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CBC
5 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.
CBC
05-02-2025
- Business
- CBC
Left with $2 at month's end, this woman's among Ontarians urging next premier to boost disability payments
Social Sharing Diane Devine finds the first day of each month stressful, wondering how she'll make ends meet after paying her rent and other bills. The London, Ont., resident's only source of income is $1,600 through the Ontario Disability Support Program (ODSP), plus a housing stability benefit from the City of London that helps pay the balance of her $1,312 monthly rent. "I get my money on the last day of the month at 3 a.m. and by 3 p.m., my bank account is back to maybe $2 or $3, if that," Devine, 56, told CBC News. "It's not much to live off of for a whole month, that's for sure. It's a pinch of pennies every day just to try and pay all the bills and buy groceries for a full month." Ontario is in the midst of an election campaign that will culminate with the Feb. 27 vote. Devine, for one, believes people on a fixed income have all but been forgotten by provincial and federal governments. She wants the next Ontario government to increase social assistance rates enough so they match the high cost of living, and urges voters to consider that when they choose their next premier. Devine has been receiving ODSP benefits for over 20 years, since suffering a spinal injury at her former job. It's since developed into a degenerative disc disease, making it hard for her to stand for long periods or do lifting. "If someone can promise me that they can bring our benefits up to that level, then that would be where my vote goes. I don't expect to live a lavish life — I just want enough money to pay my rent, utilities and eat properly without worry." In September 2022, Ontario's Progressive Conservative government increased ODSP rates to align with inflation, with a five per cent hike. The following year, it was legislated that ODSP will have inflationary increases every July, with a 6.5 per cent jump in 2023 and 4.5 per cent in 2024. The maximum ODSP rate for a single individual is $1,368 per month and can go up to $2,639 for a couple with two children. Payments cover basic needs allowances for essentials like food and personal items, and shelter allowances for housing-related costs like rent and utilities. "That may sound like a lot, but you have to consider that rates were already 40 to 50 per cent below the poverty line," said Trevor Manson, co-chair of ODSP Action Coalition, an advocacy group led by people with disabilities who receive ODSP. Manson said other benefits, like Ontario Works (OW), haven't increased and believes low social assistance is fuelling the province's homelessness crisis. He wants these benefits doubled so people aren't living in poverty. "People are spending up to 100 per cent of their income toward rent because they're terrified of becoming homeless. Just take a walk across any community across Ontario — you see tent cities popping up everywhere," he said. "Our number one ask is to immediately double social assistance rates. Even if they doubled Ontario Works, it would still be below the market basket measure, which is Canada's official measure of the poverty line, but it'll still be better than it is now." Randy Tessman said he has run out of items to cut out from his budget to afford to feed his family. The 56-year-old single dad of three lives in a public housing complex in northwest London and gets approximately $3,000 each month through ODSP and the Canada Child Tax Benefit. "The cost of everything has slowly gone up. For us, the biggest expense is food. We spend more money on food now by far than anything else," said Tessman, adding his ODSP cheque increased by $9 with the inflationary rise. "They've also cut back on other extra discretionary benefits. You used to be able to get a washer, fridge and stove. We're at the point now where I can't even get a washer — I've been handwashing my children's clothes for a year and a half." Tessman wants the next premier to make discretionary benefits more accessible for people on ODSP and improve communication on what supports are available to them. "I'm only hoping they can understand that people on a monthly set cheque are having to sacrifice so much just to make sure our children eat." What the major parties are promising CBC asked Ontario's four major parties vying for the top job about what changes they would make to social assistance rates if elected. Here's what they said. Progressive Conservatives: A campaign spokesperson said the party raised the ODSP earned income threshold by 400 per cent, which will keep more money in the pockets of ODSP recipients who are able to work. It will continue to increase ODSP rates with inflation each July. NDP: A party spokesperson said current ODSP and OW rates are forcing people into legislative poverty, and that it would double ODSP rates. Liberals: A party spokesperson said leader Bonnie Crombie will make an announcement related to this issue later Wednesday. The spokesperson didn't disclose further details.
