Reforming Social Assistance - Evidence Based Rates

Of course, we need social assistance rates that have some connection to the cost of living.  Here is a story I wrote and posted on my blog on that topic nine years ago.  I’ve updated it slightly.

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In the mid-nineties Mike Harris’ government reduced social assistance rates in Ontario by 22%. 

There was no economic rationale for this move – just a stupid, mean spirited, ill informed attempt to make social assistance rates unattractive.  By doing this it was presumed that to people would find jobs that didn’t exist or that they weren’t qualified to do.

In addition, getting on to social assistance was made much more difficult as people were forced to reduce their assets before qualifying.  What kind of reductions?  Well, today (2011) a single person applying for Ontario Works is permitted to have a maximum of $592 in assets in order to qualify so that they can receive a maximum of $7,104 annually.

The issue of inadequacy of social assistance rates must be addressed.  At the Hamilton Community Legal Clinic, where I work, we believe that social assistance rates need to have some relation to the actual cost of rent, food and other basic necessities in communities across Ontario.

A few years ago the Clinic, with the leadership of staff lawyer Craig Foye (pictured below) drafted legislation that proposed the idea of setting up an expert panel that each year would recommend evidence-based social assistance rates to the Provincial Government. “An Act to Establish the Ontario Social Assistance Rates Board” (Bill 235) was introduced for first reading as a private member’s bill in the Ontario Legislature by MPP Ted McMeekin on June 4, 2007.

Unfortunately, the Legislature was then prorogued the next day in anticipation of a fall election, meaning the Bill was effectively discontinued. The Bill has not yet been reintroduced. Since that time the Clinic and others have continued to advocate with government to implement a process for determining evidence-based social assistance rates.  

 The Clinic has advocated for: 

an arm’s length body to recommend evidence-based social assistance rates on an annual basis. Those rates should be based on an analysis of the actual costs of rent, a healthy food basket, and other basic necessities in communities across Ontario, and should provide a level of assistance that will allow individuals and families to live with dignity. An example of such a body is the Ontario Social Assistance Rates Board as proposed in the former Bill 235 introduced on June 4, 2007.

The NDP’s Paul Miller has championed a similar bill over the last several years. https://www.ola.org/en/legislative-business/bills/parliament-42/session-1/bill-60

In its current form, passage of the bill would establish the Social Assistance Research Commission. The Commission would recommend social assistance rates and makes other recommendations about social assistance policy. The Commission would consist of people with expertise relevant to the Commission’s work.

The Minister would be expected to prepare a written response to the recommendations in the annual report.  That written response would be available to the public within 60 days after the Minister received the report.