Ontario

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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).