Advocacy & Issues 06/07/2022 The Government of Ontario is renewing its Poverty Reduction Strategy. With both poverty and food insecurity rates above the national average, and with the historic unemployment rates caused by the COVID-19 crisis, this is an opportunity to create a more inclusive economy that better supports people living on the margins. See our proposal below. Written Submission for the Ontario Poverty Reduction Strategy Introduction and summary of recommendations Even before the COVID-19 pandemic, 11.6 per cent of Ontarians lived below the poverty line, above the national average of 11 per cent.[i] Food insecurity, which is closely tied to poverty, affects 13.3 per cent of Ontarians, above the national average of 12.7 per cent.[ii] Now, with unprecedented unemployment, Ontario’s Poverty Reduction Strategy will be more vital than ever. The Ontario government has the opportunity to show leadership and to use the Poverty Reduction Strategy to help guide its citizens out of this crisis by creating an inclusive economy and social supports that enable people to live with health and dignity. Recent research CFCC conducted on the effects of food insecurity found that 57 per cent of people who are food insecure said finding and maintaining paid work was made more difficult because of their lack of access to food. As some respondents said: “Going to work—how do you get there? Is there a dress code? Can you afford to buy what you need? Or do you buy food?” “I sometimes have to miss shifts at work to access food. The food I access is worth more than the one to two hours of work.” “Constantly worrying about food becomes your only worry, and you can’t think about advancing in life. Hunger is all-consuming.” These responses show that in order to help people living on the margins find and maintain good jobs, it is necessary to support them, both with income assistance that will cover basic needs and with wrap-around supports. CFCC’s recommendations are in line with the government’s poverty-reduction priorities, namely, encouraging job creation and connecting people to employment; providing people with the right supports and services; and lowering the cost of living and making life more affordable. However, the strategy should begin by identifying poverty-reduction targets that build on those set by the federal government (a 50 per cent reduction by 2030). To build in accountability and transparency, the strategy should be overseen by an independent secretariat including people with lived experience, and progress should be reported annually and be tracked on a publicly available dashboard. Recommendation 1: That the Government of Ontario create poverty reduction targets that build on those of the federal government. CFCC recommends that the Government of Ontario: Create poverty reduction targets that build on those of the federal government. Provide strong wrap-around supports, including adequate child care, housing, health benefits, mental health supports, and employment services, to people on social assistance. Increase the minimum wage to $15 per hour. Increase social assistance rates to close the gap between social assistance incomes and the poverty line, and index them to inflation. Make the Low-income Individuals and Families Tax Credit refundable. Maintain the provincial definition of disability. Ensure people on social assistance are eligible for the Canada-Ontario Housing Benefit and not have this clawed back from their monthly payments. Encouraging job creation and connecting people to employment CFCC is pleased to see a focus on helping people find employment. We know from experience that people who are able to work want to contribute and to be financially independent. That being said, people need the appropriate supports to address barriers in their lives and to be able to find employment, as discussed above. These wrap-around supports should include adequate child care, housing, health benefits, mental health supports and employment services. Recommendation 2: That the Government of Ontario provide strong wrap-around supports, including adequate child care, housing, health benefits, mental health supports, and employment services, to people on social assistance. In addition to better supporting people in finding employment, the government should also ensure that Ontarians have higher quality jobs, with pay that reflects the cost of living, meaningful benefits and safe work environments. Sixty-five per cent of food-insecure Canadian households earn most of their income from employment,[iii] which suggests that many jobs do not provide high enough incomes for people to make ends meet. There needs to be a conversation going forward that focuses on important issues such as living wages and paid sick days. As a first step, the government should increase the minimum wage to $15 per hour. While there was some concern about the economic impacts of increasing the minimum wage to $14, before the COVID-19 crisis hit, Ontario’s employment rate was growing more quickly than the national average[iv] and the unemployment rate was lower than the national average.[v] Recommendation 3: That the Government of Ontario, as a first step toward a broader conversation about living wages, increase the minimum wage to $15 per hour. Providing people with the right supports and services A single person on Ontario Works makes $733 per month. This annual income of $8,796 is just over one-third of the poverty line in Toronto, and the monthly shelter allowance of $390 doesn’t come near covering the average rental cost of a studio ($805) or one-bedroom apartment ($1,107).[vi] We know that people are more likely to thrive when they are able to cover their basic needs: the poverty reduction strategy should increase social assistance rates so they cover basic needs and should index them to inflation so that benefits do not lose value year over year. Recommendation 3: That the Government of Ontario increase social assistance rates to close the gap between social assistance incomes and the poverty line, and index them to inflation. The Low-income Individuals and Families Tax (LIFT) Credit provides some support to people with low and modest incomes. However, the province’s Financial Accountability Officer found that, of the 2.9 million Ontarians making less than $38,500, only one million benefit from the LIFT Credit.[vii] As a non-refundable tax credit, the LIFT Credit only provides support to people who pay income tax. Converting it to a refundable tax credit would ensure it reaches Ontarians with the lowest incomes with up to $850 per year. Recommendation 4: That the Government of Ontario make the Low-income Individuals and Families Tax Credit refundable. As previously mentioned, 24 per cent of the people who attend Community Food Centres are on provincial disability benefits. Many of these people suffer from disabilities such as rheumatoid arthritis or mental health issues that, while episodic, prevent them from working. Changing the definition of disability to match the federal definition (severe and prolonged), as has been suggested, would leave people with episodic disabilities to try to make ends meet on Ontario Works, despite the increased costs people with disabilities often incur. Recommendation 5: That the Government of Ontario maintain the provincial definition of disability. Lowering the cost of living and making life more affordable Over 30 per cent of people who are food insecure have incomes above the low income measure.[viii] This suggests that, even for people with adequate incomes, the rising cost of living makes it difficult to make ends meet. As discussed above, people on social assistance do not receive enough money to cover rental costs. For this reason, the Canada-Ontario Housing Benefit will be a life raft for social assistance recipients. As the program is designed, it should ensure that people living on social assistance who receive the Canada-Ontario Housing Benefit do not have their OW or ODSP benefits clawed back. Recommendation 6: That the Government of Ontario ensure people on social assistance be eligible for the Canada-Ontario Housing Benefit and not have this clawed back from their monthly payments. References [i] Djidel, S., Gustajtis, B., Heisz, A. Lam, K., Marchand, I. and McDermott, S. (2020). Report on the second comprehensive review of the Market Basket Measure. Statistics Canada. Retrieved from https://www150.statcan.gc.ca/n1/pub/75f0002m/75f0002m2020002-eng.htm [ii] Tarasuk, V. and Mitchell, A. (2020). Household food insecurity in Canada, 2017-18. Toronto: Research to identify policy options to reduce food insecurity (PROOF). Retrieved from https://proof.utoronto.ca/ [iii] Ibid. [iv] Government of Ontario (2020). Ontario Employment Report: October to December, 2019. Retrieved from https://www.ontario.ca/document/ontario-employment-reports/october-december-2019 [v] Statistics Canada (2020). Table 14-10-0287-03 Labour force characteristics by province, monthly, seasonally adjusted. Retrieved from https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1410028703 [vi] Canadian Rental Housing Index (2020). Cost. Retrieved from http://www.rentalhousingindex.ca/en/#cost_csd [vii] Financial Accountability Office of Ontario (2019). Comparing the LIFT Credit to a Minimum Wage Increase. Retrieved from https://www.fao-on.org/en/Blog/Publications/LIFT-report-2019 [viii] Tarasuk, V., Mitchell, A., and Dachner, N. (2014). Household food insecurity in Canada, 2012. Toronto: Research to identify policy options to reduce food insecurity (PROOF). Retrieved from https://proof.utoronto.ca/