Discussion Paper 2:

Approaches for Reform

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.

QueensPrinterforOntario,2011 ISBN9781443588775(Print) ISBN9781443588782(PDF) ISBN9781443588799(.DOC) Cedocumentestgalementdisponibleenfranais.

Contents

MessagefromtheCommissioners.........................................................................................1 Chapter1:ReasonableExpectationsandNecessarySupportstoEmployment....................4 Chapter2:AppropriateBenefitStructure ...........................................................................18 Chapter3:EasiertoUnderstand..........................................................................................35 Chapter4:ViableovertheLongTerm .................................................................................42 Chapter5:AnIntegratedOntarioPositiononIncomeSecurity ..........................................46 Chapter6:FirstNationsandSocialAssistance ....................................................................50 Chapter7:HowtoProvideInput .........................................................................................57 References............................................................................................................................62 Appendices...........................................................................................................................63
AppendixA:MeasuresofLowIncome ........................................................................................63 AppendixB:SocialAssistanceIncomesComparedwithLowIncomeMeasures ........................65 AppendixC:OntarioWorksandODSPAssetLimitsandExemptions..........................................66

MessagefromtheCommissioners
Inthe2008PovertyReductionStrategy,theOntariogovernmentcommitted 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 communityconversationsinwhichweparticipated.Manyothercommunities organizedsessionstodiscusstheissuesraisedinthediscussionpaperandto brainstormsolutionstosharewithus.Wealsometwithnumerousprovincial networksandorganizations,includingemployerandlabourgroups.The Commissionreceivedover700writtensubmissions. WealsoheldseparatediscussionswithFirstNationstoensurethat approachestoreformwouldreflecttheiruniqueneedsandpriorities.We engagedwithFirstNationsthroughtheChiefsofOntario,politicalleadership andindividualsincommunitiesaroundtheprovince,andsocialassistance administratorsthroughtheOntarioNativeWelfareAdministrators Association. ToincorporatetheviewsandexperiencesofAboriginalpeoplelivingoff reserve,weengagedwiththeOntarioFederationofIndianFriendship Centres.

Someofthekeythemesthatemergedfromtheengagementprocessare highlightedinthispaper.Amoredetailedsummaryoftheresponsestothe discussionpaperisprovidedinaseparatereport,WhatWeHeard:A SummaryofDiscussionsonSocialAssistance,postedonourwebsite(see page58formoreinformation). InadditiontoengagingwithOntarians,theCommissionconductedresearch tolearnmoreabouttheissuesinsocialassistanceandtheexperiencesof otherjurisdictions.Wealsometwithacademics,technicalexpertsandothers toaddressgapsinourunderstanding. Basedonourdiscussionsandresearch,wehavecometotheviewthatwe needtotransformthesocialassistancesystem;smallfixeswillnotbe enough.Acrosstheprovince,peopleaskedustobeboldinthinkingabout howtoreformthesocialassistancesystem.Whilemanyidentifiedspecific policiesorrulesthatarenotworkingunderthecurrentsystem,theyalso calledformorefundamentalchangetothesystemasawhole. Wehavealsofoundthatpoliciesandprogramsinmanyotherareascreate challengesforsocialassistanceandconstrainapproachestoreformingthe system.Thesechallengesareoftwotypes.First,sincesocialassistanceis wherepeopleturnwhentheycannotbehelpedbyotherincomesupport programs,inadequaciesinotherprograms,suchasEmploymentInsurance, putpressureonthesocialassistancesystem.Second,therearefactorsthat makeitdifficulttohelppeoplemoveintoemployment.Theseinclude,among otherthings,thenatureofthelabourmarketandthelackofhealthandother benefitsformanylowincomeworkers. Theconnectionsbetweensocialassistanceandsomanyotherareassuggest thatsomeofthesolutionslieoutsidethesystem.Whileourmandateis focusedonmakingrecommendationstoimprovesocialassistance,wewillbe commentingontheseconnectionsinourfinalreport. Overthecomingmonths,wewillbedevelopingrecommendationsfora sustainablesocialassistancesystemforthefuture.Weareawareofthe challengingfiscalconditionscurrentlyfacinggovernmentsandthebackdrop ofeconomicuncertaintythatcanaffectourgoalofimprovingemployment outcomesforpeoplereceivingsocialassistance.Inconsideringfundamental reformtothesystem,weknowthatsomechangeswilltakelongerto implementthanothers. Ourpurposeinthispaperistodiscussdifferentapproachestoimproving someofthekeyareasofthesocialassistancesystem.Thispaperprovides

opportunitiesforfurtherdiscussion,asopposedtofinalrecommendations. Asourworkunfolded,westronglydesiredtoengageinfurtherdialogueand obtainfeedbackonspecificareasofreformtohelprefineourthinking.This paperprovidesthoseopportunities,ratherthanacomprehensivediscussion ofoptionsforreformoraninterimreportonthereview. Somesectionsofthispaper,particularlythoseaddressingthebenefit structure,dealwithtechnicalissues.Nevertheless,wehopethatallreaders willfeelcomfortablerespondingtotheideasoutlinedhere,basedontheir ownexperienceandunderstandingoftheissues. Thepaperisorganizedbythefiveoutcomesforthereview(seeChapters1 through5).IssuesrespectingFirstNationsareaddressedthroughoutthe paper,andChapter6discussesissuesthatarespecifictoFirstNations.For eachoutcome,weaskquestionsontheapproachesdescribed.Chapter7 repeatsthequestionsfromthepaperandprovidesinformationonhowto provideinputtotheCommission. WewouldliketoreceiveyourinputbyFriday,March16,2012.Wewill consideryourinputandourresearchindevelopingourfinalreportto governmentinJune2012.Welookforwardtohearingyourthoughtsonthe variousapproachesdescribedinthispaper,oronotherapproachesthatyou believeshouldbeconsideredtohelpachievefundamentalchange.

FrancesLankin

MunirSheikh

Chapter1: ReasonableExpectationsand NecessarySupportstoEmployment

Thereviewwillmakerecommendationsthatwillenablethegovernmentto placereasonableexpectationson,andprovidesupportsfor,peoplewhorely onsocialassistancewithrespecttoactiveengagementinthelabourmarket andparticipationintreatmentandrehabilitation. TERMSOFREFERENCEFORTHEREVIEW

Thegovernmenthasidentifiedemploymentasakeyrouteforindividualsand familiestoescapepoverty.Weagreethatoneofthebestwaystohelp peopletomoveoutofpovertyistohelpthemfindwork. Somepeoplereceivesocialassistanceforashorttimeandareabletoenter orreentertheworkforcewiththelevelofsupportcurrentlyavailableorwith theirownsourcesofsupport.Othersexperiencearepetitivecycleof employmentandreceivingsocialassistance.Stillothersrequirelongterm assistance. 1 Employmentservicesandsupportsmustthereforemeetawide varietyofneeds,butwhatiscurrentlyavailableisfailingtoidentifyandmeet therangeofneedsofpeoplewhoarenotabletoentertheworkforceeasily. ForpeoplereceivingODSP,forexample,thereislittlefocusonhelpingthem prepareforandfindemployment. Thischapterfirstlooksateffectiveemploymentservicesandsupportsto meetawidevarietyofneeds,includingrecognitionofthebarriersto employmentfacingpeoplewithdisabilities.Itthendiscussesaccesstothose servicesandsupports.Bothelementsarecriticaltoachievingthegoalof

Basedonastudyofclientsfollowedfrom2003to2009,about75percentofclientswho receivedOntarioWorksreceiveditfor12monthsorlessandthenexitedtheprogram.However, abouthalfofthosewhoexitedreturnedtoOntarioWorkswithintwoyears.About25percentof studyclientswhoreceivedOntarioWorksexperiencedacontinuousperiodoftwoormoreyears ofreceivingOntarioWorks.

assistingpeopletowardactiveengagementinthelabourforcetothe maximumoftheirabilities.

FeaturesofEffectiveServicesandSupports
Fourkeyfeaturesofeffectiveemploymentservicesandsupportswere identifiedthroughourdiscussions,reviewofsubmissions,andresearch: 2

Consistentassessmentandcasemanagement:Consistentassessment andcasemanagementtosetrealisticemploymentgoalsand manageablestepsforpeople,andtoprovidepeoplewithmultiple barrierswiththesupportstheyneed Integratedpreandpostemploymentservicesandsupports:Arange ofintegratedpreandpostemploymentservicesandsupportsthat aretailoredtoindividualneedsandeffectiveinhelpingpeoplefind andmaintainwork Accesstothesamelevelofservicesforpeoplewithdisabilities: Accessforpeoplewithdisabilitiestothesamelevelandrangeof employmentservicesandsupportsasavailabletopeoplewithout disabilities Strongconnectionswithemployers:Strongconnectionswith employerstounderstandandmeettheirbusinessneedsascustomers ofemploymentservices

Weheardexamplesofthesefeaturesinanumberofcommunities,butwe foundthattheyareneitherconsistentacrosstheprovincenorsufficiently accessibletopeoplewithdisabilities.TheCommissionschallengeistomake recommendationstoimprovetheconsistencyoftheseeffectiveprogram features,whilestillallowingforlocalflexibilityandinnovation. ConsistentAssessmentandCaseManagement SomeOntarioWorksadministratorsareusingassessmenttoolstoidentify wherepeopleareinthecontinuumofpreparingforandfindingemployment. Usingthosetools,aclientmaybeidentifiedas,forexample,jobready,in

See,forexample,DeanHerd(2006),Whatnextinwelfarereform?Apreliminaryreviewof promisingprogramsandpractices.

needofpreemploymenttraining,skillsdevelopment,oreducation upgrading,andsoon.Otherjurisdictionsuseassessmenttoolstomeasure jobseekerslevelofdisadvantageinthelabourmarketandtoreferpeople, includingpeoplewithdisabilities,tothemostappropriateemployment services. Assessmenttoolscanbeparticularlyimportantinidentifyingpeoplewhomay befacingmultiplebarrierstoemploymentandrequiringmoreintensive supportstostabilizetheirlives,oraddressmentalhealth,addictions,orother issuesbeforepreparingforemployment. Somestudiesonprovidingcomprehensivecasemanagementtosocial assistancerecipientswithmultiplebarriershaveshownpromisingresults. 3 Weheard,inourcommunityvisitsandthroughsubmissions,aboutthe positiveresultsoftheAddictionServicesInitiativeandHostelstoHomespilot programsoftheMinistryofCommunityandSocialServices,bothofwhich involveintensivecasemanagement.Wearealsoawareofthecost componentofthedifferentlevelsofcasemanagement,andofthechallenges indetermininghowtoallocateresourcestomeetthewidearrayofneeds. IntegratedPreandPostEmploymentServicesandSupports Manypeopleemphasizedtheimportanceofpreemploymenttrainingand learninginpreparingpeoplereceivingsocialassistanceforemployment. Albertassocialassistanceprogram,forexample,recognizesthisthrougha distinctLearnercategoryforpeoplewhoneedskillsupgradingortrainingto getajob.ManymunicipalOntarioWorksadministratorssuggestedthatthe currentemploymentservicesfundingapproach,whichisbasedpartlyon outcomesrelatedtoemploymentearningsandexitsfromsocialassistance, shouldbebroadenedtoincludeperformancemeasuresrelatedtocompleting preemploymentactivitiesandaddressingbarrierstoemployment. Avarietyofpreemploymentsupportsandtrainingiscurrentlyavailable throughOntarioWorks,ODSP,andotherprogramsintheprovince.Inthe
3

Whentheboughbreaks:Providerinitiatedcomprehensivecareismoreeffectiveandless expensiveforsolesupportparentsonsocialassistance(GinaBrowne,CarolynByrne,Jacqueline Roberts,AmiramGafniandSusanWhittaker,2001)studiedaprojectthatactivelysoughtoutsole parentsonsocialassistanceandofferedthesefamiliesarangeofservicesandsupports.The evaluationfoundthat,amongthoseparticipatingintheenhancedservices,25percentofsole supportparentsleftsocialassistancewithinoneyear,comparedwith10percentwhoexited socialassistancewithoutanyextrasupportfromcaseworkers.

engagementprocess,however,weheardthatpeoplehavebeenreferredto trainingcoursesthatdidnotleadtojobs.Somewomentalkedaboutbeing trainedaspersonalsupportworkersinlocationswheretherewasno demand.Highlyskilledimmigrantsdescribedbeingsentforrsumwriting courses,whichtheydidnotneed.Weoftenheardthattrainingcourses shouldbeequippingpeoplewithskillsforwhichthereisademandinthe locallabourmarket. FirstNationsengagedinopenandfrankdiscussionswithus.Theytoldus aboutthehealingjourneytheirpeopleandcommunitiesareundertakingin thewakeofmanyhistoricalchallenges,suchasresidentialschools.Many FirstNationscommunitieswantflexibilitytodefinetheiremployment programstobetterreflectthiscontext.Forexample,theOntarioNative WelfareAdministratorsAssociation(ONWAA)recommendedthattakingpart inculturalorcommunitydevelopmentactivitiesshouldberecognizedaspart ofarangeofparticipationrequirementsunderOntarioWorks.Intheirview, theseactivitiescontributetoimprovingjobreadinessandcanhelppeople whomaybedealingwithmentalhealthissues,trauma,oraddictionsthat needtobeaddressedbeforeemployment.Suchactivitiescanalsohavea significantimpactonimprovingthewellbeingofindividualsandcommunities wheretherearefewjobopportunitiesavailable.
Note: FirstNationsissuesarediscussedmorefullyinChapter6,beginningonpage50.

Ourdiscussionsandresearchsuggestthatpostemploymentsupportscanbe effectiveinhelpingsomeclientsretainemployment,particularlypeoplewith disabilitiesormultiplebarriersandnewcomerswholackfamiliaritywiththe Canadianworkenvironment.Postemploymentsupportscouldmean continuedaccesstoemploymentserviceprovidersforaperiodoftimeafter startingajob.Thesesupportscouldhelpclientsadjusttoandsucceedinthe workplace,andtoaccesssocialsupports,suchashousingorchildcare,which arecriticaltolongtermemploymentretention.Foremployers,service providerscouldprovidesupportstailoredtotheneedsofspecificemployers, suchasassistancewithaccommodationorjobcoaching.Withoutsuch supports,someemployersmaybereluctanttohirepeoplewhohavebarriers toemploymentormayfinditdifficulttodoso.

Whilepostemploymentservicesareavailablefromsomeprovincialfunding programs,weheardthataccesstotheseservicesisinconsistent.Toensure thatpeoplewithmultiplebarriershaveaccesstotheseservices,itis importantthatfundingmechanismsforpostemploymentservicesreflectthe costofservingarangeofclients. AccesstotheSameLevelofServicesforPeoplewithDisabilities Currently,ODSPdoesnotfocusprimarilyonhelpingpeopletopreparefor andfindemployment.Throughourengagementprocess,weheardfrom manypeoplereceivingODSPwhosaidthattheywantedtowork,andcould work,ifbarrierswereremovedandappropriatesupportswereprovided. Peoplewithdisabilitiestoldusthattheyneedthesamerangeofservicesand supportsaspeoplewithoutdisabilities(skillsupgrading,training,housing, childcare,etc.),aswellasspecificsupportsrelatedtodisability,suchas accessibletransportationandgreateravailabilityofattendantservices. MostpeoplewhocommentedonODSPEmploymentSupportssaidthe programwasmostsuccessfulforpeoplewithdisabilitieswhoarejobready andcanbenefitfromsomeassistancetomakethetransitiontothe workplaceandfrompostemploymentsupportstohelpthemmaintain employment.Theyrecommendedthatthevariousprogramsintendedto supportemploymentforpeoplewithdisabilitiesbebetterintegrated.With betterintegration,agenciescouldprovidethefullspectrumofservicesthat clientsneed,includingassessments,preemploymentpreparationand training,jobplacement,andpostemploymentsupports. Employmentservicesandsupportsmustrecognizetherangeofbarriersto employmentfacingpeoplewithdisabilities.Onestudy, 4whichincludeda surveyofover500employersinOntario,identifiedthesekeybarriers:

Negativeattitudesandfalseassumptionsaboutpeoplewith disabilities Lackofawarenessabouttheemploymentpotentialofpeoplewith disabilities

SeeWCGInternationalConsultantsLtd.(1996),Employmentofpersonswithdisabilitiesinthe ProvinceofOntario.

Lackofaccesstoeducationandworkplacetrainingforpeoplewith disabilities Inadequateworkplaceaccessibility,accommodationandemployment supports Lackofwidespreaduseofdisabilitymanagementandreturntowork programs

ThisstudyalsoidentifiedspecificbarriersforAboriginalpeoplewith disabilities,aswellaswomen,immigrants,andyouthwithdisabilities. Manydisabilityrelatedandotherorganizationsareworkingtoovercome thesebarriers.Employerinitiatives,suchastheCanadianManufacturersand ExportersBusinessTakesActionandtheEmployersForumonDisabilityin theUnitedKingdom,arealsoprovidingtoolsandsupportstoemployersand makingthebusinesscaseforhiringpeoplewithdisabilities. Weunderstandthatitwilltaketime,butthereisprogressinthisarea throughtheimplementationoftheAccessibilityStandardforEmployment undertheAccessibilityforOntarianswithDisabilitiesAct(AODA).The Standardisintendedtohelpensureaccessibilitythroughouttheemployment lifecycle,fromrecruitmenttotermination.Thegovernmentisphasingin theserequirementsoverthenextfiveyears. AsweillustratedinourJunediscussionpaper,theprovincewidenumberof cases(individualsandfamilies)receivingODSPhasbeengrowingataboutfive percentannuallysince200506.ThenumberofODSPcasesexceedsthe numberofOntarioWorkscases.Somehavesuggestedthatthisgrowthisdue totheagingpopulation,sincetheprevalenceofmanydisablingmedical conditionsincreaseswithage.However,throughourresearchandanalysis, welearnedthatmentalhealthissues,primarilyamongpeoplebetweenthe agesof18and40,accountforasignificantportionofthegrowingcaseload. Ofthe27,600ODSPapplicationsgrantedin200910,about60percent involvedamentalillness 5 aseitheraprimaryorsecondarycondition. Disabilitiesrelatedtomentalillnesshavebeenpoorlyunderstood,butasa society,wearestartingtodevelopabetterunderstandingofmentalhealth

BasedontheDiagnosticandStatisticalManualofMentalDisorders(DSM)definitionthat includespsychoses,neuroses,addictions,autism,anddevelopmentaldelays.

andwellbeing.Amongemployers,therehasbeenincreasinginterestin addressingworkplaceissuesfacingpeoplewithmentalillnessandimproving employersreturntoworkprograms.Wehavemoreworktodo,however,to overcomethestigmaofmentalillnessinrecruitmentandhiringandtolearn howtoaccommodatepeoplewithmentalhealthissuesandepisodic disabilitiesintheworkplace. Ourresearchanddiscussionswithhealthserviceprovidershighlightedforus theimportanceofprovidingearlyinterventionandappropriatesupportsto peoplewithmentalillnessandotherdisabilities.Thisisessentialfor participationinemploymentorreturntoworkassoonaspossible.Early supportscanalsoimprovewellbeingandpreventsocialexclusionandlong absencesfromthelabourforce.Tofacilitateaccessandreducestigma,itis importantthatthesesupportsbewellintegratedwithotheremployment services.WeareawarethatthefirstphaseofOntariosComprehensive MentalHealthandAddictionsStrategyisfocusingonchildren.Foradults,we expectthatthenextphasewillprovideopportunitiesforearlierintervention andbetteraccesstointegratedmentalhealthtreatmentandemployment services. Evenwithappropriatesupports,notallpeoplewithdisabilitieswillbeableto workfulltimeorconsistently.Ourgoalistomakerecommendationsthatwill respondtotheworkaspirationsofpeoplewithdisabilitiesandencourageand supporttheirparticipationinemploymenttothemaximumoftheirabilities. Wealsowanttomakerecommendationstoimprove,substantially,the employmentservicesandsupportsavailabletopeoplewithdisabilities, includingmakingthedeliveryoftheseservicesandsupportsmoreeasily accessible.However,therealityisthatpeoplewithdisabilitiescontinueto faceamultitudeofbarriers,includingdiscriminationandstigma.Some peoplewithdisabilitieswillnotbeabletofindemployment,despitehigh personalmotivation. Inourresearch,wefoundthatmanycountriesaremovingtowardan approachthatincludesactiveengagementinthelabourmarketforeveryone receivingsocialassistance,includingpeoplewithdisabilities.Forexample,the UnitedKingdomandAustralia,whichhavebeeninvolvedindisabilitybenefit reformforanumberofyears,havedevelopedtoolstoassessworkcapacity. AustraliasJobCapacityAssessmentincludesanassessmentofimpairment againstImpairmentTables,whichareintendedtomeasurethelossof functionalcapacitythataffectsapersonsabilitytowork.Inaddition,an

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assessmentismadeofwhetherapersonisabletoworkatleastparttime. Thoseassessedasnotabletoworkatleastparttimeareeligibleforahigher benefitrateanddonothavetoparticipateinworkrelatedactivities.People assessedasabletoworkatleastparttimeareexpectedtoparticipate accordingtotheirability.

Note: Benefitsforpeoplewithdisabilitiesarediscussedinthenextchapter,beginningonpage 29.

Implementingjobcapacityassessmentscanbechallenging,however.For example,intheUK,issueshavearisenregardingthevalidityofthetooland thewayinwhichitisimplemented.Therelatedreformsarestrugglingtogain publicacceptance.ResearchbytheOrganisationforEconomicCooperation andDevelopment(OECD)notesthatthegoalofdeterminingreasonable expectationsbyassessingwhetherpeoplearetoodisabledtoworkis understandable,butitisnotstraightforwardtosetthelevelofcapacity belowwhichitisimpracticaltoexpectapersontoparticipateinthelabour market. 6 Disabilityandtheexperienceofdisabilityarechangeableovertime andindividualmotivationvaries.Manyenvironmentalfactorsalsohavean impactonworkcapacity,includingtechnology,jobexpectations, accommodation,andacceptanceintheworkplace. Giventhiscontext,theCommissionisseekinginputonwhetherOntario shouldadoptameanstobetterassessworkcapacityandsetparticipation requirementsforpeoplewithsomecapacityforemployment,orwhetherthe Provinceshouldwaittointroducesuchrequirementsuntilsubstantial progresshasbeenmadeonremovingbarrierstoemploymentforpeoplewith disabilities,includingthefullimplementationoftheAODA. StrongConnectionswithEmployers Wealsolookedateffectiveemploymentservicesandsupportsfromthe perspectiveofemployers.Employersemphasizedthatitiscriticalfor employmentserviceproviderstounderstandhowspecificbusinessesoperate

SeeOECD(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. Otheremployersdidnotfavourwagesubsidiesorotherfinancialincentives. Intheirview,employershirepeoplebecausethereisagoodbusinesscasefor doingso. Wealsoheardfromemployersabouttheeffectivenessofbusinessto businessapproaches.Forexample,throughtheOntarioChamberof CommerceGlobalExperienceatWorkprogram,localChambersconduct outreachtoemployersintheircommunitiestoencouragethemtohire internationallytrainedprofessionals.Thisprogramcouldbeausefulmodel forimprovingemploymentopportunitiesforpeoplereceivingsocial assistance.MembersoftheOntarioDisabilityEmploymentNetwork ChampionsLeaguepromotethebenefitsofhiringpeoplewithdisabilitiesto otherbusinessownersandoperators.Otherrecommendationsfrom employersincludedestablishingacommonportalwheretheycouldpostjob opportunities,segmentingemploymentserviceprovidersbyindustrysector, expandingfundingmodelsthatrewardemploymentservicesbasedonjob retentionratherthanthenumberofplacements,anddevelopingstandards ofpracticeforemploymentserviceproviders. Weheardfromanumberofmunicipalitiesandnotforprofitemployment serviceproviderswhoareworkingsuccessfullywithemployersintheir communitiestomatchpeoplereceivingsocialassistancewithjobs. Developinggoodworkingrelationshipswithlocalemployersandhavinga goodunderstandingofthelocallabourmarkethavebeencriticalelementsin theirsuccess.

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DISCUSSIONQUESTIONS

Howcanemploymentservicesbemademoreeffective? WhatshouldtheCommissionrecommendtoencouragegreater consistencyineffectiveemploymentservicesandsupportsforsocial assistancerecipients,whilestillallowingforlocalflexibilityand innovation? Shouldstandardassessmenttoolsbeusedtoidentifypeoplesneeds andmatchthemtoappropriateservicesandsupports? Whatshouldbeconsideredappropriateemploymentrelatedactivity participationrequirementsforpeoplewithdisabilities?Should participationrequirementsforpeoplewithdisabilitiesbedifferent fromthoseforotherpeoplereceivingsocialassistance? Shouldatoolbedevelopedtoassesstheworkcapacityofpeoplewith disabilities?Ifso,howshouldthetoolbedevelopedandhowshouldit beused? Whatkindsofengagementstrategiesandincentiveswouldbemost effectiveinencouragingandsupportingemployerstohiremoresocial assistancerecipients?

AccesstoEmploymentServicesandSupports
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 serviceproviders.AccordingtoasubmissionfromtheOntarioPublicService 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 ofemploymentandtrainingprogramsavailabletootherunemployed Ontarians,includingthoseofferedthroughEO.Weheardmanyexamplesof socialassistancerecipientsnotbeingabletoaccesstherightservicesatthe righttime,ornotbeingabletofindtheservicesandsupportstheyneedin theircommunities. Thecurrentapproachseparatessocialassistancerecipientsfromother jobseekers.Thisreinforcesthestigmaofreceivingassistanceandmakesit moredifficultforpeople,especiallypeoplewithdisabilities,toaccessawider rangeofservices.Theseparationalsoresultsinserviceduplicationandgaps, confusionforjobseekersandemployers,andadministrativeinefficiencies. Inadditiontoemploymentservices,asdiscussedinthefirstsectionofthis chapter,manypeopleidentifiedtheneedforbettercoordinationor integrationofsocialassistancewithotherservicesandsupports,suchas childcareandhousing.UrbanAboriginalpeoplealsodrewourattentionto

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thisissue.Intheirexperience,thelackofintegrationiscompoundedbythe factthatservices,suchashousingandtraining,areprovidedandfunded separatelybyfederal,provincial,andmunicipalgovernments. Socialassistancerecipientsandadministratorsbothexpressedfrustration aboutthefactthatinformationcannotbesharedacrossservicesbecauseof thedifferentregulatoryandprivacyframeworksforeachprogram.The OntarioMunicipalSocialServicesAssociation(OMSSA)identifiedimproved informationsharingasoneofitspriorityissuesinitsworkwiththeProvince. Variousapproachestoimprovingcoordinationorintegrationofemployment servicesandrelatedsupportswererecommendedincommunity conversationsandsubmissions.Threeapproachesaredescribedbelow. a)ImprovedProvincialMunicipal/FirstNationscollaboration Inordertoimproveemploymentoutcomesforclientsandtomake betteruseofresources,oneapproachcouldbetocontinuethe collaborationenvisagedinthe2008ProvincialMunicipalFiscaland ServiceDeliveryReview.TheMinistryofCommunityandSocial Services(MCSS),theMinistryofTraining,CollegesandUniversities (MTCU),andOntarioWorksdeliveryagentscouldworktogetherto

betterintegrateODSP,EO,andOntarioWorksemployment services implementstrategiestoenhanceaccesstoEOservicesby socialassistancerecipients,includingFirstNationspeople establishconsistentreferralprotocolsbetweenEOand OntarioWorksdeliveryagentsandprovincialODSP EmploymentSupports undertakemorecoordinatedjointlocalservicesplanning, includingwithFirstNations.

Thisapproachwouldstrengthencollaboration,buttherewouldbeno changetotherolesandresponsibilitiesofmunicipalities,FirstNations, ortheProvinceindeliveringemploymentservicesandsupports.

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b)Municipalities/FirstNationsdeliverallemploymentservices AsecondapproachcouldbetoallowmunicipalitiesandFirstNations todeliverallemploymentservicesforpeoplereceivingsocial assistance,whetherOntarioWorksorODSP.Thiswouldhelpensure thatpeoplewithdisabilitieshaveaccesstothesamelevelandrange ofemploymentservicesandsupportsasotherpeoplereceivingsocial assistance.Inadditiontochildcareandhousingsupports,whichthey accessthroughmunicipalitiesandsomeFirstNations,peoplewith disabilitieswouldalsobeabletoaccessemploymentservices.This approachwouldallowaonedoorentrytoservicesandimproveease ofaccessforclients.Municipal/FirstNationdeliverywouldprovidea commonentrypointforallpeopleseekingemploymentandsocial services,whichwouldreducethestigmaassociatedwithsocial assistance.ThisapproachwouldalsobuildonmunicipalitiesandFirst Nationsexpertiseinlocaleconomicdevelopmentandworkforce planning. Inadditiontointegrationofsocialassistanceemploymentservicesat thelocallevel,linkagesbetweenmunicipalities/FirstNationsandEO couldbestrengthenedinordertoimproveaccesstothefullsuiteof EOservices.Betterlinkagescouldbeachievedthroughinformation sharingandserviceagreements.Theseagreementscouldfocusthe rolesandresponsibilitiesinvolved.Forexample,municipalitiesand FirstNationscouldprovideintensivecasemanagementtopeoplewho havemultiplebarrierstoemploymentandreferpeoplewhoarejob 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. Inthismodel,itwouldbeimportanttoensurethatthespecializedor intensiveservicesthatsomesocialassistancerecipientsneedwould beavailable.Thisapproachwouldalsorequireimprovedand integratedlocallabourmarketplanninginordertotakeadvantageof municipalandFirstNationsexpertiseinlocaleconomicdevelopment andtheirconnectionstoemployersintheircommunities. Weareawarethatanystructuralchangeinthewayservicesaredelivered wouldlikelyinvolvechangesinaccountabilitiesandreportingrelationships. Newapproachestodeliverymayalsohaveanimpactonstaffroles,which wouldrequiresignificantdiscussionswithOntarioWorksandODSP caseworkersandtheirunions. DISCUSSIONQUESTION

Whichapproachwouldbemosteffectiveinimprovingthedeliveryof employmentservices?

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Chapter2: AppropriateBenefitStructure
Thereviewwillmakerecommendationsthatwillenablethegovernmentto establishanappropriatebenefitstructurethatreducesbarriersandsupports peoplestransitioninto,andattachmentwithin,thelabourmarket. TERMSOFREFERENCEFORTHEREVIEW TheTermsofReferenceforthereviewaskustomakerecommendationsto improveemploymentoutcomesforpeoplewhocanworkandtoprovide adequateincomesecurityforthosewhocannot.Theyalsorequireusto adviseonmethodologiesfordeterminingthebenefitstructureandlevelof rates. Withinthoserequirements,wewanttomakerecommendationsthatachieve threekeyobjectives:

Adequacyofbenefits Fairnessasbetweenpeoplewhoarereceivingsocialassistanceand lowincomepeoplewhoareworkingbutnotreceivingsocial assistance Workincentives

Toachievetheseobjectivesefficiently,anewratestructureforbothOntario WorksandODSPmustalsobelesscomplexandmoretransparent.

BalancingAdequacy,FairnessandIncentivestoWork
Thefollowingsectiondiscussesthechallengesofachievingtherightbalance amongthethreeobjectivesbydescribing:a)howtheyinteractwithone another;b)thedifficultiesinestablishingaratemethodology;andc)howthe tradeoffsbetweenthethreeobjectivescouldbeaddressed.

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a)Interactions OttawaPublicHealthpointedouttousthatinOttawa,afamilyoffourwith childrenovertheageofsixcanexpecttopay$759permonthfornutritious foodandanaveragerentof$1,227.IfthisfamilyreliesonOntarioWorks, 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:Whatlevelofincomeisnecessarytoobtain thebasics,suchassafe,cleanhousing,anutritiousdiet,clothingand transportation? Areferencewage:Howdosocialassistanceratesandbenefits comparewiththewagesandassociatedbenefitsthatanindividual mightreceiveinthelabourmarketiftheyweretoexitsocial assistanceforemployment?Weneedtobeabletocomparesocial assistanceincomeswiththisreferencewage. Abenefitwithdrawalrate:Atwhatrateshouldbenefitsbereducedor withdrawnwhenpeoplebegintoearnemploymentincome?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 withdrawalrateissuchthatifstepsaretakentoaddressanytwoofthem, thethirdcannotbecontrolledindependently.Thisisillustratedinthe followingthreeexamples:

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Example1: Benefitsaresetatanadequatelevelandarephasedoutentirelyatthepointwhen earningsreachthereferencewage.Thisautomaticallydeterminestherateatwhich benefitsarewithdrawnasincomeisearned. 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,thethresholdofadequacyisnotbeingmet,andthatpeopleshould beabletoretainagreaterportionofanyearnedincome,atleastuptoa pointofmorecloselyreachingadequacy.Weoftenheardthesuggestionthat thebenefitwithdrawalratethatapplieswhenpeoplebegintoearn employmentincomeshouldbeloweredfromthecurrent50percent. LoweringtherateofwithdrawalofbenefitsorMETRwouldimprovethe financialincentivetoworkforsocialassistancerecipients.However,itwould alsomeanthatsocialassistancerecipientswithemploymentearningswould continuetoreceivesocialassistanceathigherincomesfromearningsthan theydonow,andcouldbebetteroffthanpeoplewhoareworkingatsimilar jobsbutnotreceivingsocialassistance.Forexample,iftheamountofearned incomeretainedincreasedfrom50percentto75percent,theearned incomelevelatwhichapersonwouldexitsocialassistancewouldbefour timesthesocialassistancerate.Apersoninthissituationwouldhaveamuch higherincomeatthatpointthanalowwageworkerwouldearnfrom

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employmentonly.Ontheotherhand,wewerealsotoldthatpeoplewere opentotheideaofretaininglessoftheirearningsifratesweremore adequatetobeginwith. Itmustbeemphasizedthatthedilemmapresentedbythetradeoffs betweenadequacy,fairness,andincentivesisrootedinthelabourmarket, wherewagescanbelow,andthereisgrowingincomedisparity.Theway forwardtomanagethesetradeoffsandachieveanappropriatebenefit structurewouldbefarlessdifficultifthelabourmarketprovidedbetterand moreequitableincomesandbenefits.Withtheprevalenceoflowwage,non standardwork,movingintoemploymentoftenmeansaninsecurefuture, relativelylowearnings,andalossofvaluableextendedhealthbenefitssuch asprescriptiondrug,dental,andvisioncare. IndividualswhoexitOntarioWorksforemploymentmaycontinuetoreceive healthbenefitsforsixto12months.PeoplewithdisabilitiesreceivingODSP haveaccesstothesebenefitsindefinitelyaftertheyexitsocialassistancefor employment,althoughmanyODSPrecipientsweheardfromareunderthe mistakenimpressionthattheywilllosetheirhealthbenefitsiftheyreturnto work. Intodaysjobmarket,thevastmajorityofpeopleworkingintemporary,part time,orlowwagejobsdonothaveemployersponsoreddental,medical,or druginsurance.Oftwopeopleworkingsidebysideatthesamejob,theone whoisintheprocessofexitingsocialassistancecontinuestohavehealth benefitsforaperiodoftimewhiletheother,whodidnotreceivesocial assistance,hasnohealthcoverageinthisworkplace.Thelackoffairnessin thissituationisapparent.Weheardinourdiscussionsthatlosinghealth benefitsuponmovingintoemploymentcouldbeapowerfuldisincentiveto exitingtheprogram.Manypeople,especiallyparentswithchildrenwhohave medicalconditionssuchasasthma,toldusthattheyfounditverydifficultto leavesocialassistancegiventheriskofnothavinghealthbenefits.The conversemayalsobetrue:theavailabilityofhealthbenefitsmaybeafactor inseekingsocialassistanceforpeoplewhoneedthesebenefitsbutcannot otherwiseaffordthem.

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b)EstablishingaRateMethodology Thetaskofaddressingthefundamentaltradeoffsismadetougherbythe absenceofagreeduponbenchmarksforadequacyandincentivesthatwould guideasoundmethodology. InCanada,althoughthereisnogenerallyaccepteddefinitionofpovertyto helpdeterminetheadequacyofrates,thefollowingthreemeasuresoflow incomeareoftenused:

LowIncomeCutOffs(LICO):Thiswasbasedontheincomelevelat whichafamilyinthebaseyear1992waslikelytospendmorethan63 percentofhouseholdincomeonfood,shelterandclothing. LowIncomeMeasure(LIM):Usually,LIMisdefinedas50percentof medianincome(medianincomeisthemiddlepointifyoulineupall incomesfromlowesttohighest). MarketBasketMeasure(MBM):Thismeasureoflowincomeisbased onthecostofamodestbasketofgoodsandservices,includinga nutritiousdiet,clothingandfootwear,shelter,transportation, personalcareitemsandhouseholdsupplies.Individualsorfamiliesare consideredtobelowincomeiftheirdisposableincomesfallbelow thetotalcostofthegoodsandservicesintheMBMintheir communities.

AmoredetaileddescriptionissetoutinAppendixA:MeasuresofLow Income. Noneoftheseiswidelyacceptedasapovertymeasure,andeachhas limitationswhenusedasabenchmarkfordeterminingwhethersocial assistanceratesareadequate. 7 Amajordrawbackofallthreemeasuresis thattheydonotconsidertherangeofpossibleadditionalcostsrelatedto livingwithadisability. Bearinginmindthedrawbacks,welookedathowtotalsocialassistance incomes,includingtaxcredits,comparewitheachofthemeasures(LICO,LIM andMBM).Ourcomparisonshowsthatthecurrentsocialassistancerates,in combinationwithbenefitsoutsidesocialassistance,seemarbitrarywhen
7

WenotethatforthepurposesoftheOntarioPovertyReductionStrategy,theprovinceadopted theuseofLIM.

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comparedwithanyofthelowincomemeasures(seeAppendixB: SocialAssistanceIncomesComparedwithLowIncomeMeasures).Thereare widevariationsinhowincomescomparewitheachmeasure,inpercentage terms,acrossdifferenttypesofrecipientsandacrossOntarioWorksand ODSP.Forexample,asoleparentwithonechildreceivingODSPreceives $24,882(includingchildrensbenefits)ayear,or106percentoftheMBM thresholdforasingleparentwithonechild(butasnotedabove,theMBM doesnotconsideradditionalcostsoflivingwithadisability).Asingleperson receivingOntarioWorksreceives$7,952ayear,or48percentoftheMBM thresholdforasingleperson. Itisalsodifficulttofindabenchmarkfordeterminingtheratelevelsthat wouldresultinfinancialincentivestowork.Thereisnoobviouslabour marketincomebenchmarkorreferencewagetouseforcomparisonwith socialassistanceincomestodeterminewhetheranindividualwouldbebetter offworking.Itcouldbebasedonanyofthefollowing:

Fulltimehoursatgeneralminimumwage,whichissetbyprovincial policy Theaverageactualearningsofpeoplewhohavefullyexitedthesocial assistancesystem,basedonthefirstyearfollowingtheirexit Aproportionoftheaverageactualemploymentearningsofworking ageadults

Areferencewageisintendedtocapturewhatpeoplemightexpecttoearn throughemployment.Inpractice,however,peoplemayearnmoreor(more often)lessthantheirexpectations.Actualearningsforpeopletransitioning fromreceivingsocialassistancewillvary,dependingonlocallabourmarket conditionsandanindividualscapabilitiesandskills.Thismeansthatany benchmarkforareferencewagewillhavelimitations. Settingthereferencewageatthefulltimeminimumwagewouldreflectthe lowestamountthatpeoplemightearnifworkingfulltime;however, minimumwageisapoliticalconstructwithoutaclearmethodologyfor arrivingatthefigure.Averageactualearningsafterexitfromsocialassistance wouldnotreflecttherangeofcapabilitiesandearningpotentialofpeople receivingsocialassistance.Thereisasimilarproblemwithusingaproportion

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ofaverageactualemploymentearnings,andfindingarationalefor determiningwhatproportionshouldbeusedisafurtherdifficulty. Combiningthesetwolessthanperfectmeasuresofadequacyandincentives toarriveataratestructureraisesfurtherquestions.Forexample,ratescould 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 ofwhethertheyareworkingorreceivingsocialassistance.Several provinceshavetakenstepstoprovideextendedhealthbenefitsto lowincomeearnerswhoarenotreceivingsocialassistance.For example,Albertaprovideslowincomeadults,whoarenotreceiving socialassistance,withprescriptiondrug,dental,andvisioncare benefitsiftheydonotreceivethesebenefitsthroughtheiremployers. Itmaybeeasytomakethecaseforthisapproach.MostCanadians believe,formanygoodreasons,thatideallyhealthbenefitsshouldbe availabletoall.However,thereisthepracticalquestionofhowtopay forsuchanexpansionofhealthbenefits.Shouldgovernmentfundit directly,orshouldemployersberequiredtoofferthesebenefitsto theirlowincomeemployees? Weknowthatitisanunevenplayingfieldwhenitcomestoemployer providedextendedhealthbenefits.Introducinggovernment

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supportedextendedhealthbenefitscouldleademployerstodecrease thebenefitstheyprovideiftheycurrentlyofferthem.However,there maybestrategiestohelpleveltheplayingfield,suchasapooled insuranceprogramforemployersnotcurrentlyprovidingbenefits. ii)Varytheratestructureovertime Inthisapproach,aratestructurecouldbeestablishedthatchanges overtheperiodinwhichanindividualreceivessocialassistance.The rationaleisthatincentivestoencouragetransitiontoemployment maybemoreimportantintheshortterm,butinthelongterm,the needforadequacymayincrease. AreportfortheSocialPlanningCouncilofWinnipeg 8suggeststhat,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 onlyinemergencysituations.Thiswouldensurethatabasiclevelof benefitisavailableforpeopleinneedoftemporaryassistance.Rates couldbesetatalevelbelowthereferencewageinordertomaintain incentivesforseekingemployment. Peoplewhoareunsuccessfulinsecuringemploymentwillbeinneed oflongertermincomesupport.Manydifferentfactorscouldleadto thissituation,includinglackofavailablejobs,lackofopportunity owingtodiscriminationorstigmaattachedtohavingadisability,lack ofaccesstoaffordablechildcare,beinghomeless,multiplehealthor socialbarriers,andmanyothers.Aftertheinitialperioddescribed above,ahigherratecouldbeavailabletoreflectlongerterm adequacy.Thetradeoffbetweenadequacyandincentivetoworkis

SeeHarveyStevens(2011),Improvingtheadequacyofsocialassistancebudgets:Arationalefor makingcurrentratesmoreadequateandamethodologyforpricingbudgets.

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morerelevanttothosewhoarecapableofworkingthanforthose whocannotwork. Oneofthequestionsaboutthistypeofdesigniswhetheritwould reducetheincentiveforpeopletoexittheprogramoncetheyreceive socialassistanceatthehigherrate.Anotherquestioniswhethersome people(suchaspeoplecaringforpreschoolchildrenorsufferingfrom amedicalcondition)shouldbeeligibleforthehigherrateattheoutset ifitcanbeassumedthattheywillrequireassistanceoverthelonger term. d)UniversalIncomeTestedBenefits Atsomeincomelevels,therearemeasuresthatmayalsohelpeasethetrade offsbymakingworkpayandimprovingfairness. i)Earnedincomesupplement Anearnedincomesupplementcanbeavaluablemechanismto supportlowincomeworkers.Manyjurisdictionshaveintroducedsuch supplements,includingmanyU.S.states.In2007,Canadaintroduced theWorkingIncomeTaxBenefit(WITB)toenhancetheincomesof lowincomeworkersandprovideanincentiveforthosenotworkingto entertheworkforce. Ascurrentlydesigned,WITBisnotworkingaswellasitcouldtomeet thatobjective. 9Thevalueofthebenefititselfislow,anditbeginsto phaseoutatanincomelevelwellbelowfulltimeminimumwage.For peoplereceivingsocialassistancewhilemovingintoemployment, withdrawalofWITBatsuchlowearningslevelsandwithdrawalof socialassistanceatthesametimemaymeanthattheywouldbe worseoffbyexitingsocialassistance.Abetterdesignedearned incomesupplement,withahigheractualvalueandlaterwithdrawalas incomerisesbeyondareferencewage,wouldbemorelikelyto provideincentivetoexit.

ItshouldbenotedthatOntariosPovertyReductionStrategyrecommendedchangestothe federalWITB.

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ii)Housingbenefit AhousingbenefitforalllowincomeOntarianscouldalsoassistin improvingincomesandeasethechallengeofensuringfairnessas betweenpeopleonsocialassistanceandlowincomeearners.Sinceit wouldalsohelppeoplewhoarestrugglingwithhousingcostsbutnot receivingsocialassistance,itcouldhelpreducethenumberofpeople whoneedtoseeksocialassistance.Thehousingbenefitcouldbe similartotheOntarioChildBenefit,inthatitcouldbeappliedbroadly toalllowincomepeople.Ashousingcostsvaryquitewidelyin Ontario,thebenefitcouldbestructuredtoaccommodateregional differences. TherecentlyreleasedLongTermAffordableHousingStrategymade referencetoahousingbenefit,buttherehasnotyetbeenmuchpublic discussionabouthowtodesignit.TheOntarioEnergyandProperty TaxCredit,anexistingrefundabletaxcredit,shouldbeexaminedasa possiblemechanismfordesigningahousingbenefit.Theexperience fromexistinghousingsupplementprogramsinOntario(suchasthe RentalOpportunityforOntarioFamilies,scheduledtoendin December2012)andotherjurisdictions(suchastheSaskatchewan RentalHousingSupplement)shouldalsobeexamined.Inaddition,any housingbenefitforOntariowouldhavetobealignedwithsocial assistanceratesandtheexistingRentGearedtoIncome(RGI) program. Thesestrategiescouldenhanceincentivestowork.Weareaware,however, thathighMETRsareinevitablycreatedasthesetypesofbenefitsare withdrawn.Byextendingsuchbenefitstoabroaderlowincomepopulation, wemaybesimplypushingthechallengefartheruptheincomescale.Itis sometimesarguedthathigherincomeworkersaremoreresilientandlikely havehigherlongtermearningpotential.However,thisisanissuethatwould benefitfromfurtheranalysisaspartoftheconsiderationofadditional universalincometestedbenefits. DISCUSSIONQUESTIONS

Whichadequacyandwagebenchmarksshouldbeusedtosetrates? Arethereothermeasuresthatshouldbeconsidered?

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Inamethodologyforsettingrates,whatproportionswouldbalance adequacy,fairnessandincentives? Shouldhealthbenefitsbeprovidedtoalleligiblelowincome Ontarians?Ifso,howshouldthecostbecovered? ShouldOntariouseatworateapproach,basedonhowlongsomeone requiressocialassistance?Ifso,shouldtherebeexemptionsfrom startingatthelowershorttermrate? Wouldanearnedincomesupplementbeagoodmechanismto increasetheincentivetowork?Ifso,howshoulditbedesigned? Wouldahousingbenefitimprovefairnessandtheincentivetowork? Ifso,howshoulditbedesigned?

DesigningBenefitsforPeoplewithDisabilities
Thedilemmaoftradeoffsbetweenadequacy,fairnessandincentivesiseven morepronouncedindesigningabenefitstructureforpeoplewithdisabilities. Historically,peoplewithdisabilitiesreceivedsocialassistanceunderthe FamilyBenefitsAct(FBA).UndertheFBA,ratesweresomewhathigherthan theratesforpeoplewhowereexpectedtoseekemploymentandwho receivedsocialassistanceundertheGeneralWelfareAct(GWA).In1995, GWArateswerereducedby21.6percent,whileratesforpeoplewith disabilitiesundertheFBAweremaintained.In1997,whenODSPreplacedthe FBA,ratescontinuedatahigherlevelthantheOntarioWorksratesthat replacedtheGWA.Wecouldnotfindastatedreasonfortheratedifferential, butitislikelyinrecognitionofthehigherlivingcostsofsomepeoplewith disabilities,aswellasexpectationsthattheymayhavelowerearning potential. Withthehigherrates,ODSPbenefitsaremoreadequatethanOntarioWorks benefits.TheODSPbenefitstructureputsapriorityonadequacyoverfairness (bycomparisonwithlowincomeworkers)orincentives.Thismakessensein asystemthatassumesthatmostpeoplewithdisabilitiesareunlikelytowork. However,weneedtoshiftawayfromthatassumption.Weneedtorecognize theworkaspirationsofpeoplewithdisabilities,providecriticalemployment

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supportsandservices,andactivelysupportasuccessfultransitionintothe labourmarketforthosewhocanwork. WeweretoldthatODSPrequiresacultureshift,awayfromafocuson disabilityandtowardafocusonability.Atthesametime,thebenefit 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 alsobearinmindthatsomepeoplewithseveredisabilitiesareunlikelyto generatesignificantearningsovertheirlifetimes,andweneedtoensurethat theyhaveincomesecurity. SinceratesinODSParecurrentlyhigherthaninOntarioWorks,anincome supplementisalreadybuiltintothecurrentratestructure.Forpeoplewith disabilitieswhoareworking,thedisabilitytopupintheWITBalsoactsasa typeofincomesupplement.Ideally,however,lowincomepeoplewith disabilitiesshouldhaveaccesstoanincomesupplementrelatedtotheir disabilityinsteadofrelatedtowhethertheyreceivesocialassistance.Thisisa matteroffairness,anditwouldhelpaddressthetradeoffdilemma.There arevariousapproachestodesigninganddeliveringsuchasupplement. TheratedifferentialwithOntarioWorkscouldberemovedfromthecurrent ODSPrateandanewsupplementarydisabilitybenefit,outsidethesocial assistancesystem,couldbeprovidedtoalllowincomepeoplewith disabilities.Asapersonsemploymentearningsincreased,thisbenefitcould bephasedout.Ineffect,thismodelwouldmirrorthegovernmentsapproach intheOntarioChildBenefit.Itprovidessupporttochildreninalllowincome families,regardlessofwhethertheyarereceivingsocialassistance. Determiningthevalueofthisadditionalfinancialsupportwouldrequiresome analysisanddesignwork. Anewprogramcouldalsobedevelopedtoprovideasecureandadequate basicincomeforpeoplewithseveredisabilitieswhoareunlikelytogenerate significantearningsovertheirlifetimes.Theprogramcouldbesimilartothe supportlowincomeseniorsreceivethroughtheOldAge Security/GuaranteedIncomeSupplement/OntarioGuaranteedAnnual IncomeSystem,orsimilartoAlbertasAssuredIncomefortheSeverely Handicapped(AISH)program.Anothermodeltoconsidercouldbethebasic incomeplanforpeoplewithseveredisabilitiesthathasbeenproposedbythe CaledonInstitute. 10

10

SeeMichaelMendelson,KenBattle,SherriTorjmanandErnieLightman(2010),Abasicincome planforCanadianswithseveredisabilities.

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Intheengagementprocess,somepeoplesaidthatthistypeofbenefitmodel makessenseforpeoplewhohavelittleprospectofworking.Othersargued againstanapproachthatdividespeopleaccordingtoseverityofdisability becauseitdoesnotaccountforthechangeabilityofdisability,particularly episodicdisabilities.Achallengeinthismodelisthat,asdiscussedin Chapter1,attemptingtoassessworkcapacitycanbeverydifficult. DISCUSSIONQUESTIONS

Howshouldincomesupplementsforlowincomepeoplewith disabilitiesbedesignedanddelivered?Shouldsuchsupplementsbe providedoutsidethesocialassistancesystem? Shouldtherebeaseparatebasicincomeprogramforpeoplewith severedisabilitieswhoareunlikelytogeneratesignificantearnings?

DealingwiththeComplexityofBenefits
Thecurrentarrayofbenefitsandratesattemptstoreflecttherangeof individualcircumstances.Socialassistancenowpaysabasicneedsamount andashelterallowance,basedonanumberoffactors.Factorsincludefamily type(singleindividual,soleparent,couple),thenumberand(forODSP)age ofanychildren,andlivingarrangements. Addedtothisstructureisarangeofspecialbenefitstoaddressspecificclient needs.Theseincludebenefitstoassistwithaddedcosts,forexamplewhen startingfulltimeemploymentorforpeoplewhorequirespecialdietstohelp managemedicalconditions.Somespecialbenefits,suchasassistancewith thecostofmoving,repairinghouseholdfurniture,oradditionalworkrelated expenses,areconsidereddiscretionaryandmaybeavailableinsome municipalitiesandnotothers. Asthisstructureaimstoaddressawiderangeofindividualcircumstances andneeds,ithasbecomeverycomplicatedanddifficulttoadminister.We alsoheardthatthecurrentstructureisinconsistentlyapplied,atthe administratorsdiscretion,andisnotalwaystransparenttoclients. Oneapproachtodealingwiththeseissuesistosimplifythestructureby mergingsomeorallofitselements:

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Thecurrentbasicneedscomponentandshelterallowance,orboard andlodgingcategories,couldbecombinedintoastandardrateforall adults.Withthisstandardrate,itwouldnotmatterwhethersomeone isaboarderorarenter,orpayinglessthanthemaximumrental amountcurrentlyrecognizedinthesheltercomponent.Peoplewould notneedtoproviderentreceiptstocalculateandjustifytheshelter amount.Theywouldhavemoreflexibilitytomaketheirowndecisions. Therewouldalsobelessintrusionintotheirlives,ascaseworkers wouldnotneedtoinquireintoandverifythedetailsofapersons livingarrangements.Wealsoneedtoconsider,however,howto addresstheconcernsweheardabouttheregionalvariationsinshelter costs,particularlythehighcostofhousingintheNorthandinsome urbancentres.(Wenotethatthedesignofasinglebenefitwouldhave totakeintoaccountwhetherahousingbenefitisprovidedoutside socialassistance.) Thecategoryofdependentadultcouldbeeliminatedforadultsnot enrolledinpostsecondaryeducation.Unlikethecurrentsituation, therewouldnolongerbeadifferenceinratebasedonwhetherthe parentsarereceivingOntarioWorksorODSP.Individualswouldbe treatedasseparateapplicantsandreceiveindividualpaymentsifthey qualifyforsocialassistance. Somespecialbenefitscouldbemergedintothestandardrate. TheSpecialDietAllowance(SDA)issomewhatdifferentfromother specialbenefits.Forsomepeople,theSDAislinkedtoadequacyand fairness.Somehavesuggestedthatthedietaryneedsofpeoplewith certainmedicalconditionscouldbemanagedmoreeasilywithouta specialbenefitifamoreadequatesocialassistanceratewere provided.Othershaveaskedwhetheritisfairtoprovideasupplement tosupportdietaryneedsrelatedtomedicalconditionsonlyforpeople receivingsocialassistanceandnotforalllowincomeOntarians.We arealsoawarethat,asaseparatesocialassistancebenefit,theSDAis notnecessarilyalignedwiththebroaderprovincialhealthpolicy frameworksthataddressthemedicalneedsofalllowincome Ontarians.Thisraisesthequestionofwhetheritmaybeappropriate toeliminatetheSDAasaspecialbenefitinsocialassistanceand addressthedietaryneedsofalllowincomepeople,includingthose

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receivingsocialassistance,throughtheprogramsandpolicies deliveredthroughtheMinistryofHealthandLongtermCare. Thecurrentmethodofcalculatingratesiscomplex,andtheresultingratesdo notreflectactualcosts,suchastheexpensesofasinglepersonversusa couple.TheMBMusesascalederivedfromthecostsforafamilyoffourto calculaterelativecosts;theremaybeotherapproaches.Further,thereisno rationaleforthehigherbasicneedsamountprovidedtoanondisabled spouseofanODSPrecipientcomparedwithaspouseofanindividual receivingOntarioWorks.Weneedabetterrationaleforthedifferentrates thatapplytodifferenttypesofhouseholdsorfamiliesandabetterwayof calculatingthoserates. Clearly,therearemanywaystoapproachthetaskofsimplifyingand improvingthebenefitstructure.Itwillbeimportanttolookateachofthe elementsofthecurrentstructuretodeterminewherechangesareneeded andwhichonesmakethemostsense. DISCUSSIONQUESTIONS

Howshouldthecurrentratestructurebechangedtoreduce complexity? Shouldsomespecialbenefitsberolledintoastandardrate?Ifso, whichones? Shouldthespecialdietaryneedsforalllowincomepeople,including thosereceivingsocialassistance,beaddressedthroughtheMinistryof HealthandLongTermCare? Howshouldthedifferentratesfordifferentfamilytypesbe established?

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Chapter3: EasiertoUnderstand
Thereviewwillmakerecommendationsthatwillenablegovernmentto simplifyincomeandassetrulestoimproveequityandmakeiteasierto understandandadministersocialassistance. TERMSOFREFERENCEFORTHEREVIEW Amajorthemeintheengagementprocesswasthecomplexityofthesocial assistancesystem.Bothcaseworkersandpeoplereceivingsocialassistance commentedonthedifficultyofnavigatingthemazeofbenefits,eligibility criteria,rules,andexceptions.Weheardfromsomecaseworkersthatthey canspend70percentoftheirtimeadministeringtherules.Manypeople recommendedchangestospecificrules,suchasthoserelatedtoearnings exemptions,treatmentofotherincome(includingchildsupport),thebenefit unit,andassets.MoredetailonrulesisprovidedintheCommissionsreport ontheengagementprocessandwillbeincludedinourfinalreport. Inthischapter,welookatthemainsystemicreasonsforcomplexity,explore approachestoensurecompliance,andquestionsaboutrisktolerance.We alsolookattherulesassociatedwiththetreatmentofassets,asagood exampleofcomplexityinthesystem,anddiscusspossibleapproachesto change.

Complexity,ComplianceandRiskManagement
Thecomplexityofthecurrentsystemarisesfromthreemainsources:the complexityofthepolicyobjectivesthatunderliethedesignoftheprograms, asurveillanceapproachtomonitoringcompliance,andtheadministration ofriskthattakesplacewithinapublicandpoliticalenvironment.

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Complexity Chapter2notesthecomplexityofthecurrentbenefitstructure.Thereis tensionbetweensimplifyingthestructureontheonehand,andmeeting peoplesdifferentneedsontheother.Ifthebenefitstructureweretobe simplifiedasdiscussedinChapter2,therulesthatstemfromthecurrent policycomplexitywouldnolongerbenecessary. Inconsideringthecomplexityofrules,itisimportanttorememberthat,asin anypublicprogram,thesocialassistancesystemmustbeaccountableto taxpayers.Peoplereceivingbenefitsmustdemonstratethattheyareeligible forsupport,andcaseworkersmustdemonstratethattheyaretakingthe necessarystepstoensurecompliance.TheAuditorGeneralofOntarios reportsonsocialassistanceoftenconcerntheextenttowhichOntarioWorks andODSPstaffcandemonstratethattheyhaveassessedandverifiedthat clientsareincompliancewiththerules. ComplianceandRiskManagement Currently,themeasuresinplacetoensurecomplianceandreducemisuse involveintensive,timeconsumingverificationprocesses,appliedtoallclients andatallstepsoftheeligibilityprocess.Thesemeasureshavebeenbuiltup overtimeinanattempttomaintaintheintegrityofthesystemandprevent misuse.Thissurveillanceapproachhasledmanypeopleweheardfromto commentthatthecultureofsocialassistanceseemstomistrustclients.This maybeexplained,inpart,bythestigmaassociatedwithsocialassistance. Anotherfactor,however,relatestothestructureofpenaltiesformisuseand howeffectivetheyareasadisincentive. Currently,socialassistancerecipientswhodonotreportincomeormaterial changesofcircumstancesthatwouldmakethemineligibleforsocial assistanceareterminatedfromtheprogramorsuspendeduntiltheyareonce againdeemedeligible.Forthosewhoareterminated,variousmeansare pursuedtorecoveroverpayments.Inrarecircumstances,wheresignificant abuseofthesystemhasbeenidentified,criminalchargesmaybepursued. Forrecipientswhodonotreportincomeormaterialchangesin circumstancesbutremaineligibleforsocialassistance,futurepaymentsare reducedbyuptofivepercentasameansofrecoveringtheoverpayment.

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Wedonothaveagreatdealofinformationabouttheeffectivenessofthe currentpenaltystructure.Wedoknowthatitisdifficulttoimposestiff financialpenaltiesonpeoplewhohavenofinancialmeanstopaythem.This challenge,seekingtoestablishpenaltiesthathaveenoughofadeterrence factor,mayalsohavecontributedtotheemphasisonacomprehensive complianceregime. Manypeopleweheardfromcalledforacompleteculturechangeinhow bothOntarioWorksandODSPapproachriskmanagement. Analternativeapproachcouldbetoreplacethecurrentcomprehensive verificationrequirements,appliedtoallrecipients,withamoretargeted, auditbasedprocess.Forexample,changescouldbemadetotheexisting methodofverifyingwhethertwoindividualsapplyingforsocialassistance shouldbetreatedasacoupleortwoseparateadults.Currently,thereisa lengthyformthatapplicantswhocoresidearerequiredtocompleteand caseworkersusetheforminassessmentandverification.Instead,applicants couldsimplydeclaretheirstatusinaccordancewiththerulesaroundco residency,withthecurrentverificationprocessreplacedbyanauditofa segmentofapplicants.TheCanadaRevenueAgency(CRA)usesthisapproach whenindividualsclaimdependentspousesorchildrenwhenfilingincometax returns. Changescouldalsobemadeintheareaofmonthlyreportingrequirements. Today,peoplereceivingsocialassistancearerequiredtoreportmonthlyon whethertheirincome,childcare,orhousingcostshavechangedandprovide documentationtoverifythesechanges.Instead,theycouldcontinueto reportmonthly,butonlyberequiredtoproducepaystubsorreceiptsifthere isanaudit.TheCRAusesthisapproachforsomeaspectsoffilingincometax returns.Canadiansareallowedtoclaimdeductionsforarangeofexpenses (childcare,tuitioncosts,medicalexpenses,etc.)throughonlinetaxreturns, withoutprovidingreceipts,butareexpectedtoretainthesereceiptsand othersupportingdocumentsincasetheyareaskedforthem.CRAhas developedariskbasedprocesstoidentifytaxfilerswhomustlatersubmit thosereceiptsinorderverifytheiroriginalclaim. Inordertobeeffective,anauditbasedapproachmustbeaccompaniedby effectiveriskidentificationtools,rigorouslyevaluatedtoensurethatthey work.TheMinistryofCommunityandSocialServiceshasbeguntomove towardthisapproach.ItrecentlyworkedwithEquifaxtodevelopanewrisk

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identificationtoolthatwillbeusedtobettertargetpeopleforeligibility reviewswhomaynotbereportingincomeorchangesinotherfinancial arrangements. Aneffectiveauditbasedapproachshouldproducethesamelevelof complianceasthesurveillanceapproach.Theadvantageofanauditbased systemisthatitcanmoreefficientlyfocusadministrativeresourcesonhigh risksituations,potentiallyfreeingupresourcestoimprovedirectsupportsto people.Themajorityofsocialassistancerecipientsdonotmisusethesystem, andthisapproachalsohastheadvantageoftreatingthemwithahigherlevel ofdignityandtrust. However,thereisamajorchallengeinmakingtheauditbasedapproach practical:selectiveauditingiseffectiveonlyifthosecaughtmisusingthe systemfacestrongenoughpenaltiestodiscourageothersfrommisusingthe system.Suchpenaltiesarenotasdifficultachallengeintheadministrationof taxcollection.Asdiscussedabove,inasocialassistancesystemthatprovides alowlevelofbenefitstobeginwith,itisasubstantialchallengetofind enforceablepenaltiesthatarestrongenoughtodiscouragemisuse. Weneedtoconsidertheacceptablelevelofrisktolerancetomaintainthe integrityofthesystem.Thereisacostbenefitaspecttomanagingrisk:the costofincreasedenforcementsetagainstthepotentialoffurtherreducing misuse.Itcanbechallengingtoweighthecostsandbenefitsofanew approachagainstthelevelofpoliticalandpublictolerancefornotcatching misuse.Thequestionofanappropriatelevelofrisktoleranceremains,in eitherthecurrentsystemorthealternativeauditbasedsystem,assuming appropriatepenaltiescanbefound. DISCUSSIONQUESTIONS

Shouldthesocialassistancesystemmovefromasurveillance approachtowardanauditbasedsystemofverificationand monitoring? Whatpenaltieswouldberequiredandfeasibleinanauditbased system? Whatistherightlevelofrisktolerance,ineitherthecurrentsystemor anauditbasedsystem?

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TreatmentofAssets
Inourdiscussionsandthroughsubmissions,weheardthatthecurrent requirementthatindividualsdepletetheirassetsbeforebeingeligiblefor socialassistancecreateschallengesintermsoffinancialselfsufficiency.Asset ruleswereconsistentlyidentifiedasmajorobstaclesforpeopletryingto makethetransitiontoworkandbecomemorefinanciallyresilient.Many peoplefeltthattheassetrulesaretoostringentandthattheycontributetoa cycleofpoverty.Wealsoheardthatthecurrentrulesassociatedwithassets arecomplexanddifficulttounderstand. Thereareanumberofchallengeswithrespecttothetreatmentofassets, primarilystemmingfromfundamentalpolicyconflictswithinthecurrent approach.Tosomeextent,theseconflictsalsodrivethecomplexityofthe rules.Thefollowingdiscussionlooksatthepolicyissuesandsuggestspossible approachestoresolvingthemandsimplifyingtherules. Currently,individualsareexpectedtouseallfinancialresourcesavailableto thembeforeturningtosocialassistance.Therationaleisthatitwouldnotbe appropriateforpeopletoreceiveincomesupportwhentheyhaveassetsthey couldusetosupportthemselves.Consistentwiththisview,assetlimitsfor OntarioWorksaresetatalowlevel,generallyequivalenttoaboutonemonth ofsocialassistanceandchildrensbenefitpayments.Ontheotherhand,one ofthekeyobjectivesofOntarioWorksistoassistpeopleinasuccessful transitiontoemploymentandachieveindependencefromsocialassistance. 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 $6,000annually(whicharethenconsideredassets),anotherinequity betweenthetwoprograms.Similarly,thereisnoclearrationaletoexplain whyaspouseordependentadultchildofanODSPrecipienthashigherasset limitsthanthespouseordependentadultchildofapersonreceivingOntario Works.Formoredetails,seeAppendixC:OntarioWorksandODSPAsset LimitsandExemptions. Thereareanumberofapproachestorevisingassetrulestohelpstrengthen thepolicybasiswhilesimplifyingprogramrules. OneapproachcouldbetoincreaseOntarioWorksassetlimitstoequalthose ofODSP.Thiscouldhelpfacilitateasuccessfulexitfromsocialassistanceand 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.
11

SeeSocialResearchandDemonstrationCorporation(SRDC)(2010),Learningtosave,savingto learn:Learn$avefinalreport.

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Quebec,forexample,setsatotal$60,000limitforliquefiableassets,which includesRRSPs,RESPsandtrusts.(QuebecscashlimitissimilartoOntarios, andotherassetssuchasprimaryresidencesandvehiclesareeachsubjectto separatemaximums.) 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.Makingchangestoemploymentservicesandsupportsandtothe benefitstructure,andreducingthecomplexityofthesystemoverall,are discussedinthepreviouschapters.Itisalsoimportantthatwedesigna systemthatisviableforFirstNations,andthisisdiscussedinChapter6. Thischapterlooksatadditionalapproachestocoordinatingorintegrating socialassistanceonasystemwidebasis.Theseapproachesareintendedto maketheadministrationofthesocialassistancesystemandthedeliveryof servicestopeoplereceivingsocialassistancemoreeffectiveandefficient.We areawareofeffortstakingplacewithintheprovincialgovernmenttoimprove servicestoOntarians.TheseincludetheworkbeingdonebyServiceOntario toexamineopportunitiestoexpanditsnetworktopotentiallydeliverservices onbehalfofothergovernments,aswellastheeffortstotransformOntarios systemofbenefitadministration. InChapter1,welookedatthepotentialofintegratingemploymentservices. Chapter2setoutapproachesforarevisedbenefitstructure,including providingadisabilitysupplementoutsidesocialassistance.Theremayalsobe approachestodeliveringOntarioWorksandODSPincomesupportthatcould resultinimprovedcoordinationandadministrativeefficiency.Asthese variousapproachestoreformareconsidered,thequestionarisesasto whethertwoseparateprogramsinsocialassistanceareinfactnecessary. Thefollowingdiscussionsetsoutthreeapproachestoimprovingintegration anddeliverytohelpachievelongtermviability.Theremaybeothers.

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Oneapproachcouldbetocontinuewiththecurrentmodelofseparate deliveryofOntarioWorksandODSPincomesupport,whileintegrating employmentservicesandsupportsforeveryonereceivingsocialassistance. CoordinationbetweenOntarioWorksandODSPcouldstillbeimprovedin thismodel,forexamplethroughfurthereffortsatjointplanningandco locationofdeliverysites. Asecondapproachcouldbetoprovideemploymentservicesandincome supportthroughaonestopdeliverymodelthatwouldintegrateOntario WorksandODSPatthelocallevel.Wheretheyhavetheinterestandhave developedthecapacity,municipalitiesandFirstNationscoulddeliveran integratedsocialassistanceprogramtailoredtotheneedsoftheir communities. Athirdapproachcouldbeformunicipalitiestodeliverhumanservices componentsofsocialassistance,includingcasemanagementand employmentservices,whiletheProvincedeliversadministrativeservices relatedtosocialassistance,suchasissuingsocialassistancecheques. Anynewapproachmustbeconsistentwithotherareasofsocialassistance reformandmustensureequitableaccesstoservicesandsupportsforall individuals,includingpeoplewithdisabilities. PotentialchangestotheroleofmunicipalitiesandFirstNationsinthe deliveryofsocialassistancewouldneedtobeaccompaniedbynew accountabilityarrangements.ForFirstNations,thisisfurtherdiscussedin Chapter6.Formunicipalities,thesecouldbebuiltonexistingaccountability provisionsintheMunicipalActandprovidedthroughtheintegratedservice plansthattheMinistryofCommunityandSocialServicesdevelopswitheach servicedeliveryagent.TheMinistrycouldidentifyandnegotiateasetof overalloutcomes,whichcouldbetranslatedintodeliverablesby municipalitiesthroughalocalplanningprocess.Toensurequalityand consistencyoflocalservices,serviceplanscouldincluderequirementsfor municipalitiestoadoptbestpractices,surveysocialassistancerecipientsand localemployerstoassesstheeffectivenessofservices,andreportpubliclyon progresstowardspecificoutcomes.

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OtherPrograms
Twootherprogramsthatarepartofthesocialassistancerevieware discussedhere:TemporaryCareAssistance(TCA)andAssistanceforChildren withSevereDisabilities(ACSD).Ithasbeensuggestedthatforthelongterm, 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 consistentoversightofchildsafetyintemporarycaresituations.Asimilar approachcouldbeconsideredforOntario. ACSDhelpslowandmoderateincomeparentswithsomeoftheextracosts ofcaringforachildwhohasaseveredisability.Parentscanreceiveupto $450amonthtohelpwitharangeofdisabilityrelatedcosts,suchastravelto medicalappointments,specialequipmentorparentalrelief.Theamount dependsonactualcostsandfamilyincome.AlthoughMCYShastheleadfor theprogram,itisestablishedbytheOntarioDisabilitySupportProgramAct, 1997anddeliveredinconjunctionwithsocialassistance.ACSDcouldbefully transferredtoMCYSinordertoclarifyaccountabilityfortheprogramand allowMCYStointegrateACSDwithitsotherservicesforchildrenwith disabilities.

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DISCUSSIONQUESTIONS

Whatarethestrengthsandweaknessesofthesethreeapproachesto thedeliveryofOntarioWorksandODSP?Arethereotherapproaches thatshouldbeconsidered? ShouldfullresponsibilityforTemporaryCareAllowanceorAssistance forChildrenwithSevereDisabilitiesbetransferredtotheMinistryof ChildrenandYouthServices?

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Chapter5: AnIntegratedOntarioPosition onIncomeSecurity

Thereviewwillmakerecommendationsthatwillenablegovernmenttodefine Ontariospositionvisvisthefederalandmunicipalgovernmentsasit relatestoincomesecurityforOntarians.

TERMSOFREFERENCEFORTHEREVIEW Socialassistanceispartofabroadersocialsafetynet,whichisintendedto supportOntariansandCanadianswho,formanydifferentreasons,mayneed financialassistanceforshortorextendedperiodsoftime.Althoughour mandatefocusesonmakingrecommendationstoimprovesocialassistance, thisfifthoutcomearearecognizesthatourtasknecessarilyentailsthinking aboutandcommentingonincomesecurityissuesbeyondthesocial assistancesystem. Thereareanumberofpoliciesandprogramdesignsinotherareasthat createparticularchallengesforsocialassistance.Thissectiondiscussesareas whereinadequaciescreatepressureonthesocialassistancecaseload,areas thataffecthowwellthesocialassistancesystemworksinachievingits intendedoutcomes,andsomespecificinteractions,betweensocialassistance andotherprograms,thatcreateproblems. Asthefollowingexamplesshow,policiesandprogramsinmanyotherareas impactthesocialassistancecaseload:

Manyimmigrantsfacechallengessuchaslanguagebarriers,lackof Canadianexperience,andnothavingtheircredentialsrecognized.Asa result,theymayfindthemselvesturningtosocialassistancefor support. 12

12

FourteenpercentofprimaryOntarioWorksapplicantsarenewcomerswhohavebeenin Canadaforfiveyearsorless.Newcomersincluderefugeeclaimants,whomakeupaboutseven

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AshasbeendocumentedandstudiedbytheMowatCentreTaskForce onEmploymentInsurance(EI),manyOntarianshavelimitedaccessto EI.AnumberoftheTaskForcerecommendationscouldbeconsidered toimproveaccesstoEIandpreventunemployedOntariansfrom turningtosocialassistance. FirstNationsdependencyonsocialassistanceisinparttheresultof failuresinthemanypolicyframeworksaffectingtheirpeopleand communities.Thisisdiscussedmorefullyinthenextchapter.

Otherpoliciesandprogramdesignsthatdirectlyhinderourabilitytodevelop solutionstoimprovesocialassistanceoutcomesincludethefollowing:

Theavailabilityofprescriptiondrug,dentalandvisioncarebenefitsto lowincomeearnersislimited,asisdiscussedinChapter2. Thereisgrowingawareness,inCanadaandaroundtheworld,ofrising inequalityinincome.Recentreports,includingthosebythe ConferenceBoardofCanadaandtheOrganisationforEconomicCo operationandDevelopment(OECD),havehighlightedthechallengeof risingincomeinequality.TheOECDpointstothereducedimpactof meanstestedtransfersandchangesinincometaxratessincethemid 1990sasoneofthemainfactorscontributingtoincomeinequality. AccordingtotheOECDreport,priortothemid1990s,theCanadian taxbenefitsystemoffsetmorethan70percentoftheriseinmarket incomeinequality;thishassincedeclinedto40percent. 13 Wagepolicies,includingtheminimumwage,alsocontributetothe wideningdisparitiesbetweenhighandlowincome. 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,theabsenceofafederallongtermfunding commitmentandanationalhousingplanmeansalackofaffordable housingtosupportpeopleinneed,includingpeoplereceivingsocial assistance. ForFirstNations,thecomplexsetofrelationshipsandjurisdictional issuesbetweenFirstNations,thefederalgovernment,andprovincial governmentmakesitdifficulttomakeprogressonthebroadsetof issuesunderlyingFirstNationsexperiencewithsocialassistance.

Lastly,therearealsoanumberofcomplexinteractionsbetweensocial assistanceandotherincomesupportprograms. Forexample,manypeopleturntosocialassistanceduringtheapplication processforotherprograms,likeEIorCPPDisability(CPPD),whiletheyare awaitingadecisiononwhethertheyareeligibleorduringthewaitingperiod beforebenefitpaymentsbegin.Thecurrentarrangementsforthe reimbursementofsocialassistancefundsreceivedduringtheseperiodsare complicated,timeconsumingandpoorlycoordinated.Workisgoingon betweengovernmentstoimprovesomeexistingprocesses,buttheremaybe othermoreefficientwaystoimprovetheseinteractions.Examplesinclude newinvestmentsintechnology,improvedpolicycoordination,andthe developmentofasupplementorotherprepaymentprogramwithinEIor CPPDforapplicantsawaitingdeterminationofeligibility. AnotherproblematicinteractionhappensbetweenRentGearedtoIncome (RGI)housingandsocialassistance.RGIhousingprovidesseparaterentscales forindividualsonsocialassistance,andtheamountpeoplepaydependson theirfamilysizeandwhethertheyarereceivingOntarioWorksorODSP. Thesescalesalsosetathresholdforearnings.Abovethethreshold,an individualwillswitchfrompayingtheamountsetintherentscaletopaying 30percentofearnedincome.Theproblemwiththisinteractionarisesfrom thecalculationofanindividualsearnedincome.RGIcalculatesearned incomebasedonactualearnings,nottakingintoaccountthe50percent earningsexemptionthatsocialassistanceapplies.Asaresult,peopleon socialassistanceenduppayingdisproportionatelymorefortheirhousingas theybegintoearnemploymentincome.Toimprovethesituationfortenants

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receivingsocialassistance,achangetotheRGIhousingmethodofcalculation wouldberequired,determinedthroughdiscussionsbetweentheProvince andmunicipalities. DISCUSSIONQUESTIONS

Aretheremajorandproblematicprograminteractionsthatwehave notmentionedhere? WhatpositionshouldtheCommissionrecommendthatOntario considertakingonspecificintergovernmentalissues,includingFirst Nationsissues,relatedtoincomesecurity?

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Chapter6: FirstNationsandSocialAssistance
TheCommissionerswillbeexpectedtoholdseparateandsubstantive discussionswithFirstNationstoensurereformsthatreflecttheirneedsand priorities. TERMSOFREFERENCEFORTHEREVIEW Inkeepingwithourmandateandtoensurethatapproachestoreformreflect theuniqueneedsandprioritiesofFirstNations,weheldseparatediscussions withFirstNationscommunitiesandOntarioWorksadministratorsfrom acrosstheprovince.WeengagedwithFirstNationsthroughavarietyof channels:

TheChiefsofOntarioCommitteeonSocialServices CommunitiesandpoliticalleadershipthroughattendanceatAnnual GeneralAssembliesandatanAllOntarioChiefsConference Organizingregionaldialoguesessionsacrosstheprovince,which broughttogetherFirstNationsinaparticulargeographicarea Socialassistanceadministrators,throughtheOntarioNativeWelfare AdministratorsAssociation(ONWAA),whichincludedattending ONWAAsFallAssembly,wheresessionswerespecificallydesignedfor ustohearanddiscussthemanychallengesandoptionsforreformfor FirstNationsindifferentregionsacrosstheprovince

ThisstrategyallowedustohearfromFirstNationsindividualslivingin diversecommunitiesandcircumstances. ToincorporatetheviewsandexperiencesofAboriginalpeoplelivingoff reserve,weattendedtheAnnualGeneralMeetingoftheOntarioFederation ofIndianFriendshipCentres(OFIFC).OFIFCstaff,alongwithlocalFriendship Centrestaff,attendedsevenofthe11communityconversationsinwhichwe

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participated.Theyalsoorganizedanadditionaleightcommunity conversationsinNortherncommunities. ThediscussionswehadwithFirstNationshaveinformedtheapproacheswe setoutinpreviouschapters.Weencouragereaderstoreviewthesechapters andtakeintoaccounttheimpactforFirstNationsoftheproposed approachestoreformthatwearepresenting.Inthischapter,wearelooking atabroadersetofissuesthatalsoneedtobeconsideredtoaddressthe uniqueneedsofFirstNationswithrespecttosocialassistance.

Chapter1considerspossibledeliverychangestoimproveaccesstoemployment servicesandsupports.Chapter4alsoraisesthesuggestionthatFirstNationswiththe interestandcapacitycouldtakeondeliveryofbothOntarioWorksandODSPinan integratedonestopmodel.

Throughourdiscussions,andthesubmissionswereceived,weheardabout manychallengesfacingFirstNationscommunitiesandindividualsinOntario. WelearnedthatweneedtothinkdifferentlyaboutsocialassistanceinFirst Nationscommunities,alwaysmindfuloftheiruniquehistorical,legaland culturalcontext.Itbecameclearthatpovertyandthesocialassistance dependencyweseetodayisaproductofthehistoricalrelationshipbetween FirstNationsandtheCanadiangovernmentthroughtheprovisionsofthe IndianAct.Lossofland,lossofselfsufficiency,lossofculture,andthetrauma inflictedduringtheresidentialschoolperiodhaveresultedineconomic marginalizationandanumberofothersymptoms.Theseincludeelevated ratesofdrugandalcoholuse,highsuiciderates,familyviolence,high interventionratesbychildwelfareservices,andpoverty. Inmeetingsandsubmissions,FirstNationsdescribedtheirhistoryandthe continuednegativeimpactsofthecoloniallegacy.Theydescribedthejourney ofhealingthatisrequiredtofullyrestoreindividualandcommunitycapacity, whichisnecessarytofacilitatemeaningfulparticipationintheeconomy. ManyoftheFirstNationswemetwithexpresseddeepfrustrationwiththe socialassistancesystem.Accordingtomanyofthem,dependenceonsocial assistancerepresentsfailuretoaddresstheconditionsthatcreatedit.Ithas becomeasocialandeconomictrap.FirstNationstoldusthatthesocial assistancesystemcontinuestoentrenchFirstNationsinpovertybyhindering

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communityeconomicdevelopmentandreplacingitwithcomplacencyand reinforcedsocialbarriers.Theyexpressedastrongdesiretoreformsocial assistanceasameanstoelevateindividualsoutofdependenceandthereby buildhealthier,selfsustainingcommunities. AnumberofFirstNationsleadersandadministratorsspoketousaboutthe needtodevelopanewrelationshipforworkingwiththeprovincialand federalgovernments.Theyalsospokeofthedesiretoregaincontrolover theirfuturesthroughincreasedcontroloversocialservices.ONWAAspoketo usaboutfourprinciples,previouslyadoptedatanAllOntarioChiefs Conference,withrespecttoFirstNationssocialassistancereform: 14

SocialservicesmustbeFirstNationcontrolledprovided undertheauthorityandsanctionofFirstNationgovernment andfullyaccountabletoFirstNationmembers; SocialservicesmustbeFirstNationdetermineddesigned anddevelopedwithinthecommunitybythemembership; SocialservicesmustbeFirstNationspecificdesignedto addresscommunityneedsinharmonywithlocalcultureand socialstructure;and SocialservicesmustbeFirstNationbasedmanagedand deliveredwithinthecommunity

ONWAAandFirstNationsleadershipbothtoldusthatcontinuingtooperate underthecurrentframeworkisnotsufficient.Theywanttomovebeyondthe currentframework,respectingtheseprinciples,tofostercommunity developmentandaddresstheunderlyingcausesofpoorsocialandeconomic outcomes.Somecommunitiessuggestedpilotprojectsasafirststep. Inthelongterm,reformwillinvolveopeningdiscussionsbetweenFirst Nationsandtheprovincialandfederalgovernmentsandcreating opportunitiestomovebeyondthecurrentframeworkandthecurrent definitionofrolesandresponsibilities.AlthoughaTripartiteProcessonSocial Issueswasestablishedin2009,ithasalimitedmandate.FirstNationstoldus thatthereneedstobeamoresubstantivemechanisminplacethatallowsfor

14

TheseprinciplesarediscussedinmoredetailinOntario,MinistersAdvisoryGrouponNew SocialAssistanceLegislationinOntario(1992),FirstNationsProjectTeamreport:Principalreport onnewsocialassistanceforFirstNationsinOntario,p.12.

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tripartitediscussionsbetweenFirstNationsleadershipandthefederaland provincialgovernments. Wealsoheardaboutjurisdictionaldisagreementsandinconsistencies betweenthefederalandprovincialgovernmentsthataffectthewellbeingof FirstNationscommunities.Fundingforeducationonreservecameupin manyofourdiscussions.Peoplespokeaboutlowerperstudentfundingfrom thefederalgovernmentonreserve,ascomparedwiththeprovincialfunding availableforstudentsinOntariospubliclyfundededucationsystem.This contributestolowhighschoolcompletionratesandloweducational achievementforFirstNationspeopleandhighratesofyouthreceivingsocial assistancewhentheyturn18. InOntario,the1965IndianWelfareServicesAgreementgovernsthetermsof agreementbetweentheProvinceandthefederalgovernmentforthe paymentanddeliveryofsocialassistance,aswellasaselectionofother programsforFirstNationspeopledeliveredbytheMinistryofChildrenand YouthServices(childwelfare),theMinistryofEducation(childcare),andthe MinistryofHealthandLongtermCare(homemakers).FirstNationsarenot signatoriestotheAgreement.Ontariotakestheresponsibilityfor administeringprogramsandthefederalgovernmentreimbursestheProvince forthecostsaccordingtoaformulasetoutintheagreement. ItshouldbenotedthatODSPisnotcoveredbythe1965Agreement.A numberofFirstNationsandONWAArepresentativespointedtothemultiple barriersforFirstNationsinaccessingODSP,includingnothavingODSPstaff locatedonreserveanddifficultyaccessingthemedicalresourcesrequiredto obtainproperdocumentationforapplications.SomeFirstNationscalledfor theinclusionofODSPinthe1965Agreement.Aswiththecurrentframework forFirstNationsandsocialassistance,theywanttohavemeaningful discussionsonthatissue,withallthreepartiesatthetable. Thefederalgovernment,throughtheDepartmentofAboriginalAffairsand NorthernDevelopmentCanada(AANDC),isexpectedtocover50percentof whatisconsideredthemunicipalshareofthecostofadministrationand employmentservicesforOntarioWorks.Thisisreflectedincostsharing arrangementsbetweentheProvinceandmunicipaldeliverers.Thefederal governmentalsopaysforapproximately93percentofthecostoffinancial assistanceandbenefits.Incommunitymeetingsandsubmissions,First Nationsvehementlyexpresseddissatisfactionwiththefederalgovernments

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positiononcostsharingforadministrativefunding.Theysaidthatthefederal governmentisnotlivinguptothespiritofthe1965Agreement,anditfunds FirstNationsataloweramountpercaseforthecostofadministrationthanis envisagedinthefundingmodelsetoutbytheProvince.Thisunderminesthe abilityofFirstNationstomeetprovincialprogramrequirementsandbreaks downtrustbetweenCanadaandFirstNations. Thelongertermgoalischangethatfundamentallyshiftstherelationship betweenFirstNationspeopleandtheprovincialandfederalgovernments, butFirstNationsidentifiedanumberofchangesthatcanbemadewithinthe existingsocialassistanceframeworktoimproveoutcomesintheshorter term.Manyoftheseoptionsarereflectedintheapproachessetoutinearlier chapters. AsnotedinChapter1,peoplespokeabouttheimportanceofbeingableto accessemploymentservicesandsupportsalongabroadercontinuumleading towardjobreadiness.Supportsshouldbeculturallyappropriateand developedwithinthecommunity,respectlocalstructures,beintegratedwith otherpoliciesandprogramsrelatedtoFirstNationssocialandeconomic development,andbeconnectedtothelocaleconomyandsustainable employment. Thelackofjobopportunitiesonreserve,insomeNortherncities,andin communitiesclosetomanyFirstNations,presentsanotherbarrierforFirst Nationspeoplewhoareseekingemploymentbuthaveconcernsabout leavingtheirculturalcommunities.ForsomeFirstNationspeople,leaving theirhomecommunitiestotakeajobinanonFirstNationcultural environmentcanbedifficult.Discriminationcompoundsthischallengeand becomesafurtherbarrierforFirstNationspeoplewhodoenterthe workforceoutsideoftheircommunities. ONWAAalsorecommendedthattheAddictionsServicesInitiativebe extendedtoallFirstNationsemploymentassistancedeliverysitestoaddress pressingmentalhealthandaddictionchallenges.Considerationshouldbe giventohowtheseprogramsareintegratedwithfederalmentalhealthand addictionserviceswheretheyareavailable.Itwasstressedthatinurban centres,itisimportanttodevelopAboriginalspecificservicesrelatedto improvingmentalhealthandaddictiontreatmentoutcomes.

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Onthebenefitstructure,ONWAAhighlightedthecostoffoodinNorthern andremotecommunities.Oneexampleshowedpicturesofpricesintheonly grocerystore:$5.69/kgforbananas,$67.39foraboxof116diapersand $17.69fora10lbbagofpotatoes.Insomeremotecommunities,thereare nonearbystoresandobtainingbasicnecessitiesinvolveshightransportation costs.Thecurrentbenefitstructuredoesnotadequatelyreflectthetruecost ofliving,suchasanutritiousdiet,nordoesitaccountadequatelyforregional variationsincosts. Asnotedearlier,thecurrentrulesalsofailtoreflectrealities.Forexample, theydonotmakeexceptionsforitemsusedfortraditionalFirstNations culturalpurposes,suchassnowmobilesandfishingandhuntingequipment, whichmaypromoteselfsufficiency.AnotherexampleistheLivingwith Parentsrule.ThisaffectsalmostallFirstNationscommunitiesnegatively, becausehousingshortagesdonotaffordmanyadultchildrentheoptionof movingoutofafamilyhome. FirstNationsadministratorsalsodiscussedtheneedforinvestmenttoupdate theirtechnologycapacity,includinghighspeedInternetaccessandaccessto theprovincialdatabasesandtechnologyavailabletomunicipaldeliverersof OntarioWorks. Withrespecttoservicedelivery,anumberofFirstNationsareusing innovativeapproachesthroughgroupdeliveryofOntarioWorksfinancial supportsandemploymentservices,withincreasedinvestmentfromthe Province.SteppingStonesSupportServicesnowservesfivecommunitiesin southwesternOntario.NorthShoreTribalCouncildeliversthefullOntario Worksprogramtosevencommunitiesacrossitsgeographicregion.The KenoraChiefsAdvisoryprovidesadministrativeservicesonapurchaseof servicebasistosevencommunities.Thesearrangementshaveimprovedthe administrativeandorganizationalcapacitytodeliverfinancialand employmentsupportsandexpandedthescopeofservicesavailable,which hastranslatedintobetteroutcomesforpeople. Throughthediscussionsdescribedabove,alongwiththesubmissionsandour ownresearch,wegainedaclearersenseoftheFirstNationsexperiencewith socialassistance.Inourrecommendations,wewillbeconsideringthe feedbackwereceiveonthepossibleapproachestoreformasdiscussedin thischapterandthroughoutthispaper.

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DISCUSSIONQUESTIONS

Howwelldothevariousapproachessetoutinthepreviouschapters alignwithFirstNationsdesireforgreatercontrolandflexibilitywith respecttosocialassistancereform?Whatotherapproachesshouldbe consideredtomeettheneedsofFirstNations? WhatpositionshouldtheCommissionrecommendthatOntariotake withthefederalgovernmentonissuesrelatedtoFirstNationsand socialassistance?

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Chapter7: HowtoProvideInput
Thispaperasksquestionstoobtainyourinputonapproachestotransforming socialassistanceandonbroaderissuesthataffectthesystem.Thequestionsfrom eachchapterarerepeated,beginningonpage58. TheCommissionwouldliketoreceiveyourinputbyFriday,March16,2012, inordertoconsideritinthedevelopmentofitsfinalrecommendationsto governmentinJune. ThereareseveralwaystoshareyourviewswiththeCommission.

Online
YoucangototheCommissionfortheReviewofSocialAssistanceinOntario websiteatwww.socialassistancereview.catodownloadthispaper,complete theonlineWorkbook,ormakeasubmission. ThereisalsoaformonthewebsitethatyoucanusetosendtheCommission ashortcommentofabout150words. Youcanalsoemailyourcommentstousat socialassistancereview@ontario.ca.

MailorFax
Youcanmailsubmissionsto CommissionfortheReviewofSocialAssistanceinOntario 2BloorStreetWest 4thFloor,Suite400 Toronto,ON M4W3E2 Orfaxyourcommentsto 4162120413

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WhatWeHeard
Inadditiontothispaper,theCommissionhaspreparedaseparatereport, WhatWeHeard:ASummaryofDiscussionsonSocialAssistance.Itprovides greaterdetailontheinputonthediscussionpaperreleasedinJune2011 receivedbytheCommissionthroughwrittensubmissions(workbooks,short comments,longersubmissions),communityconversations,stakeholder meetings,anddiscussionswithFirstNations.Thisreportispostedonthe Commissionswebsite:www.socialassistancereview.ca.

ForMoreInformation
Pleasecontactusifyouneedmoreinformation. Email: socialassistancereview@ontario.ca Phone: 4162128029 Tollfree: 18552696250

DiscussionQuestions
Chapter1:ReasonableExpectationsandNecessarySupportsto Employment

Howcanemploymentservicesbemademoreeffective? WhatshouldtheCommissionrecommendtoencouragegreater consistencyineffectiveemploymentservicesandsupportsforsocial assistancerecipients,whilestillallowingforlocalflexibilityand innovation? Shouldstandardassessmenttoolsbeusedtoidentifypeoplesneeds andmatchthemtoappropriateservicesandsupports? Whatshouldbeconsideredappropriateemploymentrelatedactivity participationrequirementsforpeoplewithdisabilities?Should participationrequirementsforpeoplewithdisabilitiesbedifferent fromthoseforotherpeoplereceivingsocialassistance?

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Shouldatoolbedevelopedtoassesstheworkcapacityofpeoplewith disabilities?Ifso,howshouldthetoolbedevelopedandhowshouldit beused? Whatkindsofengagementstrategiesandincentiveswouldbemost effectiveinencouragingandsupportingemployerstohiremoresocial assistancerecipients? Whichapproachwouldbemosteffectiveinimprovingthedeliveryof employmentservices?

Chapter2:AppropriateBenefitStructure

Whichadequacyandwagebenchmarksshouldbeusedtosetrates? Arethereothermeasuresthatshouldbeconsidered? Inamethodologyforsettingrates,whatproportionswouldbalance adequacy,fairnessandincentives? Shouldhealthbenefitsbeprovidedtoalleligiblelowincome Ontarians?Ifso,howshouldthecostbecovered? ShouldOntariouseatworateapproach,basedonhowlongsomeone requiressocialassistance?Ifso,shouldtherebeexemptionsfrom startingatthelowershorttermrate? Wouldanearnedincomesupplementbeagoodmechanismto increasetheincentivetowork?Ifso,howshoulditbedesigned? Wouldahousingbenefitimprovefairnessandtheincentivetowork? Ifso,howshoulditbedesigned? Howshouldincomesupplementsforlowincomepeoplewith disabilitiesbedesignedanddelivered?Shouldsuchsupplementsbe providedoutsidethesocialassistancesystem? Shouldtherebeaseparatebasicincomeprogramforpeoplewith severedisabilitieswhoareunlikelytogeneratesignificantearnings? Howshouldthecurrentratestructurebechangedtoreduce complexity?

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Shouldsomespecialbenefitsberolledintoastandardrate?Ifso, whichones? Shouldthespecialdietaryneedsforalllowincomepeople,including thosereceivingsocialassistance,beaddressedthroughtheMinistryof HealthandLongTermCare? Howshouldthedifferentratesfordifferentfamilytypesbe established?

Chapter3:MakingtheSystemEasiertoUnderstand

Shouldthesocialassistancesystemmovefromasurveillance approachtowardanauditbasedsystemofverificationand monitoring? Whatpenaltieswouldberequiredandfeasibleinanauditbased system? Whatistherightlevelofrisktolerance,ineitherthecurrentsystemor anauditbasedsystem? Shouldassetlimitsbechanged?Ifso,how?

Chapter4:ViablefortheLongTerm

Whatarethestrengthsandweaknessesofthesethreeapproachesto thedeliveryofOntarioWorksandODSP?Arethereotherapproaches thatshouldbeconsidered? ShouldfullresponsibilityforTemporaryCareAllowanceorAssistance forChildrenwithSevereDisabilitiesbetransferredtotheMinistryof ChildrenandYouthServices?

Chapter5:AnIntegratedOntarioPositiononIncomeSecurity

Aretheremajorandproblematicprograminteractionsthatwehave notmentionedhere? WhatpositionshouldtheCommissionrecommendthatOntario considertakingonspecificintergovernmentalissues,includingFirst Nationsissues,relatedtoincomesecurity?

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Chapter6:FirstNationsandSocialAssistance

Howwelldothevariousapproachessetoutinthepreviouschapters alignwithFirstNationsdesireforgreatercontrolandflexibilitywith respecttosocialassistancereform?Whatotherapproachesshouldbe consideredtomeettheneedsofFirstNations? WhatpositionshouldtheCommissionrecommendthatOntariotake withthefederalgovernmentonissuesrelatedtoFirstNationsand socialassistance?

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References

Browne,G.,Byrne,C.,Roberts,J.,Gafni,A.,&Whittaker,S.(2001).Whentheboughbreaks: providerinitiatedcomprehensivecareismoreeffectiveandlessexpensiveforsolesupport parentsonsocialassistance.SocialScience&Medicine,53,16971710.Retrievedfromthe ArtsNetworkwebsite: http://www.artsnetwork.ca/documents/When%20Bough%20Breaks%20pt1.pdf Herd,D.(2006).Whatnextinwelfarereform?Apreliminaryreviewofpromisingprogramsand practices.RetrievedfromtheCityofTorontowebsite: http://www.toronto.ca/socialservices/pdf/reports/action_plan_welfare_reform.pdf Leckie,N.,Hui,T.SW.,Tattrie,D.,Robson,J.,Voyer,JP,(2010).Learningtosave,savingtolearn: learn$aveIndividualDevelopmentAccountsProjectFinalReport.SocialResearchand DemonstrationCorporation.RetrievedfromtheSocialandEnterpriseDevelopment Innovationswebsite: http://www.sedi.org/DataRegV2unified/sedi Publications/learnSave%20final%20report%20English.pdf Mendelson,M.,Battle,K.,Torjman,S.&Lightman,E.(2010).AbasicincomeplanforCanadians withseveredisabilities.(CommissionedbytheCanadianAssociationforCommunityLiving andCouncilofCanadianswithDisabilities.)TheCaledonInstituteofSocialPolicy.Retrieved fromtheCaledonInstituteofSocialPolicywebsite: http://www.caledoninst.org/Publications/PDF/906ENG.pdf OECD(2010).Sickness,disabilityandwork:breakingthebarriers:asynthesisoffindingsacross OECDcountries.OECDPublishing.RetrievedfromtheOECDiLibrary: DOI:10.1787/9789264088856en OECD(2011).Dividedwestand:whyinequalitykeepsrising.Countrynote:Canada.OECD Publishing.RetrievedfromtheOECDwebsite: http://www.oecd.org/dataoecd/50/52/49177689.pdf Ontario.MinistersAdvisoryGrouponNewSocialAssistanceLegislationinOntario(1992).First Nationsprojectteamreport:PrincipalreportonnewsocialassistancelegislationforFirst NationsinOntario.Toronto:QueensPrinterforOntario,May1992. Stevens,H.(2011).Improvingtheadequacyofsocialassistancebudgets:amethodologyforpricing budgetsandarationaleformakingcurrentratesmoreadequate.RetrievedfromtheSocial PlanningCouncilofWinnipegwebsite: http://www.spcw.mb.ca/files/file/WELFARE%20RATES%20study%20%20July%202011.pdf WCGInternationalConsultantsLtd.(1996).EmploymentofpersonswithdisabilitiesintheProvince ofOntario.RetrievedfromtheWGIInternationalConsultantsLtd.website: http://www.wcginternational.com/pdf/Ontario%20PWD%20Final%20Report%20(Sept%20 18%202006).pdf

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Appendices
AppendixA:MeasuresofLowIncome
LowIncomeMeasure(LIM)
LIMthresholdsarecalculatedasapercentageofmedianhouseholdincome(50percentofmedian incomeisgenerallyused).Medianincomeisthemiddlepointifallincomesarelinedupinorder fromlowesttohighest. LIMthresholdsareavailablebasedonmarketincome,beforetaxincome,andaftertaxincomefora fourpersonhousehold.Otherhouseholdsizesarecalculatedusinganequivalencescalethat takesintoaccounttherelativeneedsofdifferentfamilysizes.

MarketBasketMeasure(MBM)
TheMBMisameasureoflowincomebasedonthecostofabasketofgoodsandservices representingamodest,basicstandardofliving.Thebasketincludesanutritiousdiet,clothingand footwear,shelter,transportation,andothernecessarygoodsandservices(suchaspersonalcare itemsandhouseholdsupplies). Personsorfamiliesareconsideredtohavelowincomeiftheirdisposablefamilyincomesfallbelow theMBMthresholdfortheircommunities.Disposableincomeistheincomeremainingafter payingthefollowing:

Incometaxes Thepersonalportionofpayrolltaxes Othermandatorypayrolldeductions,supplementaryhealthplansanduniondues Childsupportandalimonypaymentsmadetoanotherfamily Outofpocketspendingonchildcare Noninsuredbutmedicallyprescribedhealthrelatedexpensessuchasdentalandvision care,prescriptiondrugs,andaidsforpersonswithdisabilities

TheMBMthresholdsareproducedbyStatisticsCanadaforareferencefamilyoftwoadultsandtwo children(onefemaleparent,onemaleparent,onegirlaged9andoneboyaged13).Aswiththe LIM,anequivalencescaledeterminesincomethresholdsforotherfamilysizes. TheMBMthresholdsareavailablefor48citiesandregionsinCanada.InOntario,theMBMregions areOttawa,Toronto(GTA),HamiltonBurlington,ruralareas,citiesunder30,000people,cities between30,000and99,000,andcitiesbetween100,000and499,000.

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LowIncomeCutOffs(LICOs)
LICOsthresholdsareintendedtoidentifytheincomelevelbelowwhichafamilyislikelytodevotea largershareofitsincometofood,shelterandclothingthantheaveragefamily. TheLICOthresholdswerelastrebasedin1992.Atthattime,theaveragefamilyspent43percentof aftertaxincomeonfood,clothingandshelternecessities.Afamilyspending20percentmorethan thisaverageoftheirincomeonnecessitieswouldbeindifficultfinancialcircumstances. Since1992,LICOhasnotbeenrebased,buthasbeenupdatedbytheConsumerPriceIndex.LICOs arenowpublishedforfivedifferentpopulationsizesandfamiliesofuptosevenpeople,ona beforeandaftertaxbasis.

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AppendixB: SocialAssistanceIncomesComparedwithLowIncomeMeasures
NOTE:Socialassistanceincomeandthelowincomemeasurethresholdsdonotincludethevalue ofhealthrelatedbenefitsavailabletosocialassistancerecipients.
Social Assistance* (A) Fed./ Prov. Tax Credits** (B) Income (A+B) LICO*** Income as%of LICO (%) LIM*** Incomeas %ofLIM MBM*** Income as%of MBM

OntarioWorks SingleAdult SoleParent, 1Child+ SoleParent, 2Children++ Couple, NoChildren Couple, 1Child+ $7,104 $11,064 $11,652 $12,252 $12,840

$848 $7,276 $11,974 $1,409 $7,547

$7,952 $18,340 $23,626 $13,661 $20,387

$18,759 $22,832 $28,430 $22,832 $28,430

42% 80% 83% 60% 72%

$18,973 $26,832 $32,862 $26,832 $32,862

42% 68% 72% 51% 62%

$16,550 $23,405 $28,665 $23,405 $28,665

48% 78% 82% 58% 71%

OntarioDisabilitySupportProgram SingleAdult SoleParent, 1Child+ SoleParent, 2Children++ Couple+++, NoChildren Couple+++, 1Child+ $12,636 $17,568 $18,312 $19,212 $19,956 $964 $7,314 $12,016 $1,447 $7,589 $13,600 $24,882 $30,328 $20,659 $27,545 $18,759 $22,831 $28,430 $22,831 $28,430 72% 109% 107% 90% 97% $18,973 $26,832 $32,862 $26,832 $32,862 72% 93% 92% 77% 84% $16,550 $23,405 $28,665 $23,405 $28,665 82% 106% 106% 88% 96%

*BasedonannualizedmaximumshelterandbasicneedsratesasofDec.2010forcommunitieslocatedsouthofthe50th parallel. **FederaltaxcreditsincludetheCanadaChildTaxBenefit(CCTB),NationalChildBenefitSupplement(NCBS),UniversalChild CareBenefitandGoodsandServicesTaxCredit.CCTBandNCBSareannualizedbasedonthe201011benefityear. Provincialtaxcreditsincludethe2010OntarioChildBenefit,the2010OntarioEnergyandPropertyTaxCreditandthe2010 11OntarioSalesTaxCredit. ***LICOisaftertaxLowIncomeCutOffadjustedto2010bytheConsumerPriceIndex(CPI)forcommunitieswitha populationabove500,000.LIMistheaftertaxLowIncomeMeasureadjustedbyCPIto2010.MBMisMarketBasket MeasurethresholdforTorontoadjustedbyCPIto2010. + Assumesthechildisunder6yearsofage. ++ Assumesonechildisunder6yearsofage. +++ AssumesthatthespouseisnotapersonwithadisabilityasdefinedbytheODSPAct,1997.

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AppendixC:OntarioWorksandODSPAssetLimitsandExemptions
ONTARIOWORKSANDODSPASSETLIMITS*(asofDecember2011) BenefitUnitType Single Singleparentwith1child Couple Couplewith1child Eachadditionalchild OntarioWorks $599 $1,645 $1,032 $1,722 $500 ODSP $5,000 $5,500 $7,500 $8,000 $500

*Nonexemptassetsincludeitemssuchascash,bonds,debentures,stocks,certificates,andother propertythatcanbereadilyconvertedintocash,evenifafinancialpenaltymustbeincurredtodo so. SELECTEDONTARIOWORKSANDODSPASSETEXEMPTIONS Asset Principalresidence Onemotorvehicle Additionalmotorvehicles(ifnecessarytomaintain employment) Businessassets Toolsofthetrade LockedinRegisteredRetirementSavingsPlans (RRSPs) RegisteredEducationSavingsPlans(RESPs) Awardsforpainandsuffering Awardsundervarioussettlementagreements(e.g., HepatitisCAssistancePlan,GrandviewAgreement) Cashsurrendervalueofalifeinsurancepolicy Prepaidfuneralplans RegisteredDisabilitySavingsPlans OntarioWorks Fullvalue $10,000 $10,000 $10,000* Fullvalue Fullvalue Fullvalue $25,000 Fullvalue Notexempt Fullvalue FullValue ODSP Fullvalue Fullvalue $15,000 $20,000** Fullvalue Fullvalue Fullvalue $100,000** Fullvalue $100,000 Fullvalue FullValue

*TheOntarioWorksAdministratormayapproveanexemptionforbusinessassetsupto$15,000. **TheODSPDirectormayapproveagreaterexemptionamountundercertaincircumstances.

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