Chapter 2: Income Security and Social Welfare Social Work In Canada Copyright © 2010 Thompson Educational Publishing, Inc SOCIAL WORK IN CANADA An Introduction Third Edition Chapter 2: Income Security and Social Welfare

Chapter 2: Income Security and Social Welfare Social Work In Canada Copyright © 2010 Thompson Educational Publishing, Inc. Income Security and Social Welfare  The Emergence of Income Security  Selective and Universal Programs  Poverty and Inequality  Canadian Federalism and Social Welfare  Ideology: Why People Differ on What to Do  Globalization and Social Welfare

Chapter 2: Income Security and Social Welfare Social Work In Canada Copyright © 2010 Thompson Educational Publishing, Inc. The Emergence of Income Security  Income security programs provide monetary support to individuals or families  They are often called “transfers” because they transfer cash and other benefits from government programs to individuals and families  There are four types of Income security

Chapter 2: Income Security and Social Welfare Social Work In Canada Copyright © 2010 Thompson Educational Publishing, Inc. The Emergence of Income Security Four types of Income Security: 1.Social Insurance 2.Minimum Income 3.Demogrants 4.Income supplementation

Chapter 2: Income Security and Social Welfare Social Work In Canada Copyright © 2010 Thompson Educational Publishing, Inc. The Emergence of Income Security Social Insurance  Follows insurance principle of shared risk  People contribute knowing not everyone will need it  Generally linked to employment; all workers contribute and are therefore eligible for benefits  Employment Insurance, Workers’ Compensation, Canada/Quebec Pension Plan

Chapter 2: Income Security and Social Welfare Social Work In Canada Copyright © 2010 Thompson Educational Publishing, Inc. The Emergence of Income Security Minimum Income  Provide monetary assistance to those with no other source of income  Geared towards those living in poverty  Quantity of assistance determined by minimum amount necessary to meet basic needs  Social Assistance, also called welfare or workfare

Chapter 2: Income Security and Social Welfare Social Work In Canada Copyright © 2010 Thompson Educational Publishing, Inc. The Emergence of Income Security Demogrants  Universal flat-rate payments  Made to individuals or households on the basis of demographic characteristics (such as # of children or age)  Old Age Security, Family Allowance

Chapter 2: Income Security and Social Welfare Social Work In Canada Copyright © 2010 Thompson Educational Publishing, Inc. The Emergence of Income Security Income Supplementation  Supplement income obtained elsewhere  Not intended as primary source of income  May have a broad entitlement  The National Child Benefit Supplement and the Guaranteed Income Supplement

Chapter 2: Income Security and Social Welfare Social Work In Canada Copyright © 2010 Thompson Educational Publishing, Inc. The Emergence of Income Security  Employment Insurance  Workers’ Compensation  Social Assistance or Welfare  Canada Child Tax Benefit  Canada/Quebec Pension Plan  Disability  Survivor and Death Benefits  Old Age Security  Veterans Disability Pension  Occupational Benefits Public Income Security Programs

Chapter 2: Income Security and Social Welfare Social Work In Canada Copyright © 2010 Thompson Educational Publishing, Inc. The Emergence of Income Security Employment Insurance (EI)  Federally administered, dates back to 1941  Provides level of income replacement to workers temporarily unemployed  Sickness, maternity, and parental benefits  Seasonal industry workers  Paid for through employer and employee contribution

Chapter 2: Income Security and Social Welfare Social Work In Canada Copyright © 2010 Thompson Educational Publishing, Inc. The Emergence of Income Security Workers’ Compensation  Provide provincially administered benefits  Designed to protect workers against income loss due to workplace injury or disease  Employer funded  First Workers’ Compensation program was in Ontario in 1914  This was the first social insurance program in Canada

Chapter 2: Income Security and Social Welfare Social Work In Canada Copyright © 2010 Thompson Educational Publishing, Inc. The Emergence of Income Security Social Assistance or Welfare  Designed to provide minimal support to the deserving poor or those deemed unable to work  Expanded to include those in need but without resources  Residual program of last resort  Provincial responsibility with some federal funding  Provinces are free to design their own programs and set level of benefits

Chapter 2: Income Security and Social Welfare Social Work In Canada Copyright © 2010 Thompson Educational Publishing, Inc. The Emergence of Income Security Canada Child Tax Benefit (CCTB) / National Child Benefit Supplement (NCBS)  Provides benefits to families with children  Delivered through the tax system and direct cash transfers  Includes two aspects: the basic CCTB and the NCBS  CCTB provides a tax credit to those who qualify, based on an income test, as low- and middle-income families with children

Chapter 2: Income Security and Social Welfare Social Work In Canada Copyright © 2010 Thompson Educational Publishing, Inc. The Emergence of Income Security Canada/Quebec Pension Plan (C/QPP)  National contributory and earnings-related pension program introduced in 1966  Provides benefit for retirement, death, and long-term disability  Pay-as-you-go system  Any funds not paid out invested into larger reserve fund  Retirement, Disability, and Survivor’s and Orphan’s Death Benefits  Eligibility for the retirement benefit begins at 60 years of age

Chapter 2: Income Security and Social Welfare Social Work In Canada Copyright © 2010 Thompson Educational Publishing, Inc. The Emergence of Income Security Disability  Severe and prolonged disability resulting in the inability to participate in the labour force  Earnings-related and basic flat-rate portion  Recipients may also qualify for supplemental child benefits if there are dependants

Chapter 2: Income Security and Social Welfare Social Work In Canada Copyright © 2010 Thompson Educational Publishing, Inc. The Emergence of Income Security Survivor and Death Benefits  In case of contributor’s death, surviving family members are eligible  Benefits are intended to provide support to surviving spouse and dependent children

Chapter 2: Income Security and Social Welfare Social Work In Canada Copyright © 2010 Thompson Educational Publishing, Inc. The Emergence of Income Security Old Age Security (OAS), Guaranteed Income Supplement (GIS); Spouse’s Allowance (SPA)  Between 1952 and 1989, all elderly Canadians received Old Age Security  Since 1989, the benefit is only for those who qualify because of low or modest income  Two related programs: GIS and SPA, supplement the OAS for elderly with low incomes

Chapter 2: Income Security and Social Welfare Social Work In Canada Copyright © 2010 Thompson Educational Publishing, Inc. The Emergence of Income Security Veterans Disability Pension  Available to those who apply to Veterans Affairs Canada  Must have a service-related permanent disability resulting from injury or disease  Based solely on the extent of the disability and the fact that it is military-service related

Chapter 2: Income Security and Social Welfare Social Work In Canada Copyright © 2010 Thompson Educational Publishing, Inc. The Emergence of Income Security Occupational Benefits  Directly tied to one’s workplace  Includes both retirement plans and other insurance- based benefits (dental and drug)  Savings plans with tax-supported provisions (RRSPs)  Government foregoes the collection of tax

Chapter 2: Income Security and Social Welfare Social Work In Canada Copyright © 2010 Thompson Educational Publishing, Inc. The Emergence of Income Security Selective and Universal Programs Selective Programs  Limited to those who are determined to be in need based on a means or needs test Universal Programs  Available to everyone in a category (e.g., seniors)  All persons are equally eligible regardless of income and financial situation

Chapter 2: Income Security and Social Welfare Social Work In Canada Copyright © 2010 Thompson Educational Publishing, Inc. Poverty and Inequality Poverty brought on by unexpected turn of events:  loss of employment  death or disability of a family breadwinner  family breakup  increased costs from major illness  changes in economy  not enough hours of work  discrimination and unequal opportunities

Chapter 2: Income Security and Social Welfare Social Work In Canada Copyright © 2010 Thompson Educational Publishing, Inc. Poverty and Inequality Measuring Poverty:  Low Income Cut-offs (LICOs) Measure of the poverty rate in Canada; based on average household spending on necessities (plus 20%) and varies according to region and family size.

Chapter 2: Income Security and Social Welfare Social Work In Canada Copyright © 2010 Thompson Educational Publishing, Inc. Poverty and Inequality Measuring Poverty:  Low Income Measure Measure of poverty used for international comparisons based on one-half of the median income of a country.

Chapter 2: Income Security and Social Welfare Social Work In Canada Copyright © 2010 Thompson Educational Publishing, Inc. Poverty and Inequality Measuring Poverty:  Market Basket Measure Proposed poverty measure based on the cost of consumption rather than income.

Chapter 2: Income Security and Social Welfare Social Work In Canada Copyright © 2010 Thompson Educational Publishing, Inc.

Chapter 2: Income Security and Social Welfare Social Work In Canada Copyright © 2010 Thompson Educational Publishing, Inc.

Chapter 2: Income Security and Social Welfare Social Work In Canada Copyright © 2010 Thompson Educational Publishing, Inc. Poverty and Inequality Poverty in Canada:  One in six Canadian children lives below the Statistics Canada LICOs  The rate of child poverty is the same today as it was in 1989  In 2008, there were over 700 food banks in Canada  In an average month, 704,000 people received food  Over one-third of those being helped were under 18

Chapter 2: Income Security and Social Welfare Social Work In Canada Copyright © 2010 Thompson Educational Publishing, Inc. Poverty and Inequality Campaign 2000: Campaign 2000 is a national anti-poverty coalition named for the federal government’s 1989 pledge to end child poverty by the year

Chapter 2: Income Security and Social Welfare Social Work In Canada Copyright © 2010 Thompson Educational Publishing, Inc. Canadian Federalism and Social Welfare  Social Welfare Reforms  Canada Assistance Plan (CAP)  Canada Health and Social Transfer (CHST)  Canada Social Transfer (CST)  Canada Health Transfer (CHT)  Social Union Framework Agreement (SUFA)

Chapter 2: Income Security and Social Welfare Social Work In Canada Copyright © 2010 Thompson Educational Publishing, Inc. Ideology: Why People Differ on What to Do Left ↔ Right Communism ↔ Fascism Group ↔ Individual

Chapter 2: Income Security and Social Welfare Social Work In Canada Copyright © 2010 Thompson Educational Publishing, Inc. Ideology: Why People Differ on What to Do Workfare:  Applicants must work to be eligible for benefits  People work at specific job to get government cheque  May require applicants to retrain or pursue self- employment  May involve working in a community or social service agency

Chapter 2: Income Security and Social Welfare Social Work In Canada Copyright © 2010 Thompson Educational Publishing, Inc. Ideology: Why People Differ on What to Do Social Welfare Economics: KeynesiansMonetarists  John Maynard Keynes  Milton Friedman  Governments combat unemployment  Governments combat inflation  Social spending helps economic recovery  Social spending stimulates inflation  Spend money on social programs to avoid economic depression  Safeguard economy by controlling money supply

Chapter 2: Income Security and Social Welfare Social Work In Canada Copyright © 2010 Thompson Educational Publishing, Inc. Globalization and Social Welfare Economic Globalization The growing integration and expansion of global markets for goods, services, and finances. Global Social Welfare A concern with justice, social regulation, social provision, and redistribution between nations.

Chapter 2: Income Security and Social Welfare Social Work In Canada Copyright © 2010 Thompson Educational Publishing, Inc. Questions for Discussion Discuss the assumptions behind the names “welfare” and “workfare.” What is assumed by requiring recipients to participate in work placements in order to receive benefits?

Chapter 2: Income Security and Social Welfare Social Work In Canada Copyright © 2010 Thompson Educational Publishing, Inc. Questions for Discussion What are the implications of provincial control over designing programs and setting social welfare benefit levels?

Chapter 2: Income Security and Social Welfare Social Work In Canada Copyright © 2010 Thompson Educational Publishing, Inc. Questions for Discussion How might benefits received through the tax system (tax credits and exemptions) be perceived differently from direct cash payments?

Chapter 2: Income Security and Social Welfare Social Work In Canada Copyright © 2010 Thompson Educational Publishing, Inc. Questions for Discussion Discuss reasons why poverty rates in Aboriginal communities are higher than national rates. What role does ideology play?

Chapter 2: Income Security and Social Welfare Social Work In Canada Copyright © 2010 Thompson Educational Publishing, Inc. Questions for Discussion What are some of the benefits of economic globalization to social work practice? What are some of the challenges?

Chapter 2: Income Security and Social Welfare Social Work In Canada Copyright © 2010 Thompson Educational Publishing, Inc. Questions for Discussion In what ways does economic globalization effect Aboriginal populations in Canada?

Chapter 2: Income Security and Social Welfare Social Work In Canada Copyright © 2010 Thompson Educational Publishing, Inc. Websites  Canadian Centre for Policy Alternatives  Caledon Institute of Social Policy  Food Banks Canada