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Task Force on Modernizing Income Security for Working Age Adults
(MISWAA)
Process, Highlights of Research and Recommendations
June 2006
- 2 -
Introduction
Formed in the fall of 2004 by the Toronto City Summit Alliance, a broad-based coalition of civic leaders in the Toronto region, and St. Christopher House, a multi-service neighbourhood centre that works with low-income people in Toronto.
Steering Committee of over 50 representatives from major employers, labour unions, policy institutes, academia, community organizations, advocacy groups, foundations, governments1, and individuals with first-hand experience of income security programs.
While the diverse group didn’t achieve consensus on all proposals, members are united in the belief that the current income security system is broken and that all orders of government must come to the table to secure the needed reforms.
Task Force report to be released in May 2006 followed by a communication effort to broaden the coalition and advocate for change.
(1) Government members participated in an ex-officio capacity
- 3 -
Three Key Objectives Of The Task Force
To provide a clear, soundly supported assessment of Ontario and Canada’s income security systems and programs, grounded in the experience of those affected
To develop pragmatic proposals for policy and program changes for governments to improve the economic security of low income, working age adults- focusing on Ontario in a national context
To design Ontario and pan-Canadian communication campaigns to help ensure that proposals for governments are put into motion.
ProcessProcess
- 4 -
Sources Of Funding (All Non-Government)
The Atkinson Charitable Foundation
KPMG
The Laidlaw Foundation
The Law Foundation of Ontario
The Maytree Foundation
The JW McConnell Family Foundation
TD Bank Financial Group
The United Way of Greater Toronto
The Atkinson Charitable Foundation provided the seed money to set up the Task Force and is lead sponsor
The Atkinson Charitable Foundation provided the seed money to set up the Task Force and is lead sponsor
ProcessProcess
- 5 -
Organizations Involved In MISWAA1
Ace Bakery
Atkinson Charitable Foundation
Bain & Company
The Boston Consulting Group
The Caledon Institute
CCSD
Cdn Inst. For Advanced Research
Canadian Labour Congress
CPRN
Canadian Urban Institute
C.D. Howe Institute
Ctre for Addiction & Mental Health
Citizens for Public Justice
City of London
City of Toronto2
Community Legal Services
Conference Board of Canada
CUPE
Daily Bread Food Bank
Dickson, MacGregor, Appell LLP
Falconbridge Limited
Regent Park Community Council
Ryerson University
St. Christopher House
Scotiabank
SEDI
SRDC
Tamarack Institute
TO & York Reg’l Labour Council
Toronto City Summit Alliance
Toronto Community Foundation
TD Bank Financial Group
Toronto Police Service
United Way of Greater Toronto
University of Montreal
U of T School of Social Work
United Jewish Appeal Federation
US Urban Institute
Mercer HR Consulting
Workers Action Centre
Yee Hong Centre
York University
Family Service Assn of Toronto
George Brown College
George Weston Ltd.
Goodmans LLP
Income Security Advocacy Centre
Indept Policy Analysts and Activists
KPMG
Laidlaw Foundation
Labour Education Centre
The Maytree Foundation
Min. of Com. and Social Services2
Min. of Labour and Housing2
Munk Centre for Intern’l Relns, U of T
National Judicial Institute
Nestle Purina Canada
OCAS
Ontario, Office of the Premier2
Policy Research Initiative2
PricewaterhouseCoopers
Queen’s School of Policy Studies
(1) Includes organizations of both Task Force and Working Group members; See Appendix for lists of members(2) Ex-officio members or observers
ProcessProcess
- 6 -
Structure And Roles Modeled On TCSA And St. Christopher House Initiatives
Multi-Sector Task Force1
• Civic Leaders• Heads of Institutes and Front-
line Agencies
Consider issues and agree on recommendations
• Or acknowledge differences
Be ambassadors for reform
Community Consultation
• Low Income Adults• Front-line agencies
Working Group & Secretariat1,2
• Policy Experts• Low Income Adults
Review research; fill gaps
Identify issues and options
Develop and cost solutions
(1) See Appendix for lists of members(2) Small Secretariat consists of: Project Director, Research Director, Admin Coordinator, and Community Consultation Leaders
ProcessProcess
- 7 -
Community Reference Group And Consultation Process Informed The Research Effort And Task Force Discussions
Formed Community Reference Group of low income adults; met monthly throughout the process to discuss issues and evolving recommendations
• Members included social assistance recipients and low income workers• Members also joined the Working Group and participated in working sessions on
specific issues, e.g.: improving ODSP; supporting the ‘hard-to-employ’
Consulted on evolving recommendations with more than 250 low income adults in fourteen workshops across the Toronto region
• Groups included English-as-a-Second language classes, unemployed youth, tenants in social housing, diverse women’s and ethno-racial groups
Consulted with 286 front line staff and volunteers from community service organizations in meetings convened by MISWAA, MISWAA members and interested agencies
Documented and integrated input from community consultations into the Working Group’s research effort and Task Force discussions
• Similar diversity of views to Task Force and Working Group• Most interest in removing impediments to working and ‘de-stigmatizing’ welfare
ProcessProcess
- 8 -
Context From The Research Effort
891K working age adults living in low income in Ontario1
• Est. 280K adults work full-time, earn $10/hr or less and live in low income
• 219K adults with Ontario Works (OW) as primary income source
• 245K adults with Ont. Disability Support Program (ODSP) as primary income
$37B spent on income security in Ontario
• Federal government dominates with 80% share; significant fiscal capacity
• Province funds 18% and municipalities the remaining 2%
• Majority of funding goes to seniors (48%), while social assistance (OW and ODSP) for working age adults represents only 10% of funding
Benefits and supports to working age adults retracting; 1993 to 2005/06 trend-
• OW down -24.5% nominal (-46.1% real); ODSP up +3.0% nominal (-24.5% real); recent increases were the first since major reductions of 1995
• Minimum wage up +22.0% nominal (-2.5% real) vs. avg. wage up +26.7%
(1) Working age adults are age 18 to 64Sources: Cited below the charts on following pages
Research Highlights: ContextResearch Highlights: Context
- 9 -
891,000 Working Age Adults Living In Low Income In Ontario; Approx. Half Receive Social Assistance
0
10
20
30
40
50
60
70
80
90
100
Low-income Adults
%
32%
891K Working Age Adults1
=100%
0
10
20
30
40
50
60
70
80
90
100
ODSPRecipients
Ont. WorksRecipients
77%
%
213K Households =100%
ODSP Recipients
Other2
Full-timeWorking Poor3
24%
8%
15%
37%
11%
52%
Lone Parents
Singles
Couples
200K Households=100%
(1) Working age adults are 18 to 64 years old(2) Other includes part-time workers, self-employed, EI recipients, homeless persons, or unemployed not receiving social assistance or EI(3) Est. to be 5.1% of the paid labour force of 5.5M based on 11.6% of Ont. Workers being low-wage and 44.1% of low-wage workers living in low incomeSources: Total from the Caledon Institute based on Statistics Canada data for 2004; Full-time Working Poor est. based on Statistics Canada data for 2004 from
recent paper: Low Wage and Low Income; OW and ODSP data from Ont. Ministry of Community and Social Services’ Qrtrly Statistical Reports
16%
28%
OW Recipients
Research Highlights: ContextResearch Highlights: Context
- 10 -
Income Security In Ontario Is Primarily Under Federal Control; Seniors Dominate Spending
Federal
Municip'l
Provinc'l
Empl. Ins.
Children
Ont. Works
Other
Disabled/Injured Seniors'
By Order Of Government2By Recipient Type
80%
18%
17%
10%49%
9%
10%5%
Percent Of Income Security Program Spending In Ontario in 2004/05($36.7 Billion1,2 = 100%)
2%
(1) Doesn’t include the Canada Social Transfer (approx. $3B) from the Federal government to Ontario(2) Includes contributory programs (EI- $3.9B and Workers’ Compensation- $2.5B)Note: See back-up on next page for details and sources
Research Highlights: ContextResearch Highlights: Context
approx 12% of total budget on ISWAA
approx 23% of total budget on ISWAA
approx 12% of total budget on ISWAA
- 11 -
Income Security For Working Age Adults Down Precipitously In Nominal And Real Terms
Benefit Unit & Type
Single On Welfare (Basic + Shelter)
Single On Welfare (No Shelter)
Lone Parent With One Child
Single With Disabilities
Couple With Two ChildrenOn Welfare
Employment Insurance1
1993Rate/Mo.
$663.00
$369.00
$1,221.00
$930.00
$1,530.00
$1,145.34
2005Rate/Mo.
$536.00
$201.00
$990.00
$958.00
$1,200.00
$1,374.71
Nominal Change
-19%
-45%
-19%
+3.0%
-19%
+15.9%
RealChange
-46.1%
-70.0%
-46.1%
-21.5%
-46.1%
- 8.6%
ChangesSince’93
Two:-21.6%(‘95)+3.0% (‘05)
Three: 2 reductions+3.0% (’05)
Two:-21.6%(‘95)+3.0% (‘05)
One: +3%(’05)
Two: -21.6%(‘95)+3.0% (‘05)
numerous
Rate ChgePolicy
No formal policy
No formal policy
No formal policy
No formal policy
No formal policy
Unclear
Frequency
+2.0% in Nov.’06
+2.0% in Nov.’06
+2.0% in Nov.’06
+2.0% in Nov.’06 +2.0% in Nov.’06
Unclear
(1) Employment Insurance rates are for average benefits in Ontario from Jan. 1993 to Jan. 2006
Research Highlights: ContextResearch Highlights: Context
- 12 -
Low Wage Earners Haven’t Kept Pace With Average Wages Or Inflation
Benefit Unit & Type
Average Wage
MinimumWage
Minimum Wage F-T(40 hrs/week)
Minimum Wage At Avg Hours(32 hrs/week)
1993Rate
$2,657.32Per month
$6.35 Per hour
$1,100.67 Per month
$880.53Per month
2005/06Rate1
$3,369.42
$7.75
$1,343.33Per month
$1,074.66Per month
Nominal Change
+26.7%
+22.0%
+22.0%
+22.0%
RealChange
+2.5%
-2.5%
-2.5%
-2.5%
ChangesSince’93
Market
5
5
5
Rate ChgePolicy
N/A
$8.00 by 20072
$1,408.00 by 2007
$1,072.00 by 2007
Frequency
N/A
Reg’l Increase 2004 to 2007
Reg’l Increase 2004 to 2007
Reg’l Increase 2004 to 2007
(1) Average Wages for 2006 estimated at +3.5% above the 2005 average; minimum wage increased from $7.45/hour to $7.75/hour in Feb. 2006(2) The 2004 through 2007 increases to minimum wage followed over a decade with no increases. No policy or mechanism is in place to monitor minimum
wage or increase it beyond 2007
Research Highlights: ContextResearch Highlights: Context
- 13 -
Key Issues From The Research Effort1
Many working people can’t earn enough to sustain an adequate standard of living, particularly in major urban centres- both a ‘supply and demand’ problem
Employment Insurance (EI) no longer provides a safety net for majority of the temporarily unemployed; particularly in Ontario and Toronto
Many fall onto social assistance and get trapped in a punitive system that impedes achieving stable employment or meaningful community participation
There is both a social and economic urgency to addressing these issues- especially before the next recession puts Ontario municipalities at risk
(1) Issues list is ‘high level’ and numerous issues underlie each of the key issues cited. Also considered specific issues of particular interest to MISWAA sponsors, e.g.: issues facing youth leaving care, and drivers appeals of decisions relating to social assistance, particularly ODSP eligibility
Research Highlights: IssuesResearch Highlights: Issues
- 14 -
Many Working People Can’t Earn Enough To Sustain An Adequate Standard of Living
$0
$6
$12
$18
Income Sources Expenditures
23%
Avg. Income$12.9K
2%
75%
33%
17%
50%
Other
Earnings
Govt. Transfers
Avg. Expenditures2
$16.9K
Other
Basic Needs
Necessities
Average Income and Expenditures for Working Poor Families1
(1) Income and expenditures have been adjusted for family size using a LIM equivalent scale to reflect that family needs increase with family size(2) Basic Needs include shelter, food and clothing; Necessities include transportation, health care, childcare, personal care, household ops, taxes, insurance; Other
expenses include furniture, recreation, tobacco and alcohol, gifts, etcSource: Dominique Fleury, Myriam Fortin and May Luong, What Does it Mean to be Poor and Working? An Analysis of the spending patterns and living conditions of working
poor families in Canada, 2005, based on Statistics Canada’s 2002 Survey of Household Spending
- $4.0K Shortfall
$K
Research Highlights: IssuesResearch Highlights: Issues
- 15 -
EI No Longer Provides A Safety Net For Majority Of The Temporarily Unemployed
0 10 20 30 40 50
St. John’sSaguenayQuebecSt. JohnSherbrookeTrois-RivieresHalifaxThunder bayMontrealSudburySt. Catherine’sKitchenerEdmontonWinnipegSaskatoonReginaVancouverCalgaryLondonOshawaHamiltonWindsorTorontoOttawa
%
Percentage of Unemployed Receiving EI Benefits, by City, 2004
Ontario Avg. National Avg.
22% in Toronto
Source: Caledon Institute of Social Policy and Statistics Canada
Research Highlights: IssuesResearch Highlights: Issues
- 16 -
OW Recipients Down Significantly Leaving Population With High Duration; Different Segments Require Different Supports
0
5
10
15
20
25
30
35
40
Singles LoneParents
Couples CouplesWith
Children
TotalCases
MonthsAvg. Months Receiving OW by
Family Type; Toronto 2004
Source: Ontario Ministry of Community and Social Services’ Quarterly Statistical Reports for Dec. of each year; City of Toronto’s Ontario Works Statistics for 2004Note: Other factors driving high duration include low education level, large family size, age of youngest child (duration highest for parents with children age 9+)
Estimate that one-third to two-thirds of the caseload is hard to serve; e.g. in Toronto:• 36% left OW in 2004; 27% received OW for more than 7 months at any point in time
Estimate that one-third to two-thirds of the caseload is hard to serve; e.g. in Toronto:• 36% left OW in 2004; 27% received OW for more than 7 months at any point in time
0
50
100
150
200
250
300
350
400
450
500
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Cases(000’s)
Historical Trend in OW Cases
Research Highlights: IssuesResearch Highlights: Issues
- 17 -
A lone parent who leaves social assistance for a job paying $10/hour will experience the following:
• Loss of social assistance benefits for adult and each child
• Increased childcare expenses
• Loss of basic dental coverage for the children
• Loss of prescription drug coverage that doesn’t require payment upfront
• Loss of back to school benefits
• Loss of winter clothing allowance
• Becomes ineligible for special diet allowances where required
• Loses community start-up benefits for a medically necessary move
He or she will begin to pay net federal taxes at approx. $1,600 a month net income
Her or his Ontario sales tax credits could be reduced.
Many Impediments To Moving From Social Assistance To Working
Research Highlights: IssuesResearch Highlights: Issues
- 18 -
High Marginal Tax Rates At Low Incomes Due To Benefit Loss When Moving From SA To Work And As Incomes Increase
Marginal Effective Tax Rates in Ontario (%) in 1996 and 2000For One Earner Couple With Two Children on Social Assistance
Marginal Tax Rate %
Income $
-20
0
20
40
60
80
100
120
0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000-20
0
20
40
60
80
100
120
1996
2000
Source: OECD, Economic Surveys Canada, 1999-2000, cited in Lightman, Ernie. Social Policy in Canada. Toronto: Oxford University Press, 2003Note from Prof. Ernie Lightman: “The OECD indicates that these data don’t include loss or reduction of in-kind benefits (e.g.: extended health care, subsidized rent, or child care) as incomes rise- which would raise the marginal tax rates for low income households even higher, in excess of 100% in some cases”
Research Highlights: IssuesResearch Highlights: Issues
- 19 -
Ageing Population To Decrease Labour Force Participation Constraining Economic Growth
Fewer Working Canadians to Support Growing Numbers of Retirees
Labour Force Participation 67% 60%
Old-age Dependency Ratio1 5.3 2.7
2003 2030
Canadian Labour Force Growth Projected to Flatten
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
1977 1981 1985 1989 1993 1997 2001 2005 2009 2013 2017 2021 2025 2029
Source: Statistics Canada, TD Economics
Y/Y % change
Forecast
Getting Canadians out of the income security trap and into the labour force would boost all incomes
Getting Canadians out of the income security trap and into the labour force would boost all incomes
(1) Ratio of people aged 15 to 64 to people aged 65+ Source: TD Economics: 2030 Vision- A long-Term Economic Forecast For Canada, Eric Lascelles, July 2004.
Research Highlights: IssuesResearch Highlights: Issues
- 20 -
Principles For Reform Of The Income Security System For Working Age Adults (I)
The Task Force envisions an income security system for working-age adults that treats people with dignity, reinforces the value of work, and does not leave those for whom “work is a distant prospect” to live in destitution.
A modern income security system would expect and encourage individuals to assume personal responsibility for taking advantage of opportunities for engagement in the workforce or in community life. That system would be guided by the following principles:
• Everyone should have access to basic necessities (food, clothing, shelter, and personal hygiene) through an appropriate mix of personal resources including: earnings from work, insured services (e.g. health), income security, and other supports (e.g. access to affordable housing and quality childcare)
• Individuals working full-time, full-year should not live in poverty.1 They should have a decent standard of living and they should be financially better off working than not working
(1) Note: Average hours for minimum wage workers fall short of full-time hours at 31 to 32 /hours per week versus 37.5 to 40 hours for full-time
PrinciplesPrinciples
- 21 -
Principles For Reform Of The Income Security System For Working Age Adults (II)
• Children should not be an impediment to parents’ participation in the labour market, and parents’ participation in the labour market should not put their children’s well-being at risk
• Everyone should have the means to improve their situation through:
- appropriate skills training and employment supports
- decent job opportunities that meet legal employment standards, and
- opportunities for community service if work is not a viable option.
PrinciplesPrinciples
- 22 -
Summary Of Recommendations (I)
Multiple levers are required for a robust social safety net. We recommend the following reforms for Canada and Ontario:
The federal government should:
• Reform Employment Insurance to address the significant decline in coverage of the unemployed and the related decline in access to employment supports and training.
• Create a new refundable tax benefit consisting of a basic tax credit for all low-income working-age adults and a working income supplement for low-income wage earners.
• Provide and administer a national disability income support program for persons whose disabilities are so substantial that they are unlikely to enter the paid labour force.
The Task Force also supports the recommendations made by others to increase the National Child Benefit to an adequate level.
RecommendationsRecommendations
- 23 -
Summary Of Recommendations (II)
The provincial government should:
• Establish an independent body, with representation from labour and employers, to recommend periodic increases to the minimum wage and monitor the employment and economic effects. It should be put in place before February 2007 when currently planned minimum wage increases will have been completed.
• Implement an integrated child benefit platform for all low-income parents with children that pays benefits outside the social assistance system.
• Provide basic health (prescription drugs and vision care) and dental coverage to low-income workers.
• Strengthen enforcement of employment standards to protect the rights of workers under the law with a focus on employers that are high risk to offend. Up-date and expand current employment standards to cover new forms of work.
RecommendationsRecommendations
- 24 -
Summary Of Recommendations (III)
The provincial government should (cont’d):
• Raise social assistance asset limits to $5,500 for a single person and $9,000 for a family, along with other improvements in asset treatment.
• Revamp the disability determination process for the ODSP to streamline decision-making and provide support services to applicants earlier.
• Reinstate earlier provincial policies to set disability benefits at the same levels received by senior citizens who have no other source of income.
• Improve and expand employment supports, training and upgrading for social assistance recipients, as well as for low-income workers.
• Provide of OW recipients who have multiple barriers to work with special supports to encourage participation in community activities and longer-term capacity building.
• Allow persons receiving ODSP who can work despite their disability to participate in the labour market without jeopardizing health and dental coverage.
• Upload social assistance benefits costs for municipally delivered OW, and all social assistance costs for provincially delivered ODSP, from municipalities to the province.
RecommendationsRecommendations
- 25 -
Supporting Points for Recommended Integrated Child Benefit Platform
With the creation of the National Child Benefit in 1998 and its subsequent growth, benefits for children have become very significant
All stakeholders agree with ending the “NCBS Clawback” from social assistance recipients
• Advocates believe the clawback should be ended by returning the clawed back amounts to social assistance recipients in the form of higher social assistance payments.
• The Task Force agrees with the original objectives of the NCB, several other provinces, Ontario Municipalities and others that the clawback should be ended by creating a provincial platform of child benefits for all low income families with children.
Rather than having two very significant benefit programs for poor children in the form of children’s amounts in Social Assistance; and The Canada Child Tax Benefit (CTB and NCBS)
• It proposes that social assistance child rates, the Canada Child Tax Benefit and other child benefits all be rolled into an overall Ont. benefit payable to low income families with children.
Outcomes:
Social assistance would no longer have children’s rates, lowering the welfare wall as having children will no longer be an impediment to securing and obtaining better employment (i.e. children’s benefits currently under welfare would not be lost with employment)
Ontario would help pave the way for a national income platform for low income children.
The unpopular clawback would be ended.
Recommendations: Back-upRecommendations: Back-up
- 26 -
Potential Architecture For Canada’s Adult Benefits In Ontario S
ocial fu
nd
; integ
rate emerg
enc
y welfare o
ver tim
e (pro
vinc
ial, mu
nicip
al)
Ch
ild b
en
efit platfo
rm; ad
equ
ate ben
efit levels
(federal, p
rovin
cial)
Dru
g, d
en
tal, oth
er health
ben
efits (pro
vincial)
Short-term support for ‘employable’
adults
For low income working adults
Medium-to-long term support for
‘harder to employ’ adults
Persons with disabilities
Federal
Provincial
Provincial
Independent body to recommend and monitor min. wage increases; better enforced employment stds
Income-tested working income supplement
‘Rebalanced’ EI coverage; improved access to EI ‘Part II’
(employment supports, training, maternity and parental leave)
Improved asset treatment and opportunity planning orientation;
residual welfare system
ODSP benefits in line with seniors’; revamped up-front application process; other improvements
For all low income working age adults1
New Integrated Tax Benefit Program(1) All 18 to 64 year olds including persons with disabilities(2) Independent body would include representatives from employers and labour and would monitor of effects of increases on economy and employment
Train
ing
and
emp
loym
ent su
pp
orts (fed
eral,
pro
vincial, m
un
icipal)
Fin
ancia
l literacy services (p
rovin
cial, mu
nic
ipal)
Target Group Jurisdiction Programs (Jurisdiction)
Federal
Provincial
Federal
Basic refundable income-tested tax benefit; some restrictions on
eligibility
Rela
ted p
rog
ram
s, e.g
.: afford
able h
ou
sing
, im
mig
rant settlem
en
t
Back-upBack-up
- 27 -
Refundable Tax Credit (RTC) And Working Income Supplement (WIS): Effects On Income As Transition From SA To Working
0
500
1000
1500
2000
2500
3000
3500
4000
3,000 5,500 8,000 10,500 13,000 15,500 18,000 20,500
RTC
WIS
RTC + WIS
Annual Benefits ($)
Annual employment income ($)
$1,800:Max RTC
$3,000:Max RTC + WIS
$2,400:Max WIS
$5,000:Min wage @ 11.5 hrs/wek
$12,896:Min wage @
31 hrs/wek
$21,4806:NCBS begins
phasing out
Back-upBack-up
- 28 -
Effect of Potential Reform on Low Income Single With No Children
$0
$250
$500
$750
$1,000
$1,0752
$1,4003
$1,700 ($10/hour)
$1,790 at phase out4
Monthly Earned Income1
Old
536
661
786
911
1,000
1,075
1,400
1,700
1,790
Total Income $/Month Increase
in Income6
$131
$130
$158
$192
$237
$249
$122
$34
$1
(1) $8.00 minimum wage at February 2007 is used here(2) Minimum wage at average hours (31 hours)(3) Minimum wage full-time(4) Phase out point of the new tax credits is $1,790/month (above $21,480/year)(5) OW provides emergency coverage for adults which ceases when earned income reaches $1,072/month
and the single person becomes ineligible for OW(6) Includes effect of repurposing the GST credit
Old5
Limited
Limited
Limited
Limited
None
None
None
None
None
New
Available
Available
Available
Available
Available
Available
Available
Available
Available
In-Kind Benefit e.g. dental, prescription drugs
New
667
791
944
1,103
1,237
1,324
1,522
1,734
1,791
Back-upBack-up
- 29 -
Effect of Potential Reform on Lone Parent With One Child; Childcare Provided1
$0
$250
$500
$750
$1,000
$1,0753
$1,4004
$1,700 ($10/hour)
$1,790 at phase out5
Monthly Earned Income2
Old
1,100
1,235
1,365
1,490
1,615
1,653
1,815
1,965
2,040
$/Month Increase
in Income7
$112
$102
$117
$164
$221
$223.5
$101
$123
$105
(1) Earnings exemptions that apply to informal childcare are not included in these figures(2) $8.00 minimum wage at February 2007 is used here(3) Minimum wage at average hours (31 hours)(4) Minimum wage full-time(5) Phase out point of new tax credits is $1,790/month (above $21,480/year)(6) OW provides coverage for children and emergency only for adults. It continues in lone
parent case as maximum earnings level allowed while on OW is approx. $2,620/month(7) Includes effect of repurposing the GST credit
Old6
Limited
Limited
Limited
Limited
Limited
Limited
Limited
Limited
Limited
New
Available
Available
Available
Available
Available
Available
Available
Available
Available
In-Kind Benefit e.g. dental, prescription
drugs
New
1,222
1,337
1,482
1,654
1,836
1,876.5
1,964
2,088
2,145
Total Income
Back-upBack-up
- 30 -
1. The Recently Unemployed:• Had a steady job and lost it• Looking for work
3. Employed at Low Wages:• Working for less than $10 an hour and living in a low wage
household• Can’t make ends meet
Before• EI for 30% to 40% of income• Social Assistance for rest• CTB/NCBS• Small/mixed refundable
credits• Little prospect of minimum
wage increases
After• EI increased• Reduced reliance on Social
Assistance• Integrated Child Benefit• Refundable Credit System• Prospect of modest wage
increases
Before• Social assistance top-ups for
few• CTB/NCBS Small/mixed
refundable credits• No EI• Little prospect of minimum
wage increases
After• Working Supplement (WITB)• Social Assistance role reduced• Refundable Credit System• Prospect of modest wage
increases
2. The Longer Term Unemployed:• Out of work• EI exhausted• Looking for work
4. Never in Wage Employment:• Persons with disabilities; some young lone parents• Severely addicted; youth at home• Long term unemployable; new immigrants
Before• EI for 25% to 35% of income• Social Assistance• CTB/NCBS• Small/mixed refundable
credits• EI Part II reach-back• Little prospect of minimum
wage increases
After• EI increased• Reduced reliance on Social
Assistance• Integrated Child Benefit• Refundable Credit System• Prospect of modest wage
increases
Before• No EI• Social Assistance reduced
by NCBS • Small/mixed refundable
credits• Limited labour market
programs
After• Restructured Social Assistance
with adult benefit; reduced reliance
• Integrated Child Benefit• Refundable Credit System• Prospect of modest wage
increases• Improved access to specialized
training
Effect Of MISWAA Proposals (Before And After) On Income Sources And Employment Supports For Four Target Populations
Back-upBack-up
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Estimated Costs Of MISWAA’s Proposals
The estimated cost of the MISWAA proposal for a new refundable tax benefit for working-age adults is $8.5 billion annually for all of Canada, including $3.1 billion annually for Ontario. There is also an incremental cost for MISWAA proposals to the Ontario government, which is estimated to be $1.45 billion annually.1
Federal Costing
Costs Per Year Jurisdiction
(billions) OntarioRest ofCanada
CanadaTotal
Basic credit $2.50 $4.50 $7.00(GST repurposed) ($0.50) ($1.20) ($1.70)Working credit $1.10 $2.10 $3.20
Total Cost $3.10 $5.40 $8.50
Provincial Costing Incremental Cost Per Year ($billions) Child benefits restructuring $0.85 ODSP rates $0.20 Dental $0.10 Drug $0.20 Social fund $0.10 Total Cost $1.45
(1) Costs for some recommendations were not included because the programs are already in place or the Task Force is endorsing the positions taken by others (e.g. cost of proposed increase in the NCB), or the data necessary to do the costing wasn’t available (e.g. cost to reduce hours of eligibility for EI)
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Areas Where Some Task Force Members Have Alternative Views
Matters of principle, e.g.: what constitutes adequacy and roles of society, the individual, the labour market and the income security system in delivering it
Extent and specificity of EI reform (rebalanced coverage or uniform entrance requirements; reduced hours for eligibility versus minimum 360 hr. requirement)
Income supplementation combined with modest minimum wage increases (versus significant minimum wage hikes in near term)
New tax credits (versus large social assistance benefit increases)
Common platform for Federal and Provincial children’s benefits (versus increasing children’s benefits in social assistance)
Which level of government should design and deliver new income security programs (most believe that the federal government should play a larger role but some believe that provinces are better positioned)
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Task Force MembersCo-chairs
David Pecaut – Chair, Toronto City Summit Alliance; Senior Partner, The Boston Consulting Group
Susan Pigott – CEO, St. Christopher House
Members
Ken Battle – President, The Caledon Institute2
Jill Black – MISWAA Project Director; J.E. Black & Co.
Peter Bleyer, Exec. Dir., Canadian Council on Social Development
Paul Born - President, Tamarack Institute
Bob Brown – Ex-Chair, PricewaterhouseCoopers
Joanne Campbell – VP, Community Relations, CAMH
John Cartwright – President, Toronto and York Region Labour Council
Jacquie Chic – Director of Advocacy & Legal Services, ISAC2
Martin Connell – Chair, Toronto Community Foundation
Sue Cox – Past Exec. Director, Daily Bread Food Bank
David Crombie – President & CEO, Cdn Urban Institute
Mary Louise Dickson – Partner, Dickson, MacGregor, Appell LLP
Debbie Douglas – Executive Director, OCASI
Don Drummond – SVP & Chief Economist, TD Bank Financial Group
Rev. Susan Eagle – City Councilor, City of London2
Ken Georgetti – President, Canadian Labour Congress
Nathan Gilbert – Exec. Director, Laidlaw Foundation
Amy Go – Exec. Director, Yee Hong Centre
Anne Golden – President & CEO, The Conference Board
Malcolm Hamilton – Partner, Mercer Human Resourse Counsulting
Chaviva Hosek – Pres. & CEO, Cdn Institute For Advanced Research
Shirley Hoy1 – CAO, City of Toronto
Ahmed Hussen - Past President, Regent Park Community Council
Warren Jestin - Senior Vice-President & Chief Economist, Scotiabank
David Kerr - Chairman, Falconbridge Ltd.
Karen Kuwahara – President, Nestle Purina Canada
Deena Ladd – Coordinator, Workers Action Centre2
Frances Lankin – Pres. & CEO, United Way of Greater Toronto
Ernie Lightman – Prof, Univ. of TO Sch of Social Work, SANE Project2
Judi Longfield1 - Past MP, Whitby-Oshawa and Parliamentary Sec. to the Min. of Labour and Housing
Hugh MacKenzie – Independent2
Dr. Deb Matthews1 –MPP London North Centre and Parliamentary Assist. to Min. of Community and Social Services
Judith Maxwell - Past President, Canadian Policy Research Networks
Bill MacKinnon - Chairman & CEO, KPMG
Michael Mendelson – Senior Scholar, The Caledon Institute2
Peter Nares - Exec. Dir., Social and Enterprise Development Innovations
Marvyn Novick - Professor of Social Policy, Ryerson University
Gail Nyberg, Executive Director, Daily Bread Food Bank
Ratna Omidvar – Executive Director, The Maytree Foundation
Francois Paroyan - Snr. Dir., Labour Relations, George Weston Ltd.
Charles Pascal – Exec. Director, Atkinson Charitable Foundation
Bob Rae - Partner, Goodmans LLP
Bill Robson – SVP & Research Director, C.D. Howe Institute
Anne Sado – President, George Brown College
Yves Savoie – Exec. Dir., Family Service Association of Toronto
Katherine Scott, VP Research, Canada Council on Social Development
Hugh Segal1 - President, Institute for Research on Public Policy
Ed Segalowitz – VP, United Jewish Appeal Federation
Peter Sloly- Superintendent, Toronto Police Service
John Stapleton – MISWAA Research Dir.; St. Christopher House Fellow
Janice Stein – Director, Munk Centre for Int’l Relations at U of T
George Thomson – Exec. Director, National Judicial Institute
Sherrie Tingley – Social Policy Activist(1) Ex-officio members(2) Members or organizations that submitted alternative views for the Task Force’s report
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Working Group Members
Co-chairs
Jill Black – MISWAA Project Director, J.E. Black & Company Ltd.
John Stapleton – MISWAA Research Dir., St. Christohper House Fellow
Members
Pedro Antunes - Dir., EconForecasting, Conference Board of Can.
Keith Banting – Professor, Queen’s School of Policy Studies
Pedro Barata – Outreach and Comm., The Atkinson Charitable Fdn.
Harry Beatty – Harry Beatty Consulting
Juana Berinstein - Past Policy Coordinator, Workers Action Centre
Sarah Blackstock, Research & Policy Analyst, ISAC
Dan Buchanan – Sigma-3 Policy Research Inc
Janet Dassinger - Exec. Dir., Labour Education Centre
Carol Deacon – Past Research & Policy Anlyst, ISAC
Greg deGroot-Maggetti- Policy Analyst, Citizens for Public Justice
Rick Eagan – Community Dev. Coord, St. Christopher House
Maureen Fair – Dir., St. Chris. House Comm. Response and Advocacy
Lydia Fitchko1 - Dir., Social Policy, Analysis & Research, City of Toronto
Aaron Good – Case Team Leader, Bain & Company
Shelly Gordon - CUPE Research
John Greenwood - CEO, Social Research & Demonstration Corporation
Dean Herd – University of TO School of Social Work, SANE Project
Andrew Jackson – National Dir., Policy, The Canadian Labour Congress
Alex Johnston1 - Special Assist. - Justice Policy, Office of the Premier
Tom Klassen – Associate Professor and Coordinator of the Public Policy and Administration Program, Dept. of Political Science, York University
Ernie Lightman – Prof., Univ. of Toronto School of Social Work, SANE
Pamela Loprest – Senior Research Associate, The Urban Institute
Susan MacDonnell, Dir. Of Research, United Way of Greater Toronto
Gillian Manning – Vice President, TD Asset Management
Alan Meisner1 - Snr. Policy Analyst, Social Dev. & Admin Div., Toronto
Michael Mendelson – Senior Scholar, The Caledon Institute
Andy Mitchell - Univ. of TO School of Social Work, SANE Project
Liz Mulholland – Consultant, Mulholland Consulting
Alain Noel – Professor, University of Montreal
Michael Oliphant – Manager, Dept. of Public Education, Policy & Research, Daily Bread Food Bank
Finn Poschmann – Assoc. Dir. of Research & Senior Policy Analyst, C.D. Howe Institute
Barney Savage – Snr. Policy Advisor, United Way of Greater Toronto
Ron Saunders – Dir, Work Network, Cdn Policy Research Networks
Katherine Scott – VP Research, Cdn Council on Social Development
Gilles Seguin - Webmaster, Canadiansocialresearch.net
Richard Shillington – Principal, Tristat Resources
Anita Srinivasan – Program Manager, Leadership Initiatives, Maytree
Anne Tweddle- MISWAA Research Analyst
Mary Webb – Senior Economist, Scotiabank
Tom Zizys- Consultant, Downtown East Com. Development Collective
Observers:
Joe Manion, Dir. Social Services, Community and Neighbourhood Services, City of Toronto
Stuart Sykes - Policy Research Officer, Policy Research Initiative
(1) Ex-officio members