Child
Benefits in Ontario
Questions
& Answers
1. What is the National Child Benefit?
The Government of Canada's most high profile anti-poverty initiative is the National Child Benefit (NCB). Essentially, the NCB provides low income families with a supplement to the existing Canada Child Tax Benefit. In 2003, The NCB supplement will be worth $1,463 for the first child, $1,254 for the second child and $1,176 for each additional child.
In Ontario, the provincial government treats the supplement as income and claws it back dollar for dollar from families receiving social assistance. As a result, families receiving OW or ODSP do not see a penny of this money.
2. Are there any provincial child benefits in Ontario
No. However, in their election platform The Road Ahead, the Ontario Progressive Conservative Party proposes to implement a new Ontario Child Benefit for families receiving social assistance. This new benefit would "increase social assistance support for children" and effectively take them off of welfare.
3. How would the Ontario Child Benefit work?
Unfortunately, The Road Ahead provides few details about the new benefit or how it would work. The platform says that families receiving social assistance will receive almost $1,500 more per year for their first child, almost $1,300 for their second child and approximately $1,200 for each additional child. Notice that these amounts are virtually identical to the National Child Benefit Supplement which is currently clawed-back.
Beyond this, there is little available information on the proposed benefit. ISAC wrote to the Minister of Community, Family and Children's Services requesting more information on the new benefit, but her reply did not provide any clarification.
4. Are there any child benefit models that the Province could be planning to use?
Yes. While most provinces and territories have some variation on a child benefit program, the Ontario Conservatives probably took the idea from a recent proposal for a child benefit put forward in early 2003 by the Association of Municipalities of Ontario (AMO).
Under the AMO proposal, the province would transfer the child-related portion of benefits under Ontario Works (OW) and the Ontario Disability Support Program (ODSP) to a new child benefit. This would effectively remove children from the OW and ODSP budgets, though, in itself, it would not put any extra money into the pockets of families receiving social assistance - it's just a straight transfer of funds from one program to another. However, under the AMO proposal, the Province would also stop the claw-back of the National Child Benefit Supplement. As a result, families on social assistance would see their incomes increase by the amount of the supplement.
A number of municipalities, including Toronto, Niagara, Peterborough, and Stratford have endorsed the AMO proposal.
5. Would the Ontario Child Benefit increase the incomes of families receiving social assistance to acceptable levels?
No. The Province's proposal suggests that families receiving social assistance will see an increase to their incomes equal to the National Child Benefit Supplement. That is, almost $1,500 more per year for their first child, almost $1,300 for their second child and approximately $1,200 for each additional child. Of course, any increase in benefits for social assistance recipients is much needed. However, current OW and ODSP benefits are so low that the potential increase in benefits does not come close to what these families actually need to cover their living costs.
6. The Province argues that removing children from social assistance will reduce the stigma and discrimination they face by being on welfare. Would this be the case?
Of course not. The parents of these children will still be receiving welfare. And in all likelihood, these parents will be increasingly marginalized. Taking children off of the social assistance caseload could pave the way for further reforms to Ontario Works that would make it even more of a punitive and coercive labour force attachment program than it already is.
7. Is the Province likely to take any action on the Ontario Child Benefit?
No. As the Ontario Child Benefit proposal is formally part of the Progressive Conservative Party's campaign platform, provincial bureaucrats will be unlikely to spend any time on it until after the election. In our view, the Ontario Child Benefit is just a cynical election ploy, put in the platform to give Tory candidates a quick and easy response to criticisms about their attacks on the province's social safety net.
8. What can you do?
Call or write Brenda Elliott, Minister of Community, Family and Children's Services, and press her for details on the Ontario Child Benefit.
You should also call your local MPP. To find his/her number, call Queen's Park at (416) 326-1234 or 1-800-267-8097.
Source: John Fraser, Income Security Advocacy Centre
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Page last updated Sept. 18, 2003