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Ontario Budget 2018: An opportunity to set “The Roadmap for Change” off to a strong start

In November 2017, the provincial government released “Income Security: A Roadmap for Change”, written by three groups that were appointed by the Minister of Community and Social Services (MCSS) in 2016 to give advice on how to reform Ontario’s income security system.

The Roadmap made some important recommendations, including significantly increasing social assistance rates, making the system less punitive, and implementing an Ontario Housing Benefit.

The 2018 Ontario Budget provides an opportunity to immediately invest in two recommendations proposed by the Roadmap:

  1. Implement a Standard Flat Rate, collapsing the Basic Needs Allowance and Shelter Allowance portions of social assistance into one amount;
  2. Setting this Standard Flat Rate to $794 per month for Ontario Works and $1,209 for Ontario Disability Support Program (ODSP).

While greater investments will still need to be made to bring people out of poverty, these will be crucial steps that have the power to transform the system and can have an impact on people struggling with hunger in Toronto.

The Standard Flat Rate

In Daily Bread’s 2016 Who’s Hungry report we profiled Tim, a food bank client and volunteer who had lost his job after 30 years and was homeless. Tim’s health was deteriorating, and his condition was exacerbated from having to sleep outdoors. Because he couldn’t work and had no other income options he was able to access Ontario Works but was in a catch-22: because he was homeless, he was not entitled to receive the Shelter Allowance, only the Basic Needs Allowance – a little over $300 a month. Because of this bureaucratic separation between the Basic Needs and Shelter portions of Ontario Works, Tim was receiving only half of an already low level of income support, creating another barrier to his escaping homelessness.

Tim’s situation reveals one of many structural flaws of the present social assistance system, but the 2018 Ontario Budget presents an opportunity to correct this flaw: implementing a Standard Flat Rate, which would collapse the Basic Needs and Shelter allowances into one amount. This change would ensure that everyone receiving social assistance would have the same level of support, regardless of whether they are homeless, renting or owning, or live in rent-geared-to-income housing.

This change would also help accommodate various living arrangements people have to make in today’s challenging rental market in order to maintain housing, such as sharing accommodation with others. The present system is designed to monitor and regulate people’s living situation by basing rates on shelter costs, and where and with whom you live. This creates further hardship and barriers to those receiving assistance, as well as adding to the administrative burden of the system and the front line workers trying to help individuals in need.

Increasing social assistance rates and developing a Minimum Income Standard

We know that the main driver of the need for food banks in Toronto is lack of income: this is in large part due to the extremely low levels of income provided by provincial social assistance.

The majority of clients accessing food banks in Toronto receive one of two provincial social assistance programs as their main source of income. According to Daily Bread’s most recent Who’s Hungry survey, 64% rely on either Ontario Works or ODSP as their main source of income.

As the labour market continues its shift from full-time employment to part-time employment, greater numbers of people out of work are forced to rely on provincial social assistance, and those with a disability are less likely to be able to access employer-triggered disability income programs.

Despite being a crucial source of income support for almost a million Ontarians, the levels of income have fallen so far behind inflation there would need to be a 41% increase in OW payments, and a 23% increase in ODSP payments, for them to be equivalent to what they were worth in 1993.

In order to address this crucial gap in income adequacy, the Roadmap proposes that rates be immediately increased by 10% for a single person receiving Ontario Works and 5% increase for those on ODSP. This increase would bring amounts to $794 and $1,209 respectively.

While the working group chose an amount that the government could realistically implement, it was recommended that the government move as quickly as possible to move those in deepest poverty towards an adequate level of income that more accurately reflects actual living costs.

While the Roadmap proposes this initially be done through direct increases to social assistance rates, the report states that the goal should be to bring every household in the province to a “Minimum Income Standard” through a combination of social assistance and other income supports by 2027-2028.

The defined Minimum Income Standard would initially be set at the same level as the official Low-Income Measure used by the province’s Poverty Reduction Strategy (LIM-50) plus an additional 30% added for persons with a disability.

To reach this minimum standard would require supports that go beyond increases to provincial social assistance rates, and be part of a “building block” approach that combines municipal, provincial and federal cash benefits as well as housing supports and core health benefits (such as prescription drug coverage). This could also include a portable housing benefit, proposed by the Roadmap as a universal, income-tested benefit to provide direct financial assistance to help with high rental costs.

The Roadmap for Change provides achievable targets and tactics that will effect real change in the lives of people struggling with hunger and poverty in Ontario.

The Ontario Budget 2018 is a chance to take a solid step in the right direction and reach those targets.

Let’s get moving.


Date Added: February 8, 2018 | Comments Off on Ontario Budget 2018: An opportunity to set “The Roadmap for Change” off to a strong start | Filed under: Blog,Government,Information,News,Research — Tags: , , , , , , , , , , — Adam Paralovos @ 10:34 am



Inclusionary Zoning

Daily Bread Food Bank submitted our feedback (below) about proposed inclusionary zoning legislation. Today is the deadline for public feedback. Send your responses today to inclusionaryzoning@ontario.ca.

To the Ontario Ministry of Municipal Affairs regarding EBR Registry posting number 013-1977:

Daily Bread Food Bank is a non-profit organization that provides food and support to almost 200 food programs and 136 member agencies across Toronto. We welcome the opportunity to comment on the proposed regulations under the Planning Act related to inclusionary zoning, posted on the Environmental Registry.

The legislation introduced in 2016 that would permit municipalities to enact Inclusionary Zoning by-laws was a promising development that would potentially enable cities like Toronto to have another policy tool at their disposal to help address our current crisis of housing affordability.

Unfortunately, the current regulations as proposed are unlikely to help create more affordable rental housing, and the needs of low income households – the group buckling the most under the pressure of shelter costs – are not addressed.

Last year alone there were over 990,000 visits to Daily Bread’s member agencies and to North York Harvest food banks. Food banks in the former inner suburbs are bursting at the seams, seeing a nearly 70 per cent increase in client demand since 2008 – an increase that can be directly attributed to skyrocketing rents. As Daily Bread’s research shows, those accessing food banks spend on average 70 per cent of their income on rent, and many report skipping meals to afford TTC fare in order to get to jobs or doctors’ appointments.

We urge the province to adjust these regulations so that they enable the development of more rental properties in order to help address the housing crisis in our city. It is not an unreasonable goal that people – regardless of their level of income – should be able to afford to rent a decent home near to where they work, go to school, and access essential goods and services.

We also urge the province to enable municipalities to have the flexibility to designate the maximum level of affordable units (maximum caps) depending on need of various communities, in addition to setting minimum caps so as to adequately disperse the supply across the province.

When it comes to increasing the availability of affordable housing, there is no silver bullet. Indeed, properly crafted Inclusionary Zoning needs to be an essential part of a range of policy tools that can help address the escalating housing crisis in the City of Toronto.

Making the aforementioned adjustments can further demonstrate the Province’s commitment to improving not only the lives of the most vulnerable but also the growing number of middle-income earners who are being squeezed out of both the rental and home ownership markets in Toronto.

Done right, Inclusionary Zoning will help ensure cities like Toronto remain resilient, accessible, and inclusive for everyone regardless of income.


Date Added: February 1, 2018 | Comments Off on Inclusionary Zoning | Filed under: Blog,Government,News — Tags: , , , , , , — Adam Paralovos @ 11:13 am



Toronto City Budget 2018: More access, more equity

“We need to figure out a way to fund agencies to ensure that people have the nourishment that they need…It’s a shame that this is something that is needed, but it is. And we need to do our best as a city to find space for them.” Councillor Mike Layton (Ward 19, Trinity-Spadina) – Article from the Toronto Star, Tues. Jan 2, 2018

In its pre-budget submission to the City, the Toronto Food Policy Council made several recommendations to be considered in the 2018 Poverty Reduction Strategy work plan, including requesting the availability for space for a range of food related programming1.

Daily Bread Food Bank echoes this recommendation, in particular the recommendation to enable access to space in Toronto Community Housing properties for food banks and other food programming available to the wider community.

In many cases, accessing suitable space from which to distribute food can be as challenging as keeping up with the demand for food. In its commitment to its Poverty Reduction Strategy and creating a more fair and equitable city, the City of Toronto can use the 2018 budget as a recognition of the rapidly growing numbers of people struggling with hunger by providing access to its surplus space from which to run community led food programs such as food banks, at little or no extra cost to the city.

Demand for food banks in Toronto is growing rapidly, but available spaces from which to operate them are shrinking

From April 2016 to March 2017, there were a total of 990,970 client visits to Daily Bread Food Bank and North York Harvest Food Bank member agencies. This is the highest annual client visit number in Toronto since 2010, when the effects of the 2008 recession hit Torontonians with full force. This is 9 per cent higher than 2016, and 24 per cent higher than 2008.

The surge in demand has not only affected food banks’ ability to provide food, but in some cases their ability to accommodate growing numbers of clients in program spaces. Last year, 22 per cent of Daily Bread agencies reported they had difficulty in providing adequate waiting room space to accommodate people accessing the program.

The majority of Daily Bread’s 130 member agencies run their food programs in local churches and community centres, and the space available to accommodate clients is varied: some have large open spaces in churches, while others have their clients line in hallways, stairwells or outside. Challenges related to space include property maintenance and accessibility issues in the case of church-run programs, and lack of space and rent increases for some community centres. As Toronto continues to gentrify and available space with which to run food programs becomes more expensive and precarious, more neighbourhood food banks across the city will struggle accommodating clients in the future as the need continues to grow.

When does access to space for food programs in Toronto become an equity issue? The Scarborough story

The most recent census data shows that census tracts with the highest concentrations of people living with low income, as well as highest percentages of visible minorities, are in the northern and outer reaches of the city. Coincidentally, those are also the areas where there are not enough food banks to keep up with the demand; existing food banks are also located so far apart many clients can`t afford transportation to get to them. Additionally, the spaces in which these programs operate are themselves vulnerable to rapidly rising rent costs.

For Daily Bread member agencies, the area of the city where the issue of space is of particular concern is Scarborough.

“Currently we do not pay rent, however [the housing provider] is considering implementing a rent or utility cost for commercial tenants like us. We have significantly outgrown this space but with no rent n our budget, we are unable to move to a more suitable location.” Food bank in Scarborough

A hot real estate market is making it increasingly difficult for some food programs to either find or maintain a suitable space from which to operate. While some food programs are run by faith-based groups who have space provided free of charge by the sponsoring organization, others, such as those located in larger community centres or public housing units, have to pay for the space. This is especially an issue in north and east Scarborough which, compared to the city core, have less “’faith-based infrastructure” such as church space, which means food programs have to find other space that they can afford.

Food banks in Toronto, including those operated by multiservice centres, do not receive government funding and mostly rely on private donations. As affordable space in Toronto becomes more challenging to find, many food banks, including those in Scarborough, will be in an increasingly vulnerable position to maintain their operations, despite rapidly increasing need.

Of the seven wards in Scarborough that have Daily Bread member agency food banks:

  • Five have shown increases of over 10 per cent in client visits in the last year alone;
  • Wards 39 and 40, both in the Agincourt area of north Scarborough, have seen increases of over 70 per cent, the highest increases in the city.

Food banks in Scarborough report seeing high numbers of recent newcomers, including convention refugees from Syria, Afghanistan, Iraq and Nigeria. Many are paying on average 82 per cent of their income on rent and utilities, and have very little left over for essentials like food.

And it’s not just food banks that struggle to find or maintain space to operate in these areas. Other kinds of food-related programming that can be essential tools of community development for low income or newcomer communities, such as urban farming or community kitchens, also face ongoing roadblocks in finding space to run programs.

Many would agree that being able to access food is a human right. However lack of adequate income supports, alongside diminishing space from which to help low income communities, mean that this right is becoming increasingly out of reach for too many.

Help create a more equitable city: enable food banks to have more access to city-owned space.

By identifying and facilitating access to space of City owned properties for food access, the City can demonstrate its commitment to its Poverty Reduction Strategy, as well as equity and human rights.

Link to Daily Bread’s Who’s Hungry Report: http://www.dailybread.ca/wp-content/uploads/2017/09/Whos-Hungry-2017.pdf
Link to ward map of Daily Bread agencies: http://www.dailybread.ca/wardmap


1 “That City staff identify spaces for use by community-led initiatives (both growing spaces, and office, program and cooking spaces), based on current inventories of surplus space, and that staff focus on NIAs in identifying these spaces.” Letter from the Toronto Food Policy Council to the Executive Committee of Toronto City Council, November 27, 2017.


Date Added: January 19, 2018 | Comments Off on Toronto City Budget 2018: More access, more equity | Filed under: Blog,Government,In the News,Information,Member Agencies,News,Research — Tags: , , , , , , , , , — Adam Paralovos @ 2:07 pm



We need volunteers for our 2018 Who’s Hungry Report!



Daily Bread Food Bank believes that research is critical to creating social change to reduce poverty, so every year we collect data from food banks across Toronto to publish the Who’s Hungry Report.

Based on issues that affect food bank clients, the Who’s Hungry Report helps advocate for policy changes that improve the lives of children and adults living in poverty.

And to create our Who’s Hungry Report we need volunteers!

If you are over 19 years old and fluent in reading, writing and speaking English, you can volunteer. We also need volunteers who can speak other languages. Survey training will be provided.

When and Where
Surveying starts in February and goes to the end of April. Hours and shifts will vary but most shifts are 2 to 3 hours long. We conduct surveys in more than 50 food banks across Toronto.

To volunteer
Contact Haiat Iman at (416) 203-0050 x256 or himan@dailybread.ca


Date Added: | Comments Off on We need volunteers for our 2018 Who’s Hungry Report! | Filed under: Blog,Information,News,Volunteer,Volunteer Opportunities,Who's Hungry Report — Tags: , , , , , , , , — Adam Paralovos @ 2:02 pm



Helping A Family Move Forward

Portrait of mature African American woman When Earla was new to Canada, 20 years ago, she worried about how she would provide for her 2 children in a new country without a full-time job. Earla felt like she didn’t have anywhere to turn.

Fortunately, things began to turn around when Earla secured safe, affordable housing for people struggling with mental health issues and poverty. The building also housed a client-run onsite food program operated by Daily Bread Food Bank. This food program was the first step toward building a brighter future for Earla and her family. She started by joining the steering committee for the food bank.

“I saw how important this was to my family and my neighbours, not only because of the food, but because of the peace of mind it provided,” she says.
With food on the table and the skills she learned, Earla was able to find full-time employment. Today, she’s the supervisor at a security firm in Toronto. Her children now attend the University of Toronto.

That’s the power of wholesome food. It’s not just about physical nourishment, although that is critical. It can provide relief to struggling parents. It can help students focus more on their schoolwork instead of wondering where their next meal will come from.

Your monthly gifts make it possible to provide meals to thousands of neighbours who are hungry, just like Earla and her family. Those meals can be truly life-changing and help families get the food and help they need during a difficult time. Thank you!


Date Added: November 29, 2017 | Comments Off on Helping A Family Move Forward | Filed under: Blog,News — Adam Paralovos @ 2:58 pm



Report Released: A Roadmap for Change – input needed before January 2, 2018

A new report called “Income Security: A Roadmap for Change” has just been released by the provincial government.

The Roadmap was written by three groups that were appointed by the Minister of Community and Social Services (MCSS) in 2016 to give advice to the government on how to reform Ontario’s income security system.

Former Daily Bread board member John Stapleton was a member of the Income Security Reform Working Group, one of the three groups that contributed to the report.

We urge everyone to read the Roadmap, engage with its recommendations, and participate in the public consultation process. Public consultation will take place between now and January 2, 2018.

The Roadmap is available here: https://www.ontario.ca/page/income-security-reform

The government’s press release is here: https://news.ontario.ca/mcss/en/2017/11/working-groups-deliver-roadmap-for-income-security-reform.html

The government is asking people to provide feedback in writing. Information about the feedback process is here: https://www.ontario.ca/page/income-security-reform#section-5

The Roadmap makes some important recommendations, including large increases to social assistance rates, making the system less punitive, and the implementation of an Ontario Housing Benefit.

This is an important opportunity to push government to action, and make real change that can have an impact on people struggling with hunger in Toronto.


Date Added: November 17, 2017 | Comments Off on Report Released: A Roadmap for Change – input needed before January 2, 2018 | Filed under: Blog,Government,News,Research — Tags: , , , , , , , , , , , — Adam Paralovos @ 8:08 am



Portable Housing Benefit

Daily Bread joins the call for a National Portable Housing Benefit program in the National Housing Strategy

Daily Bread has joined the Canadian Alliance to End Homelessness (CAEH), United Way Centraide Canada, Raising the Roof , Campaign 2000 and other leading Canadian anti-poverty organizations to call on the federal government to include a National Portable Housing Benefit in the upcoming National Housing Strategy.

In a letter sent to the Hon. Jean Yves Duclos, Minister of Families, Children and Social Development, the group called on the federal government to work with the provinces and territories to launch a national portable housing benefit that starts by assisting those with greatest need, particularly households currently spending more than 50% of on housing and Canadians experiencing or at risk of homelessness.

Rent is the single biggest expense for those accessing food banks in Toronto: food bank clients spend, on average, 71% of their income on rent. Direct assistance for renters would help households most in need, complement social housing, and provide a flexible benefit that renters can use regardless of where they live — all without adding pressure to the already-heated rental market that exists in cities like Toronto. Rental assistance is also an essential element to any effort to prevent and end homelessness.

Read the full text of the letter to Minister Duclos.

What could a National Portable Housing Benefit look like?

Daily Bread has been working closely with a number of national partner organizations in the National Housing Collaborative on a proposal to the federal government of what a National Portable Housing Benefit could encompass. In a detailed proposal recently submitted to the federal government, the NHC proposed a single, harmonized and co-funded federal-provincial-territorial program that provides rent assistance directly to tenants in need.

It’s important to note that our housing benefit proposal is designed to be complementary to, not a replacement for, affordable and social housing investment. Canada has a severe affordable housing crisis which requires both construction of new housing and a means to immediately address the urgent housing affordability needs of Canadians.

Read the full National Housing Collaborative, National Portable Housing Benefit proposal.


Date Added: September 12, 2017 | Comments Off on Portable Housing Benefit | Filed under: Blog,Government,In the News,Information,News,Research — Tags: , , , , , , , , , , , , , — Adam Paralovos @ 3:40 pm



20 Years of Impact

This year, Bank of America Merrill Lynch and Daily Bread are marking 20 years of working together to help Torontonians in need.

“Life circumstances can change without warning, and what Daily Bread does is vital to help people move from tough times into a better future,” says Gaylen Duncan, Country Operating Officer for Bank of America Merrill Lynch.

Thanks to Bank of America for their dedication, passion and generous support – and for two decades of better futures!

To read the latest issue of our Food for Thought newsletter please click here.


Date Added: September 7, 2017 | Comments Off on 20 Years of Impact | Filed under: Blog,News — Tags: , , , , , , , , , , , — Adam Paralovos @ 9:53 am



Hopeful news: the 2017 Ontario Budget allows people on assistance to keep a financial cushion

As the labour market becomes more precarious and with fewer employment-triggered disability benefits available, more people in Ontario need to access provincial social assistance. By increasing asset limits to social assistance, the 2017 Ontario Budget has made an essential step in reforming the system by significantly reducing restrictions to access the program.

Some background to this change: the allowable asset levels in Ontario’s two social assistance programs – Ontario Works (OW) and Ontario Disability Support Program (ODSP) – have been very low since their implantation in the 1990’s. For instance, until last year a single person receiving OW could only have the equivalent to one months’ social assistance payment in assets. Why is restricting the amount of assets a bad idea? It has been argued that low asset levels undermine financial resiliency, work against the goal of returning a recipient to the workforce quickly, and jeopardize savings for retirement – all of which may cost governments more in the long term.

With this budget the provincial budget took a large step: liquid asset limits for single people receiving Ontario Works was increased to $10,000 from $2,500, and to $15,000 for couples from $5,000.

For those receiving ODSP, asset limits are being increased to $40,000 from $5,000 for single individuals, and to $50,000 for couples from $7,500.

Other commitments made in the provincial budget include:

  • Increasing the income exemption for cash gifts for those receiving social assistance from $6,000 to $10,000;
  • Increasing social assistance payments across the board by 2 per cent;
  • Investing $30 million over the next three years in the Survivors of Domestic Violence Portable Housing Benefit Pilot, which will eventually support 3,000 people;
  • $90 million to the Community Homelessness Prevention Initiatives;
  • The addition of 24,000 licenced child care spaces, including 16,000 that will be subsidized;
  • Universal prescription drug coverage to all children and youth 24 and under.

The province has also committed to a Supermarket Recovery Pilot Program, which will provide a one-time investment of $600,000 to make grants available to food banks and food rescue organizations to expand their capacity to transport and store surplus fresh and perishable food. This pilot was one of the top three ideas selected by the public for funding though the Budget Talks platform.

At Daily Bread, we are particularly pleased to see that many of our key recommendations to the province last year are moving forward in the 2017 budget.

These initiatives, along with the previously announced Basic Income Pilot that will begin in the summer in Hamilton, Lindsay and Thunder Bay, will continue the momentum to enable the further, large scale changes to the income security system in Ontario that can help reduce poverty and hunger in our communities.


Date Added: April 28, 2017 | Comments Off on Hopeful news: the 2017 Ontario Budget allows people on assistance to keep a financial cushion | Filed under: Blog,Government,In the News,News,Policy,Research — Tags: , , , , , , , , , , , — Adam Paralovos @ 3:32 pm



It’s tax time: are people on low incomes getting all the benefits they’re entitled to?

For thousands accessing food banks across Toronto, lack of income is the key driver of hunger. Clients on average spend 71 per cent of their income on rent, which leaves little for food and other necessities. For many, an extra hundred dollars or more a month could mean the difference between being able to afford groceries or having to access a food bank, being able to pay rent without skipping meals, or not needing to access a food bank as frequently.

While much needs to be done to improve and strengthen our social safety net and income security system, there is extra income that is already available through our tax system, but receiving these benefits is dependent on people filing their taxes.

Food banks can help remove barriers to accessing extra income

Sometimes people don’t file their taxes because they are not aware of the benefits to them, or may encounter other barriers due to the complexity and administrative requirements involved. Unfortunately, people on low incomes are losing out on potentially thousands of dollars of additional income because of these barriers.

Recognizing the barriers many low income people face in getting the benefits from tax filing, some food banks and other member agencies of Daily Bread Food Bank provide tax clinics and other tax filing assistance for their clients. With targeted outreach and administrative and technological support, many more low income people could be receiving all the benefits they’re entitled to receive.

Daily Bread Food Bank member agencies such as The Bluffs, New Toronto Street Food Bank, St. James Food Basket, Toronto West SDA, and Native Canadian Centre among many others offer tax filing assistance. These member agencies are similar to many other community tax clinics that provide trained volunteers, many through the Canada Revenue Agency’s Community Volunteer Income Tax Program (CVITP), which help people file their taxes through one on one support. Through continued outreach such as this, hopefully more people who are less likely to file taxes will be able to do so, and be informed of all the benefits to which they’re entitled.

Who’s filing – and who’s not filing – by the numbers

In 2013 Daily Bread’s Who’s Hungry survey found that 72 per cent of respondents accessing food banks across the GTA had filed their income taxes that year.1 While it is good news that nearly three quarters of respondents filed their taxes and are getting the benefits they are entitled to, there are more than 25 per cent of clients who are potentially missing out. And despite outreach efforts to inform people of these benefits, newer strategies may be needed to reach those who are less likely to file.

The Maytree Foundation recently published a piece entitled “Filing taxes brings major benefits to people on low incomes”. The article, which will be referenced throughout this report, noted that while provincial and federal tax benefits such as the Canada Child Benefit, Old Age Security, and GST/HST credits can cumulatively add up to thousands of dollars of additional income for low income households, many miss out because they either don’t file or are not aware of what they’re eligible to apply for or even how to apply.

Of those who do not file, the Who’s Hungry survey found that certain demographic groups accessing food banks were less likely to file than others.2 They include single people, households receiving social assistance as a main form of income, and recent newcomers who have been in Canada for more than a year but less than four years. These groups are not mutually exclusive, and many issues they face overlap. Highlighting those groups who are less likely to file may help to provide some insight as to what some potential barriers to filing might be and where more outreach may be needed.

Single person households

Single Person Household Bar Chart

Single person households are significantly less likely to have filed their taxes, with 69 per cent filing a tax return the previous year compared to 75 per cent for other household types.

Of all household types, working age single person households without children have the least amount of pre-retirement tax credits available to them, unlike households with children who can access various child tax benefits, including the Ontario Child Benefit and the Canada Child Tax Benefit. For single people living on low income, there may be less incentive to file taxes due to lack of awareness of the benefits that are available to them even if they had no employment income the previous year.

Social assistance as a main source of income

Bar 2

People receiving social assistance as their main form of income are also significantly less likely to have filed their taxes the previous year, with 70 per cent reporting that they filed compared with 78 per cent not receiving social assistance as their main form of income. Respondents who were not receiving social assistance as their main form of income were receiving other sources such as employment, pensions, or child tax benefits.

In addition to the misperception that if they don’t owe income tax there is little reason to file, people receiving social assistance may face other barriers. In Maytree’s article, it was noted that since the CRA is promoting electronic filing the lack of accessibility for people with disabilities or those who don’t have high-speed internet or a computer, may pose barriers. Clients living on social assistance spend the vast majority of their income on rent and utilities, and some may not be able to afford to have high speed internet at home.

The article also noted that “people with low incomes experiencing challenges or who have complex tax situations may need hands-on help to tax file, but can’t afford paid tax advisors and may not know where to turn for free help it it’s available in their community.”

Recent newcomers

Bar 3

Recent newcomers, for the purposes of this analysis defined as being in Canada for four years or less (but here for more than one year), are less likely to have filed their taxes. Fifty-seven per cent of recent newcomers filed their taxes the previous year, versus 76 per cent of those who are not recent newcomers.

The barriers faced by recent newcomers are similar to those faced by others, including lack of awareness of available benefits, cost, and lack of knowledge of the system that affect their ability to access a range of services beyond just financial ones. Limited knowledge of English could be another reason, with a previous study by Daily Bread noting that those who did not have a good command of the language were less likely to file.

Despite being more likely to file their taxes, low income seniors are still not receiving all the benefits they’re entitled to

Bar 4

According to the 2013 Who’s Hungry survey, respondents who were seniors 65 or older were significantly more likely to have filed their taxes: 85 per cent filed the previous year compared to 71 per cent who were not seniors. However, only 11 per cent were receiving the Guaranteed Income Supplement for seniors, even though many more were likely eligible. The most recent Who’s Hungry survey for 2016 did not ask a question about tax filing, but the number of seniors accessing the GIS had not significantly changed.

The Guaranteed Income Supplement (GIS) is part of a basic income-type program that exists for seniors in Canada. Low income seniors qualify for the GIS if they are receiving the Old Age Security pension (OAS), and have an annual income lower than a set threshold ($17,544 annually for a single person household, or approximately $1,500 per month). They also need to have resided in Canada for at least 10 years in order to receive it.

The Maytree report referenced an evaluation by Human Resources and Development Canada, which estimated that while 87 per cent of eligible seniors are accessing the GIS, there are potentially 200,000 more who may be missing out.

Food bank clients who are seniors provide some insight as to the circumstances of those who are not receiving the benefit.

Chart

The median monthly income reported by Who’s Hungry survey respondents 65 and over is $1,200 per month, which from a financial standpoint make them eligible for the GIS. While three quarters of survey respondents were not born in Canada, the vast majority – 74 per cent – have lived here at least 10 years or more which would make also them eligible due to their length of residence in Canada.

In order to receive the GIS, a senior must specifically request it when applying for OAS. While a much higher percentage of senior respondents (50%) reported that they were receiving OAS, it’s still possible that some are not applying for that source of income as well even though they’re entitled to it.

Because the application process for both OAS and GIS can be administratively complex without some assistance, language barriers may be a factor for some seniors in Toronto not accessing it. Fifty-one per cent of seniors reported not speaking English as their main language at home. Other seniors who have just turned 65 may not have applied in time, and are still receiving social assistance (either Ontario Works or Ontario Disability Support Program) despite being qualified to receive seniors’ benefits that could increase their income by hundreds of dollars a month.

“Tax-filing is a proven way to improve the financial situation of Canadians with low incomes, but has yet to be fully exploited as a means to reduce poverty in Canada.”

– U. Bajwa


Further reading

Accessing Income-Boosting Benefits Through Tax Filing – U. Bajwa for Prosper Canada

Filing Your First Tax Return in Canada: Free Resources For Newcomers – Toronto Public Library

As a doctor, here’s why I’m prescribing tax returns. Seriously. – Gary Bloch, Globe and Mail


1 The results from the 2013 Who’s Hungry survey are based on 1680 interviews conducted with people accessing food banks across the GTA.

2 Chi square analyses were conducted for the results in this report, with significance at the .05 level.


Date Added: March 31, 2017 | Comments Off on It’s tax time: are people on low incomes getting all the benefits they’re entitled to? | Filed under: Blog,Information,News,Research — Tags: , , , , , , , , — Adam Paralovos @ 2:07 pm



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