Welfare Fact Sheet

The MLA Welfare Challenge Can you Live on $610 a month? Raise the Rates: www.raisetherates.
org
Welfare Fact Sheet At the end of May 2011 Raise the Rates launched the MLA Welfare Challenge. This challenged one or more of BC MLAs to live on welfare for a month to gain real life experience of living on welfare. For the month of January, 2012, Jagrup Brar (MLA Surrey Fleetwood) will live on the single persons welfare rate of $610 for everything. Raise the Rates experience is that people cannot live a healthy life on welfare. A key part of any poverty reduction strategy, a policy aim that all BC MLAs say they support, is raising welfare. This fact sheet provides information on the position of people on welfare in BC in November 2011.
25 Years since Emery Barnes Where are We Now?
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The MLA Welfare Challenge Can you Live on $610 a month? Raise the Rates: www.raisetherates.org
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 the children and partners in families of people on welfare. Over half of the clients involved families with children. Temporary Assistance Welfare Clients, June 2011
Single People Couples Two Parent Families Single Parent Families Total Number 37,443 2,288 7,183 35,397 82,311 Per cent 45% 3% 9% 43%
Ministry of Social Development, BC Employment and Assistance Summary Report, 2011 http://www.hsd.gov.bc.ca/research/11/12-nov2011.pdf
There were a further 95,817 clients on Disability Assistance. Disability Assistance Clients, June 2011
Single People Couples Two Parents Families Single Parent Families Total Number 70,588 6,340 6,423 12,466 95,817 Per cent 74% 7% 7% 13% 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 economic circumstances of BCs population, 3 MLAs would always be living on welfare. Number of People on Welfare has Increased The number of people on Temporary Assistance has dropped in the last few months, (partly due to 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 Clients
Total 2006 132,606 November 2011 178,128 Change 45,552 Increase % 34%
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Recession Hits The 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 onto welfare. This continued to grow as unemployed peoples EI ran out and they have to survive on welfare. 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 getting worse 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)
Single Men 2006 2007 2008 2009 2010 November, 2011 Number Increase Increase % 7,279 8,764 10,917 17,391 19,342 16,739 9,460 108% Single Women 3,966 4,471 5,298 7,450 8,402 7,984 4,018 90% Couples 1,302 1,227 1,183 1,804 1,858 1,472 170 14% Two Single Parent Parent Total Families Families 4,008 10,727 27,282 3,785 10,129 28,376 4,268 10,944 32,609 7,015 14,529 48,188 7,647 16,106 53,355 6,314 16,111 48,620 2,306 61% 5,384 53% 21,338 75%
Temporary Assistance Clients: Expected to Work, without a Medical Condition
60,000
50,000
40,000
Single Parent Families Two Parent Families
30,000
Couples Single Women Single Men
20,000
10,000
0 2006 2007 2008 2009 2010 Nov-11
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Households on Welfare When the same data is looked at from the point of view of households, cases, rather than individuals, clients, the picture as equally grim. The number of cases (households) of people receiving Temporary Assistance (Expected to Work With no Medical Conditions) has nearly doubled since 2006. Temporary Assistance Cases: Expected to Work (With no Medical Conditions)
2006 November, 2011 Increase % Increase Expected to Work 16,872 33,047 16,175 96%
Other Welfare Clients The number of people on other categories of Temporary Assistance (Expected to Work Medical Condition, Temporarily Excused and Persons with Persistent Multiple Barriers) and those receiving Disability Assistance are less influenced by the state of the economy as they are mostly unable to work due to a number of medical and other government approved circumstances. But still, the number of people in these categories has increased by 23% to over 129,000 in the last 5 years. Other Welfare Clients
Expected to Work - Temporarily Persistent Persons with Total Medical Condition Excused Multiple Barriers Disabilities 2006 8,825 14,961 9,755 71,784 105,325 November, 15,876 10,610 95,817 129,508 2011 7,205 Change -1,620 915 855 24,033 24,183 Increase % -18% 6% 9% 33% 23%
The number of people on Disability Assistance, 93,587, is the highest since at least 1995.
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Living Below the Poverty Line All people on welfare are living below the poverty line. Most are far below the poverty line. Welfare Rates and Poverty
Housing (Monthly $) 375 660 375 375 570 Support (Monthly $) 235 376 283 531 949 Total (Monthly $) 610 1036 658 906 1519 Annual Poverty Per Income Line cent of ($) ($) Poverty 7320 19,342 38% 12432 29,314 42% 7896 10872 18228 19,342 19,342 23,541 41% 56% 77%
Single Person (under 65) One Parent Family with 2 children Single Person with Persistent Multiple Barriers (PPMB) (under 65) Single person (over 65) Couple (over 65)
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 $43,000 a year. (BC stats)
Comparing BC's Average Wage, Poverty Line and Welfare Income
50000 45000 40000 A nnual Incom ($) e 35000 30000 25000 20000 15000 10000 5000 0 Single Single Person Person with (under 65) PMB (under 65) Single person (over 65) One Parent Family with 2 children Couple (over 65) BC Average Wage Welfare Annual Income ($) Poverty Line ($)
Poverty damages individuals, communities and all of Canada. As the Canadian Senate stated in 2009, Poverty 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)
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In addition to the welfare payment there are other monies people on welfare may receive. A single 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 person to $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 welfare do 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 and in 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 not change the point that welfare payments are poverty payments.
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The Maze and Obstacle Course of Welfare Who 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 assistance For most Temporary Assistance clients a person has to be unemployed, searching for work, and have very limited assets. To qualify for Disability welfare a person has to meet the governments criteria and the designation 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 living activities. Barriers to Welfare There 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 they are 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 a family 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 and Persistent Multiple Barriers). Before 2002 a single person could keep $100/month of earnings. 25 Years since Emery Barnes Where are We Now? 7
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Single People on Welfare cannot afford to Live Welfare and Housing The Average Rent in Vancouver for a 1 bedroom apartment is $1,045 which is nearly 3 times the $375 the government allows for shelter. Vancouver Rents, 2011
Vancouver Average Cheapest Area in Vancouver (Marpole) Surrey Average Greater Vancouver 1 Bedroom Apartment Bachelor Apartment 1,045 881 812 696 718 610 964 839
From Canada Mortgage and Housing Corporation http://www.cmhc-schl.gc.ca/odpub/esub/64467/64467_2011_A01.pdf?fr=1325364779000
Even the rent for most Single Room Occupancy shelter in the Downtown Eastside is $425 a month. The SRO rental includes heating and lighting. Some have a communal kitchen in the building and some rooms might have a microwave. However some have no cooking facilities at all which makes feeding yourself properly even more of a challenge. Support Payments are No Support The single persons welfare payment for Support is only $235. This is for everything apart from housing. So out of this money a person on welfare has to buy food, household supplies, personal care items, clothing, and the other costs of daily living. In addition they have to pay the costs of looking for work such as a phone or pay phone and transit. Of course totally out of the question is even a few dollars for some entertainment. In reality, the typical rent for even the grim SROs, is more than the $375 a month the government allows, an extra $50 comes out of the $235. This only leaves $185 a month for all support costs. A Single Person on Welfare Cannot afford a Healthy Diet If all of a mans welfare went on food (so no clothes, no soap toothpaste or haircuts, no travel, not one cup of coffee or a glass of beer, no culture or entertainment) hed still not have a healthy diet. A woman would have a few dollars left after eating. Cost ($) of a Food for a Healthy Diet
Age (years) 19-30 31-50 51-70 over 70 Female Male 209 269 207 244 182 234 179 232
The Cost of Eating in BC 2009, Dietitians of Canada http://www.dietitians.ca/Downloadable-Content/Public/BC_CostofEating_2009-(1).aspx
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Other Necessities As well as eating and having a roof people need to spend money on travel, clothes, personal hygiene, 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 Household supplies (*) Clothing (*) Personal Hygiene (*) Transport (+) Examples Laundry, cleaning Haircuts, soap, toothpaste Two Zone Pass $ 15 71 22 110
Sources: * Still Left Behind, SPARC, 2008; http://www.sparc.bc.ca/resources-and-publications/doc/131-report-stillleft-behind-2008.pdf, and + Translink
Further Needs Welfare does not include dental care for single people and some other medical expenses. There is no 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. Impossible A single person on welfare can either eat or stay clean. They have no money for a life.
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Single Parent Families cannot afford to Live or raise Healthy Children A 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 Federal government including: Canada Child Tax Benefit which is made up of a Basic Benefit and National Child Benefit Supplement Universal Child Care Benefit And from the BC government: Basic Family Bonus The Canada Child Tax Basic Benefit is a non-taxable benefit of $113.92 per month for each child 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 previous years earnings, so if a family had a reasonable paying job and has become unemployed and on welfare they will not receive all of these payments. Universal Child Care Benefit is a taxable benefit of $100 a month per child to eligible families with 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 is greater $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 allowance for a 2-person household is $570, for a 3-person household is $660 and $700 for a 4-person household. So a single parent with 2 children would receive $660 a month for housing, while a couple with 2 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 most areas 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
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Cost of Food and Living In 2008 SPARC estimated the actual support costs for a Single Parent and one Young Child for a month. Cost of Necessities for a Single Parent & 1 young Child apart helter
Budget Item Food (*) Household supplies (*) Clothing (*) Personal Hygiene (*) Transport (+) Other costs (*) Total Examples Laundry, cleaning Haircuts, soap, toothpaste Two Zone Pass Books, trips and treats $ 270 28 94 29 110 317 848
Sources: + Translink and * Still Left Behind, SPARC, 2008; http://www.sparc.bc.ca/resources-andpublications/doc/131-report-still-left-behind-2008.pdf
Punishing Children Children of a parent in receipt of welfare do get extended medical coverage but the development of a healthy child is about much more than covering the costs when they are ill. There is child care subsidy but it does not cover the real costs of childcare so a single parent actively looking for work which they are required to do has to subsidize good child care out of their meagre support money, such as spending even less on food. Once the child is 3 years old the parent faces having 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 parent knows that good child care and mental and educational stimuli are vital for the healthy development 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 they are 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 expartners; 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 parents could 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 end he said the welfare for a single person should be $700. Today that would be $1,290 a month. After he had lived on welfare, the rates were modestly increased from $375, which it had been since 1981, to $384. Changes in Welfare Rate for Single Able-bodied Person under 65
Year 1981 1982 1986 1987 1989 1990 1992 1997 2002 2007 2011 Shelter Support Total 1981 Payment $ $ $ Adjusted for Inflation 170 205 375 375 200 175 375 418 209 175 384 504 250 175 425 527 275 243 518 573 300 250 550 602 325 250 575 650 325 175 500 700 325 185 510 510 375 235 610 866 375 235 610 930
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

1000 900 800 700 600 $ 500 400 300 200 100 0 1981 1986 1991 1996 Year 2001 2006 2011 Total Welfare Inflation
If the Welfare Rate, which was inadequate then, had kept in line with inflation since 1981 it would be $930 today. 25 Years since Emery Barnes Where are We Now? 12
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The MLA Welfare Challenge Can you Live on $610 a month? Raise the Rates: www.raisetherates.

25 Years since Emery Barnes Where are We Now?

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25 Years since Emery Barnes Where are We Now?

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Couples Single Women Single Men

0 2006 2007 2008 2009 2010 Nov-11

25 Years since Emery Barnes Where are We Now?

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25 Years since Emery Barnes Where are We Now?

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25 Years since Emery Barnes Where are We Now?

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25 Years since Emery Barnes Where are We Now?

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From Canada Mortgage and Housing Corporation http://www.cmhc-schl.gc.ca/odpub/esub/64467/64467_2011_A01.pdf?fr=1325364779000

The Cost of Eating in BC 2009, Dietitians of Canada http://www.dietitians.ca/Downloadable-Content/Public/BC_CostofEating_2009-(1).aspx

25 Years since Emery Barnes Where are We Now?

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Sources: * Still Left Behind, SPARC, 2008; http://www.sparc.bc.ca/resources-and-publications/doc/131-report-stillleft-behind-2008.pdf, and + Translink

25 Years since Emery Barnes Where are We Now?

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25 Years since Emery Barnes Where are We Now?

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Sources: + Translink and * Still Left Behind, SPARC, 2008; http://www.sparc.bc.ca/resources-andpublications/doc/131-report-still-left-behind-2008.pdf

25 Years since Emery Barnes Where are We Now?

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BC Welfare Rate for Single Person

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