Ontario Works (OW) program increases are inadequate

The Ontario Works (OW) program is managed by the Ontario government’s Ministry of Children, Community and Social Services governed by the Ontario Works Act.

Since 2002, OW has continued to fall further and further behind Canada’s official poverty line, the Market Basket Measure (MBM), as well as inflation.

with the expiry of temporary federal COVID-19 income supports, the projected slowdown in the labour market and increases in international migration, the FAO estimates that OW cases will rise to a peak of 294,626 cases in 2025-26 and will then gradually decline over the remainder of the outlook to 2028-29, similar to the experience following the 2008-09 recession.

Ministry of Children, Community and Social Services: Spending Plan Review – FAO (2024)

Funding

Assistance rates have been frozen since the last Ontario Works rate increase of 1.5% in October 2018.

Ontario does not index OW rates to inflation and there is no legislated formula for determining rate increases. Changes are made on an ad hoc basis by the province.

The FAO estimates that the inflation-adjusted average annual allowance per case declined by 15% from $11,154 in 2018-19 to $9,485 in 2023-24. Assuming the freeze continues, the FAO estimates that the inflation-adjusted average OW allowance will decline by an additional 10% to $8,511 per case by the end of 2028-29.

Usage

• 428,000 people are beneficiaries of Ontario Works as of December 2023.
• Maximum is $733 a month for basic needs and shelter if you are single.
• Maximum basic needs amount is $343 per month if you are single.
• Maximum shelter amount is $390 per month if you are single. The provincial government thinks that someone can find a place to live, rent and utilities on this amount in Ontario. In the middle of a housing crisis.
• OW provides only 37% of the funds that would be required for them to have a roof over their heads, food in their stomachs, and enough money to maintain a very basic standard of living. Welfare in Canada – Maytree

OW falls below Canada’s Official Poverty Line

Canada’s Official Poverty Line is the Market Basket Measure, which differs by location and family type.

In 2022, here is the monthly amount of the MBM for select municipalities and populations:

OW payments have fallen from around 45% of the poverty line in 2002, to around 37% of the poverty line in 2022:

OW increases were lower than inflation from 2012 to 2022

Timeline

October 1995 – Harris government cut OW by 21.6% to $530 per month

If rates had been raised with inflation from that multi decade low, they would now stand at $940 a month – $207 higher than the current $733 as of February 2024. 

Harris PC government spent 8 years in power from 1995 to 2003 and did not increase either OW or ODSP.

June 19, 2023 – Doug Ford says people on OW drive him crazy

What drives me crazy is people on Ontario Works — probably three, 400,000 — that are healthy. It really bothers me that we have healthy people sitting at home, collecting your hard-earned dollars. We need to encourage them to contribute back to the province and find gainful employment.

Premier Doug Ford

February 13, 2024 – Prince Edward County asks province to double ODSP and OW

In a letter sent to various ministers and all municipalities, Price Edward County requested:

• At least double Ontario Works and ODSP rates and index rates to inflation, answering calls already made by “Raise the Rates” campaign and the “Income Security Advocacy Centre”;
• Commit to ongoing cost of living increases above and beyond the rate of inflation to make up for the years they were frozen;
• Commit to jointly working between the Ministry of Children, Community, and Social Services and the Ministry of Health on the best methods of assessing client needs and then matching those in need to the services they require;

Citing:

• poverty is taking a devastating toll on communities, undermining a healthy and prosperous Ontario, with people in receipt of Ontario Works and Ontario Disability Support Program being disproportionately impacted;
• cost of food, housing, medicine, and other essential items have outpaced the highest inflation rates seen in a generation;
• people in need of social assistance have been legislated into poverty, housing insecurity, hunger, poorer health, their motives questioned, and their dignity undermined;
• OW and ODSP rates do not provide sufficient income for a basic standard of living and, as a result, hundreds of thousands of people across Ontario who rely on these programs live in poverty;
• the poverty risk profile for Prince Edward County created by Vital Signs states that 10.1% – 13.5% of County residents are living on low income

How much money does OW provide?

The Ontario Works Act and regulations set the rates under several categories:

• Basic Needs: items such as food, clothing and personal needs
• Shelter: housing costs such as rent, mortgage payments, utilities like gas and hydro, etc.
• Board and Lodging: if your rent money also includes your meals

The amount of assistance someone can receive from Ontario Works depends on family size, housing costs and income.

Take action

Email your MPP, the Premier and party leaders and let them know what you think should be done to improve OW

Follow the work of:

• ODSP Action Coalition (Twitter)
• Income Security Advocacy Centre
• Raise The Rates Campaign
• Raise the Rates & Stop the Clawbacks – Acorn Canada
• FoodShare
• Disability Justice Network of Ontario
• Ontario Disability Coalition

Contact information

• https://www.ontario.ca/page/ontario-works
• Ontario Social Assistance Office Finder

Sources

• Monthly OW Amounts – City of Toronto
• Welfare in Canada – Maytree (annual)
• Welfare in Ontario – Maytree (annual)
• 2021 OPERATING BUDGET BRIEFING NOTE – Ontario Works (OW) Rates and Increases Since 2001, compared with inflation and the cost of living in Toronto (2021)
• Ontario Works: Follow-Up Report – Auditor General of Ontario (2020)
• Ontario Works: Follow-Up on Public Accounts Committee Report (2019)
• Resetting Social Assistance Reform – Ontario 360 (2019)
• 2018 Annual Report: Ontario Works – Auditor General of Ontario (2018)
• Social Assistance Trends – ODSP – Government of Ontario (2022)