ONTARIO (ON)
- Poverty Reduction Strategy announced in 2008
- Ontario Child Benefit was increased substantially in July 2009 from $50/child/month to $91.66. Welfare rates for families with children were restructured as a result.
- Since welfare incomes peaked in 1992, all households have seen significant decreases. Welfare incomes for a lone parent with one child and a couple with two children decreased the most across the provinces.
|
CURRENT SITUATION
|
Single employable person | Single person with a disability | Lone parent with a 2-year-old child | Couple with two children aged 10 & 15 |
ON 2009 WI |
$7,501 |
$12,905 |
$17,372 |
$22,695 |
Rank* among provinces |
4 |
1 |
4 |
3 |
% of MBM |
48% |
83% |
85% |
73% |
% of After-tax LICO |
41% |
70% |
77% |
65% |
% of After-tax median income |
33% |
57% |
50% |
29% |
Highest 2009 WI |
$9,593 (NL) |
$12,905 (ON) |
$19,297 (NL) |
$24,045 (PE) |
Lowest 2009 WI |
$3,773 (NB) |
$8,665 (NB) |
$14,829 (MB) |
$19,775 (NB) |
* #1 rank is the highest
CHANGES IN WELFARE INCOMES FROM 1986 TO 2009
- Rate increases for all clients as well as rate restructuring for families with children in 2009.
- Peak year (highest over time) for all family types was in 1992. Low years all in this decade (both single employable and single person with a disability in 2008).
- Staggering losses since peak year for all household types:
- Just under $4,000 for a single (34% loss);
- Nearly $2,900 for a single person with a disability (18% loss);
- Just over $5,100 for a lone parent with one child (23% loss);
- Nearly $7,300 for a couple with 2 children (24% loss).
LIQUID ASSET EXEMPTION POLICY
|
Single employable person | Single person with a disability | Lone parent with a 2-year-old child | Couple with two children aged 10 & 15 |
2009 exemption |
$572 |
$5,000 |
$1,550 |
$2,130 |
1989 exemption adjusted to 2009 for inflation |
$347 |
$4,587 |
$7,645 |
$3,503 |
1989 levels for a single and a couple with 2 children were estimated by the NCW.
- Levels for the single employable person, the lone parent with one child, and the couple with two children are linked to the benefit levels (only in ON and AB).
- Highest level in Canada for a single person with a disability (along with NT and NU).
- When adjusted for inflation, levels for both lone parents and couples with children have dropped considerably over the past 20 years:
- ON level for a lone parent with one child decreased the most across all provinces and territories – a loss of $6,100.
EARNINGS EXEMPTION POLICY
- ON has different earnings exemption provisions for applicants and recipients.
- There are no earnings exemptions for the first 3 months on assistance except for the single person with a disability.
|
Single employable person | Lone parent with a 2-year-old child | Couple with two children aged 10 & 15 | Single person with a disability |
Applicants |
No exemption for first 3 months |
50% plus monthly $100 Work-Related Benefit for each eligible employed adult family member |
Recipients |
50% of net earnings after 3 months of continuous assistance |
EXAMPLE (recipient on welfare 3+ months)
Treatment of monthly earnings of $400 |
|
Single Person |
Lone Parent |
Amount exempted |
$200 |
$200 |
Remainder of income is deducted from welfare cheque.
- ON uses the federal WITB model.
- A single employable welfare recipient with $400 earnings/month would have been eligible for $360 in WITB in 2009 ($30/month).