Latest news with #ODSP
CBC
4 days ago
- General
- CBC
Despite housing crisis, Ontario's social assistance rates favour people living alone
While moving in with a romantic partner seems like a go-to next step for some long-term couples, the decision is not so straightforward when one or both people are on social assistance, a recent study shows. Government programs meant to financially support people, such as Ontario Works (OW) and the Ontario Disability Support Program (ODSP), tend to benefit single people more than couples, according to research from a former government benefit designer. "Usually if two people move in together, they save money because they save their shelter costs, whereas for people who are on assistance, the opposite happens and they're actually worse off when they lived together," said John Stapleton, who worked for the Ontario government for more than 20 years and is now a consultant at Open Policy. "What recipients often find is that it's economically better for them to stay apart," he said. "The programs are designed to produce a sort of legislative loneliness." Stapleton's study, which is based on real-life conversations he had with Ontario couples considering moving together, found that in some situations, partners would make about 20 per cent less than they did living alone. In one example, two residents receiving OW each got $733 a month, which totalled $1,466. However, if they lived together as a couple, Stapleton said, their earnings would go down to a total of $1,136. Even with a reduced rent split among the two of them, the couple would have less money available than when they lived separately, the study showed. In London, there are 10,800 people receiving Ontario Works, according to City of London data collected at the end of 2024. More than 7,000 of them are single and another nearly 2,500 are single with dependents. About 1,200 of them are couples or couples with dependents. "Obviously a lot of them are single people who are single, but then there's going to be people who are in couple relationships who have made the decision not to live together," Stapleton said. CBC News reached out to the Ministry of Children, Community and Social Services for comment and will update the story with the response. Balancing the budget Londoner Diane Devine has been living alone for three years now, using money from ODSP and the Canada-Ontario Housing Benefit (COHB) to pay her rent. She said she knows of others who could not make ends meet living together. She lived with a partner for six years, and while the decision to live alone was not based on cost, she did say in her case, the amount of savings that one might expect from living with a partner is not much different from what she pays now as a single person. "Just because you're living with somebody doesn't mean your cost of living goes down," she said. "Each individual still has the same amount of living expenses." Changes to cost of living Nicole Davis, a community advocate at LifeSpin in London, said the topic comes up in her line of work. "The system is essentially penalizing people for being in relationships," she said. "It kind of forces individuals to choose between financial stability and pursuing a supportive relationship, so it almost [discourages] cohabitation with each other." Stapleton said he understands why welfare programs were originally designed so that people living together would not receive as much financial assistance, but times have changed. "Now we're in a housing crisis and we've got a bunch of fairly poor people who are staying in their own apartments because they're better off to do that than actually move in together," he said. "People are occupying deeply affordable housing on their own when they'd really rather be together, and of course the landlord or the rooming house operator would love to have that unit freed up so they could run it to another person." Davis agreed, adding that it is already a challenge for many Londoners to find available units. "Right now, I feel like programs operate on outdated assumptions that don't really reflect the realities of poverty, disabilities and the high cost of living especially in a city like London," Davis said. Stapleton said with new realities comes a need for new policies. These include raising social assistance rates for couples, allowing them to pool any earning exemptions and letting new couples continue with the rules relating to singles during their first year living together. Until then, Stapleton said, couples are not incentivised to become a unit.
Globe and Mail
13-06-2025
- Business
- Globe and Mail
Ontario welfare system encourages living alone despite affordable-housing shortage, study finds
The structure of social assistance benefits in Ontario often encourages recipients to live alone, a perverse outcome that may be exacerbating shortages of affordable housing, new research finds. Both Ontario Works (OW), which assists low-income workers, and the Ontario Disability Support Program (ODSP), which aids those living with disabilities, are designed so that income support shrinks when a beneficiary moves in with a romantic partner. The benefit drop is meant to reflect the savings that typically ensue when two people share rent and other household costs. But the reductions are so severe that they typically exceed the financial advantages of living under one roof, according to a recent study by John Stapleton, a consultant and retired social assistance benefits designer for the Ontario government. The result is a powerful incentive for welfare recipients to live on their own, a form of forced loneliness that can take a toll on mental health and may also be unnecessarily inflating the demand for affordable rentals, Mr. Stapleton argues. 'We have a housing crisis, and we have these people who are incentivized to live separately,' he said. In some cases, forming a two-person household can result in an income drop of more than 22 per cent compared with a scenario in which two partners live alone, the analysis shows. Carrick: To make housing more affordable, drop the tax hammer on real estate investors For example, two people who each receive the maximum OW aid of $733 a month, which adds up to $1,466 for both partners, would see their combined income shrink to $1,136, a decrease of 22.5 per cent, if they started living together. Similarly, OW recipients moving in with a partner who works full-time making minimum wage would see their support clawed back at such a rate that the couple's combined income would fall by nearly 23 per cent compared with a scenario in which they keep separate homes. For two ODSP beneficiaries, moving in together would come with an income reduction of nearly 16 per cent. When Mr. Stapleton applied the math to the real-life cases of three couples living on welfare in Scarborough, Ont., he found the income reductions outstripped the savings of forming a single household in every instance. Rebekah Smylie, manager of financial empowerment at West Neighbourhood House, a social services agency in Toronto, said it's common for welfare recipients to decide not to move in with a romantic partner because they wouldn't be able to make ends meet if they did so. And for those who live in affordable housing, moving in with a partner comes with an added financial risk, she said. 'If you've given up a housing spot, and you've moved in with a partner, and then you find out you're going to be penalized for it, there's no guarantee you can undo that. Right? That spot is very quickly filled,' she said, referring to the affordable rental unit left vacant. Opinion: When exactly did Canadian housing become so unaffordable – and who's to blame? Waitlists for affordable housing are often years-long in Toronto. At Maytree, an anti-poverty think tank, Alexi White, director of systems change, said welfare recipients in other jurisdictions likely face the same issues, since social assistance programs across the country are relatively similar. 'Generally speaking, everybody does what Ontario does,' he said. Making it easier for Canadians on welfare to move in with a partner would likely free up some subsidized housing and low-rent housing, according to Ricardo Tranjan, an economist and senior researcher with the Canadian Centre for Policy Alternatives. The majority of OW and ODSP recipients in Ontario rent on the private market, where landlords often crank up rent when a new occupant moves in because rent control guidelines don't apply upon turnover of a tenancy, Dr. Tranjan said. But even with hefty rent increases, rental units left vacant by Canadians on welfare would likely still be some of the cheapest on the market and a good housing option for low-income workers. As for non-market housing, such as government-assisted rental housing and affordable units provided by non-profit organizations, 'freeing up one of those units can be – it's not an exaggeration to say that – a life-changing opportunity for the next person in line,' he said.
Yahoo
28-05-2025
- Business
- Yahoo
Ontario won't claw back federal disability benefit
Amid growing concern from Ontarians with disabilities and their advocates, the province has announced it will not claw back the incoming Canada Disability Benefit (CDB). The CDB was passed in 2023, and the government committed $6.1 billion to it in the 2024 federal budget. Beginning in July, eligible recipients can receive up to $2,400 per year, or a maximum of $200 per month. In a news release on Tuesday, the province announced it will be exempting the federal benefit as income. That means recipients won't have money deducted from their provincial social assistance payments or entitlements such as the Ontario Disability Support Program (ODSP). Since the CDB's passage, advocates have feared the provinces and territories may claw back the benefit. As of this March, at least seven have promised not to do that, but Alberta has announced it will claw back the benefit under certain circumstances. "It was a huge concern that this was not going to make it to the people who deserve to see this benefit," said Ron Anicich, co-chair of the ODSP Action Coalition. Rabia Khedr, national director of advocacy group Disability Without Poverty (DWP), said the news from Alberta stoked fear and disappointment within the disability community. But Khedr said the Ontario government has previously taken "steps in the right direction," including its decision to increase the ODSP exemption from $200 to $1,000, giving her hope that the province would do the right thing. "I always felt strongly that, because they had committed to an earnings exemption, that there is no way they could justify clawing back a $200 federal benefit," she said. "So I'm glad that they have confirmed that today." Advocates say they still have other concerns about the benefit program, however. In order to be eligible for the CDB, recipients must be approved for the disability tax credit, and for that they must receive certification from a medical practitioner. "What we're seeing now is people scrambling to sign up for the disability tax credit," said Anicich. "Which is fine when people have family doctors, but there are two million people in this province that do not have family doctors who are just unable to access this benefit." To Khedr, the answer is to "simply cut red tape." "The folks that are in the provincial system who have already filled out medical forms and have already attested to their disability shouldn't have to complete that kind of scrutinizing process again," she said. Instead, many disability advocates have been calling for the federal government to make recipients of provincial programs such as ODSP automatically eligible for the CDB. In an email to CBC on Tuesday, a spokesperson for Ontario's Ministry of Children, Community and Social Services said it's also calling on the federal government to change the Income Tax Act to align those eligibility requirements. "We believe people who already access the Ontario Disability Support Program and meet the other eligibility criteria should automatically qualify for the CDB, rather than be required to pay $200 under the program as it is presented," the spokesperson wrote. Despite the good news on clawbacks, Khedr and Anicich still regard the CDB's maximum monthly payment of $200 as inadequate and are calling for an increase. "Ontarians with disabilities on ODSP and who qualify for the candidate disability benefits still will be well below the poverty line," Khedr noted. "And living with a disability costs at least 30 per cent above the poverty line." Khedr said recipients desperately need the financial help and will use it to improve their lives. "It means that maybe they can buy healthier food or supplements, maybe they can buy over-the-counter painkillers to manage their day so that they can even consider searching for work and improving their quality of life," she said. "It is money that will be spent on necessities of daily living." Khedr and Anicich are also calling for better collaboration among people with disabilities and their advocates, and demanded a say when decisions affecting their lives are made. "There's nothing like lived experience — 'nothing about us without us,'" Khedr said. "If they have us at the table, we will make it so easy for them to get policy right."
CBC
28-05-2025
- Business
- CBC
Ontario won't claw back federal disability benefit
Amid growing concern from Ontarians with disabilities and their advocates, the province has announced it will not claw back the incoming Canada Disability Benefit (CDB). The CDB was passed in 2023, and the government committed $6.1 billion to it in the 2024 federal budget. Beginning in July, eligible recipients can receive up to $2,400 per year, or a maximum of $200 per month. In a news release on Tuesday, the province announced it will be exempting the federal benefit as income. That means recipients won't have money deducted from their provincial social assistance payments or entitlements such as the Ontario Disability Support Program (ODSP). Since the CDB's passage, advocates have feared the provinces and territories may claw back the benefit. As of this March, at least seven have promised not to do that, but Alberta has announced it will claw back the benefit under certain circumstances. "It was a huge concern that this was not going to make it to the people who deserve to see this benefit," said Ron Anicich, co-chair of the ODSP Action Coalition. Advocates relieved, but wary Rabia Khedr, national director of advocacy group Disability Without Poverty (DWP), said the news from Alberta stoked fear and disappointment within the disability community. But Khedr said the Ontario government has previously taken "steps in the right direction," including its decision to increase the ODSP exemption from $200 to $1,000, giving her hope that the province would do the right thing. "I always felt strongly that, because they had committed to an earnings exemption, that there is no way they could justify clawing back a $200 federal benefit," she said. "So I'm glad that they have confirmed that today." Advocates say they still have other concerns about the benefit program, however. In order to be eligible for the CDB, recipients must be approved for the disability tax credit, and for that they must receive certification from a medical practitioner. "What we're seeing now is people scrambling to sign up for the disability tax credit," said Anicich. "Which is fine when people have family doctors, but there are two million people in this province that do not have family doctors who are just unable to access this benefit." To Khedr, the answer is to "simply cut red tape." "The folks that are in the provincial system who have already filled out medical forms and have already attested to their disability shouldn't have to complete that kind of scrutinizing process again," she said. Instead, many disability advocates have been calling for the federal government to make recipients of provincial programs such as ODSP automatically eligible for the CDB. In an email to CBC on Tuesday, a spokesperson for Ontario's Ministry of Children, Community and Social Services said it's also calling on the federal government to change the Income Tax Act to align those eligibility requirements. "We believe people who already access the Ontario Disability Support Program and meet the other eligibility criteria should automatically qualify for the CDB, rather than be required to pay $200 under the program as it is presented," the spokesperson wrote. Concerns over amount Despite the good news on clawbacks, Khedr and Anicich still regard the CDB's maximum monthly payment of $200 as inadequate and are calling for an increase. "Ontarians with disabilities on ODSP and who qualify for the candidate disability benefits still will be well below the poverty line," Khedr noted. "And living with a disability costs at least 30 per cent above the poverty line." Khedr said recipients desperately need the financial help and will use it to improve their lives. "It means that maybe they can buy healthier food or supplements, maybe they can buy over-the-counter painkillers to manage their day so that they can even consider searching for work and improving their quality of life," she said. "It is money that will be spent on necessities of daily living." Khedr and Anicich are also calling for better collaboration among people with disabilities and their advocates, and demanded a say when decisions affecting their lives are made.
CBC
20-05-2025
- Business
- CBC
London mayor to lobby Ontario to hold ODSP rates as new federal program rolls out
London city council is calling on the Ontario government to keep provincial disability payments stable, and not claw back money when the federal Canada Disability Benefit (CDB) rolls out this summer. Mayor Josh Morgan plans to bring the issue to the province's Big City Mayors caucus with a call to Premier Doug Ford to commit to not reducing Ontario Disability Support Program (ODSP) benefits, once Ottawa's program takes effect in June. "Ontario has been non-committal so far [about clawing back ODSP], and so we're asking the mayor to encourage every city to call on the province to leave this benefit alone," said deputy mayor Shawn Lewis, who was among three councillors who put forward the idea. "Let folks with a disability situation in their lives get that little bit of extra help that might make the difference between them being able to make ends meet and not." The concern comes after Alberta said it would claw back disability supports. Ontario has yet provide its stance, while Newfoundland, Nova Scotia, Quebec, Manitoba, Saskatchewan, British Columbia and Nunavut have all promised they will not reduce funds. The CDB will give up to $200 per month, totalling $2,400 for the year starting in July, to eligible recipients. The amount will be adjusted for inflation each year, the government said. Ontario's disability payments are specific to the individual but the maximum is $1,368 a month, according to the province. A claw back would mean the province could cut ODSP by up to $200, if a person receives the full federal benefit. The province said Monday not decision had been reached on the matter with a spokesperson from the Ministry of Children, Community and Social Services saying it's "continuing to work with the federal government as the details of the Canada Disability Benefit are being finalized. Our focus is on ensuring the Canada Disability Benefit builds on existing programs like Ontario Disability Support Program (ODSP) including amending the treatment of the benefit in the Federal Income Tax Act," the statement said. The province said ODSP rates have increased by 17 per cent since 2022, with inflationary increases each July. Morgan was not available for comment ahead of publication. ODSP not enough amid high cost of living When discussing whether London's mayor should advocate for stable provincial funding, councillors noted that many people on ODSP are not able to afford housing and groceries with the money they get. That's the case for Londoner Jeffrey Salisbury, 40, who lives with developmental disabilities and depression. His only source of monthly income is $1,381 he gets from ODSP, and with a monthly rent component of less than $600, Salisbury cannot afford his own place so he lives with his parents. An extra $200 from Ottawa will go a long way in helping people with disabilities afford basic necessities, Salisbury said. "That could be more groceries for the month, a little bit more money for rent, clothing and all the daily living things that we have to spend on," Salisbury said. He and others on ODSP are frustrated there's no word from the province on whether they'll have less money with less than a month before the federal program rolls out, he said. "Every month it seems like the prices go up more and it just gets a little harder to get by. I worry that there's going to be a lot more disabled people out sleeping on the street because they're not going to have a place to live."
