discussion paper 2 approaches for reform final3
TRANSCRIPT
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Discussion Paper 2:Approaches forReform
February 2012
The Vision:A 21st century income security system that
enables all Ontarians to live with dignity, participate in their
communities, and contribute to a prospering economy.
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Queens
Printer
for
Ontario,
2011
ISBN9781443588775(Print)
ISBN9781443588782(PDF)
ISBN9781443588799(.DOC)
Cedocumentestgalementdisponibleenfranais.
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Contents
MessagefromtheCommissioners.........................................................................................1
Chapter1:ReasonableExpectationsandNecessarySupportstoEmployment....................4
Chapter2:AppropriateBenefitStructure ...........................................................................18
Chapter3:EasiertoUnderstand..........................................................................................35
Chapter4:
Viable
over
the
Long
Term .................................................................................42
Chapter5:AnIntegratedOntarioPositiononIncomeSecurity..........................................46
Chapter6:FirstNationsandSocialAssistance ....................................................................50
Chapter7:HowtoProvideInput .........................................................................................57
References............................................................................................................................62
Appendices...........................................................................................................................63
AppendixA:MeasuresofLowIncome ........................................................................................63
AppendixB:SocialAssistanceIncomesComparedwithLowIncomeMeasures ........................65
AppendixC:OntarioWorksandODSPAssetLimitsandExemptions..........................................66
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MessagefromtheCommissionersIn
the
2008
Poverty
Reduction
Strategy,
the
Ontario
government
committed
toreviewingsocialassistanceOntarioWorksandtheOntarioDisability
SupportProgram(ODSP)withafocusonremovingbarriersandincreasing
opportunitiesforpeopletowork.ItsubsequentlyappointedtheSocial
AssistanceReviewAdvisoryCouncil(SARAC)toprovideadviceonaproposed
scopeforthereview.TakingintoaccounttheadviceoftheCouncil,the
governmentestablishedtheCommissionfortheReviewofSocialAssistance
inOntarioinNovember2010.
Ourtaskistocarryoutacomprehensivereviewandprovidespecific
recommendationsforimprovingthesocialassistancesystem.The
governmenthasalsoaskedustoprovideadviceonhowanOntariohousing
benefitalignswithsocialassistancereform.
ThispaperadvancesthedialoguewithOntariansthatwebeganinour
discussionpaperIssuesandIdeasinJune2011,andcontinuedoverthe
summerandfallthroughcommunityvisitsandotheropportunitiestoengage
withpeopleandorganizationswithdiverseperspectivesonsocialassistance.
Weencouragedconversationsthatwouldbringtogetherdifferentvoicesand
reflectregionalandcommunityperspectivesonsocialassistance.Inall,more
than2,000peoplehadtheopportunitytocontributethroughthe11
communityconversations
in
which
we
participated.
Many
other
communities
organizedsessionstodiscusstheissuesraisedinthediscussionpaperandto
brainstormsolutionstosharewithus.Wealsometwithnumerousprovincial
networksandorganizations,includingemployerandlabourgroups.The
Commissionreceivedover700writtensubmissions.
WealsoheldseparatediscussionswithFirstNationstoensurethat
approachestoreformwouldreflecttheiruniqueneedsandpriorities.We
engagedwithFirstNationsthroughtheChiefsofOntario,politicalleadership
andindividualsincommunitiesaroundtheprovince,andsocialassistance
administrators
through
the
Ontario
Native
Welfare
Administrators
Association.
ToincorporatetheviewsandexperiencesofAboriginalpeoplelivingoff
reserve,weengagedwiththeOntarioFederationofIndianFriendship
Centres.
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Someofthekeythemesthatemergedfromtheengagementprocessare
highlightedinthispaper.Amoredetailedsummaryoftheresponsestothe
discussionpaperisprovidedinaseparatereport,WhatWeHeard:A
Summary
of
Discussions
on
Social
Assistance,
posted
on
our
website
(see
page58formoreinformation).
InadditiontoengagingwithOntarians,theCommissionconductedresearch
tolearnmoreabouttheissuesinsocialassistanceandtheexperiencesof
otherjurisdictions.Wealsometwithacademics,technicalexpertsandothers
toaddressgapsinourunderstanding.
Basedonourdiscussionsandresearch,wehavecometotheviewthatwe
needtotransformthesocialassistancesystem;smallfixeswillnotbe
enough.Acrosstheprovince,peopleaskedustobeboldinthinkingabout
howtoreformthesocialassistancesystem.Whilemanyidentifiedspecific
policiesor
rules
that
are
not
working
under
the
current
system,
they
also
calledformorefundamentalchangetothesystemasawhole.
Wehavealsofoundthatpoliciesandprogramsinmanyotherareascreate
challengesforsocialassistanceandconstrainapproachestoreformingthe
system.Thesechallengesareoftwotypes.First,sincesocialassistanceis
wherepeopleturnwhentheycannotbehelpedbyotherincomesupport
programs,inadequaciesinotherprograms,suchasEmploymentInsurance,
putpressureonthesocialassistancesystem.Second,therearefactorsthat
makeitdifficulttohelppeoplemoveintoemployment.Theseinclude,among
otherthings,
the
nature
of
the
labour
market
and
the
lack
of
health
and
other
benefitsformanylowincomeworkers.
Theconnectionsbetweensocialassistanceandsomanyotherareassuggest
thatsomeofthesolutionslieoutsidethesystem.Whileourmandateis
focusedonmakingrecommendationstoimprovesocialassistance,wewillbe
commentingontheseconnectionsinourfinalreport.
Overthecomingmonths,wewillbedevelopingrecommendationsfora
sustainablesocialassistancesystemforthefuture.Weareawareofthe
challengingfiscalconditionscurrentlyfacinggovernmentsandthebackdrop
ofeconomicuncertaintythatcanaffectourgoalofimprovingemployment
outcomesforpeoplereceivingsocialassistance.Inconsideringfundamental
reformtothesystem,weknowthatsomechangeswilltakelongerto
implementthanothers.
Ourpurposeinthispaperistodiscussdifferentapproachestoimproving
someofthekeyareasofthesocialassistancesystem.Thispaperprovides
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opportunitiesforfurtherdiscussion,asopposedtofinalrecommendations.
Asourworkunfolded,westronglydesiredtoengageinfurtherdialogueand
obtainfeedbackonspecificareasofreformtohelprefineourthinking.This
paper
provides
those
opportunities,
rather
than
a
comprehensive
discussion
ofoptionsforreformoraninterimreportonthereview.
Somesectionsofthispaper,particularlythoseaddressingthebenefit
structure,dealwithtechnicalissues.Nevertheless,wehopethatallreaders
willfeelcomfortablerespondingtotheideasoutlinedhere,basedontheir
ownexperienceandunderstandingoftheissues.
Thepaperisorganizedbythefiveoutcomesforthereview(seeChapters1
through5).IssuesrespectingFirstNationsareaddressedthroughoutthe
paper,andChapter6discussesissuesthatarespecifictoFirstNations.For
eachoutcome,weaskquestionsontheapproachesdescribed.Chapter7
repeatsthe
questions
from
the
paper
and
provides
information
on
how
to
provideinputtotheCommission.
WewouldliketoreceiveyourinputbyFriday,March16,2012.Wewill
consideryourinputandourresearchindevelopingourfinalreportto
governmentinJune2012.Welookforwardtohearingyourthoughtsonthe
variousapproachesdescribedinthispaper,oronotherapproachesthatyou
believeshouldbeconsideredtohelpachievefundamentalchange.
FrancesLankin MunirSheikh
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Chapter1:
ReasonableExpectationsand
NecessarySupports
to
Employment
Thereviewwillmakerecommendationsthatwillenablethegovernmentto
placereasonableexpectationson,andprovidesupportsfor,peoplewhorely
onsocialassistancewithrespecttoactiveengagementinthelabourmarket
andparticipationintreatmentandrehabilitation.
TERMSOFREFERENCEFORTHEREVIEW
Thegovernmenthasidentifiedemploymentasakeyrouteforindividualsand
familiestoescapepoverty.Weagreethatoneofthebestwaystohelp
peopletomoveoutofpovertyistohelpthemfindwork.
Somepeoplereceivesocialassistanceforashorttimeandareabletoenter
orreentertheworkforcewiththelevelofsupportcurrentlyavailableorwith
theirownsourcesofsupport.Othersexperiencearepetitivecycleof
employmentandreceivingsocialassistance.Stillothersrequirelongterm
assistance.1
Employment
services
and
supports
must
therefore
meet
awide
varietyofneeds,butwhatiscurrentlyavailableisfailingtoidentifyandmeet
therangeofneedsofpeoplewhoarenotabletoentertheworkforceeasily.
ForpeoplereceivingODSP,forexample,thereislittlefocusonhelpingthem
prepareforandfindemployment.
Thischapterfirstlooksateffectiveemploymentservicesandsupportsto
meetawidevarietyofneeds,includingrecognitionofthebarriersto
employmentfacingpeoplewithdisabilities.Itthendiscussesaccesstothose
servicesandsupports.Bothelementsarecriticaltoachievingthegoalof
1Basedonastudyofclientsfollowedfrom2003to2009,about75percentofclientswho
receivedOntarioWorksreceiveditfor12monthsorlessandthenexitedtheprogram.However,
abouthalfofthosewhoexitedreturnedtoOntarioWorkswithintwoyears.About25percentof
studyclientswhoreceivedOntarioWorksexperiencedacontinuousperiodoftwoormoreyears
ofreceivingOntarioWorks.
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assistingpeopletowardactiveengagementinthelabourforcetothe
maximumoftheirabilities.
FeaturesofEffectiveServicesandSupports
Fourkeyfeaturesofeffectiveemploymentservicesandsupportswere
identifiedthroughourdiscussions,reviewofsubmissions,andresearch:2
Consistentassessmentandcasemanagement:Consistentassessmentandcasemanagementtosetrealisticemploymentgoalsand
manageablestepsforpeople,andtoprovidepeoplewithmultiple
barrierswiththesupportstheyneed
Integratedpre andpostemploymentservicesandsupports:Arangeofintegratedpre andpostemploymentservicesandsupportsthat
aretailoredtoindividualneedsandeffectiveinhelpingpeoplefind
andmaintainwork
Accesstothesamelevelofservicesforpeoplewithdisabilities:Accessforpeoplewithdisabilitiestothesamelevelandrangeof
employmentservicesandsupportsasavailabletopeoplewithout
disabilities
Strongconnectionswithemployers:Strongconnectionswithemployers
to
understand
and
meet
their
business
needs
as
customers
ofemploymentservices
Weheardexamplesofthesefeaturesinanumberofcommunities,butwe
foundthattheyareneitherconsistentacrosstheprovincenorsufficiently
accessibletopeoplewithdisabilities.TheCommissionschallengeistomake
recommendationstoimprovetheconsistencyoftheseeffectiveprogram
features,whilestillallowingforlocalflexibilityandinnovation.
ConsistentAssessmentandCaseManagement
SomeOntario
Works
administrators
are
using
assessment
tools
to
identify
wherepeopleareinthecontinuumofpreparingforandfindingemployment.
Usingthosetools,aclientmaybeidentifiedas,forexample,jobready,in
2See,forexample,DeanHerd(2006),Whatnextinwelfarereform?Apreliminaryreviewof
promisingprogramsandpractices.
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needofpreemploymenttraining,skillsdevelopment,oreducation
upgrading,andsoon.Otherjurisdictionsuseassessmenttoolstomeasure
jobseekerslevelofdisadvantageinthelabourmarketandtoreferpeople,
including
people
with
disabilities,
to
the
most
appropriate
employment
services.
Assessmenttoolscanbeparticularlyimportantinidentifyingpeoplewhomay
befacingmultiplebarrierstoemploymentandrequiringmoreintensive
supportstostabilizetheirlives,oraddressmentalhealth,addictions,orother
issuesbeforepreparingforemployment.
Somestudiesonprovidingcomprehensivecasemanagementtosocial
assistancerecipientswithmultiplebarriershaveshownpromisingresults.3
Weheard,inourcommunityvisitsandthroughsubmissions,aboutthe
positiveresults
of
the
Addiction
Services
Initiative
and
Hostels
to
Homes
pilot
programsoftheMinistryofCommunityandSocialServices,bothofwhich
involveintensivecasemanagement.Wearealsoawareofthecost
componentofthedifferentlevelsofcasemanagement,andofthechallenges
indetermininghowtoallocateresourcestomeetthewidearrayofneeds.
IntegratedPre andPostEmploymentServicesandSupports
Manypeopleemphasizedtheimportanceofpreemploymenttrainingand
learninginpreparingpeoplereceivingsocialassistanceforemployment.
Albertassocial
assistance
program,
for
example,
recognizes
this
through
adistinctLearnercategoryforpeoplewhoneedskillsupgradingortrainingto
getajob.ManymunicipalOntarioWorksadministratorssuggestedthatthe
currentemploymentservicesfundingapproach,whichisbasedpartlyon
outcomesrelatedtoemploymentearningsandexitsfromsocialassistance,
shouldbebroadenedtoincludeperformancemeasuresrelatedtocompleting
preemploymentactivitiesandaddressingbarrierstoemployment.
Avarietyofpreemploymentsupportsandtrainingiscurrentlyavailable
throughOntarioWorks,ODSP,andotherprogramsintheprovince.Inthe
3Whentheboughbreaks:Providerinitiatedcomprehensivecareismoreeffectiveandless
expensiveforsolesupportparentsonsocialassistance(GinaBrowne,CarolynByrne,Jacqueline
Roberts,AmiramGafniandSusanWhittaker,2001)studiedaprojectthatactivelysoughtoutsole
parentsonsocialassistanceandofferedthesefamiliesarangeofservicesandsupports.The
evaluationfoundthat,amongthoseparticipatingintheenhancedservices,25percentofsole
supportparentsleftsocialassistancewithinoneyear,comparedwith10percentwhoexited
socialassistancewithoutanyextrasupportfromcaseworkers.
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engagementprocess,however,weheardthatpeoplehavebeenreferredto
trainingcoursesthatdidnotleadtojobs.Somewomentalkedaboutbeing
trainedaspersonalsupportworkersinlocationswheretherewasno
demand.
Highly
skilled
immigrants
described
being
sent
for
rsum
writing
courses,whichtheydidnotneed.Weoftenheardthattrainingcourses
shouldbeequippingpeoplewithskillsforwhichthereisademandinthe
locallabourmarket.
FirstNationsengagedinopenandfrankdiscussionswithus.Theytoldus
aboutthehealingjourneytheirpeopleandcommunitiesareundertakingin
thewakeofmanyhistoricalchallenges,suchasresidentialschools.Many
FirstNationscommunitieswantflexibilitytodefinetheiremployment
programstobetterreflectthiscontext.Forexample,theOntarioNative
WelfareAdministratorsAssociation(ONWAA)recommendedthattakingpart
incultural
or
community
development
activities
should
be
recognized
as
part
ofarangeofparticipationrequirementsunderOntarioWorks.Intheirview,
theseactivitiescontributetoimprovingjobreadinessandcanhelppeople
whomaybedealingwithmentalhealthissues,trauma,oraddictionsthat
needtobeaddressedbeforeemployment.Suchactivitiescanalsohavea
significantimpactonimprovingthewellbeingofindividualsandcommunities
wheretherearefewjobopportunitiesavailable.
Note:
FirstNations
issues
are
discussed
more
fully
in
Chapter
6,
beginning
on
page
50.
Ourdiscussionsandresearchsuggestthatpostemploymentsupportscanbe
effectiveinhelpingsomeclientsretainemployment,particularlypeoplewith
disabilitiesormultiplebarriersandnewcomerswholackfamiliaritywiththe
Canadianworkenvironment.Postemploymentsupportscouldmean
continuedaccesstoemploymentserviceprovidersforaperiodoftimeafter
startingajob.Thesesupportscouldhelpclientsadjusttoandsucceedinthe
workplace,andtoaccesssocialsupports,suchashousingorchildcare,which
arecritical
to
long
term
employment
retention.
For
employers,
service
providerscouldprovidesupportstailoredtotheneedsofspecificemployers,
suchasassistancewithaccommodationorjobcoaching.Withoutsuch
supports,someemployersmaybereluctanttohirepeoplewhohavebarriers
toemploymentormayfinditdifficulttodoso.
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Whilepostemploymentservicesareavailablefromsomeprovincialfunding
programs,weheardthataccesstotheseservicesisinconsistent.Toensure
thatpeoplewithmultiplebarriershaveaccesstotheseservices,itis
important
that
funding
mechanisms
for
post
employment
services
reflect
the
costofservingarangeofclients.
AccesstotheSameLevelofServicesforPeoplewithDisabilities
Currently,ODSPdoesnotfocusprimarilyonhelpingpeopletopreparefor
andfindemployment.Throughourengagementprocess,weheardfrom
manypeoplereceivingODSPwhosaidthattheywantedtowork,andcould
work,ifbarrierswereremovedandappropriatesupportswereprovided.
Peoplewithdisabilitiestoldusthattheyneedthesamerangeofservicesand
supportsas
people
without
disabilities
(skills
upgrading,
training,
housing,
childcare,etc.),aswellasspecificsupportsrelatedtodisability,suchas
accessibletransportationandgreateravailabilityofattendantservices.
MostpeoplewhocommentedonODSPEmploymentSupportssaidthe
programwasmostsuccessfulforpeoplewithdisabilitieswhoarejobready
andcanbenefitfromsomeassistancetomakethetransitiontothe
workplaceandfrompostemploymentsupportstohelpthemmaintain
employment.Theyrecommendedthatthevariousprogramsintendedto
supportemploymentforpeoplewithdisabilitiesbebetterintegrated.With
betterintegration,
agencies
could
provide
the
full
spectrum
of
services
that
clientsneed,includingassessments,preemploymentpreparationand
training,jobplacement,andpostemploymentsupports.
Employmentservicesandsupportsmustrecognizetherangeofbarriersto
employmentfacingpeoplewithdisabilities.Onestudy,4 whichincludeda
surveyofover500employersinOntario,identifiedthesekeybarriers:
Negativeattitudesandfalseassumptionsaboutpeoplewithdisabilities
Lackof
awareness
about
the
employment
potential
of
people
with
disabilities
4SeeWCGInternationalConsultantsLtd.(1996),Employmentofpersonswithdisabilitiesinthe
ProvinceofOntario.
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andwellbeing.Amongemployers,therehasbeenincreasinginterestin
addressingworkplaceissuesfacingpeoplewithmentalillnessandimproving
employersreturntoworkprograms.Wehavemoreworktodo,however,to
overcome
the
stigma
of
mental
illness
in
recruitment
and
hiring
and
to
learn
howtoaccommodatepeoplewithmentalhealthissuesandepisodic
disabilitiesintheworkplace.
Ourresearchanddiscussionswithhealthserviceprovidershighlightedforus
theimportanceofprovidingearlyinterventionandappropriatesupportsto
peoplewithmentalillnessandotherdisabilities.Thisisessentialfor
participationinemploymentorreturntoworkassoonaspossible.Early
supportscanalsoimprovewellbeingandpreventsocialexclusionandlong
absencesfromthelabourforce.Tofacilitateaccessandreducestigma,itis
importantthatthesesupportsbewellintegratedwithotheremployment
services.We
are
aware
that
the
first
phase
of
Ontarios
Comprehensive
MentalHealthandAddictionsStrategyisfocusingonchildren.Foradults,we
expectthatthenextphasewillprovideopportunitiesforearlierintervention
andbetteraccesstointegratedmentalhealthtreatmentandemployment
services.
Evenwithappropriatesupports,notallpeoplewithdisabilitieswillbeableto
workfulltimeorconsistently.Ourgoalistomakerecommendationsthatwill
respondtotheworkaspirationsofpeoplewithdisabilitiesandencourageand
supporttheirparticipationinemploymenttothemaximumoftheirabilities.
Wealso
want
to
make
recommendations
to
improve,
substantially,
the
employmentservicesandsupportsavailabletopeoplewithdisabilities,
includingmakingthedeliveryoftheseservicesandsupportsmoreeasily
accessible.However,therealityisthatpeoplewithdisabilitiescontinueto
faceamultitudeofbarriers,includingdiscriminationandstigma.Some
peoplewithdisabilitieswillnotbeabletofindemployment,despitehigh
personalmotivation.
Inourresearch,wefoundthatmanycountriesaremovingtowardan
approachthatincludesactiveengagementinthelabourmarketforeveryone
receivingsocial
assistance,
including
people
with
disabilities.
For
example,
the
UnitedKingdomandAustralia,whichhavebeeninvolvedindisabilitybenefit
reformforanumberofyears,havedevelopedtoolstoassessworkcapacity.
AustraliasJobCapacityAssessmentincludesanassessmentofimpairment
againstImpairmentTables,whichareintendedtomeasurethelossof
functionalcapacitythataffectsapersonsabilitytowork.Inaddition,an
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assessmentismadeofwhetherapersonisabletoworkatleastparttime.
Thoseassessedasnotabletoworkatleastparttimeareeligibleforahigher
benefitrateanddonothavetoparticipateinworkrelatedactivities.People
assessed
as
able
to
work
at
least
part
time
are
expected
to
participate
accordingtotheirability.
Note:
Benefitsforpeoplewithdisabilitiesarediscussedinthenextchapter,beginningonpage
29.
Implementingjobcapacityassessmentscanbechallenging,however.For
example,intheUK,issueshavearisenregardingthevalidityofthetooland
theway
in
which
it
is
implemented.
The
related
reforms
are
struggling
to
gain
publicacceptance.ResearchbytheOrganisationforEconomicCooperation
andDevelopment(OECD)notesthatthegoalofdeterminingreasonable
expectationsbyassessingwhetherpeoplearetoodisabledtoworkis
understandable,butitisnotstraightforwardtosetthelevelofcapacity
belowwhichitisimpracticaltoexpectapersontoparticipateinthelabour
market.6Disabilityandtheexperienceofdisabilityarechangeableovertime
andindividualmotivationvaries.Manyenvironmentalfactorsalsohavean
impactonworkcapacity,includingtechnology,jobexpectations,
accommodation,andacceptanceintheworkplace.
Giventhiscontext,theCommissionisseekinginputonwhetherOntario
shouldadoptameanstobetterassessworkcapacityandsetparticipation
requirementsforpeoplewithsomecapacityforemployment,orwhetherthe
Provinceshouldwaittointroducesuchrequirementsuntilsubstantial
progresshasbeenmadeonremovingbarrierstoemploymentforpeoplewith
disabilities,includingthefullimplementationoftheAODA.
StrongConnectionswithEmployers
We
also
looked
at
effective
employment
services
and
supports
from
the
perspectiveofemployers.Employersemphasizedthatitiscriticalfor
employmentserviceproviderstounderstandhowspecificbusinessesoperate
6SeeOECD(2010),Sickness,disabilityandwork:Breakingthebarriersasynthesisoffindings
acrossOECDCountries,p.106.
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andwhattheyrequirewhenhiring.Forexample,somesmallandmedium
sizedemployerssaidtheyneedcandidateswhoareprescreenedandalready
trained.Somelargeremployerssaidtheyprefertodoonthejobtraining
themselves.
Itwasclearfromourdiscussionswithemployersthatthereisnosingle
strategyforsupportingthemtohirepeoplereceivingsocialassistance.
Rather,atoolkitormenuofapproachesisneeded.Thismayinclude
information,technicaladvice,andfinancialincentivessuchaswagesubsidies
andtaxcredits.Someemployerssuggestedthatprovidingfinancialincentives
tosmallandmediumsizedbusinesseswouldassistthemincovering
recruitmentandtrainingcostswhenhiringpeoplereceivingsocialassistance.
Thecreationofafundtoassistsmalleremployerswiththecostsof
accommodatingpeoplewithdisabilitiesintheworkplacewasalsosuggested.
Otheremployers
did
not
favour
wage
subsidies
or
other
financial
incentives.
Intheirview,employershirepeoplebecausethereisagoodbusinesscasefor
doingso.
Wealsoheardfromemployersabouttheeffectivenessofbusinessto
businessapproaches.Forexample,throughtheOntarioChamberof
CommerceGlobalExperienceatWorkprogram,localChambersconduct
outreachtoemployersintheircommunitiestoencouragethemtohire
internationallytrainedprofessionals.Thisprogramcouldbeausefulmodel
forimprovingemploymentopportunitiesforpeoplereceivingsocial
assistance.Members
of
the
Ontario
Disability
Employment
Network
ChampionsLeaguepromotethebenefitsofhiringpeoplewithdisabilitiesto
otherbusinessownersandoperators.Otherrecommendationsfrom
employersincludedestablishingacommonportalwheretheycouldpostjob
opportunities,segmentingemploymentserviceprovidersbyindustrysector,
expandingfundingmodelsthatrewardemploymentservicesbasedonjob
retentionratherthanthenumberofplacements,anddevelopingstandards
ofpracticeforemploymentserviceproviders.
Weheardfromanumberofmunicipalitiesandnotforprofitemployment
serviceproviders
who
are
working
successfully
with
employers
in
their
communitiestomatchpeoplereceivingsocialassistancewithjobs.
Developinggoodworkingrelationshipswithlocalemployersandhavinga
goodunderstandingofthelocallabourmarkethavebeencriticalelementsin
theirsuccess.
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DISCUSSIONQUESTIONS
Howcanemploymentservicesbemademoreeffective?
What
should
the
Commission
recommend
to
encourage
greater
consistencyineffectiveemploymentservicesandsupportsforsocial
assistancerecipients,whilestillallowingforlocalflexibilityand
innovation?
Shouldstandardassessmenttoolsbeusedtoidentifypeoplesneedsandmatchthemtoappropriateservicesandsupports?
Whatshouldbeconsideredappropriateemploymentrelatedactivityparticipationrequirementsforpeoplewithdisabilities?Should
participationrequirementsforpeoplewithdisabilitiesbedifferent
fromthose
for
other
people
receiving
social
assistance?
Shouldatoolbedevelopedtoassesstheworkcapacityofpeoplewithdisabilities?Ifso,howshouldthetoolbedevelopedandhowshouldit
beused?
Whatkindsofengagementstrategiesandincentiveswouldbemosteffectiveinencouragingandsupportingemployerstohiremoresocial
assistancerecipients?
Accessto
Employment
Services
and
Supports
Currently,employmentservicesforpeoplereceivingsocialassistanceare
deliveredinanumberofdifferentways.
ConsolidatedMunicipalServiceManagers(CMSMs)and,inNorthernOntario,
DistrictSocialServicesAdministrationBoards(DSSABs)areresponsiblefor
providingOntarioWorksemploymentservicesthrough133localsites,
includingmainandsatelliteofficesintheprovince.Someprovideservices
directlyandotherscontractthemouttoemploymentserviceproviders,
includingAboriginalserviceorganizations.Accordingtoasubmissionfrom
theCanadianUnionofPublicEmployees(CUPE),theunionrepresenting
manyOntarioWorkscaseworkers,themajorityofcaseworkershave
caseloadsrangingfrom150to200clients.OntarioWorksisdeliveredin112
FirstNationscommunities,53ofwhichreceivebothincomesupportand
employmentservices.
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TheMinistryofCommunityandSocialServicesisresponsibleforproviding
ODSPservicesthrough46regionalsitesintheprovince.ODSPEmployment
Supportsarecontractedoutanddeliveredbyapproximately150community
service
providers.
According
to
a
submission
from
the
Ontario
Public
Service
EmployeesUnion(OPSEU),theunionrepresentingODSPcaseworkers,these
caseworkershavecaseloadsrangingfrom230to380clients.
TheMinistryofTraining,CollegesandUniversitiesfundsEmploymentOntario
(EO).EOprovidesemploymentandtrainingservicestounemployed
Ontariansthrough51regionalEOofficesand400servicelocations.The
servicelocationsincludeamixofnotforprofitserviceprovidersandother
thirdpartydeliveryagents.Therearesixcommunitieswheremunicipalities
deliverbothOntarioWorksandEOservices.WeheardthatEOservicescan
bedifficulttoaccessinsomeFirstNationscommunitiesandotherareasof
theprovince.
EOisnotprimarilydesignedtoservesocialassistancerecipients.Currently,
17percentofpeoplereceivingservicesfromEOaresocialassistance
recipients.Almosthalfofthe$1.2billioninfundingforEOcomesfromthe
federalgovernmentthroughtheCanadaOntarioLabourMarket
DevelopmentAgreement.Thefundingcanonlybeusedtoprovideprograms
andservicestoEIeligibleclients.
Peoplereceivingsocialassistancetoldustheywantedaccesstothefullrange
ofemployment
and
training
programs
available
to
other
unemployed
Ontarians,includingthoseofferedthroughEO.Weheardmanyexamplesof
socialassistancerecipientsnotbeingabletoaccesstherightservicesatthe
righttime,ornotbeingabletofindtheservicesandsupportstheyneedin
theircommunities.
Thecurrentapproachseparatessocialassistancerecipientsfromother
jobseekers.Thisreinforcesthestigmaofreceivingassistanceandmakesit
moredifficultforpeople,especiallypeoplewithdisabilities,toaccessawider
rangeofservices.Theseparationalsoresultsinserviceduplicationandgaps,
confusion
for
jobseekers
and
employers,
and
administrative
inefficiencies.
Inadditiontoemploymentservices,asdiscussedinthefirstsectionofthis
chapter,manypeopleidentifiedtheneedforbettercoordinationor
integrationofsocialassistancewithotherservicesandsupports,suchas
childcareandhousing.UrbanAboriginalpeoplealsodrewourattentionto
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b)Municipalities/FirstNationsdeliverallemploymentservices
AsecondapproachcouldbetoallowmunicipalitiesandFirstNations
todeliverallemploymentservicesforpeoplereceivingsocial
assistance,whether
Ontario
Works
or
ODSP.
This
would
help
ensure
thatpeoplewithdisabilitieshaveaccesstothesamelevelandrange
ofemploymentservicesandsupportsasotherpeoplereceivingsocial
assistance.Inadditiontochildcareandhousingsupports,whichthey
accessthroughmunicipalitiesandsomeFirstNations,peoplewith
disabilitieswouldalsobeabletoaccessemploymentservices.This
approachwouldallowaonedoorentrytoservicesandimproveease
ofaccessforclients.Municipal/FirstNationdeliverywouldprovidea
commonentrypointforallpeopleseekingemploymentandsocial
services,whichwouldreducethestigmaassociatedwithsocial
assistance.This
approach
would
also
build
on
municipalities
and
First
Nationsexpertiseinlocaleconomicdevelopmentandworkforce
planning.
Inadditiontointegrationofsocialassistanceemploymentservicesat
thelocallevel,linkagesbetweenmunicipalities/FirstNationsandEO
couldbestrengthenedinordertoimproveaccesstothefullsuiteof
EOservices.Betterlinkagescouldbeachievedthroughinformation
sharingandserviceagreements.Theseagreementscouldfocusthe
rolesandresponsibilitiesinvolved.Forexample,municipalitiesand
FirstNationscouldprovideintensivecasemanagementtopeoplewho
havemultiple
barriers
to
employment
and
refer
people
who
are
job
readytoEOor,forFirstNations,tothesupportsavailablethroughthe
federalAboriginalSkillsandEmploymentTrainingStrategy(ASETS).
Wheretheyhavetheinterestandhavedevelopedthecapacity,
municipalitiesandFirstNationscouldtakeontheroleofdesignated
EOserviceproviders.ThiswouldrequireachangeintheProvinces
currentapproachtoselectingproviderstoformitsEOnetwork.Some
municipalitieshavealreadystructuredtheiremploymentservicesand
supportstoserveabroaderpopulationaswellaspeoplereceiving
socialassistance.
c)EmploymentOntariodeliversallemploymentservices
Athirdapproachcouldbetoconsolidateallemploymentserviceswith
EOproviders.Socialassistanceadministratorscouldretain
responsibilityforoverallcasemanagementofpeoplereceivingsocial
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assistance,includingreferralstoEOandotherservices,andfor
ensuringthatpeopleareparticipatinginemploymentrelated
programs.
Inthis
model,
it
would
be
important
to
ensure
that
the
specialized
or
intensiveservicesthatsomesocialassistancerecipientsneedwould
beavailable.Thisapproachwouldalsorequireimprovedand
integratedlocallabourmarketplanninginordertotakeadvantageof
municipalandFirstNationsexpertiseinlocaleconomicdevelopment
andtheirconnectionstoemployersintheircommunities.
Weareawarethatanystructuralchangeinthewayservicesaredelivered
wouldlikelyinvolvechangesinaccountabilitiesandreportingrelationships.
Newapproachestodeliverymayalsohaveanimpactonstaffroles,which
wouldrequire
significant
discussions
with
Ontario
Works
and
ODSP
caseworkersandtheirunions.
DISCUSSIONQUESTION
Whichapproachwouldbemosteffectiveinimprovingthedeliveryofemploymentservices?
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Chapter2:
AppropriateBenefitStructure
Thereviewwillmakerecommendationsthatwillenablethegovernmentto
establishanappropriatebenefitstructurethatreducesbarriersandsupports
peoplestransitioninto,andattachmentwithin,thelabourmarket.
TERMSOFREFERENCEFORTHEREVIEW
TheTerms
of
Reference
for
the
review
ask
us
to
make
recommendations
to
improveemploymentoutcomesforpeoplewhocanworkandtoprovide
adequateincomesecurityforthosewhocannot.Theyalsorequireusto
adviseonmethodologiesfordeterminingthebenefitstructureandlevelof
rates.
Withinthoserequirements,wewanttomakerecommendationsthatachieve
threekeyobjectives:
Adequacyofbenefits Fairness
as
between
people
who
are
receiving
social
assistance
and
lowincomepeoplewhoareworkingbutnotreceivingsocial
assistance
WorkincentivesToachievetheseobjectivesefficiently,anewratestructureforbothOntario
WorksandODSPmustalsobelesscomplexandmoretransparent.
BalancingAdequacy,FairnessandIncentivestoWork
Thefollowingsectiondiscussesthechallengesofachievingtherightbalance
amongthethreeobjectivesbydescribing:a)howtheyinteractwithone
another;b)thedifficultiesinestablishingaratemethodology;andc)howthe
tradeoffsbetweenthethreeobjectivescouldbeaddressed.
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a)Interactions
OttawaPublicHealthpointedouttousthatinOttawa,afamilyoffourwith
childrenovertheageofsixcanexpecttopay$759permonthfornutritious
foodand
an
average
rent
of
$1,227.
If
this
family
relies
on
Ontario
Works,
alongwithchildrensbenefitsandothertaxcredits,OttawaPublicHealth
estimatesthattheywouldbeleftwithonly$25afterrentandfoodcosts.A
singlepersoninOttawacanexpecttopay$254permonthfornutritiousfood
andanaveragerentof$715forabachelorapartment.Ifthatpersonrelieson
OntarioWorksandtaxcredits,OttawaPublicHealthestimatesthatthe
individualwouldbeshort$334eachmonth.Weheardfrommanypeople
thatthebenefitstructureshouldmorecloselyreflectthecostofliving,
includingthecostofnutritiousfood,securehousingandcommunity
participation.
Thebenefitstructuremustalsotakeintoaccountfairnessasbetweenlow
incomeworkersandpeoplereceivingsocialassistance.Peoplereceiving
socialassistancemayhavesomeemploymentearningsandremaineligible
forsomefinancialsupportandotherbenefitsfromsocialassistance.Therate
structureshouldnotleadtoasituationwhereapersonworkingatalow
wagejobandnotreceivingsocialassistanceisatadisadvantagecompared
withapersonworkingatthesamejobandalsoreceivingsomesupportfrom
socialassistance.
Thebenefitstructureshouldalsoensurethatworkpays;inotherwords,that
thereissufficientfinancialincentiveforapersontotakeonemployment.We
alsohavetorememberthatthereisconsiderablediversityinthepopulation
receivingsocialassistance,andmanyfactorscanaffectapersonsdecisionto
moveintoemploymentorabilitytodoso.Wehavenowayofknowinghow
muchanyparticularindividualwouldbeaffectedbytheextenttowhichwork
pays;forexample,somepeoplemayattachconsiderablevaluetothenon
financialbenefitsofworking,suchasinclusionorparticipationinthe
community.However,theliteraturesuggeststhatmorepeopleareattracted
toworkasthefinancialrewardsforworkingincrease,sobalancingthe
objectivesofadequacy,fairnessandincentivesisimportant.
Toarriveataratestructurethatbalancesthesethreeobjectives,weneedto
considerthefollowing:
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Anadequacymeasure:Whatlevelofincomeisnecessarytoobtainthebasics,suchassafe,cleanhousing,anutritiousdiet,clothingand
transportation?
Areference
wage:
How
do
social
assistance
rates
and
benefits
comparewiththewagesandassociatedbenefitsthatanindividual
mightreceiveinthelabourmarketiftheyweretoexitsocial
assistanceforemployment?Weneedtobeabletocomparesocial
assistanceincomeswiththisreferencewage.
Abenefitwithdrawalrate:Atwhatrateshouldbenefitsbereducedorwithdrawnwhenpeoplebegintoearnemploymentincome?The
benefitwithdrawalrateisanimportantpartoftheMarginalEffective
TaxRate(METR),asexplainedintheboxbelow.
TheMarginalEffectiveTaxRate(METR)istherateatwhichincometestedtaxcredits
andbenefitsarewithdrawn,combinedwiththeimpactofincometaxes,asincomerises
throughincreasedearnings.TheleveloftheMETRdeterminestheextentofthe
financialincentivetowork.IfMETRsarelow,peoplelosetheirbenefitsmoreslowlyas
theybegintoearn,increasingtheirincentivetowork.IfMETRsarehigh,peoplelose
theirbenefitsmorequickly,reducingtheincentivetowork.
CurrentlyinbothOntarioWorksandODSP,benefitsarewithdrawnatarateof50cents
foreverydollarearned.Thisrate,combinedwiththelossofanyotherbenefits,or
increasesinincometaxesowedresultingfromincreasedearnings,formstheoverall
METR.
Thesocialassistancebenefitwithdrawalrateof50percentisintendedtoprovidean
incentiveforpeopletomakethetransitiontoemployment.Itwasintroducedin2005,
replacingamorecomplexapproach,involvingdifferentratesofwithdrawalatdifferent
earningsthresholds,whichwasconfusingtoclients.Thereisnoconsistentapproach
usedamongjurisdictions,anditisverydifficulttodeterminetherightlevelof
incentive.
Therelationshipbetweenadequacy,thereferencewageandthebenefit
withdrawal
rate
is
such
that
if
steps
are
taken
to
address
any
two
of
them,
thethirdcannotbecontrolledindependently.Thisisillustratedinthe
followingthreeexamples:
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Example1:
Benefitsaresetatanadequatelevelandarephasedoutentirelyatthepointwhen
earningsreachthereferencewage.Thisautomaticallydeterminestherateatwhich
benefitsare
withdrawn
as
income
is
earned.
Example2:
Benefitsaresetatanadequatelevelandtherateatwhichbenefitsarewithdrawnas
incomeisearnedisestablished.Inthiscase,theincomelevelatwhichbenefitsarefully
withdrawnwillbedifferentfromthereferencewage.
Example3:
Areferencewageandtherateatwhichbenefitsarewithdrawnarebothset.Inthis
case,thelevelofbenefitswillbedeterminedautomaticallybythisformula,andmayor
maynotmeetthelevelofadequacy.
Aswetrytobalancethethreeobjectivesofadequacy,fairnessand
incentives,wedosointhecontextofthegovernmentscommitmentto
reducingpovertyinourprovince.Someoftheissuesaretechnicaland
complex.Wehavetotacklethem,butwearemindfulthatadequacyisreally
aboutwhetherpeoplewhohavefallenonhardtimescanadequatelyfeed,
clotheandhousethemselvesandtheirfamilies.
Inourdiscussions,weheard,frompeoplewithlivedexperienceofsocial
assistance,thatthecurrentbenefitstructureisnotworking.Theytoldusthat
formany,
the
threshold
of
adequacy
is
not
being
met,
and
that
people
should
beabletoretainagreaterportionofanyearnedincome,atleastuptoa
pointofmorecloselyreachingadequacy.Weoftenheardthesuggestionthat
thebenefitwithdrawalratethatapplieswhenpeoplebegintoearn
employmentincomeshouldbeloweredfromthecurrent50percent.
LoweringtherateofwithdrawalofbenefitsorMETRwouldimprovethe
financialincentivetoworkforsocialassistancerecipients.However,itwould
alsomeanthatsocialassistancerecipientswithemploymentearningswould
continuetoreceivesocialassistanceathigherincomesfromearningsthan
theydo
now,
and
could
be
better
off
than
people
who
are
working
at
similar
jobsbutnotreceivingsocialassistance.Forexample,iftheamountofearned
incomeretainedincreasedfrom50percentto75percent,theearned
incomelevelatwhichapersonwouldexitsocialassistancewouldbefour
timesthesocialassistancerate.Apersoninthissituationwouldhaveamuch
higherincomeatthatpointthanalowwageworkerwouldearnfrom
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employmentonly.Ontheotherhand,wewerealsotoldthatpeoplewere
opentotheideaofretaininglessoftheirearningsifratesweremore
adequatetobeginwith.
Itmust
be
emphasized
that
the
dilemma
presented
by
the
trade
offs
betweenadequacy,fairness,andincentivesisrootedinthelabourmarket,
wherewagescanbelow,andthereisgrowingincomedisparity.Theway
forwardtomanagethesetradeoffsandachieveanappropriatebenefit
structurewouldbefarlessdifficultifthelabourmarketprovidedbetterand
moreequitableincomesandbenefits.Withtheprevalenceoflowwage,non
standardwork,movingintoemploymentoftenmeansaninsecurefuture,
relativelylowearnings,andalossofvaluableextendedhealthbenefitssuch
asprescriptiondrug,dental,andvisioncare.
Individualswho
exit
Ontario
Works
for
employment
may
continue
to
receive
healthbenefitsforsixto12months.PeoplewithdisabilitiesreceivingODSP
haveaccesstothesebenefitsindefinitelyaftertheyexitsocialassistancefor
employment,althoughmanyODSPrecipientsweheardfromareunderthe
mistakenimpressionthattheywilllosetheirhealthbenefitsiftheyreturnto
work.
Intodaysjobmarket,thevastmajorityofpeopleworkingintemporary,part
time,orlowwagejobsdonothaveemployersponsoreddental,medical,or
druginsurance.Oftwopeopleworkingsidebysideatthesamejob,theone
whois
in
the
process
of
exiting
social
assistance
continues
to
have
health
benefitsforaperiodoftimewhiletheother,whodidnotreceivesocial
assistance,hasnohealthcoverageinthisworkplace.Thelackoffairnessin
thissituationisapparent.Weheardinourdiscussionsthatlosinghealth
benefitsuponmovingintoemploymentcouldbeapowerfuldisincentiveto
exitingtheprogram.Manypeople,especiallyparentswithchildrenwhohave
medicalconditionssuchasasthma,toldusthattheyfounditverydifficultto
leavesocialassistancegiventheriskofnothavinghealthbenefits.The
conversemayalsobetrue:theavailabilityofhealthbenefitsmaybeafactor
inseekingsocialassistanceforpeoplewhoneedthesebenefitsbutcannot
otherwiseafford
them.
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comparedwithanyofthelowincomemeasures(seeAppendixB:
SocialAssistanceIncomesComparedwithLowIncomeMeasures).Thereare
widevariationsinhowincomescomparewitheachmeasure,inpercentage
terms,
across
different
types
of
recipients
and
across
Ontario
Works
and
ODSP.Forexample,asoleparentwithonechildreceivingODSPreceives
$24,882(includingchildrensbenefits)ayear,or106percentoftheMBM
thresholdforasingleparentwithonechild(butasnotedabove,theMBM
doesnotconsideradditionalcostsoflivingwithadisability).Asingleperson
receivingOntarioWorksreceives$7,952ayear,or48percentoftheMBM
thresholdforasingleperson.
Itisalsodifficulttofindabenchmarkfordeterminingtheratelevelsthat
wouldresultinfinancialincentivestowork.Thereisnoobviouslabour
marketincomebenchmarkorreferencewagetouseforcomparisonwith
socialassistance
incomes
to
determine
whether
an
individual
would
be
better
offworking.Itcouldbebasedonanyofthefollowing:
Fulltimehoursatgeneralminimumwage,whichissetbyprovincialpolicy
Theaverageactualearningsofpeoplewhohavefullyexitedthesocialassistancesystem,basedonthefirstyearfollowingtheirexit
Aproportionoftheaverageactualemploymentearningsofworkingage
adults
Areferencewageisintendedtocapturewhatpeoplemightexpecttoearn
throughemployment.Inpractice,however,peoplemayearnmoreor(more
often)lessthantheirexpectations.Actualearningsforpeopletransitioning
fromreceivingsocialassistancewillvary,dependingonlocallabourmarket
conditionsandanindividualscapabilitiesandskills.Thismeansthatany
benchmarkforareferencewagewillhavelimitations.
Settingthereferencewageatthefulltimeminimumwagewouldreflectthe
lowestamountthatpeoplemightearnifworkingfulltime;however,
minimumwage
is
apolitical
construct
without
aclear
methodology
for
arrivingatthefigure.Averageactualearningsafterexitfromsocialassistance
wouldnotreflecttherangeofcapabilitiesandearningpotentialofpeople
receivingsocialassistance.Thereisasimilarproblemwithusingaproportion
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ofaverageactualemploymentearnings,andfindingarationalefor
determiningwhatproportionshouldbeusedisafurtherdifficulty.
Combiningthesetwolessthanperfectmeasuresofadequacyandincentives
toarrive
at
arate
structure
raises
further
questions.
For
example,
rates
could
bebasedonaproportionoftheMBMandaproportionofareferencewage.
Whataretheappropriateproportions?WhatpercentageofMBMis
acceptableforimprovingtheadequacyofsocialassistance?Whatpercentage
ofareferencewageisenoughtoensureafinancialincentivetowork?As
notedabove,thereisgreatdiversityamongpeoplereceivingsocial
assistance,andpeoplewillresponddifferentlytovariouskindsofincentives
towork.
c)AddressingtheTradeOffs
Thetradeoffsbetweentheobjectivesofadequacy,fairnessandincentivesto
workarecomplex.Eventhoughthedifficultiesarefirmlyrootedinthe
structureofthelabourmarket,weneedtoaddressthem.Thefollowingare
twoapproachesthatcouldeasethedilemma.
i)ExtendedhealthbenefitsforalllowincomeOntarians
Thisapproachinvolvesmakingworkpaybyprovidingextendedhealth
benefits,suchasprescriptiondrug,dental,andvisioncare,ona
universal,incometestedbasistoalllowincomeOntarians,regardless
ofwhether
they
are
working
or
receiving
social
assistance.
Several
provinceshavetakenstepstoprovideextendedhealthbenefitsto
lowincomeearnerswhoarenotreceivingsocialassistance.For
example,Albertaprovideslowincomeadults,whoarenotreceiving
socialassistance,withprescriptiondrug,dental,andvisioncare
benefitsiftheydonotreceivethesebenefitsthroughtheiremployers.
Itmaybeeasytomakethecaseforthisapproach.MostCanadians
believe,formanygoodreasons,thatideallyhealthbenefitsshouldbe
availabletoall.However,thereisthepracticalquestionofhowtopay
forsuch
an
expansion
of
health
benefits.
Should
government
fund
it
directly,orshouldemployersberequiredtoofferthesebenefitsto
theirlowincomeemployees?
Weknowthatitisanunevenplayingfieldwhenitcomestoemployer
providedextendedhealthbenefits.Introducinggovernment
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supportedextendedhealthbenefitscouldleademployerstodecrease
thebenefitstheyprovideiftheycurrentlyofferthem.However,there
maybestrategiestohelpleveltheplayingfield,suchasapooled
insurance
program
for
employers
not
currently
providing
benefits.
ii)Varytheratestructureovertime
Inthisapproach,aratestructurecouldbeestablishedthatchanges
overtheperiodinwhichanindividualreceivessocialassistance.The
rationaleisthatincentivestoencouragetransitiontoemployment
maybemoreimportantintheshortterm,butinthelongterm,the
needforadequacymayincrease.
AreportfortheSocialPlanningCouncilofWinnipeg8 suggeststhat,for
peoplewhoreceivesocialassistanceforashorttime,itmaybe
sufficienttosupportonlybasicneeds,includingsomeoftheitems
coveredbytheMBM(suchasfood,clothingandfootwear,shelter,
personalneeds,householdsuppliesandtransportation).Overthe
longerterm,peopleneedtobeabletocoveradditionalcosts,suchas
recreationcostsforchildrenandreplacementoffurnitureand
appliances,tomaintainabasiclifestyleandparticipateinthe
community.
Usingthisrationale,ashorttermbasicratecouldapplyduring,for
example,thefirst18to24months,withadditionalfundsavailable
onlyin
emergency
situations.
This
would
ensure
that
abasic
level
of
benefitisavailableforpeopleinneedoftemporaryassistance.Rates
couldbesetatalevelbelowthereferencewageinordertomaintain
incentivesforseekingemployment.
Peoplewhoareunsuccessfulinsecuringemploymentwillbeinneed
oflongertermincomesupport.Manydifferentfactorscouldleadto
thissituation,includinglackofavailablejobs,lackofopportunity
owingtodiscriminationorstigmaattachedtohavingadisability,lack
ofaccesstoaffordablechildcare,beinghomeless,multiplehealthor
socialbarriers,
and
many
others.
After
the
initial
period
described
above,ahigherratecouldbeavailabletoreflectlongerterm
adequacy.Thetradeoffbetweenadequacyandincentivetoworkis
8SeeHarveyStevens(2011),Improvingtheadequacyofsocialassistancebudgets:Arationalefor
makingcurrentratesmoreadequateandamethodologyforpricingbudgets.
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morerelevanttothosewhoarecapableofworkingthanforthose
whocannotwork.
Oneofthequestionsaboutthistypeofdesigniswhetheritwould
reducethe
incentive
for
people
to
exit
the
program
once
they
receive
socialassistanceatthehigherrate.Anotherquestioniswhethersome
people(suchaspeoplecaringforpreschoolchildrenorsufferingfrom
amedicalcondition)shouldbeeligibleforthehigherrateattheoutset
ifitcanbeassumedthattheywillrequireassistanceoverthelonger
term.
d)UniversalIncomeTestedBenefits
Atsomeincomelevels,therearemeasuresthatmayalsohelpeasethetrade
offsby
making
work
pay
and
improving
fairness.
i)Earnedincomesupplement
Anearnedincomesupplementcanbeavaluablemechanismto
supportlowincomeworkers.Manyjurisdictionshaveintroducedsuch
supplements,includingmanyU.S.states.In2007,Canadaintroduced
theWorkingIncomeTaxBenefit(WITB)toenhancetheincomesof
lowincomeworkersandprovideanincentiveforthosenotworkingto
entertheworkforce.
Ascurrently
designed,
WITB
is
not
working
as
well
as
it
could
to
meet
thatobjective.9 Thevalueofthebenefititselfislow,anditbeginsto
phaseoutatanincomelevelwellbelowfulltimeminimumwage.For
peoplereceivingsocialassistancewhilemovingintoemployment,
withdrawalofWITBatsuchlowearningslevelsandwithdrawalof
socialassistanceatthesametimemaymeanthattheywouldbe
worseoffbyexitingsocialassistance.Abetterdesignedearned
incomesupplement,withahigheractualvalueandlaterwithdrawalas
incomerisesbeyondareferencewage,wouldbemorelikelyto
provideincentivetoexit.
9ItshouldbenotedthatOntariosPovertyReductionStrategyrecommendedchangestothe
federalWITB.
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Inamethodologyforsettingrates,whatproportionswouldbalanceadequacy,fairnessandincentives?
ShouldhealthbenefitsbeprovidedtoalleligiblelowincomeOntarians?
If
so,
how
should
the
cost
be
covered?
ShouldOntariouseatworateapproach,basedonhowlongsomeonerequiressocialassistance?Ifso,shouldtherebeexemptionsfrom
startingatthelowershorttermrate?
Wouldanearnedincomesupplementbeagoodmechanismtoincreasetheincentivetowork?Ifso,howshoulditbedesigned?
Wouldahousingbenefitimprovefairnessandtheincentivetowork?Ifso,howshoulditbedesigned?
DesigningBenefitsforPeoplewithDisabilities
Thedilemmaoftradeoffsbetweenadequacy,fairnessandincentivesiseven
morepronouncedindesigningabenefitstructureforpeoplewithdisabilities.
Historically,peoplewithdisabilitiesreceivedsocialassistanceunderthe
FamilyBenefitsAct(FBA).UndertheFBA,ratesweresomewhathigherthan
theratesforpeoplewhowereexpectedtoseekemploymentandwho
receivedsocialassistanceundertheGeneralWelfareAct(GWA).In1995,
GWArateswerereducedby21.6percent,whileratesforpeoplewithdisabilitiesundertheFBAweremaintained.In1997,whenODSPreplacedthe
FBA,ratescontinuedatahigherlevelthantheOntarioWorksratesthat
replacedtheGWA.Wecouldnotfindastatedreasonfortheratedifferential,
butitislikelyinrecognitionofthehigherlivingcostsofsomepeoplewith
disabilities,aswellasexpectationsthattheymayhavelowerearning
potential.
Withthehigherrates,ODSPbenefitsaremoreadequatethanOntarioWorks
benefits.TheODSPbenefitstructureputsapriorityonadequacyoverfairness
(bycomparison
with
low
income
workers)
or
incentives.
This
makes
sense
in
asystemthatassumesthatmostpeoplewithdisabilitiesareunlikelytowork.
However,weneedtoshiftawayfromthatassumption.Weneedtorecognize
theworkaspirationsofpeoplewithdisabilities,providecriticalemployment
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supportsandservices,andactivelysupportasuccessfultransitionintothe
labourmarketforthosewhocanwork.
WeweretoldthatODSPrequiresacultureshift,awayfromafocuson
disabilityand
toward
afocus
on
ability.
At
the
same
time,
the
benefit
structureneedstobetteraddressincentivestoworkandfairnessforlow
incomepeoplewithdisabilitieswhoarecurrentlyworkingandnotreceiving
ODSP.Thiswillnotbeaneasytask,butitiscriticalthatwefindwaysto
improvethecurrentsituation.
Inthinkingaboutsolutions,itisimportanttoconsiderthetwodimensionsof
incomesupportforpeoplewithdisabilities,asmentionedabove:additional
livingcostsandlowerearningpotentialofsomepeoplewithdisabilities
resultingfrombarrierstoeducationalopportunitiesandemployment.
Withrespecttolivingcosts,therehasneverbeenaclearmethodologywithin
socialassistancefordetermininghowmuchhigherratesshouldbeinorderto
reflectcosts.Atasystemlevel,quantifyingtheextracostsrelatedtodisability
isdifficultbecausepeoplehavesuchvaryingneeds.Itwouldinevitably
involveaveragingthecosts,whichwouldnotreflecttheactualcostsfor
individuals.Still,throughtheengagementprocess,disabilityandother
organizationsrecommendedthatthegovernmentworkinpartnershipwith
peoplewithdisabilitiestoassessthedirectcosts(e.g.,medicalsupplies)and
indirectcosts(e.g.,needingmoretimetocompletetasks).
Despitethedifficultyofquantifyingcosts,programsorsupplementsthat
coverthehighercostsoflivingwithadisabilityhaveanimportantroleto
play.Anumberofsuchprogramsdoexist.Forexample,forlowincome
peoplewithdisabilities,thecostofpurchasingcertainassistivedevicesis
coveredthroughtheMinistryofHealthandLongTermCarescostbased
AssistiveDevicesProgram.Somemedicalcostsaredefrayedthroughthe
MedicalExpenseTaxCredit.Itisimportanttoremember,however,thatthe
costsofsomedisabilitiesarefarlesstangible,andverydifficulttoassess.
Thereisalsoanimportantroleforsomeformofincomesupplementthat
recognizesthelowerearningpotentialofsomepeoplewithdisabilities.
Chapter1describessomeofthemanybarrierstoemploymentthatpeople
withdisabilitiescanexperience,includingnothavingtherightskillsand
training,facingworkplacediscrimination,andtheabsenceofworkplace
accommodation.Thesebarrierslimittheemploymentopportunitiesavailable
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topeoplewithdisabilities.Aslongasthebarrierscontinuetoexist,and
reducetheearningpotentialofsomepeoplewithdisabilities,wemustfind
effectivewaysofprovidingthemwithadditionalincomesupport.Wemust
also
bear
in
mind
that
some
people
with
severe
disabilities
are
unlikely
to
generatesignificantearningsovertheirlifetimes,andweneedtoensurethat
theyhaveincomesecurity.
SinceratesinODSParecurrentlyhigherthaninOntarioWorks,anincome
supplementisalreadybuiltintothecurrentratestructure.Forpeoplewith
disabilitieswhoareworking,thedisabilitytopupintheWITBalsoactsasa
typeofincomesupplement.Ideally,however,lowincomepeoplewith
disabilitiesshouldhaveaccesstoanincomesupplementrelatedtotheir
disabilityinsteadofrelatedtowhethertheyreceivesocialassistance.Thisisa
matteroffairness,anditwouldhelpaddressthetradeoffdilemma.There
arevarious
approaches
to
designing
and
delivering
such
asupplement.
TheratedifferentialwithOntarioWorkscouldberemovedfromthecurrent
ODSPrateandanewsupplementarydisabilitybenefit,outsidethesocial
assistancesystem,couldbeprovidedtoalllowincomepeoplewith
disabilities.Asapersonsemploymentearningsincreased,thisbenefitcould
bephasedout.Ineffect,thismodelwouldmirrorthegovernmentsapproach
intheOntarioChildBenefit.Itprovidessupporttochildreninalllowincome
families,regardlessofwhethertheyarereceivingsocialassistance.
Determiningthevalueofthisadditionalfinancialsupportwouldrequiresome
analysisand
design
work.
Anewprogramcouldalsobedevelopedtoprovideasecureandadequate
basicincomeforpeoplewithseveredisabilitieswhoareunlikelytogenerate
significantearningsovertheirlifetimes.Theprogramcouldbesimilartothe
supportlowincomeseniorsreceivethroughtheOldAge
Security/GuaranteedIncomeSupplement/OntarioGuaranteedAnnual
IncomeSystem,orsimilartoAlbertasAssuredIncomefortheSeverely
Handicapped(AISH)program.Anothermodeltoconsidercouldbethebasic
incomeplanforpeoplewithseveredisabilitiesthathasbeenproposedbythe
CaledonInstitute.
10
10SeeMichaelMendelson,KenBattle,SherriTorjmanandErnieLightman(2010),Abasicincome
planforCanadianswithseveredisabilities.
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Intheengagementprocess,somepeoplesaidthatthistypeofbenefitmodel
makessenseforpeoplewhohavelittleprospectofworking.Othersargued
againstanapproachthatdividespeopleaccordingtoseverityofdisability
because
it
does
not
account
for
the
changeability
of
disability,
particularly
episodicdisabilities.Achallengeinthismodelisthat,asdiscussedin
Chapter1,attemptingtoassessworkcapacitycanbeverydifficult.
DISCUSSIONQUESTIONS
Howshouldincomesupplementsforlowincomepeoplewithdisabilitiesbedesignedanddelivered?Shouldsuchsupplementsbe
providedoutsidethesocialassistancesystem?
Shouldtherebeaseparatebasicincomeprogramforpeoplewithsevere
disabilities
who
are
unlikely
to
generate
significant
earnings?
DealingwiththeComplexityofBenefits
Thecurrentarrayofbenefitsandratesattemptstoreflecttherangeof
individualcircumstances.Socialassistancenowpaysabasicneedsamount
andashelterallowance,basedonanumberoffactors.Factorsincludefamily
type(singleindividual,soleparent,couple),thenumberand(forODSP)age
ofanychildren,andlivingarrangements.
Addedto
this
structure
is
arange
of
special
benefits
to
address
specific
client
needs.Theseincludebenefitstoassistwithaddedcosts,forexamplewhen
startingfulltimeemploymentorforpeoplewhorequirespecialdietstohelp
managemedicalconditions.Somespecialbenefits,suchasassistancewith
thecostofmoving,repairinghouseholdfurniture,oradditionalworkrelated
expenses,areconsidereddiscretionaryandmaybeavailableinsome
municipalitiesandnotothers.
Asthisstructureaimstoaddressawiderangeofindividualcircumstances
andneeds,ithasbecomeverycomplicatedanddifficulttoadminister.We
alsoheard
that
the
current
structure
is
inconsistently
applied,
at
the
administratorsdiscretion,andisnotalwaystransparenttoclients.
Oneapproachtodealingwiththeseissuesistosimplifythestructureby
mergingsomeorallofitselements:
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receivingsocialassistance,throughtheprogramsandpolicies
deliveredthroughtheMinistryofHealthandLongtermCare.
Thecurrentmethodofcalculatingratesiscomplex,andtheresultingratesdo
notreflect
actual
costs,
such
as
the
expenses
of
asingle
person
versus
a
couple.TheMBMusesascalederivedfromthecostsforafamilyoffourto
calculaterelativecosts;theremaybeotherapproaches.Further,thereisno
rationaleforthehigherbasicneedsamountprovidedtoanondisabled
spouseofanODSPrecipientcomparedwithaspouseofanindividual
receivingOntarioWorks.Weneedabetterrationaleforthedifferentrates
thatapplytodifferenttypesofhouseholdsorfamiliesandabetterwayof
calculatingthoserates.
Clearly,therearemanywaystoapproachthetaskofsimplifyingand
improvingthe
benefit
structure.
It
will
be
important
to
look
at
each
of
the
elementsofthecurrentstructuretodeterminewherechangesareneeded
andwhichonesmakethemostsense.
DISCUSSIONQUESTIONS
Howshouldthecurrentratestructurebechangedtoreducecomplexity?
Shouldsomespecialbenefitsberolledintoastandardrate?Ifso,whichones?
Shouldthespecialdietaryneedsforalllowincomepeople,includingthosereceivingsocialassistance,beaddressedthroughtheMinistryof
HealthandLongTermCare?
Howshouldthedifferentratesfordifferentfamilytypesbeestablished?
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Chapter3:
EasiertoUnderstand
Thereviewwillmakerecommendationsthatwillenablegovernmentto
simplifyincomeandassetrulestoimproveequityandmakeiteasierto
understandandadministersocialassistance.
TERMSOFREFERENCEFORTHEREVIEW
Amajor
theme
in
the
engagement
process
was
the
complexity
of
the
social
assistancesystem.Bothcaseworkersandpeoplereceivingsocialassistance
commentedonthedifficultyofnavigatingthemazeofbenefits,eligibility
criteria,rules,andexceptions.Weheardfromsomecaseworkersthatthey
canspend70percentoftheirtimeadministeringtherules.Manypeople
recommendedchangestospecificrules,suchasthoserelatedtoearnings
exemptions,treatmentofotherincome(includingchildsupport),thebenefit
unit,andassets.MoredetailonrulesisprovidedintheCommissionsreport
ontheengagementprocessandwillbeincludedinourfinalreport.
In
this
chapter,
we
look
at
the
main
systemic
reasons
for
complexity,
explore
approachestoensurecompliance,andquestionsaboutrisktolerance.We
alsolookattherulesassociatedwiththetreatmentofassets,asagood
exampleofcomplexityinthesystem,anddiscusspossibleapproachesto
change.
Complexity,ComplianceandRiskManagement
Thecomplexityofthecurrentsystemarisesfromthreemainsources:the
complexityofthepolicyobjectivesthatunderliethedesignoftheprograms,
asurveillance
approach
to
monitoring
compliance,
and
the
administration
ofriskthattakesplacewithinapublicandpoliticalenvironment.
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identificationtoolthatwillbeusedtobettertargetpeopleforeligibility
reviewswhomaynotbereportingincomeorchangesinotherfinancial
arrangements.
Aneffective
audit
based
approach
should
produce
the
same
level
of
complianceasthesurveillanceapproach.Theadvantageofanauditbased
systemisthatitcanmoreefficientlyfocusadministrativeresourcesonhigh
risksituations,potentiallyfreeingupresourcestoimprovedirectsupportsto
people.Themajorityofsocialassistancerecipientsdonotmisusethesystem,
andthisapproachalsohastheadvantageoftreatingthemwithahigherlevel
ofdignityandtrust.
However,thereisamajorchallengeinmakingtheauditbasedapproach
practical:selectiveauditingiseffectiveonlyifthosecaughtmisusingthe
systemface
strong
enough
penalties
to
discourage
others
from
misusing
the
system.Suchpenaltiesarenotasdifficultachallengeintheadministrationof
taxcollection.Asdiscussedabove,inasocialassistancesystemthatprovides
alowlevelofbenefitstobeginwith,itisasubstantialchallengetofind
enforceablepenaltiesthatarestrongenoughtodiscouragemisuse.
Weneedtoconsidertheacceptablelevelofrisktolerancetomaintainthe
integrityofthesystem.Thereisacostbenefitaspecttomanagingrisk:the
costofincreasedenforcementsetagainstthepotentialoffurtherreducing
misuse.Itcanbechallengingtoweighthecostsandbenefitsofanew
approachagainst
the
level
of
political
and
public
tolerance
for
not
catching
misuse.Thequestionofanappropriatelevelofrisktoleranceremains,in
eitherthecurrentsystemorthealternativeauditbasedsystem,assuming
appropriatepenaltiescanbefound.
DISCUSSIONQUESTIONS
Shouldthesocialassistancesystemmovefromasurveillanceapproachtowardanauditbasedsystemofverificationand
monitoring?
Whatpenalties
would
be
required
and
feasible
in
an
audit
based
system?
Whatistherightlevelofrisktolerance,ineitherthecurrentsystemoranauditbasedsystem?
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TreatmentofAssets
Inourdiscussionsandthroughsubmissions,weheardthatthecurrent
requirementthatindividualsdepletetheirassetsbeforebeingeligiblefor
socialassistance
creates
challenges
in
terms
of
financial
self
sufficiency.
Asset
ruleswereconsistentlyidentifiedasmajorobstaclesforpeopletryingto
makethetransitiontoworkandbecomemorefinanciallyresilient.Many
peoplefeltthattheassetrulesaretoostringentandthattheycontributetoa
cycleofpoverty.Wealsoheardthatthecurrentrulesassociatedwithassets
arecomplexanddifficulttounderstand.
Thereareanumberofchallengeswithrespecttothetreatmentofassets,
primarilystemmingfromfundamentalpolicyconflictswithinthecurrent
approach.Tosomeextent,theseconflictsalsodrivethecomplexityofthe
rules.The
following
discussion
looks
at
the
policy
issues
and
suggests
possible
approachestoresolvingthemandsimplifyingtherules.
Currently,individualsareexpectedtouseallfinancialresourcesavailableto
thembeforeturningtosocialassistance.Therationaleisthatitwouldnotbe
appropriateforpeopletoreceiveincomesupportwhentheyhaveassetsthey
couldusetosupportthemselves.Consistentwiththisview,assetlimitsfor
OntarioWorksaresetatalowlevel,generallyequivalenttoaboutonemonth
ofsocialassistanceandchildrensbenefitpayments.Ontheotherhand,one
ofthekeyobjectivesofOntarioWorksistoassistpeopleinasuccessful
transition
to
employment
and
achieve
independence
from
social
assistance.
Inthiscontext,therequirementtodepleteassetsattheoutsetreducesan
individualsfinancialresilienceandabilitytobreakoutofthecycleof
dependence.Withassetsdepleted,itismorelikelythatpeoplewillneedto
fallbackonsocialassistancewhenfacedwitheventemporarysetbacks.
Morebroadly,thecurrenttreatmentofassetsunderminesanotherpolicy
objective:encouragingpeopletosaveforthefuture.DepletionofRRSPsor
otherretirementsavingsassets,forexample,couldunderminelongterm
financialsecurityinlateryearsandcausepeopletoaccessothersocial
programsoncetheyreachtheageof65.Verylowassetlimitsdonotallow
forsavingsorthecreationofassetsthatmayassistpeopleinthelongerterm.
Inaddition,thereisnopolicybasistoexplainwhyassetlimitsshouldbe
higherforODSPthanforOntarioWorks.Aswiththeratedifferencebetween
thetwoprograms(discussedinChapter2),thereisnoapparentrationalefor
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thedifferenttreatmentofassets.Thedifferencemayreflecttheassumption
thatindividualsgenerallyreceiveODSPforlongerperiodsoftime.Itmayalso
reflectthefactthatODSPrecipientsarepermittedtoreceivegiftsofupto
$6,000
annually
(which
are
then
considered
assets),
another
inequity
betweenthetwoprograms.Similarly,thereisnoclearrationaletoexplain
whyaspouseordependentadultchildofanODSPrecipienthashigherasset
limitsthanthespouseordependentadultchildofapersonreceivingOntario
Works.Formoredetails,seeAppendixC:OntarioWorksandODSPAsset
LimitsandExemptions.
Thereareanumberofapproachestorevisingassetrulestohelpstrengthen
thepolicybasiswhilesimplifyingprogramrules.
OneapproachcouldbetoincreaseOntarioWorksassetlimitstoequalthose
ofODSP.
This
could
help
facilitate
asuccessful
exit
from
social
assistance
and
resultinmoresimplifiedandstreamlinedadministration.However,raising
assetlimitsmayalsomakemorepeopleeligibleforsocialassistance,
increasingoverallprogramcosts.
Asecondapproachcouldbetoincreaseassetlimitsforaninitialperiodof
timewhenanindividualfirstenterstheprogram.Thiswouldallowthosewho
areinneedofshorttermassistance,perhapswhileawaitingEmployment
Insurancepaymentsorthestartdateofanewjob,toaccesssocialassistance
withouthavingtospenddowntheirassets.
Anotherapproachcouldbetomakechangestotherulesthatwillhelp
improveanindividualslongertermfinancialsecurity.Forexample,thelimits
onspecificassetssuchasRRSPscouldbeincreased,orotherassetbuilding
strategiescouldbeintroducedsuchasIndividualDevelopmentAccounts
(IDAs).AstudybySocialandEnterpriseDevelopmentInnovations(SEDI)
showedthatIDAsimprovedsavingsforlowincomeearnersincludingsocial
assistancerecipients,insevenprovincesacrossCanada.11
Regardlessofwhetheranyoftheseapproachesareadopted,theruleson
assetscouldbesimplifiedbyreducingthenumberofspecificexemptionsand
introducingacombinedblankettotalassetlimit.Inthisscenario,therewould
beonetotalassetlimitforallcombinedassets,withtheexceptionoflarge
items,suchasaprincipalresidence,whichwouldremainspecificallyexempt.
11SeeSocialResearchandDemonstrationCorporation(SRDC)(2010),Learningtosave,savingto
learn:Learn$avefinalreport.
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Quebec,forexample,setsatotal$60,000limitforliquefiableassets,which
includesRRSPs,RESPsandtrusts.(QuebecscashlimitissimilartoOntarios,
andotherassetssuchasprimaryresidencesandvehiclesareeachsubjectto
separate
maximums.)
Thistypeofapproachwouldreducethetimeandresourcesspentintryingto
determinethenatureofspecificassetsandappropriatetreatment,andit
wouldmaketherulessimplertounderstandforbothindividualsand
caseworkers.ItmayalsomeettheneedsofFirstNationswhoexpressed
concernthatthecurrentrulesdonotreflecttherealitiesofNorthernlifeor
makeexceptionsforitems(e.g.,snowmobiles,fishingandhunting
equipment)thatareusedfortraditionalFirstNationsculturalpurposesor
thatmaypromoteselfsufficiency.
DISCUSSIONQUESTION:
Shouldassetlimitsbechanged?Ifso,how?
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Chapter4:
ViableovertheLongTerm
Thereviewwillmakerecommendationsthatwillenablegovernmentto
ensurethelongtermviabilityofthesocialassistanceprogram.
TERMSOFREFERENCEFORTHEREVIEW
Achievingsubstantialimprovementsinkeyareasofthesocialassistance
systemwillgoalongwaytowardmakingthesystemsustainableforthe
future.Makingchangestoemploymentservicesandsupportsandtothebenefitstructure,andreducingthecomplexityofthesystemoverall,are
discussedinthepreviouschapters.Itisalsoimportantthatwedesigna
systemthatisviableforFirstNations,andthisisdiscussedinChapter6.
Thischapterlooksatadditionalapproachestocoordinatingorintegrating
socialassistanceonasystemwidebasis.Theseapproachesareintendedto
maketheadministrationofthesocialassistancesystemandthedeliveryof
servicestopeoplereceivingsocialassistancemoreeffectiveandefficient.We
areawareofeffortstakingplacewithintheprovincialgovernmenttoimprove
servicesto
Ontarians.
These
include
the
work
being
done
by
ServiceOntario
toexamineopportunitiestoexpanditsnetworktopotentiallydeliverservices
onbehalfofothergovernments,aswellastheeffortstotransformOntarios
systemofbenefitadministration.
InChapter1,welookedatthepotentialofintegratingemploymentservices.
Chapter2setoutapproachesforarevisedbenefitstructure,including
providingadisabilitysupplementoutsidesocialassistance.Theremayalsobe
approachestodeliveringOntarioWorksandODSPincomesupportthatcould
resultinimprovedcoordinationandadministrativeefficiency.Asthese
variousapproaches
to
reform
are
considered,
the
question
arises
as
to
whethertwoseparateprogramsinsocialassistanceareinfactnecessary.
Thefollowingdiscussionsetsoutthreeapproachestoimprovingintegration
anddeliverytohelpachievelongtermviability.Theremaybeothers.
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OtherPrograms
Twootherprogramsthatarepartofthesocialassistancerevieware
discussedhere:TemporaryCareAssistance(TCA)andAssistanceforChildren
withSevere
Disabilities
(ACSD).
It
has
been
suggested
that
for
the
long
term,
bothprogramsmaybebetteralignedwiththeMinistryofChildrenandYouth
Services(MCYS)inlightofitsareasofresponsibilityandexpertise.
TCAisintendedtoprovidesupportforchildreninfinancialneedwhileinthe
temporarycareofanadult,suchasagrandparent,whodoesnothavealegal
obligationtosupportthechild.Intheengagementprocess,some
stakeholdersraisedconcernsthatTCAratesarelessthantheamounts
availabletofosterparents,andthatTCAisavailableonlywhencare
arrangementsaredeemedtemporaryatthediscretionofthecaseworker.
Currently,TCAisnotincludedinthemandateforchildprotectionservicesas
definedundertheChildandFamilyServicesAct.However,itisimportantthat
childrenlivingtemporarilyoutsideoftheparentalhomeandreceiving
financialsupportfromthegovernmentbeassuredasafeenvironmentand
accesstoservices,includingpermanencyplanning.WelearnedthatinBritish
Columbia,responsibilityfortemporarycareassistance(whichwassimilarto
Ontariosprogram)wasremovedfromitssocialassistancesystem.Asaresult
ofareviewbytheB.C.RepresentativeforChildrenandYouthin2010,the
programwasincorporatedintothechildwelfaresystemtoensuremore
consistent
oversight
of
child
safety
in
temporary
care
situations.
A
similar
approachcouldbeconsideredforOntario.
ACSDhelpslowandmoderateincomeparentswithsomeoftheextracosts
ofcaringforachildwhohasaseveredisability.Parentscanreceiveupto
$450amonthtohelpwitharangeofdisabilityrelatedcosts,suchastravelto
medicalappointments,specialequipmentorparentalrelief.Theamount
dependsonactualcostsandfamilyincome.AlthoughMCYShastheleadfor
theprogram,itisestablishedbytheOntarioDisabilitySupportProgramAct,
1997anddeliveredinconjunctionwithsocialassistance.ACSDcouldbefully
transferredtoMCYSinordertoclarifyaccountabilityfortheprogramand
allowMCYStointegrateACSDwithitsotherservicesforchildrenwithdisabilities.
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DISCUSSIONQUESTIONS
WhatarethestrengthsandweaknessesofthesethreeapproachestothedeliveryofOntarioWorksandODSP?Arethereotherapproaches
thatshould
be
considered?
ShouldfullresponsibilityforTemporaryCareAllowanceorAssistanceforChildrenwithSevereDisabilitiesbetransferredtotheMinistryof
ChildrenandYouthServices?
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AshasbeendocumentedandstudiedbytheMowatCentreTaskForceonEmploymentInsurance(EI),manyOntarianshavelimitedaccessto
EI.AnumberoftheTaskForcerecommendationscouldbeconsidered
to
improve
access
to
EI
and
prevent
unemployed
Ontarians
from
turningtosocialassistance.
FirstNationsdependencyonsocialassistanceisinparttheresultoffailuresinthemanypolicyframeworksaffectingtheirpeopleand
communities.Thisisdiscussedmorefullyinthenextchapter.
Otherpoliciesandprogramdesignsthatdirectlyhinderourabilitytodevelop
solutionstoimprovesocialassistanceoutcomesincludethefollowing:
Theavailabilityofprescriptiondrug,dentalandvisioncarebenefitstolow
income
earners
is
limited,
as
is
discussed
in
Chapter
2.
Thereisgrowingawareness,inCanadaandaroundtheworld,ofrisinginequalityinincome.Recentreports,includingthosebythe
ConferenceBoardofCanadaandtheOrganisationforEconomicCo
operationandDevelopment(OECD),havehighlightedthechallengeof
risingincomeinequality.TheOECDpointstothereducedimpactof
meanstestedtransfersandchangesinincometaxratessincethemid
1990sasoneofthemainfactorscontributingtoincomeinequality.
AccordingtotheOECDreport,priortothemid1990s,theCanadian
taxbenefitsystemoffsetmorethan70percentoftheriseinmarket
incomeinequality;thishassincedeclinedto40percent.13
Wagepolicies,includingtheminimumwage,alsocontributetothewideningdisparitiesbetweenhighandlowincome.
ThereisnolongtermfederaldirectionregardingtheWITB,including,forexample,whetheritmaybeenhancedorreviewed.Asdiscussedin
Chapter2,amorerobustearnedincomesupplement(whetherit
buildsonthefederalWITBorisamadeinOntariobenefit),which
takesintoaccountbothOntariossocialassistanceratesandthe
percentofprimaryapplicantsandsponsoredimmigrantswhorepresentlessthanonepercent
ofprimaryapplicants.TwopercentofprimaryODSPapplicantsarenewcomers,including
refugeeclaimantsandsponsoredimmigrantswhorepresentlessthanonepercentofprimary
ODSPapplicants.13
SeeOECD(2011),Dividedwestand:Whyinequalitykeepsrising.CountryNote:Canada.
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structureofthewagemarket,couldactasanincentiveforpeopleto
exitsocialassistanceoreliminatetheneedforthemtoapplyforit.
Intheareaofhousing,theabsenceofafederallongtermfundingcommitment
and
anational
housing
plan
means
alack
of
affordable
housingtosupportpeopleinneed,includingpeoplereceivingsocial
assistance.
ForFirstNations,thecomplexsetofrelationshipsandjurisdictionalissuesbetweenFirstNations,thefederalgovernment,andprovincial
governmentmakesitdifficulttomakeprogressonthebroadsetof
issuesunderlyingFirstNationsexperiencewithsocialassistance.
Lastly,therearealsoanumberofcomplexinteractionsbetweensocial
assistance
and
other
income
support
programs.
Forexample,manypeopleturntosocialassistanceduringtheapplication
processforotherprograms,likeEIorCPPDisability(CPPD),whiletheyare
awaitingadecisiononwhethertheyareeligibleorduringthewaitingperiod
beforebenefitpaymentsbegin.Thecurrentarrangementsforthe
reimbursementofsocialassistancefundsreceivedduringtheseperiodsare
complicated,timeconsumingandpoorlycoordinated.Workisgoingon
betweengovernmentstoimprovesomeexistingprocesses,buttheremaybe
othermoreefficientwaystoimprovetheseinteractions.Examplesinclude
newinvestmentsintechnology,improvedpolicycoordination,andthe
developmentofasupplementorotherprepaymentprogramwithinEIorCPPDforapplicantsawaitingdeterminationofeligibility.
AnotherproblematicinteractionhappensbetweenRentGearedtoIncome
(RGI)housingandsocialassistance.RGIhousingprovidesseparaterentscales
forindividualsonsocialassistance,andtheamountpeoplepaydependson
theirfamilysizeandwhethertheyarereceivingOntarioWorksorODSP.
Thesescalesalsosetathresholdforearnings.Abovethethreshold,an
individualwillswitchfrompayingtheamountsetintherentscaletopaying
30percentofearnedincome.Theproblemwiththisinteractionarisesfrom
thecalculation
of
an
individuals
earned
income.
RGI
calculates
earned
incomebasedonactualearnings,nottakingintoaccountthe50percent
earningsexemptionthatsocialassistanceapplies.Asaresult,peopleon
socialassistanceenduppayingdisproportionatelymorefortheirhousingas
theybegintoearnemploymentincome.Toimprovethesituationfortenants
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receivingsocialassistance,achangetotheRGIhousingmethodofcalculation
wouldberequired,determinedthroughdiscussionsbetweentheProvince
andmunicipalities.
DISCUSSIONQUESTIONS
Aretheremajorandproblematicprograminteractionsthatwehavenotmentionedhere?
WhatpositionshouldtheCommissionrecommendthatOntarioconsidertakingonspecificintergovernmentalissues,includingFirst
Nationsissues,relatedtoincomesecurity?
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communityeconomicdevelopmentandreplacingitwithcomplacencyand
reinforcedsocialbarriers.Theyexpressedastrongdesiretoreformsocial
assistanceasameanstoelevateindividualsoutofdependenceandthereby
build
healthier,
self
sustaining
communities.
AnumberofFirstNationsleadersandadministratorsspoketousaboutthe
needtodevelopanewrelationshipforworkingwiththeprovincialand
federalgovernments.Theyalsospokeofthedesiretoregaincontrolover
theirfuturesthroughincreasedcontroloversocialservices.ONWAAspoketo
usaboutfourprinciples,previouslyadoptedatanAllOntarioChiefs
Conference,withrespecttoFirstNationssocialassistancereform:14
Socialse