welfare fact sheet

7/31/2019 Welfare Fact Sheet

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The MLA Welfare ChallengeCan you Live on $610 a month?

Raise the Rates: www.raisetherates.org

25 Years since Emery Barnes Where are We Now?Justice not Charity

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Who Gets Welfare?As of November 2011 there were over 82,000 Temporary Assistance welfare clients in BC.Clients describes all in the members of a household dependent on welfare so includes thechildren and partners in families of people on welfare. Over half of the clients involved familieswith children.

Temporary Assistance Welfare Clients, June 2011Number Per cent

Single People 37,443 45%Couples 2,288 3%Two Parent Families 7,183 9%Single Parent Families 35,397 43%Total 82,311

Ministry of Social Development, BC Employment and Assistance Summary Report, 2011http://www.hsd.gov.bc.ca/research/11/12-nov2011.pdf

There were a further 95,817 clients on Disability Assistance.

Disability Assistance Clients, June 2011Number Per cent

Single People 70,588 74%Couples 6,340 7%Two Parents Families 6,423 7%Single Parent Families 12,466 13%Total 95,817 100%


In November 2011 a total of 178,128 people in BC live on welfare .One in 25 people in BC live on welfare. If BCs 85 MLAs were representative of the economiccircumstances of BCs population, 3 MLAs would always be living on welfare.

Number of People on Welfare has IncreasedThe number of people on Temporary Assistance has dropped in the last few months, (partly dueto seasonal factors) while the number on Disability has increased. Overall the total number of

people on welfare has increased by nearly 43,000, 34%, in the 5 years since 2006.

Total Number of Welfare ClientsTotal

2006 132,606November 2011 178,128

Change 45,552Increase % 34%

Ministry of Social Development, BC Employment and A ssistance Summary Report, 2011http://www.hsd.gov.bc.ca/research/11/12-nov2011.pdf
http://www.raisetherates.org/http://www.hsd.gov.bc.ca/research/11/12-nov2011.pdfhttp://www.hsd.gov.bc.ca/research/11/12-nov2011.pdfhttp://www.hsd.gov.bc.ca/research/11/12-nov2011.pdfhttp://www.hsd.gov.bc.ca/research/11/12-nov2011.pdfhttp://www.raisetherates.org/http://www.hsd.gov.bc.ca/research/11/12-nov2011.pdfhttp://www.hsd.gov.bc.ca/research/11/12-nov2011.pdfhttp://www.hsd.gov.bc.ca/research/11/12-nov2011.pdf


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Recession HitsThe number of clients on Temporary Assistance: Expected to Work has soared since 2006,doubling by 2010. As the recession hit in 2008 and people lost their jobs, they were pushed ontowelfare. This continued to grow as unemployed peoples EI ran out and they have to survive onwelfare. In the last year the numbers have dropped slightly but there still has been a 75%increase since 2006. Now there are growing fears that the world economic prospects are gettingworse again and BCs unemployment shows signs of starting to climb up again, and it has never recovered from the jobs losses since 2008.

Temporary Assistance Clients: Expected to Work (With no Medical Conditions)

SingleMen

SingleWomen Couples

TwoParentFamilies

SingleParentFamilies

Total

2006 7,279 3,966 1,302 4,008 10,727 27,2822007 8,764 4,471 1,227 3,785 10,129 28,3762008 10,917 5,298 1,183 4,268 10,944 32,6092009 17,391 7,450 1,804 7,015 14,529 48,1882010 19,342 8,402 1,858 7,647 16,106 53,355November, 2011 16,739 7,984 1,472 6,314 16,111 48,620Number Increase 9,460 4,018 170 2,306 5,384 21,338Increase % 108% 90% 14% 61% 53% 75%


Temporary Assistance Clients: Expected to Work, without a MedicalCondition

0

10,000

20,000

30,000

40,000

50,000

60,000

2006 2007 2008 2009 2010 Nov-11

Single Parent Families

Two Parent Families

Couples

Single Women

Single Men
http://www.raisetherates.org/http://www.hsd.gov.bc.ca/research/11/12-nov2011.pdfhttp://www.raisetherates.org/http://www.hsd.gov.bc.ca/research/11/12-nov2011.pdf


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Households on WelfareWhen the same data is looked at from the point of view of households, cases, rather thanindividuals, clients, the picture as equally grim. The number of cases (households) of peoplereceiving Temporary Assistance (Expected to Work With no Medical Conditions) has nearlydoubled since 2006.

Temporary Assistance Cases: Expected to Work (With no Medical Conditions) Expectedto Work

2006 16,872November, 2011 33,047Increase 16,175% Increase 96%


Other Welfare ClientsThe number of people on other categories of Temporary Assistance (Expected to Work -Medical Condition, Temporarily Excused and Persons with Persistent Multiple Barriers) andthose receiving Disability Assistance are less influenced by the state of the economy as they aremostly unable to work due to a number of medical and other government approvedcircumstances. But still, the number of people in these categories has increased by 23% to over 129,000 in the last 5 years.

Other Welfare ClientsExpected to Work -Medical Condition

TemporarilyExcused

PersistentMultiple Barriers

Persons withDisabilities Total

2006 8,825 14,961 9,755 71,784 105,325November,2011 7,205 15,876 10,610 95,817 129,508Change -1,620 915 855 24,033 24,183Increase % -18% 6% 9% 33% 23%


The number of people on Disability Assistance, 93,587, is the highest since at least 1995.
http://www.raisetherates.org/http://www.hsd.gov.bc.ca/research/11/12-nov2011.pdfhttp://www.hsd.gov.bc.ca/research/11/12-nov2011.pdfhttp://www.raisetherates.org/http://www.hsd.gov.bc.ca/research/11/12-nov2011.pdfhttp://www.hsd.gov.bc.ca/research/11/12-nov2011.pdf


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Living Below the Poverty LineAll people on welfare are living below the poverty line. Most are far below the poverty line.

Welfare Rates and PovertyHousing(Monthly

$)

Support(Monthly

$)

Total(Monthly

$)

AnnualIncome

($)

PovertyLine

($)

Per cent of

PovertySingle Person (under 65) 375 235 610 7320 19,342 38%One Parent Family with 2children

660 376 1036 12432 29,314 42%

Single Person with PersistentMultiple Barriers (PPMB)(under 65)

375 283 658 7896 19,342 41%

Single person (over 65) 375 531 906 10872 19,342 56%Couple (over 65) 570 949 1519 18228 23,541 77%Welfare rates from BC Ministry of Social Development: http://www.hsd.gov.bc.ca/mhr/ia.htm Poverty Line based on Low income cut-offs (1992 base) after tax for 2010 (from Stats Canada:http://www.statcan.gc.ca/pub/75f0002m/2010005/tbl/tbl01-eng.htm Multiplied by inflation rate between 2009 and 2011 of 5% from Bank of Canada Inflation calculator

In 2011 the average wage in BC was $827 a week or $43,000 a year. (BC stats)

Comparing BC's Average Wage, Poverty Line and WelfareIncome

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

SinglePerson

(under 65)

SinglePerson withPMB (under

65)

Singleperson

(over 65)

One ParentFamily with2 children

Couple(over 65)

A n n u a l

I n c o m e

( $ ) Welfare Annual

Income ($)

Poverty Line ($)

BC Average Wage

Poverty damages individuals, communities and all of Canada.As the Canadian Senate stated in 2009,

P overty costs us all. Poverty expands healthcare costs, policing burdens and diminished educational outcomes. This in turn depresses productivity, labour force

flexibility, life spans and economic expansion and social progress, all of which takes place at huge cost to taxpayers, federal and provincial treasuries and the robust potential of the Canadian consumer economy .

The Standing Senate Committee on Social Affairs, Science and Technology, Report December 2009(http://intraspec.ca/rep02dec09-e.pdf)
http://www.raisetherates.org/http://www.hsd.gov.bc.ca/mhr/ia.htmhttp://www.hsd.gov.bc.ca/mhr/ia.htmhttp://www.statcan.gc.ca/pub/75f0002m/2010005/tbl/tbl01-eng.htmhttp://www.statcan.gc.ca/pub/75f0002m/2010005/tbl/tbl01-eng.htmhttp://www.raisetherates.org/http://www.statcan.gc.ca/pub/75f0002m/2010005/tbl/tbl01-eng.htmhttp://www.hsd.gov.bc.ca/mhr/ia.htm


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In addition to the welfare payment there are other monies people on welfare may receive. Asingle person receives a Christmas supplement of $35 and families receive $70 plus $10 per child. There are also modest tax credits, ranging from less than $40 a month for a single personto $100 a month for a couple with 2 children. However these do not significantly change the

poverty levels.

People with children across Canada receive various child benefit payments. Parents on welfaredo receive these payments. However some of these benefits are dependent on previous income or come from the federal government, rather than the province. It can be a maze to claim some andin addition the rules and amounts and how one payment impacts on another keep changing. (See

below for more information.)

However these child benefit payments are not specifically for people on welfare, so do notchange the point that welfare payments are poverty payments.
http://www.raisetherates.org/http://www.raisetherates.org/


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The Maze and Obstacle Course of WelfareWho can qualify?To qualify for welfare a person has to meet several conditions. The requirements include: If eligible for other income or other means of support, to pursue and accept the other income

or means of support They must pursue, accept, and use all other income to support themselves before receiving

assistanceFor most Temporary Assistance clients a person has to be unemployed, searching for work, andhave very limited assets.

To qualify for Disability welfare a person has to meet the governments criteria and thedesignation can be ended by the government. The criteria include have a severe mental(including a mental disorder) or physical impairment that meets all of the following: in the opinion of a medical practitioner , the impairment is likely to continue for at least two

years in the opinion of a prescribed professional , the impairment directly and significantly restricts

the persons ability to perform daily living activities either continuously or periodically for extended periods

as a result of those restrictions, the person requires an assistive device , the significant help or supervision of another person, or the services of an assistance animal to perform daily livingactivities.

Barriers to WelfareThere are many barriers to getting (and keeping) the low levels of welfare. In 2003 the government closed 36 welfare offices making it harder for people, especially in

smaller communities, to access welfare and the offices. To receive welfare a person has to be virtually destitute. A single person is allowed total

assets of $1,500 and cash assets of less than $150. For couples and single parent families theyare can only have assts of $2,500 and cash of $250.

Once a person applies they have to wait 3 weeks before they receive any money. How is afamily supposed to live on $250 for three weeks?

If a person owns a car worth more that $5000 they are not eligible for welfare. To receive welfare most people have to have been financially independent for at least two

consecutive years, beforehand.

Barriers to Getting back to Work Although the government says that welfare is designed as temporary support while helping

people seek employment, the welfare rules create barriers to getting back to work.

Many people need a transitional phase from welfare to work often starting with voluntary work,training or part-time work. All of these can lead to fulltime employment but in the interim do not

provide enough income to live on.

Yet Welfare claws back very penny someone earns (apart from the people with Disabilities andPersistent Multiple Barriers). Before 2002 a single person could keep $100/month of earnings.


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Other NecessitiesAs well as eating and having a roof people need to spend money on travel, clothes, personalhygiene, etc. This is especially true as most people on welfare are required to look for work, or their welfare can be cut, so they need to be clean, have good clothes, pay for a phone and travel.

Cost of Necessities for a Single Person apart from Food and Shelter Budget Item Examples $Household supplies (*) Laundry, cleaning 15Clothing (*) 71Personal Hygiene (*) Haircuts, soap, toothpaste 22Transport (+) Two Zone Pass 110Sources: * Still Left Behind, SPARC, 2008; http://www.sparc.bc.ca/resources-and-publications/doc/131-report-still-left-behind-2008.pdf , and + Translink

Further NeedsWelfare does not include dental care for single people and some other medical expenses. There isno money for any leisure whether it is buying a book, newspaper or a radio. Of course a cup of coffee, a couple of beers or going to a movie or a play is out of the question. And a holiday never.

ImpossibleA single person on welfare can either eat or stay clean. They have no money for a life.
http://www.raisetherates.org/http://www.sparc.bc.ca/resources-and-publications/doc/131-report-still-left-behind-2008.pdfhttp://www.sparc.bc.ca/resources-and-publications/doc/131-report-still-left-behind-2008.pdfhttp://www.sparc.bc.ca/resources-and-publications/doc/131-report-still-left-behind-2008.pdfhttp://www.raisetherates.org/http://www.sparc.bc.ca/resources-and-publications/doc/131-report-still-left-behind-2008.pdfhttp://www.sparc.bc.ca/resources-and-publications/doc/131-report-still-left-behind-2008.pdf


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Single Parent Families cannot afford to Live or raise Healthy ChildrenA single parent family with a child receives $570 a month for shelter and $376 a month for support.

In addition they, like almost all parents, receive child benefit payments from the Federalgovernment including: Canada Child Tax Benefit which is made up of a Basic Benefit and National Child Benefit

Supplement Universal Child Care BenefitAnd from the BC government: Basic Family Bonus

The Canada Child Tax Basic Benefit is a non-taxable benefit of $113.92 per month for eachchild under 18 years of age. The National Child Benefit Supplement amounts are:

$176.50 per month for the first child; $156.00 per month for the second child; and $148.50 per month for each additional child.However there are conditions to these monies. These benefits are varied depending on previousyears earnings, so if a family had a reasonable paying job and has become unemployed and onwelfare they will not receive all of these payments.

Universal Child Care Benefit is a taxable benefit of $100 a month per child to eligible familieswith children under 6 years of age.

The BC Basic Family Bonus is up to a maximum of $123.50 for each child to age 19 years.However, the benefit is not paid on top of the Federal payments, so if the federal payment isgreater $123.50 per child, which is usually the case, the parent(s) do not receive any BC Bonus.These payments are made to all families so are not directly part of the welfare system.

Welfare Doesnt cover cost of Living and Housing

Welfare Housing Allowance (Monthly)The Housing Allowance is calculated based on number of people in the household; the allowancefor a 2-person household is $570, for a 3-person household is $660 and $700 for a 4-personhousehold.

So a single parent with 2 children would receive $660 a month for housing, while a couple with2 children would receive $700. This allowance is far below average rents in Greater Vancouver,so families either have below average housing or have to share rooms, in fact in no area of greater Vancouver is the average rent for a 2 bedroom apartment less than $800 and in mostareas it is around $1,000. ( From Canada Mortgage and Housing Corporation)http://www.cmhc-schl.gc.ca/odpub/esub/64467/64467_2011_A01.pdf?fr=1325364779000
http://www.raisetherates.org/http://www.cmhc-schl.gc.ca/odpub/esub/64467/64467_2011_A01.pdf?fr=1325364779000http://www.cmhc-schl.gc.ca/odpub/esub/64467/64467_2011_A01.pdf?fr=1325364779000http://www.raisetherates.org/http://www.cmhc-schl.gc.ca/odpub/esub/64467/64467_2011_A01.pdf?fr=1325364779000


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Cost of Food and LivingIn 2008 SPARC estimated the actual support costs for a Single Parent and one Young Child for amonth.

Cost of Necessities for a Single Parent & 1 young Child apart helter Budget Item Examples $Food (*) 270Household supplies (*) Laundry, cleaning 28Clothing (*) 94Personal Hygiene (*) Haircuts, soap, toothpaste 29Transport (+) Two Zone Pass 110Other costs (*) Books, trips and treats 317Total 848Sources: + Translink and * Still Left Behind, SPARC, 2008; http://www.sparc.bc.ca/resources-and-publications/doc/131-report-still-left-behind-2008.pdf

Punishing ChildrenChildren of a parent in receipt of welfare do get extended medical coverage but the developmentof a healthy child is about much more than covering the costs when they are ill. There is childcare subsidy but it does not cover the real costs of childcare so a single parent actively lookingfor work which they are required to do has to subsidize good child care out of their meagresupport money, such as spending even less on food. Once the child is 3 years old the parent faceshaving their welfare cut if they do not find a job or follow the governments instructions to seek work.

There is no provision in welfare to provide for books and other reading materials, a computer,recreation and leisure, non-prescription medicines, and occasion treats for children. Any parentknows that good child care and mental and educational stimuli are vital for the healthydevelopment of a child. Yet the government makes no allowance for developing mentally,emotional and physically healthy children.

In addition to not having enough money to raise a child, there are further barriers facing single parents.

Until 2002, employable single parents were entitled to keep $200 earnings a month, but now theyare not allowed to keep any.

Welfare Lone Parent not allowed child support from former partners.Since 2002 lone parents are not allowed to keep any child support money they received from ex-

partners; the government claws back every dollar of child support payments. And the ex-partner pays income tax on this contribution, so the government takes twice! Before 2002 lone parentscould keep up to $100 per month of support money.


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Historic Welfare rates since 1980

In 1986 Emery Barnes, MLA for Vancouver Centre, spent a month on welfare. At the endhe said the welfare for a single person should be $700. Today that would be $1,290 amonth. After he had lived on welfare, the rates were modestly increased from $375, whichit had been since 1981, to $384.

Changes in Welfare Rate for Single Able-bodied Person under 65

Year Shelter $Support$

Total$

1981 Payment Adjusted for Inflation

1981 170 205 375 3751982 200 175 375 4181986 209 175 384 5041987 250 175 425 527

1989 275 243 518 5731990 300 250 550 6021992 325 250 575 6501997 325 175 500 7002002 325 185 510 5102007 375 235 610 8662011 375 235 610 930

Inflation Adjustment is based on Bank of Canadas Inflation Calculator (http://www.bankofcanada.ca/rates/related/inflation-calculator/ ) June 2011

BC Welfare Rate for Single Person

0

100

200

300

400

500

600

700

800

900

1000

1981 1986 1991 1996 2001 2006 2011

Year

$ Total Welfare

Inflation

If the Welfare Rate, which was inadequate then, had kept in line with inflation since 1981 itwould be $930 today.
http://www.raisetherates.org/http://www.bankofcanada.ca/rates/related/inflation-calculator/http://www.bankofcanada.ca/rates/related/inflation-calculator/http://www.raisetherates.org/http://www.bankofcanada.ca/rates/related/inflation-calculator/

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