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Poverty reduction key to fairer, more prosperous Ontario

By: Sarah Blackstock Greg deGroot-Maggetti, Published on Wed Dec 04 20

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Five years ago this week, the Ontario government embarked on a bold and historic challenge to reduce child and family poverty across our province by 25 per cent by 2013. While it appears Ontario will fall short of its “25 in 5” target, the province has made some progress and laid three critical building blocks that should provide the foundation for its next five-year strategy, expected in early 2014.

The first building block was forged in understanding the connection between fairness and economic prosperity. Ontario should take a page from the response to the most recent economic downturn, where a rising consensus emerged – including World Bank economists and finance ministers of all political stripes – that fighting poverty is required to grow our economy.

Ontario’s 2008 maxim that “we need all hands on deck” to drive our province’s recovery rings as true today as it did then. In an increasingly competitive global economy, it is crucial that we maximize the potential of every Ontarian to both participate in and benefit from economic activity. In a time of fiscal challenges, governments must invest in pathways to opportunity or be saddled with rising costs in health care and social services borne of persistent poverty.

Ontario’s second building block against poverty comes from knowing that good intentions alone cannot sustain a long-term commitment to poverty. Clear goals backed up with a comprehensive strategy must be part of the roadmap to progress.

The government’s willingness to set a clear “25 in 5” target in 2008 came with political risk and took courage. While Ontario’s performance was far from perfect, it has led to tangible gains. Ontario’s child poverty rate of 13.8 per cent in 2011, the latest year for which Statistics Canada figures are available, was down from 15.2 per cent in 2008. This means 41,000 fewer children were living in poverty, a reduction of just over 9 per cent in three, economically challenging years.

Different choices would have undoubtedly led to better outcomes, especially for households without children. But substantial early investments in policies like the new Ontario Child Benefit, refundable tax credits for low income people, and minimum wage hikes show that smart social policy works. Or at least as much as you are willing to invest in it.

The next plan must raise the bar. It should seek to cut poverty among all Ontarians in half by 2018, achieving a reduction in the overall poverty rate in Ontario to below 6 per cent and the child poverty rate to below 7.5 per cent.

The third building block for Ontario’s next poverty reduction strategy is building momentum by starting strong.

Five years ago, Ontario did not flinch in the face of a recession. The government immediately accelerated investments in the Ontario Child Benefit. It increased minimum wages when workers needed them most. It moved quickly to entrench poverty reduction into legislation. It invested in community services in priority neighbourhoods. And it revised legislation on worker protections and predatory lending practices within the first year of the plan.

These down payments were critical in achieving initial gains against poverty. They also put real money in the hands of real people to spend in their communities, providing stimulus to a battered economy.

But Ontario has not always carried through with as much vigour as the challenge of poverty requires. Case in point was the 2012 decision to eliminate the Community Start-Up and Maintenance Benefit (CSUMB), a modest fund intended to provide a life-line to Ontarians at risk of homelessness.

As the next five-year blueprint is set to be unveiled early in 2014, it is time for Ontario to raise the bar on poverty reduction, starting with a substantial down payment as a building block for success.

Such a down payment should increase social assistance, the Ontario Child Benefit and the minimum wage, to build on gains from the initial strategy.

Addressing the need for affordable housing is key. As municipalities struggle with the repercussions of the CSUMB cut, Ontario should shore up its commitment to the most vulnerable by making transitional housing and homelessness funding permanent. And the government should also match federal housing funding commitments.

Action to resolve the growing precariousness of jobs is another urgent step to take to achieve fairness while helping to drive the economy.

But so much more needs to be done. The 2008 Poverty Reduction Strategy opened the door for substantive action. It’s now time to act boldly toward eradicating poverty in our province by investing in a prosperity agenda that benefits us all.

Sarah Blackstock of YWCA-Toronto and Greg deGroot-Maggetti of Mennonite Central Committee Ontario represent the 25 in 5 Network for Poverty Reduction.

jillumbach Advocacy, Media

Rural Residents Need More

Bruce Grey Poverty Task Force wants gas tax to help fund rural transportation.

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(Grey Bruce )-The Bruce Grey Poverty Task Force is calling on the Ontario government to put more resources into rural communities.

In its updated Ontario Poverty Reduction Strategy, the province is reviewing that strategy and the Poverty Task Force wants to ensure that they receive feedback and ideas from people in Bruce and Grey counties.

United Way of Bruce Grey Executive Director, Francesca Dobbyn says they heard similar messages from across the community.

Issues such as transportation, jobs, health services; and safe, affordable housing were among the issues brought up in the survey.

Families who responded to the survey indicated they had benefited from the government’s Child Benefit Taxes, Student Nutrition Program, and full-day kindergarten.

However, families with dependents over 18 and middle-aged people, seniors or those almost at retirement age are not eligible for these benefits.

The Poverty Task Force asked area MPP’s for comments on the submission, and both Bruce Grey Owen Sound MPP Bill Walker and Huron Bruce MPP Lisa Thompson contributed to the report.

Thompson says the Task force report is a testament to the years of neglect by the Liberal government.

She promises to continue to push for rural Ontario’s fair share through lower energy bills, and a fair share of the gas tax for rural residents so we can invest in transportation.

MPP Walker says the gas tax is the most persistent anti-rural policy of the last decade.

He says they want immediate action from the government to allocate a fair portion of the gas tax to all rural communities so we can meet our transportation and infrastructure needs.

The task force report is being sent off to Queens Park.

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The Bruce Grey Poverty Task Force and area MPPs issue feedback on provincial poverty reduction strategy

3 October 2013

Joint Media Release

The Bruce Grey Poverty Task Force is calling on the Ontario government to put more resources into rural communities in its updated Ontario Poverty Reduction Strategy.

The Ontario government is reviewing its Ontario Poverty Reduction Strategy and the Poverty Task Force wants to ensure that they receive feedback and ideas from people in Bruce and Grey counties.  The Task Force’s recent submission to the government’s review is a summary of voices from low-income families across both counties.

“We heard similar messages from across the community,” said Francesca Dobbyn, United Way of Grey Bruce, “Issues such as transportation, jobs, health services; and safe, affordable housing along with service gaps as most of the poverty reduction has been focused on children.”

Families responded that they had benefited from the government’s investments in Child Benefit Taxes, Student Nutrition Program, Healthy Smiles dental program, and full-day kindergarten. However, those families with dependents over 18 and middle-aged people, seniors or those almost at retirement age are not eligible for these benefits.

See the full submission report: PTF Ontario Poverty Reduction Strategy Review_Submission_2 Oct 2013

The Poverty Task Force asked area MPPs for comments on the submission:

“This report is a testament to the years of neglect by this government. I and my colleagues will continue to push for rural Ontario’s fair share through our policy proposals that include fresh food for local food banks, lower energy bills, and a fair share of the gas tax for rural residents so we can invest in transportation and ensure our communities are sustainable over the long-term.”
– Lisa Thompson, MPP for Huron-Bruce

“The gas tax is the most persistent anti-rural policy of the last decade. We want immediate action from this government to allocate a fair portion of the gas tax to all rural communities so we can meet our transportation and infrastructure needs. Rural Ontario has an enormous opportunity for growth, and so the sooner this government starts supporting our policies, the sooner we will ignite a comeback for rural communities.”
– Bill Walker, MPP for Bruce-Grey-Owen Sound

The Poverty Task Force, a group of agencies and grassroots groups across Grey and Bruce Counties have joined together to address issues of poverty.

For more information on the Poverty Task Force please contact Francesca Dobbyn at 519 376 1560

For MPP Lisa Thompson please call 519-396-3007 or 416-325-3467

For MPP Bill Walker please call 519-371-2421 or 416-325-6242

 

 

 

 

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Poverty is a Health Issue: What to look for in the next Poverty Reduction Strategy

September 24, 2013 by 

Living on a low income affects people’s lives in many ways. It can mean having fewer opportunities to fully participate in important day-to-day activities like work and education. But living on a low income can also contribute to having poorer health than those who are better off. Poverty is a health issue, but poverty and poor health are not inevitable.

Ontario is currently working on a new five-year Poverty Reduction Strategy. This provides an excellent opportunity for the province to set out their concrete steps to reduce poverty in the short- and medium-term. A new Wellesley Institute report details how the province can improve the health of all Ontarians by reducing poverty. This is the first in a series of three blogs that set out how to create a Poverty Reduction Strategy that enables good health for all.

Income security

Ensuring that all Ontarians have adequate income is critical to achieving the Poverty Reduction Strategy’s goals. Employment should be a path out of poverty, but we know that many employed Ontarians are unable to afford basic necessities and that this can have negative health impacts.

One area that needs urgent attention is Ontario’s minimum wage. The minimum wage has been frozen at $10.25 since 2010 and there are a growing number of Ontarians who are ‘working poor’. Working poverty can have serious health impacts: Ontario data show that 66 percent of people who were working and made sufficient incomes reported their health as excellent or very good as compared with 49 percent of those who were working poor. Setting the minimum wage at 10 percent above the poverty line and indexing it to inflation will be good for the health of Ontarians.

The Ontario Employment Standards Act sets out the minimum terms and conditions that all employees can expect with regard to wages and other working conditions. These standards are important to all workers, but they are especially so for marginalized workers who are least able to negotiate fair wages and working conditions for themselves. Ensuring that people get paid for the work that they do, and that their pay is in compliance with the law is an effective way to reduce poverty. The Poverty Reduction Strategy should commit to improving enforcement and modernizing the Employment Standards Act.

Increasingly, Ontarians are finding themselves in low-wage work without security or benefits. Precarious forms of employment – like part-time, contract positions that do not offer benefits – are on the rise. Many of these jobs are in the service sector where it is very difficult for employees to choose to unionize and to keep their union once they have decided to join one. Ontario’s Labour Relations Act needs to be updated to reflect the changing structure of the labour market. The Poverty Reduction Strategy should update the Labour Relations Act to protect workers’ collective bargaining rights.

The Poverty Reduction Strategy also needs to address the adequacy of social assistance rates. Social assistance rates are currently set at levels that are too low for recipients to maintain good health. Last year, the Commission for the Review of Social Assistance in Ontario recommended the creation of a Basic Measure of Adequacy that included the cost of food, clothing and footwear, basic personal and household needs, transportation, and shelter. The Poverty Reduction Strategy should commit to ensuring that social assistance rates are set at a level that allows recipients to afford these basic necessities of life.

These are four areas of action in which policy solutions to improve income security are well-know, actionable and supported by research. The new Poverty Reduction Strategy should take action in these areas to improve the incomes – and health – of all Ontarians.