task force on modernizing income security for working age adults (miswaa) process, highlights of...

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


- 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


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


- 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



(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


- 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


- 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


- 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


- 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


- 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”


- 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.


- 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.


- 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.


- 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

task force on modernizing income security for working age adults (miswaa) process, highlights of...

Documents

maytree foundation

toronto region

law foundation of ontario

modernizing income security

current income security

community organizations

task force report

sponsor process slide