    disability support programs and
                                                                 It is estimated that 33 percent                    benefits available to Ontarians
                                                                 of Ontarians with a disability                     are tied to current employment or
                                                                 experience it episodically.32 As                   are based on a certain amount of
                                                                 these periods of illness are often                 payroll contributions, and therefore
                                                                 unpredictable in both length                       require     steady       employment
                                                                 and frequency, it is therefore                     histories. Some programs exclude
                                                                 unsurprising that part-time work                   people with episodic disabilities, or
FEED ONTARIO Social assistance changes in ontario (April 2019)

                                                                 is more common amongst people                      require the disability to arise from a
                                                                 with episodic disabilities. Further,               workplace incident.
                                                                 these individuals also experience
                                                                 higher rates of poverty: compared                  Thus, for many people, ODSP ends
                                                                 to people without disabilities, and                up being a program of last resort,
                                                                 are 45 percent more likely to have                 especially as one is only eligible
                                                                 a household income that falls into                 for the program if they do not
                                                                 the lowest quintile.                               have enough income and assets
                                                                                                                    to support themselves. Redefining
                                                                                                                    disability to exclude those with
                                                                 FIGURE 6: conditions that can                      episodic illnesses means that
                                                                 result in an episodic disability31
                                                                                                                    these individuals, who already face
                                                                                                                    barriers to obtaining employment,
                                                                   •   Anxiety             •    Depression
                                                                   •   Arthritis           •    Diabetes            will have no choice but to seek
                                                                   •   Asthma              •    Epilepsy            support through OW — a program
                                                                   •   Bi-polar            •    Hepatitis C         that was not designed to support
                                                                       disorder            •    HIV/AIDS
                                                                   •   Cancer              •    Lupus               people with disabilities.
                                                                   •   Chronic             •    Meniere’s
                                                                       Obstructive              Disease
                                                                       Pulmonary           •    Multiple            While the benefit rates for ODSP
                                                                       Disease                  Sclerosis           are not adequate, they are still
                                                                   •   Chronic Pain        •    Migraines           much higher than what is available
                                                                   •   Chronic             •    Parkinson’s
                                                                       Inflammatory             disease             through OW. Applicants who would
                                                                       Demyelinating       •    Post-traumatic      have formerly qualified for ODSP
                                                                       Polyneuropathy           stress disorder     would receive 37 percent less
                                                                   •   Crohn’s disease     •    Substance
                                                                       & Ulcerative             abuse disorder      under OW, which is a devastating
                                                                       Colitis                                      setback to someone already living
                                                                                                                    in poverty. ODSP also has more
                                                                 Episodic disabilities can result in intermittent   comprehensive health benefits
                                                                 work capacity (expressed as instability in an      and permits higher savings limits34,
                                                                 employee’s attendance and productivity)

    12
FIGURE 7: Disability support programs available to ontarians

                                                                                                                                                       Requires
                                                                                                                                    Requires
                                                                                                              Predictability of                      Employment or
                                                                                   Duration of Funding                             Beneficiary
                                                                                                                 Disability                          Means to Save
                                                                                                                                  Contributions
                                                                                                                                                        Money

                                                                                          Long      Short
                                                                             Perm.                           Regular   Episodic   Yes       No       Yes        No
                                                                                          Term      Term

                                                                   CPP-D       X           X                    X                 X                   X

                                                                     EI-
                                                                                           X             X      X         X*      X                   X
                                                                  Sickness

                                                                   WSIB        X           X             X      X         X**               X         X
FEED ONTARIO Social assistance changes in ontario (April 2019)

                                                                  Veterans     X           X             X      X         X**               X         X

                                                                  Private      X           X             X      X         X*                X         X

                                                                    DTC        X           X                    X                           X         X

                                                                   RDSP        X           X                    X                 X                   X

                                                                   ODSP        X           X                    X          X                X                   X

                                                                 Acronyms used: CPP-D: Canada Pension Plan - Disability; EI-Sickness: Employment Insurance-
                                                                 Sickness; WSIB: Workers Safety Insurance Board; Veterans: Veterans Affairs Canada Disability
                                                                 Benefits; Private: Private Insurance; DTC: Disability Tax Credit; RDSP: Registered Disability Savings
                                                                 Plan; ODSP: Ontario Disability Support Program
                                                                 *often excludes people with episodic disabilities, as many are precariously employed and do not
                                                                 qualify, as they require either attachment to employment or payroll contributions
                                                                 **only if the disability arises from a work-related injury; WSIB has cut the amount of compensation
                                                                 it provides to claimants by half since 2010.33

                                                                 allowing recipients to better                           who are able to work, as the
                                                                 weather temporary setbacks like                         higher, annualized income limit
                                                                 an unexpected expense. Recipients                       makes it safer to go in and out of
                                                                 of OW are required to take                              the workforce when one’s health
                                                                 part in “employment assistance                          permits without fear of losing the
                                                                 activities” to find a job in order                      benefits and wrap-around services
                                                                 to continue receiving benefits, as                      available to recipients of ODSP. If
                                                                 the expectation is that they are                        the provincial government decides
                                                                 physically able to work.                                to retain ODSP’s current, inclusive
                                                                                                                         definition of disability, it is possible
                                                                 The proposed changes to earnings                        that the new model of ODSP
                                                                 exemptions for ODSP actually                            could help many more individuals
                                                                 makes the program better suited                         living with a disability transition
                                                                 to those with episodic disabilities                     successfully out of poverty and into
                                                                                                                         financial stability.

    13
Recommendations for
                                                                 Change

                                                                 O
                                                                                   ver half a million people in Ontario access
                                                                                   food banks, with the majority being social
                                                                                   assistance recipients. Feed Ontario calls
                                                                                   on the provincial government to enact
FEED ONTARIO Social assistance changes in ontario (April 2019)

                                                                                   bold policy changes to reduce this number.

                                                                 The provincial food bank network        The concern with this potential
                                                                 has long advocated for social           change is that the common federal
                                                                 assistance reform to improve the        definitions of disability are meant
                                                                 programs that so many of our            for support services with a different
                                                                 province’s most vulnerable citizens     purpose than the Ontario Disability
                                                                 rely on.                                Support Program.

                                                                 As the provincial government            By changing the definition of
                                                                 continues to investigate and roll       disability to exclude episodic illness,
                                                                 out its social assistance reform        the Government of Ontario may
                                                                 plan, Feed Ontario would like           be putting a number of vulnerable
                                                                 to put forward the following            individuals at risk of becoming
                                                                 recommendations as the first steps      ineligible for this essential program.
                                                                 towards moving the needle on            Ontarians living with a disability
                                                                 poverty and a future where no one       should be assured that they can
                                                                 goes hungry:                            meet their basic needs, including
                                                                                                         through ODSP when necessary.
                                                                 1. Retain the current
                                                                                                         Feed Ontario strongly encourages
                                                                 definition of ‘disability’ in           the provincial government to retain
                                                                 Ontario                                 its current definition of disability,
                                                                                                         ensuring that Ontarians, when
                                                                 The     Government     of    Ontario    faced with debilitating illness, are
                                                                 announced it was considering            able to access the support they
                                                                 aligning the provincial definition of   need.
                                                                 disability with a federal definition.

  14
2. Reduce the clawback                  3. Invest in affordable
                                                                 on earned income under                  housing via construction,
                                                                 Ontario Works and ODSP                  repairs, and a portable
                                                                 from 75% to 50%                         housing benefit
                                                                 In   their   2019    budget,     the    The Government of Canada unveiled
                                                                 Government of Ontario announced         its first National Housing Strategy
                                                                 planned changes to the rules for        in 2017. The Government of Ontario
                                                                 earned income for people receiving      re-affirmed its commitment to
                                                                 Ontario Works or ODSP. For              cost-match the federal investments
                                                                 Ontario Works, the $200 cap would       in its 2019 budget. This agreement
                                                                 be increased to $300 per month,         will provide $4.2 billion in new
FEED ONTARIO Social assistance changes in ontario (April 2019)

                                                                 and for ODSP the cap would be           federal and provincial funding to
                                                                 increased to $6,000 per year.           the Ontario housing sector over
                                                                 Both of these announcements             the next nine years, including
                                                                 were steps in the right direction.      funding for the repair, renewal, and
                                                                 However, alongside these increases,     expansion of social housing and
                                                                 the provincial government also          a new Canada-Ontario Housing
                                                                 announced an increase to the            Benefit.
                                                                 clawbacks on earned income,
                                                                 moving it from 50 percent to 75         While this continued commitment
                                                                 percent of every dollar earned.         to the National Housing Strategy
                                                                 This, combined with many other          is promising, details about its
                                                                 challenges, will likely make it         implementation and the design of
                                                                 more difficult for social assistance    the portable housing benefit have
                                                                 recipients to achieve income            yet to be released. With 90 percent
                                                                 security through employment.            of food bank clients being rental or
                                                                                                         social housing tenants, who spend
                                                                 Feed Ontario strongly encourages        more than 70 percent of their
                                                                 the Government of Ontario to retain     income on housing, the proper
                                                                 the current clawback rate of 50         investment of this funding will be
                                                                 percent, to further support social      essential to moving the needle on
                                                                 assistance recipients as they work      poverty. In particular, Feed Ontario
                                                                 to establish sufficient resources and   will be paying close attention to
                                                                 a strong foundation that will enable    the design of the portable housing
                                                                 them to move out of poverty.            benefit to ensure it is accessible and
                                                                                                         benefits those who need it most.

                                                                         To learn more about food banking and poverty in Ontario,
                                                                                         visit www.feedontario.ca

    15
Works Cited                                        10. ibid
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Independence and Empowerment to               28. Ministry of Children, Community, and
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FEED ONTARIO Social assistance changes in ontario (April 2019)

                                                                     mcss.gov.on.ca/en/mcss/programs/social/           tax credit. Retrieved from: https://
                                                                     directives/ow/7_3_OW_Directives.aspx              www.canada.ca/en/revenue-agency/
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                                                                     Middle-Income Workers. https://www.fin.           information-medical-practitioners/
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                                                                     revenue-agency/services/tax/individuals/          files/Research%20and%20Publications/
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                                                                     TableMapChart/Table?TableId=2.1.31.2&Ge           html
                                                                     ographyId=35&GeographyTypeId=2&Displ          34. Ministry of Children, Community, and
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                                                                     ontario.ca/mcys/en/2018/11/reforming-             aspx
                                                                     social-assistance.html
                                                                 27. Ibid

    17
Authors

Amanda King
Ashley Quan

Design

Ashley Quan

              Feed Ontario
              99 Yorkville Avenue
              Suite 200
              Toronto, Ontario, M5R 1C1

              www.feedontario.ca | 416-656-4100
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