Welfare Reforms in Canada | Réformes de l'aide sociale au Canada |
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From the
Parliamentary Information and Research Service of the Library of Parliament:
Scaling the Welfare Wall : Earned
Income Tax Credits (2 pages)
http://www.parl.gc.ca/Content/LOP/ResearchPublications/prb0598-e.html
By Sheena Starky
31 March 2006
[ PDF : http://goo.gl/ZqNP8 ]
Contents:
* Introduction
* The "Welfare Wall"
* Earned Income Tax Credits
* Conclusion
* Selected References and Links
I wanted to highlight this excerpt (below) from "The Welfare Wall", which offers a spot-on description of the perverse effects of the interaction between social assistance and personal income taxation in Canada, and how that interaction can create disincentives to work.
"Canadians who receive social assistance and subsequently accept low-paying employment face a series of consequences that could potentially make them worse off, including: higher income and payroll taxes; new work-related expenses such as transportation, clothing and childcare; reduced income support in the form of social assistance and income-tested refundable tax credits; and loss of in-kind benefits such as subsidized housing and prescription drugs."
Source:
Parliamentary Information and Research Service
of the Library of Parliament
http://www.parl.gc.ca/About/Library/VirtualLibrary/ResearchPublications-e.asp
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A Comparison of Canadian and American
Welfare Reforms and
their Effects on Poverty After 1990 (PDF
- 10.7MB, 9 pages)
http://economics.uwo.ca/undergraduate/undergraduatereview/undergraduatereview03/4_Karsh.pdf
March 2009
By Fern Karsh
Department of Economics, University of Western Ontario
---
By Gilles:
This undergrad paper that I found in a Google search result is a large download,
but welfare historians will find it an interesting read. It offers a brief
history of the funding mechanism for federal contributions to provincial-territorial
welfare programs from the (1966) Canada Assistance Plan to the 1990 "cap
on CAP" to the 2006 Canada Health and Social Transfer (CHST). It also
contains a section on welfare reforms in Ontario starting in the mid-1990s
with the Mike Harris Tories. There's a section on welfare reform in the
U.S during the same period, and a conclusion that the U.S. had "greater
success (than Canada) in reducing welfare rolls, unemployment and poverty."
Not so fast.
You can't compare American and Canadian welfare systems, nor the relative
success of welfare reforms in both countries, without the necessary context.
Tempting as it may be to assume that Temporary Assistance to Needy Families
in the U.S. and the Canada Social Transfer are pretty much the same thing
- a mechanism to stream federal funding to the lower order of government
- it would be incorrect to do so, for a host of reasons. Below, I'll address
mainly the caseload composition of both TANF and Canadian welfare programs.
---
Unlike the Canadian welfare system, state welfare programs under the federal Temporary Assistance to Needy Families (TANF)* initiative normally grant welfare ONLY to households with children, often headed by single mothers. They exclude all non-disabled single people and childless couples, who must apply instead to the national Food Stamp program and to residual aid programs where they live (if there are any such programs, which is not always the case). In Canada, singles and childless couples make up close to 60% of the total welfare caseload.
Moreover, state welfare programs receiving
TANF funding exclude households headed by someone with a disability. In
the U.S., people with disabilities must apply for assistance from the federal
Social Security Disability program [ http://www.ssa.gov/disability/
]. In Canada, we have the contribution-based Canada Pension Plan Disability
Benefit [ http://www.hrsdc.gc.ca/eng/oas-cpp/cpp_disability/index.shtml
], but provincial-territorial welfare programs also provide needs-tested
assistance to people with disabilities - who currently make up about 35-40%
of the national welfare caseload.
---
* TANF is the federal transfer for state
welfare programs, the U.S. equivalent to the Canada Social Transfer, which
replaced the CHST in 2004. However, there are important differences between
the two funding mechanisms in addition to the target population as noted
above. For one thing, the federal government in the U.S. imposes a number
of conditions on state welfare programs under TANF (e.g., targets for work
participation and child poverty), while the Harper Government imposes
only a non-residency rule on provincial welfare programs (i.e., eligibility
for provincial welfare cannot be based on residency in a particular province).
Also, welfare under TANF is only *one* of several programs in the U.S. that
must be taken into account when comparing U.S. "welfare" with
the Canadian system.
In Canada, welfare covers food, shelter, clothing,
personal and household needs; in addition to health care coverage, which
is universal in Canada, each Canadian jurisdiction offers a range of assistance
for special medical needs under its welfare program. In order to compare
Canadian and American welfare, the following American programs *must* be
included:
* TANF welfare
* Medicaid
* SNAP (Supplemental Nutrition Assistance Program,
formerly known as food stamps)
* Housing vouchers
* Supplemental Security Income (SSI)
* School lunch and breakfast programs
* Earned Income Tax Credit
NOTE: In the U.S. when a person or family times out of TANF welfare (between
two and five years, depending on the state), they can still apply for some
aid from the above programs and other state programs of last resort. If
"timing out" were possible in Canada, individuals and families
would have no other recourse. But there's no time
limit on welfare in Canada ---- you can continue to receive welfare as long
as you can prove financial need and you meet other eligibility requirements.
The Government of British Columbia actually imposed a time limit in 2002
that was similar to what many U.S. states had adopted - two years eligibility
for welfare out of five. For more info about this draconian Canadian (BC)
welfare time limit policy and how it bombed, see: http://www.canadiansocialresearch.net/bc_welfare_time_limits.htm
---
For more information about TANF, see:
http://www.hhs.gov/recovery/programs/tanf/tanf-overview.html
For more information about Canadian welfare
programs under the Canada Social Transfer, see:
http://www.canadiansocialresearch.net/cap.htm
For more information about welfare and
welfare reforms in Canada, see:
http://www.canadiansocialresearch.net/welref.htm
The Bottom Line:
Canadian and American welfare systems are like apples and oranges.
They shouldn't be compared without situating each system in its appropriate
context.
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From the
National Council of Welfare (NCW):
Over the years, the Council has produced many reports on poverty and welfare, but there are three that stand out in my mind as milestone reports on the history of welfare in Canada, at least since the 1980s.
1.
Welfare
in Canada: The Tangled Safety Net (PDF - 2.7MB, 131 pages)
November 1987
Tangled Safety Net examines the following issues in Canadian social
assistance network of programs:
* Complex rules * Needs-testing * Rates of assistance * Enforcement * Appeals
* Recommendations
This report is the first comprehensive national analysis of social assistance
programs operated by the provincial, territorial and municipal governments.
These programs function as the safety net for Canadians and are better known
by their everyday name welfare.
Version française :
Le
bien-être social au Canada : Un filet de sécurité troué
(PDF - 3Mo., 138 pages)
Novembre 1987
____________
2.
Welfare
Reform (PDF - 2.8MB, 61 pages)
Summer 1992
This report is an update of the 1987 Tangled Safety Net, but it presents
information by jurisdiction rather than by issue - covers all provinces
and territories.
Version française:
Réforme
du bien-être social (PDF - 3,5Mo., 63 pages)
____________
3.
Another
Look at Welfare Reform (PDF - 6.75MB, 134 pages)
Autumn 1997
- an in-depth analysis of changes in Canadian welfare programs in the 1990s.
The report focuses on the provincial and territorial reforms that preceded
the repeal of the Canada Assistance Plan and those that followed the implementation
of the Canada Health and Social Transfer in April 1996.
Version française:
Un
autre regard sur la réforme du bien-être social
(PDF - 8Mo., 148 pages)
Source:
National Council of Welfare
[ Conseil national
du bien-être social ]
Established in 1969, the Council is an advisory group to the Minister of
Human Resources and Skills Development Canada (originally the Minister of
Health and Welfare Canada). The mandate of the Council is to advise the
Minister regarding any matter relating to social development that the Minister
may refer to the Council for its consideration or that the Council considers
appropriate.
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Provincial
and Municipal Social Assistance Programs
March 1996
Welfare historians:
The source of this historical file is the Inventory
of Income Security Programs in Canada (Health & Welfare Canada,
multiple editions from 1984 to 1993). The text is a version of the Overview/Introduction
to the chapter on social assistance (or welfare) that's been updated to
1996, just before the Canada Assistance Plan was replaced by the Canada
Health and Social Transfer. There's a snapshot of how welfare operated in
1996, and you'll find that some of the rules haven't changed that much since
then. There's also some interesting information about the Federal-Provincial
Agreements to Enhance the Employability of Social Assistance Recipients
(mid-to-late 1980s), known in federal-provincial government circles as "the
Four-Corner Agreements."
Source:
Inventory of Income Security Programs in Canada
(not found online)
NOTE: If your historical research interest
is welfare in Canada in the mid-1990s,
I also recommend the following:
1. Social
Assistance in OECD Countries
Volume II : Country Reports (PDF - 4.8MB, 499 pages)
1996
- incl. Canada (p. 78-108)
Source:
United Kingdom
Department for Work and Pensions (DWP)
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Government
transfer payments to persons
On this one table, you'll find the latest five years' worth of information
on national expenditures (provincial stats available for a small fee) in
the area of transfers to persons, which includes (among other programs):
* Family and youth allowances * Child tax benefit
or credit * Pensions - First and Second World Wars * War veterans' allowances
* Grants to aboriginal persons and organizations * Goods and services tax
credit * Employment insurance benefits * Old Age Security Fund payments
* Provincial Social assistance, income maintenance * Social assistance,
other [bolding added] * Workers compensation benefits * Canada and Quebec
Pension Plans.
NOTE: In case you're interested in province-level stats, click the "384-0009"
link under 'Source' at the bottom of the table. There you can obtain more
specialized CANSIM tables, including provincial tables, for a few dollars
each. The "Find information related to this table" link (which
is also at the bottom of the StatCan table) contains methodological notes
and other related StatCan products, many of which are free of charge.
Source:
Statistics
Canada
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When
'poorhouse' wasn't only an expression
A local museum preserves in harrowing detail the stories of a forgotten
institution
January 3, 2009
By Tracey Tyler
"(...) Though more commonly associated with Victorian England and novels
by Charles Dickens, such as Oliver Twist, the poorhouse was part of Canada's
social fabric for more than 60 years and one of its earliest legislated
responses to poverty."
Source:
The Toronto Star
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| NOTE 1:
For links to info about current welfare systems in place in Canada, NOTE 2: Many of the links on this page will take you to the Canada Assistance Plan/Canada Health and Social Transfer Resources Page of this site. If you're looking for historical welfare stats, that's where you'll find them --- or on the Statistical Links page of this site. |
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Different
eligibility tests used in Canadian financial assistance programs: Income
test: Needs
test (used only in provincial-territorial welfare programs): Means
test: BUT... |
| For a detailed review of the framework
of Canadian welfare programs, see Social
Assistance in Canada, 1994* - click
on "Manuscript (questions)". The information is presented in question-and-answer
format, and it's an important snapshot of welfare in Canada in 1994 as
well as a good general overview of social assistance in the era of 50-50
cost sharing between the federal and provincial/territorial governments.
It's over 40 pages of information on eligibility, benefits, administrative
rules, caseloads, legislative framework, and more. It includes information
about cost-sharing of welfare costs between the federal and provincial/territorial
governments under the Canada Assistance Plan. This work was part of a larger study of social assistance in 24 countries released by the OECD early in 1996. --- * Also available from the Government of Canada Web Archive: http://goo.gl/au93G |
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Today in Canada, welfare works much the same - on paper, at least - as it did in 1966, when the Canada Assistance Plan (CAP) was created as a vehicle for federal contributions to provincial/territorial social assistance programs (and welfare services, and child welfare, and other selected social programs). What's changed, some would argue, is the size of the stick and the carrot that are both part of the system.
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Since the mid-1990s, when the Canada Health and Social Transfer replaced the Canada Assistance Plan, a number of jurisdictions have "taken children's benefits out of the welfare system" by means of a provincial/territorial benefit that's paid to parents on behalf of children in all low-income families. Go to the Key Provincial and Territorial Welfare Links page of this site and click on "welfare rates" for more information on welfare rates for families with children.
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From the Social Research and Demonstration Corporation:
Learning
What Works Volume 5, Number 1 (PDF file - 1.7MB, 15 pages)
Spring
2005
Newsletter
Table of Contents:
- Asset-Building Strategies for the
Poor: Is Policy Ahead of Research?
- Whither Welfare? (Excellent overview of recent welfare
reforms in Canada and the U.S.!)
- One-on-One Help for
Addressing the Employment Needs of Long-Term Unemployed IA Clients
- Why Experience-Rate
the EI Program?
- School Readiness: Evidence From the Manitoba 2004 EDI Parent
Survey
- Bulletin Board
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A personal note about
the Welfare Income series: Welfare Incomes, 2006 and 2007 News Release: Related link: Welfare
recipients poorer than Canadians imagine: report Welfare Incomes 2006* fact sheets
For the past 20 years, the National Council of Welfare has been producing the Welfare Incomes series, which are annual estimates of the incomes of individuals and families on welfare in each Canadian jurisdiction. In addition to an extensively-annotated table of welfare benefit levels for single clients (able-bodied and disabled) and families (one adult + one child and two adults + two children), the report includes information on prevailing welfare asset and income exemption levels in each province/territory, comparisons of welfare incomes over time and comparisons of current welfare incomes with various benchmarks. The
fact sheets which were recently posted to the Council's website include several
variations and permutations of income measures used in Canada, such as Statistics
Canada's before- and after-tax low income cut-offs, before- and after-tax average
incomes and before- and after-tax median incomes. For the first time, the 2006
edition of Welfare Incomes includes a comparison of welfare incomes and
the Market Basket Measure (see related links below). Source: |
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Welfare Incomes 2005 (PDF file - 1.4MB,
116 pages) Staggering losses in welfare incomes
(PDF file - 24K, 2 pages) FACT SHEETS from Welfare Incomes 2005 Google.ca
Web Search : "welfare incomes report,
canada" Related links: NDP
launches campaign to end poverty in Canada ************************ You
can find links to CBC radio coverage of this story, in the form of written articles
or an audio file as in the example below, adapted for each region's audience,
with local reaction for each jurisdiction in Canada, by doing a Google.ca
search using the search terms "welfare incomes, 2006, Ontario".
Here's
a sampling of coverage concerning the release of this report from St. John's,
Newfoundland and Labrador: CBC
Radio - St. John's Morning Show (7-minute Real Audio file - requires speakers
and RealPlayer) Welfare payments called 'morally disgraceful' - August 24 article from the CBC Newfoundland and Labrador ----- Brickbats
to the Citizen
in my home town of Ottawa, who didn't even mention the release of the welfare
incomes report. I'm not sure what people in the media call it (scoop? oversight?
stoopid editorial board decision to take a pass on the story?), but the Citizen
editorial board richly deserves the egg that's on their collective faces for having
missed the boat on a report that's as significant as this one. Judging by the
significant media coverage and public feedback in forums and letters to the editor
- elsewhere in Canada - since the release, "this story's got legs" ---
it'll be in the public consciousness for awhile longer. More editorializing: If you've read the Top Ten Reasons I Created This Site, you already know (#8) that I think there's too much of a slant from organizations like the Fraser Institute and Prime Minister Steve's earlier gig, the National Citizens' Coalition, in the mainstream media, and not enough from progressive non-governmental organizations like the Canadian Council on Social Development and Campaign 2000. Another such organization that's actually part of government in an arm's-length kind of way is the National Council of Welfare. The Council came to life in the late sixties via an integral part of the statute that defined the activities of the Department of National Health and Welfare. After a few departmental restructuring initiatives and name changes over the years, the Council is currently the government advisory body to the Minister of Human Resources and Skills Development in matters pertaining to social development, i.e., well-being in Canada. I have the highest regard for the Council as an advisory body, because it advocates on behalf of people, not corporations. The excellent reports produced by the Council's secretariat - especially the time series like Welfare Incomes and Poverty Profiles - offer up to twenty years' worth of cross-Canada information for use by both federal and provincial-territorial policy-makers to support their work. The reports are also for use by the social advocacy sector, to keep governments' feet to the fire --- fits right in with the concept of Accountability as one of the New Canadian Government's five priorities, doesn't it? For about 25 of my 30 years as a welfare program information specialist with the federal government, I supported the work of the Council on the subject of welfare program information and welfare rates, and I think that their collection of historical, cross-Canada information on Canadian welfare programs is second to none. I spent a year on secondment with the Council secretariat starting in the summer of 1996, and I updated the numbers in Welfare Incomes 1995 as part of my work there. Now, ten years later, we find that after inflation, welfare incomes in '96 were more generous than they were in 2005 by several thousand dollars a year. And that includes thousands of families with kids... For links to Canadian welfare program information, go to the Key Provincial/Territorial Welfare Links page: http://www.canadiansocialresearch.net/welfare.htm |
Historical Welfare Reforms
Welfare reforms have been around as long as welfare programs
themselves.
Canada's Unique
Social History (from Steven Hick of Carleton University in Ottawa)
is an invaluable online resource for anyone interested in the evolution of
social programs in the world and in Canada. It comprises eight modules, each
filled with links to more information and Internet resources. Module 3, The
Rise of Income Security, covers Canadian welfare reforms from pre-Confederation
days to the Canada Health and Social Transfer. Module 2, The
Rise of Capitalism and Social Welfare, offers historical information
on welfare and welfare reforms back to the Middle Ages.
Also from Steve
Hick :
Social Work Glossary
(Click on Glossary link in the left column - 600+ terms)
Other Canadian Sites
The Evolution of the Canada Assistance Plan is an appendix to the 1985 Nielsen Task Force report on CAP. It was written by an official of the federal Department of Health and Welfare (the "home" of CAP) at the time, it includes a gold mine of historical information on Canadian social programs of last resort in the twentieth century.
The 1967-68 Annual Report of the Canada Assistance Plan also offers some historical perspectives on welfare programs going back to the Old Age Pensions Act of 1927.
Ministry
of Community and Social Services:
Supporting Ontario's communities since 1930 (retrieved
from the Internet Archive)
The
year 2005 is the 75th anniversary of the Ontario Ministry of Community and Social
Services.
Click on the link above and then, on the next page, scroll down
to "Stories from our Past" for links to six short historical
bits about welfare and social services in Ontario in the last century and even
before.
Origins of the welfare department (1930) - breaking 650 lbs. of rocks
to qualify for welfare in 1915 - houses of refuge - the Mothers' Allowance Act
(1920) - the first foray into the field of day care in the mid-40s - the Soldier's
Aid Commission (est. 1915).
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Canadian Welfare Reforms
in the Nineties
Welfare
to Work Study
King's College (University of Western Ontario)
Caroline A. Gorlick, Ph.D/Associate Professor, King's College, is the principal
investigator of this research project and Guy Brethour is the research
associate/coordinator.
"The National Welfare to Work Study funded by
Social Development Partnerships (Human Resources Development Canada) has 3 main
objectives:
- to produce an inventory of the different types of welfare to
work programs emerging across the country
- to analyze the dynamic relationship
between program design, community resources and individual/family capacities
- to assess the impact of the linkage between program design, community resources
and individual/family capacities on program success.
The first objective
has been completed with the collection of comprehensive information on all provinces/territories'
welfare to work programs. Both the National Inventory on Welfare to Work in Canada
and an accompanying discussion paper entitled National Welfare to Work Programs:
from new mandates to exiting bureaucracies to individual and program accountability
was published and disseminated by the Canadian Council on Social Development in
the fall of 1998. The other objectives were addressed in Phase 2 of the study
which included data collection in six Canadian communities. All the communities
had experiences with welfare to work program implementation. Phase 2 also involved
updating the original National Inventory on Welfare to Work in Canada. The final
report will be disseminated in the winter of 2002."
Welfare to Work Phase 2 Update - reports for every province and territory are now available on the site. They contain detailed information about welfare-to-work programs and services --- eligibility, supports, funding, assessment and review, planned program changes and much more - all revised to reflect what was happening at the end of 2001 across Canada.
Welfare-toWork:
The Next Generation
A National Forum
(followup to the Welfare to
Work Study)
November 16 18, 2003
UPDATE - February 2, 2004
Profiles,
Papers and Presentations (abstracts / Powerpoint presentations / complete
papers)
- links to 40+ papers and presentations from the Welfare to Work Forum
are now available for download - includes keynote speeches, transcripts of sessions,
powerpoint presentations and more.
Source:
Community Sector Council of Newfoundland and Labrador
Reconnecting
Social Assistance Recipients to the Labour Market Lessons Learned - Final Report (PDF) Evaluation and Data Development Strategic Policy Human Resources Development Canada March 2000 Source : Evaluation and Data Development (Human Resources Development Canada) |
Key Federal Government Departments and Reports
The Department of Finance is currently the lead federal Department with respect to social assistance in Canada. It is responsible for the administration of the Canada Health and Social Transfer, the federal transfer (block fund) to provinces and territories covering health, post-secondary education and welfare. The Department has its own social policy shop in the Federal-Provincial Relations and Social Policy Branch . A key document for researchers is Federal Transfers to Provinces and Territories, which provides a detailed summary of how the federal government contributes to the cost of provincial and territorial welfare programs (among others) - *See also A Brief History of the Health and Social Transfers - from the launch of the Canada Assistance Plan in 1966 to 2007, a helpful chronology of the evolution of federal contributions to the provincial/territorial level of government from 1966 to date. |
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On December 12, 2003, when Paul Martin took office as Prime Minister of Canada, Human Resources Development Canada was split into two departments --- Social Development Canada (SDC) and Human Resources and Skills Development Canada (HRSDC). Until 1993-94, the Department of National Health
and Welfare (NHW) was responsible for the administration of the
Canada Assistance Plan or CAP. CAP was the federal statute that
enabled federal contributions to the provinces and territories towards
the cost of social assistance - or welfare - and social services (as
well as other approved social programs and services). Social Development Canada* works with provincial and territorial government departments responsible for social assistance to eliminate duplication and overlap between programs and with working groups under the auspices of the Social Union initiative; Human Resources and Skills Development Canada is involved in activities under federal-provincial-territorial labour market agreements. Check out the official Social Union website for more information on the National Child Benefit (including the NCB progress reports and NCB reinvestment reports, or visit my Unofficial Social Union Page for links to related material that's not on the official site. You might also want to check out my Provincial/Territorial Social Union Pages to see what provinces and territories are doing in the area of NCB reinvestments. ****** November 2008 Update: |
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Health Canada - like HRDC - monitors provincial and territorial health insurance ("Medicare") programs to ensure compliance with federal standards. Read the Canada Health Act Overview to see how Medicare works in Canada, including funding by the federal government under the Canada Health and Social Transfer. See the Canada Health Act Annual Reports for detailed information on the administration of the CHA, federal contributions and payments and each of the provincial and territorial health insurance plans under the CHA. See also the Commission on the Future of Health Care in Canada (the Romanow Commission) |
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Indian and Northern Affairs Canada (INAC) pays for social assistance for Aboriginal people on reserve. The Department's website includes a lot of information about the federal government's relationship with its Native people. See the INAC site map for links to everything on one page, including the Final Report of the 1996 Royal Commission on Aboriginal Peoples (RCAP) and the Federal Government's Response to RCAP. See also "First
Nations NCB Reinvestments" - part of The
National Child Benefit Progress Report: 1999 |
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The Canada Revenue Agency (formerly Revenue Canada) is responsible for the delivery of the Canada Child Tax Benefit (CCTB), which is the name of the federal benefit paid under the National Child Benefit initiative, and of some provincial and territorial financial benefits that are also under the NCB. The Canada Revenue Agency's Family Benefits Page includes a wealth of information about the Canada Child Tax Benefit and the National Child Benefit. It also includes information concerning related provincial and territorial programs administered by Revenue Canada: Alberta Family Employment Tax Credit - BC Family Bonus - New Brunswick Child Tax Benefit - Newfoundland and Labrador Child Benefit - Northwest Territories Child Benefit - Nova Scotia Child Benefit - Nunavut Child Benefit - Saskatchewan Child Benefit - Yukon Child Benefit Revenue Canada is involved only in the distribution
of benefits, not the related policy-making. |
| Note: these are not the only federal departments involved in Canadian social policy, but rather the main federal players in the area of social assistance policy. |
Key Provincial/Territorial Government Departments and
Reports
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Provincial and territorial welfare departments play the most important role in the design, administration and delivery social assistance programs, although the role of Finance departments cannot be understated. You'll find links to welfare information for each province
and territory on the Key Welfare Links page
of this site. On that page there are further links to each jurisdiction,
e.g., Saskatchewan Links - where you can find
some welfare reform info and documents specific to that jurisdiction. The federal Department of Finance has a Public Finance Hotlinks Page that includes links to Finance departments in all Canadian jurisdictions as well as nine other countries (scroll down past the "General" and "Canada" sections) |
National Reforms
Although provincial and territorial welfare programs have been in constant
evolution as long as they have been around, the 1990s have produced so much
profound change in the way programs are funded and delivered, that some academics
have called this round of reforms a "paradigm shift", a reaffirmation of the
old principles of self-sufficiency that preceded the progressive social reforms
started after the Second World War.
The cap on CAP
The unofficial launch of the welfare reforms in Canada in this decade was
the 1990 federal Expenditure Control Plan, which included a shift in federal
funding in Ontario, Alberta and British Columbia. Dubbed the "cap
on CAP", this measure is often cited as "the beginning of the end"
for CAP. A section in Another Look at Welfare Reform entitled
The Setting for Welfare Reform deals with the cap on CAP and
other events that framed Canadian welfare reforms in the 1990s.
The 1994 Social Security Review was another national milestone in Canadian welfare reform, if only because of the number of informative reports that were produced and released during its short lifespan. The Review was launched by Lloyd Axworthy (Minister of Human Resources and Development) in January 1994, and a number of consultation papers were released in the fall and winter of 1994-95. By then, however, federal-provincial relations were strained as a result of federal cuts in the 1994 federal Budget (tabled less than a month after the announcement of the Review). Following the tabling of the 1995 Budget - announcing the Canadian Social Transfer (later renamed the Health and Social Transfer) and its cuts coming into effect in April 1996, the Social Security Review fizzled into obscurity.
From the Canada Assistance Plan to the Canada Health and Social Transfer is a series of links to information about CAP and its successor the CHST, from the 1995 federal Budget to 1999 Budget papers on transfers to the provinces and territories. These links focus on the federal dimension of the transition.
Women
and the CHST: A Profile of Women Receiving Social Assistance in 1994
March 1998
Katherine
Scott, Centre for International Statistics
Canadian
Council on Social Development
Funded by Status
of Women Canada's Policy Research Fund
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Dramatic
Decline in Welfare Dependency in Canada,
Several Factors Responsible: C.D.
Howe Institute (PDF - 40K, 3 pages)
Communiqué
June 19,
2008
Canada has experienced a dramatic decline in welfare dependency since
the early 1990s, according to new study by the C.D. Howe Institute, which notes
that Canadas Social Assistance (SA) dependency rate fell by approximately
half from the early 1990s to 2005, taking the countrys rising population
into account. In The Welfare Enigma: Explaining the Dramatic Decline in CanadiansUse
of Social Assistance, 1993-2005, authors Ross Finnie and Ian Irvine provide a
nationwide analysis of the factors responsible for the truly remarkable decline,
and draw implications for policymakers.
Complete study:
The
Welfare Enigma: Explaining the Dramatic
Decline in Canadians Use of
Social Assistance, 19932005 (PDF - 548K, 32 pages)
Commentary
June
2008
"(...) Keeping people off welfare in the first instance, rather than
attempting to get them off once on, is likely the most effective means of affecting
caseloads and reducing longer-run welfare dependency."
Source:
C.D.
Howe Institute
The C.D. Howe Institute is Canadas leading independent,
nonpartisan, nonprofit economic policy research institution. Its individual and
corporate members are drawn from business, universities and the professions.
Related links:
Jobs,
government cutbacks cut Canadian welfare rolls in half: report
OTTAWA
More available jobs, with a kick from stingy government policies, has contributed
to a dramatic decrease in the number of Canadians receiving welfare cheques, says
a new study by the C.D. Howe Institute.
Source:
Google
News
Solving
the welfare enigma
By Ross Finnie and Ian Irvine
Source:
National
Post
COMMENT:
It appears that
every eleven years or so, the C.D. Howe Institute, minions of the business, university
and professional elite, trot out another earth-shattering study about how reducing
access to welfare results in fewer people on welfare. Well, Whoop-De-Doo. That's
about as informative an observation as "It's better to be rich and healthy
than poor and sick."
Here's the earlier C.D. Howe study:
Alberta
welfare reforms
a model for other provinces, says C.D. Howe Institute study
(PDF file - 668K, 38 pages)
April 1997
Kenneth J. Boessenkool, Prime Minister
Steve's occasional confidant and advisor, produced this study praising the 1993-1996
Alberta welfare reforms, for other provinces to emulate.
See the Alberta section of Another Look at Welfare Reform (1997) from the National Council of Welfare for a different perspective on Alberta's welfare reforms.
National Child Benefit Misconception The popular misconception: The Fact: The
clawback is actually part of the NCB design, by agreement of the governments of
all provinces and territories (except Quebec) and the federal government. Progress
Report to Premiers - No. 2 (PDF file - 72K, 18 pages) News
Release: See also: "Building
a Better Future for Canadian Children" - click on "Social
Assistance Adjustments" |
Provincial/Territorial Social Union Pages - links to a large collection of information on NCB reinvestments
The Unofficial Social Union page - links to everything you wanted to know about the Social Union --- and more.
Family Benefits Page (Revenue Canada) - explains the Canada Child Tax Benefit (federal benefit) and provincial reinvestments under the NCB.
----------------------------------------------------------
Where do we go from here?
Alliance
tackles welfare reform - Ontario/Canada
Oct. 25,
2004
By Carol Goar
Toronto City Summit Alliance teams up with St.
Christopher House to help improve income support for working age adults
"They
are launching and paying for a non-governmental review of the safety
nets that are failing millions of low-income adults. They intend to build public
support for a modern, sustainable income security system. (...) Using its contacts
in the senior echelons of business, academe and public life, it hopes to mount
a powerful campaign to fix what is wrong."
Source:
The
Toronto Star
Related Links:
Toronto
City Summit Alliance
St.
Christopher House
- Modernize
Income Security for Working Age Adults
- Income
Security for Working-age Adults in Ontario
-----
Social
Policy in the 21st Century
August 2004 Issue
Policy
Options
To read any article, click the above link and (on the next page) select
the article you wish to read by clicking on its link; all files are in PDF format.
Back
to the future - the rear-view mirror provides glimpses of what lies ahead for
income security in the 21st century by Havi Echenberg
New century,
new risks: the Marsh Report and the post-war welfare state in Canada by
Antonia Maioni
'In the national interest': a social policy agenda for
a new century - restore cooperative federalism, modernize medicare, put children
first by Tom Kent
Social policy and the knowledge economy: new
century, new paradigm by Thomas J. Courchene
Relative poverty
- it can't be erased, but it must be addressed, at home and abroad by
Hugh Segal
Choix politiques et solidarité sociale à l'heure
de la mondialisation by Keith G. Banting
Health care markets
and the health care guarantee: baking a better loaf, or baking enough bread?
by Paul Jacobson
The 'other' health system: reflections on the dark
side of the moon of health and health care in Canada by Hugh Scott
L'école
à l'aube du XXIe siècle : retour vers le future by Louis
LeVasseur and Maurice Tardif
Universities in the new millennium: heading
toward a new culture by Brian Flemming
Access to degrees in
the knowledge economy by Dave Marshall
Time for plain talk about
social policy by William Watson
Back Issues of Policy Options (back to 1997, full text of hundreds of articles)
Source:
Institute
for Research on Public Policy
Provincial/Territorial Reforms
Social
Assistance Statistical Report: 2006
August 2009 (Third edition)
Posted online April 9, 2010
Prepared by:
Federal-Provincial-Territorial Directors of Income Support
"In recognition of the growing public demand for
comprehensive information on provincial and territorial social assistance programs
and caseloads, the Social Assistance Statistical Report: 2006 is the third annual
joint publication by federal, provincial and territorial governments. The report
provides a general overview of social assistance in Canada, as well as a description
of income support-related/social assistance programs in each jurisdiction. This
report does not include social assistance rates as this information is currently
available to the public on most provincial and territorial government Web sites."
(Excerpt from Chapter
1 - Summary)
NOTE: Chapter Two of the report is a six-page descriptive overview of social assistance in Canada in 2005-2006, comprising a (very) brief history of federal social assistance since 1966 and general information about welfare eligibility and benefits. Other chapters of the report provide, for each province and territory, information on eligibility (including asset and income exemption levels) and benefits, as well as an impressive number of statistical tables, graphs and charts providing numbers of cases and beneficiaries (time series statistics going back as far as the mid-1990s, depending on the jurisdiction), profile information (age/education/sex of household head, cases by reason for assistance) and even (for most jurisdictions) the percentage of households reporting income.
Complete
report
in one PDF file - (751K, 129 pages)
Links to the two earlier editions of this report:
* Social
Assistance Statistical Report: 2004
* Social
Assistance Statistical Report: 2005
Source:
Social
Policy
[ Human Resources and Skills
Development Canada ]
< Begin social researcher's lament. >
While it is reassuring to read in the report summary that Federal-Provincial-Territorial
Directors of Income Support recognize "the growing public demand for comprehensive
information on provincial and territorial social assistance programs and caseloads",
I wish they'd also recognize that there's also a need for reasonably *timely*
data about those same programs and caseloads. This report is dated August 2009,
but it wasn't posted to the HRSDC website until April 9, 2010. The latest data
in the report are for March 2006, now four years out of date. Thus, since March
2006, there is NO national picture of the number of households receiving welfare
in Canada.
So what?
So now researchers can't tell, among other things, how many new welfare cases
are "EI exhaustees" (families whose Employment Insurance benefit period
has expired) and how many are there because they didn't qualify for EI in the
first place.
That is unaccountable and unacceptable.
Welfare reporting must be comprehensive AND reasonably current.
Perhaps it's time to farm out the production of welfare statistics and related
information to an objective, non-politicized third party...
< /End social researcher's lament. >
---------------------------------------------------------------Related historical reports from Social Policy Directorate of HRSDC:
Social
Assistance in Canada, 1994 *
Over 40 pages of information on Canadian social assistance programs as they
operated in 1994. Much of the information in this document is still as relevant
today as it was back then - eligibility, benefits, administrative rules, and
more. Includes information about cost-sharing of welfare costs under the Canada
Assistance Plan. Question-and-answer format for quick reference. This work was
part of a larger study of social assistance in 24 countries released by the
OECD early in 1996. I was the author of this report, with a lot of input from
a number of colleagues in the Department at the time. If you want a snapshot
of what welfare was like in Canada before the Canada Health and Social Transfer
in 1996, this is a pretty decent one - and it's free.
---
* Also available from the Government
of Canada Web Archive:
http://goo.gl/au93G
Social
Security Statistics, Canada and Provinces - 1978-79 to 2002-03
[
Appendix A - methodological notes ]
- the SA Statistical report for 2004 contains no expenditure data.
---
Related Links from the National Council of Welfare:
Profiles of Welfare: Myths and Realities (Spring
1998)
- large statistical collection covering twenty years of data, examining variables
like family types, reasons for assistance, age, education, duration of spells
on assistance, housing and more.
NOTE: number-crunchers who specialize in welfare statistics can compare this
report with the 2004 report above for some interesting observations --- but
be careful about data incompatibilities between the two reports...
Number
of People on Welfare, March 1995 to March 2005 (PDF file - 133K, 1 page)
As at October 2011, these are the latest stats on welfare dependency in Canada
Why?
See More
on welfare dependency statistics - this link takes you to a section
of the Social Statistics page of Canadian Social research Links.
*********************************************
Two Tier Income Assistance (welfare)
Until the federal government implemented the Canada
Assistance Plan (CAP) as a vehicle for federal contributions to provincial-territorial
welfare and social programs in the mid-1960s, two-tier social assistance was
the norm in Canada. Two tiers meant that provincial governments provided assistance
to anyone deemed "unemployable"(and their dependants), while municipalities
were responsible for providing financial assistance of last resort to employable
people in financial need (and their dependants) who were residing within their
jurisdiction. The advent of CAP helped provinces and territories to consolidate
their old categorical assistance programs for blindness, disability, unemployment
and single parenthood into one needs-tested program. Moreover, within the first
ten years of CAP, most Canadian jurisdictions had streamlined their two welfare
systems into one, with the higher authority taking over the responsibility for
providing financial assistance to anyone in financial need in the province/territory,
regardless of the cause of that need. Differential treatment of "worthy
and unworthy"clients (i.e., short-term employable vs long-term unemployable)
has persisted in the form of tougher eligibility rules and lower benefit levels
for employables even after systems were merged or unified. Three Canadian jurisdictions
did not unify their two-tier systems along with the rest by the mid-1970s :
Nova Scotia, Ontario and Manitoba. As of June 1, unification of income assistance
is officially complete in Manitoba [see the inks below], the culmination of
a process that started with the implementation of the Municipal Assistance Regulations
in 1993. Nova Scotia also unified over a period of several years, starting with
a pilot project in the Cape Breton region in 1995 and ending with the implementation
of the Employment Support and Income Assistance Regulations in April 2001. In
Ontario, despite the rhetoric of the former Conservative Government (which had
promised in the 1995 election campaign to eliminate the two-tier welfare system),
income assistance is still a two-tier affair to some extent --- the province
still delivers the assistance program for people with disabilities, the Ontario
Disability Supports Program (ODSP), and municipalities are still responsible
for the delivery and a portion of the cost*
of Ontario Works (welfare for people with no disabilities).
The province covers the full cost of ODSP.
[See the Guide to Welfare in Ontario for more info.]
---
* "The cost of Ontario
Works financial and employment assistance is currently shared by the province
(81.2 per cent) and municipalities (18.8 per cent). As part of a plan to upload
these costs incrementally, the province will cover 100 per cent of these costs
by 2018. Administration costs are shared on a 50-50 basis between the province
and municipalities. The province covers 100 per cent of the costs of ODSP."
Source:
Ontario
Social Assistance Review Commission (2011)
---
Legislation
in effect today creates single income assistance system - Manitoba
June 01, 2004
"Legislation creating a single system of income assistance in Manitoba
and ensuring services are more consistent and effective becomes effective today,
Family Services and Housing Minister Christine Melnick has announced. The Employment
and Income Assistance Amendment Act makes the province responsible for administering
all provincial income assistance in rural and northern Manitoba. The change
to the single system was requested by the Association of Manitoba Municipalities
(AMM) after the province began delivering all provincial income assistance in
Winnipeg in 1999."
Source:
Department of Family Services and Housing
Municipal
Assistance Program
"Prior to June 1, 2004, non-disabled single
people, childless couples and two-parent families with children received assistance
from their local municipality under the municipal assistance program."
Source:
Manitoba
Department of Family Services and Housing
[ Related links - go to the Manitoba page:
http://www.canadiansocialresearch.net/mbkmrk.htm ]
*********************************************
|
|
Surveying
US and Canadian Welfare Reform (PDF file - 838K, 68 pages)
August
2001
-incl links to :
Executive
Summary
Introduction
1. Historical development of welfare in the United
States
2. PRWORAthe end of welfare as Americans knew it
3. American
statesexperimentation and innovation
4. The results of PRWORA and state
welfare reforms
5. Welfare in Canada
6. Provincial welfare reforms
7. Recommendations for Canada
Glossary
References
Source : Fraser
Institute
|
Spouse-in-the-house
: The Falkiner Case (Ontario)
The Falkiner case revolves around the
issue of single parents and welfare.
On this Canadian Social Research Links
page, you'll find background info, the official Court record of the May 13 (2002)
decision and several related links. The June 2002 issue of the Fraser Forum (Fraser
Institute) contains an article about the potential impact of the Court decision
on welfare reforms elsewhere in Canada. On the Spouse-in-the-house page, you'll
find a link to the issue that contains this article as well as a counterpoint
commentary on the article by Vincent Calderhead, staff lawyer with Nova Scotia
Legal Aid in Halifax and respected authority on matters relating to human rights
and the Canadian Charter.
Ontario Municipal Government and Non-Governmental Organization Links Page - for critiques of welfare reforms in that province by Ontario NGOs.
Non-Governmental Organizations Links - critiques of social program reforms from a number of Canadian NGOs.
A few words about workfare
Most of what is called workfare today in Canada is actually a combination of tighter eligibility criteria, benefit cuts, a broadening of the definition of "employable" and more stringent enforcement of rules regarding reciprocity for employable people that existed even before CAP - and that continue to exist today.
There
are two types of workfare in Canada today - formal and de facto.
[Of course, one could argue that the two types of workfare in Canada are
the punitive approach and the human services approach, as does Sherrie Torjman
of the Caledon Institute of Social Policy in her online paper entitled Workfare:
A Poor Law (PDF file - February 1996). But that's a whole other web page...]
Source : Caledon Institute of SocialPolicy
| "Formal" or institutionalized workfare
contains three essential elements, summed up as follows: - work for a specific minimum number of work units (measured in hours or output) in a job that is designated or approved by the welfare authority, to qualify for the basic welfare benefit. In 2001, the only Canadian jurisdiction where formal workfare exists for all employable people is Ontario, under one component of the Ontario Works program. In many other jurisdictions, there's a "learnfare/earnfare/trainfare"policy that's described in more detail on the CAP Resources Page of this site. All applicants under the Ontario Works program in Ontario (single people, couples with and without children, sole support parents, and people aged 60 to 64 years) must agree to participate in one of the program's three active parts: employment supports (job-search services, referral to basic education and job-specific skills training), employment placement (referral to a job placement or self-employment development agencies) or community participation (unpaid community service activity). The community participation stream is the one most readily identified with the notion of "workfare". In this stream, welfare recipients can be required to work from 17 to 70 hours per month in a not-for-profit or public sector workplace approved under the program in order to receive their basic welfare benefit. Further reading for detailed Ontario Works information The Ontario Works page of the Ministry of Community and Social Services website includes the complete collection of Ontario Works Policy Directives. This is the Ontario Works Policy Manual - everything you might want to know about the program. The Ministry of Community and Social Services Business Plan includes a section entitled Annual Report On Key Achievements where you can find a description of welfare reforms since 1995 - including Ontario Works - and plans for further reforms. Recommended Reading from the - analysis of Ontario
Works is available from the (Toronto) Workfare Watch Project website.
See the r Ontario
Non-Governmental Organization Links page for additional perspectives on
many issues around workfare in Ontario. |
| "De facto" workfare occurs where the welfare
authority does not impose a mandatory "work-for-your-basic-welfare-cheque" policy
for all employable people receiving welfare. Rather, governments enforce job-search
requirements for employable people more stringently, and they pay monthly supplements
to people who are engaged in some approved activity whose goal is to help the
person break free from welfare. The job-search rule is often seen as workfare,
but it was always a part of CAP and provincial/territorial welfare programs.
Some jurisdictions pay monthly supplementary benefits to people on welfare who are participating in an approved employability program or job search activity to help them cover work- or training-related costs. Ernie Lightman argued in an article in the C.D. Howe Institute's 1995 book on workfare Helping the Poor: A Qualified Case for "Workfare" that the gap between the basic and supplemented benefit levels is often an offer that people in need can't refuse. Quebec's
welfare rules in 2000 for employable people best illustrate the tiered benefit
structure that can result from these supplements and the application of the reciprocity
principle. The Quebec welfare rate was about $120 less a month for a single employable
person who was not participating in an employability measure (schooling, training
or job integration) than for one who was. (The difference was about $200 for a
two-adult household.) This "non-participating" category included not only
those who decline such measures, but also those for whom no appropriate measures
were available. A non-participant was still required to satisfy job-search requirements,
notably by not refusing a job (or abandoning one without just cause) under penalty
(stipulated in Regulation) of a reduction in monthly welfare benefits of $100
or $150 (depending on the situation of the household) for a year. A second refusal
within the year would result in monthly benefit cuts up to $300 ($150 for a lone-parent
family). |
See CAP, Rights and Workfare on the CAP Resources page for more on job search requirements VS workfare.
Submission
by the Charter Committee on Poverty Issues (CCPI) to the United Nations Committee
on Economic, Social and Cultural Rights on the occasion of the Review
of the Third Report of Canada at the Committee's 19th Session (November - December,
1998)
- incl. a detailed analysis (~25 printed pages) of "the right
to social assistance" with references to the Constitution Act, the Charter
of Rights and the change from CAP to the CHST. The CCPI submission includes information
on welfare case law in a number of jurisdictions that you definitely won't
find elsewhere - dealing with the right to social assistance, adequacy of social
assistance benefits, provincial contravention of national "standards"
under CAP, sections 7 and 15 of the Charter of Rights, etc.
The case law information
was prepared by Vincent Calderhead, Solicitor for the Charter Committee
on Poverty Issues, in November, 1998.
Source :
Charter Committee on Poverty Issues
See also: U.N.
'98 Page - (links to 18 related documents)
That depends on whether you're asking the Finance Department and Fraser Institute types, who interpret caseload reductions as a significant measure of success, or the social advocacy groups, who focus more on the human condition, income adequacy, wealth inequality and social justice.. Since the mid-1990s: Number
of People on Welfare, March 1995 to March 2005 (PDF file - 133K, 1 page) Related
Links - "the other side of the coin": National Ontario Alberta |
Welfare Leavers
|
See also:
The Canada Assistance Plan/Canada
Health and Social Transfer Resources Page
Canadian
Union Links - including a selection of relevant reports
| TIP:
How to Search for a Word or Expression on a Single Web Page Open any web page in your browser, then hold down the Control ("Ctrl") key on your keyboard and type the letter F to open a "Find" window. Type or paste in a key word or expression and hit Enter - your browser will go directly to the first occurrence of that word (or those exact words, as the case may be). To continue searching using the same keyword(s) throughout the rest of the page, keep clicking on the FIND NEXT button. Try it. It's a great time-saver! |