Some Ontario researchers say residents in the province who were already among the poorest and most vulnerable prior to COVID-19 are now worse off than they were before.
A new report McMaster University’s political science and labour studies department is highlighting how things are “Not Back to Normal” after the peak of the pandemic for Ontarians who’ve been relying on social assistance.
In fact, the research found that those counting on Ontario Disability Support (ODSP) are worse off than they were before, as social assistance rates haven’t increased to keep up with skyrocketing rent and food prices.
Associate Professor Peter Graefe says many low-income people in Hamilton and across the province are “trapped” with “giant rents” and don’t dare move since finding accommodations at their level of affordability is unlikely.
“Clearly, that becomes much more significant for people whose total income is about $1,200 a month,” Grafe said. “A lot of which you need to pay rent, food, clothing or transportation.”
The latest research builds off of survey questions in 2020 in conjunction with the Hamilton Roundtable on Poverty Reduction in which Ontarians over the age of 18 and not retired shared stories on how COVID-19 impacted the province’s workers, families and workplaces.
In 2022, 16 of those people were interviewed again on whether their circumstances had gotten better or worse over two years.
The ODSP recipients said they came out of the pandemic further behind, with little savings and fewer connections with their community.
Two of the interviewees didn’t qualify for any additional benefit when the federal and provincial governments rolled out assistance during the pandemic, like the $2,000 per month Canadian Emergency Response Benefit (CERB)
More than 20.7 million people across Canada received some sort of COVID-19 financial support from the government, including 16.9 million who received top-ups from existing programs.
About 7.6 million collected CERB while about 1.1 million received the subsequent Canadian Recovery Benefit (CRB).
Only about 19.7 per cent of Ontario social assistance recipients across the province met standards that allowed them to participate in CERB and CRB.
Between April and July 2020, ODSP recipients were able to apply for a special monthly pandemic top-up, but government records show only around 39 per cent of ODSP individuals or families got it.
Through the pandemic, the maximum ODSP benefit remained at around $1,300 per month, which Grafe’s staff calculated to be about $800 a month below the poverty line using the After-Tax Low-Income Measure.
Seven individuals interviewed who worked part-time or made some income revealed income was clawed back from their benefits at a rate of 50 per cent after the first $200.
Grafe says of the people he has engaged, finances, housing and even health in many cases have become more desperate amid inflation, especially due to food prices.
“I think there is a real looming crisis of homelessness for this population in the sense that the ability to house oneself on that amount is really next to impossible,” he suggested.
“People who have found solutions in the past through sharing accommodations or being able to find really inexpensive accommodations find themselves slowly squeezed out in the ability to maintain those accommodations.”
The director of the Hamilton Roundtable for Poverty Reduction, Tom Cooper, echoes those observations, confirming his outreach group has seen the same thing: many on assistance still suffering “deeply” today in the wake of the worst of the pandemic.
“It is critical the provincial government take immediate steps to reform Ontario’s broken social assistance system that has left almost all recipients at risk of homelessness, in poor health and in deep hunger,” Cooper said.
The McMaster study concurs with Cooper’s assessment and also suggests that both the federal and provincial governments need to increase the current rates of social supports — especially for those with disabilities.
Since the survey, the province has taken some action to improve the outlook by increasing ODSP five per cent in 2022 and by a further 6.5 per cent in 2023, based on inflation.
Future increases for ODSP and the monthly Assistance for Children with Severe Disabilities (ACSD) amount will also be tied to inflation going forward.
In addition, recipients working can now keep the first $1,000 they earn before facing a clawback rate of 75 per cent.
A spokesperson from the Ministry of Children, Community and Social Services told Global News the idea behind the bump was “to create more incentive for recipients to seek employment.”
Meanwhile, Ottawa has started an engagement process to design the Canada Disability Benefit Regulations – aimed at reducing poverty and supporting the financial security of working-age people with disabilities.
The feds are also in the midst of a 10-year, $82-billion National Housing Strategy plan to address a home shortage crisis, including a $133-million investment in several Hamilton programs targeting below-market rental units.
– with files from The Canadian Press
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