Background Information for Creating
ODSP Legislation Petition
NOTE: Financial values quoted are pre 3% increase in 2004 budget.
This information was compiled in March 2005 and does not reflect
any changes made to the ODSP system since then.

Points to include:

• Quality of living before 23% cut in benefits - In 1995, social assistance rates were cut by 21.6% . The real value of that cut, given the cost of living and inflation is now more than 37%(Canadian Centre for Policy Alternatives; 'Targeting the Most Vulnerable: A Decade of Desperation for Ontario's Welfare Recipients', p.7 ).
• last increase before current 3% increase, date, amount, real value
• difference in quality of living
• difference in real value of benefits, assets
• the 3% increase this year amounted to a COLA increase as the inflation rate was 2.7%
• McGuinty on record for wanting COLA

Petition Points:

• Raise in base benefits yearly to match the Consumer Price Index increase as determined by the Bank of Canada
• Raise in base benefits to restore living level destroyed in 1995
• Adjust Maximum Shelter Allowance in O. Reg. 222/98, s. 31 (2) 2 to reflect current real world values.
• Yearly increases to Maximum Shelter Allowance to match the rent control index increases as provided by the Minister of Municipal Affairs and Housing as per section 129 of the Tenant Protection Act, 1997.
• Asset cutoff levels increased to compensate for inflation from 1995 to the current year
• Yearly increases in Asset cutoff levels to compensate for the Consumer Price Index increases
• Earnings cutoff levels increased to compensate for the Consumer Price Index increase between 1995 and the current year.
• Yearly increases in Earnings cutoff levels to compensate for the Consumer Price Index increases
• O. Reg. 222/98, s. 30 (2) that caps the total amount payable be modified to accommodate the difference shown in the chart in O. Reg. 222/98, s. 30 (1) 1. where both the recipient and partner are persons with a disability.
• Earnings of other members of the benefit unit should be removed from the calculations of income. This is a plain discriminatory practice in a society that demands two working contributors in a family unit in order to maintain a ‘NORMAL' or ‘AVERAGE' lifestyle in comparison with the rest of the province. This practice also prevents and contravines the Human Rights Code R.S.O. 1990, CHAPTER H.19 by removing the right and ability to have presented mutual respect for the dignity and worth of each person so that each person feels a part of the community and able to contribute fully to the development and well-being of the community and the Province.

Arguments:

Raise in Basic Benefits:

Single Family Unit Recipient

• LICO in 1994 for a 1 person unit in an average size community is $14,063 per annum
• In 1994 Total benefits were 76% of 'Poverty Line' for a single person - Extracted from Page 69 of the Welfare Incomes 2003 prepared by the National Council of Welfare
• For 1994 the calculated Basic Needs Allowance for a single person on disability assistance in Ontario would have been approximately $494 (calculations based on percentages used in 2004 that put Basic Needs Allowance as 55.5% of the Total Benefits Payable.)
• In 2003 Total benefits were 59% of 'Poverty Line' for a single person - Extracted from Page 69 of the Welfare Incomes 2003 prepared by the National Council of Welfare
• Loss in percentage of 'Poverty Line' between 1194 and 2003 = 17%
• 2003 Before Tax LICO for a single person in average size community is $16,862 per annum - Canadian Council on Social Development using Statistics Canada's Low Income Cut-Offs, from Low income cut-offs from 1994-2003 and low income measures from 1992-2001 Catalogue # 75F0002MIE No. 002 March 2004. Information gathered from http://www.bankofcanada.ca/en/cpi.htm
• Between 1995 and 2004 the Consumer Price Index rose 19.8%
• Basic Needs represents 55.5% of Income Support Allowance for a single recipient of ODSP in 2004
• CPI rose 1.5% for 2004 - 2004 Before Tax LICO for a single person in an average size community will equal $17,114 per annum
• Current Basic Needs Allowance for a single person in 2004 (before 3% increase) = $516
• For the year 2004 in order to restore level of basic needs to 76% of poverty line as it was in 1994 requires an increase of 16.5% on $516 = $601.14 or (55.5% of 76% of $17,114) /12 = $601.56

2 Person Family Unit Recipient

• LICO in 1994 for a two person family unit in an average size community is $17,579 per annum
• For 1994 the calculated Basic Needs Allowance for a two person family unit on disability assistance in Ontario would have been approximately $732 (calculations based on percentages used in 2004 that put Basic Needs Allowance for a two person family unit as 48.2% higher than the allowance for a single person.)
• In 1994 Basic Needs Allowance for a two person family unit were 49.9% of 'Poverty Line' for a two person family unit - 732/(17579/12)
• •Loss in percentage of 'Poverty Line' between 1194 and 2003 = 17%
• 2003 Before Tax LICO for a 2 person unit in an average size community is $21,077 per annum - Canadian Council on Social Development using Statistics Canada's Low Income Cut-Offs, from Low income cut-offs from 1994-2003 and low income measures from 1992-2001 Catalogue # 75F0002MIE No. 002 March 2004. Information gathered from http://www.bankofcanada.ca/en/cpi.htm
• Between 1995 and 2004 the Consumer Price Index rose 19.8%
• CPI rose 1.5% for 2004 - 2004 Before Tax LICO for a 2 person unit in an average size community will equal $21,393 per annum
• Current Basic Needs Allowance for 2 person unit in 2004 (before 3% increase) = $765
• To restore level of basic needs to 49.9% of poverty line as it was in 1994 requires an increase of 16.3% to $765 = $889.70 or (49.9% of $21,393) /12 = $889.59
• To bring Basic Needs to LICO level for 2004 requires an increase of 31.6% on $765 = $1006.74 or 56.5% of $21,393 /12 = $1007.25