National Council of Welfare

Conseil national du bien-être social

FOR IMMEDIATE RELEASE

STOP MAKING POOR PEOPLE POORER,
SAYS REPORT ON WELFARE REFORM

             The federal, provincial and territorial governments should
stop putting the squeeze on the children, women and men on welfare,
the National Council of Welfare said in a report on welfare reform
published today. "The National Council of Welfare cannot see how making poor
people poorer is good public policy, and it is absolutely
impossible for us to understand in the case of poor families with
children," says the report, Another Look at Welfare Reform. The report reviews and analyzes changes in welfare policies
during the 1990s. Many of the changes involved cuts or freezes
in provincial and territorial welfare benefits. The report also
criticizes the sharp cuts made by the federal government in its
financial support for welfare and other social programs. The Council notes the importance of giving children a good
start in life and the value of prevention - spending modest sums of
money now to avoid spending huge sums down the road. It also notes
that many governments and social agencies are talking more and more
about poverty and other "risk factors" that make it difficult for
poor children to thrive. "Given all this, we simply do not see how policies which
deprive children in welfare families can enjoy widespread public
support," the report says. -2- The Council recommends that welfare rates should be based on the cost
of a "market basket" of essential goods and services. Once set in
this manner, rates should not be changed arbitrarily. Welfare caseloads rise and fall with unemployment, and the
high caseloads of recent years are largely the result of high
unemployment rates. The report urges governments to step up their
efforts to create better jobs for all Canadians rather than
limiting their efforts to make-work jobs for welfare recipients. "Government efforts over the years to substitute welfare
reform for job creation have been largely unsuccessful," the report
says. "Rather than spending the bulk of their efforts on labour
market policies which would lead to more jobs and better jobs for
more people in the population at large, most governments confine
themselves to trying to get able-bodied people on welfare into
jobs that do not exist. When all else fails, they come up with
euphemisms for welfare programs built around words like
"opportunity" and "independence" or call out the fraud squads
to exaggerate the surprisingly small amount of cheating in the
system." "The stark reality is that welfare reform without job creation
simply does not work." For the future, the National Council of Welfare is encouraged
by recent changes in federal policy that open the door to increased
support for social programs. The most encouraging is the promise
that Ottawa will make cash payments to the provinces and
territories of at least $12.5 billion a year under the Canada
Health and Social Transfer to support medicare, post-secondary
education, welfare and social services. The Council recommends that the federal, provincial and
territorial governments use this change in policy as a spur to
developing brand-new financial arrangements for these four areas
of social policy. -3- The National Council of Welfare is a citizens' advisory group
to the federal Minister of Human Resources Development.

RECOMMENDATIONS IN ANOTHER LOOK AT WELFARE REFORM


             1.  The federal, provincial and territorial governments should
agree to new package of financial arrangements for social programs
with the following four features: - abolition of the Canada Health and Social Transfer at the
earliest possible date; - four new "cash-only" deals to allow the federal government to
defray the cost of medicare, post-secondary education, welfare
and social services; - legislation to prevent the federal government from making
arbitrary and unilateral changes in any of the four cash-only
deals; and - firm guarantees by provincial and territorial governments to
respect minimum national standards for welfare. 2. Welfare rates should be high enough to cover the cost of the
necessities of life, as measured by a "market basket" of goods and
services. Once set in this manner, rates should not be changed
arbitrarily. 3. Provincial and territorial governments should not be allowed to
disentitle entire groups of people from welfare. Alternatives to
welfare should be pursued, but no one should be denied welfare
simply because of their age, marital or family status, or state
of health. 4. As a matter of right, all applicants and recipients should
be able to appeal the decisions of welfare and social service
officials. Appeal tribunals should operate in a non-bureaucratic,
non-legalistic manner and render their decisions speedily. -4- 5. Every provincial and territorial government should insist on
comparable welfare benefits everywhere within its own jurisdiction
and should cover 100 percent of the cost of welfare. Municipal
governments should not pay for welfare, because they do not have
the variety of taxing powers needed to cover increased welfare
costs during a long or severe recession. 6. All provinces and territories should allow applicants for
welfare and welfare recipients to retain a modest amount of savings
for emergencies or special needs. People should not have to be
utterly penniless before they are able to apply for welfare. 7. All governments should take a stand against welfare bashing.
They should avoid stereotypes in all their public statements about
welfare fraud and the lifestyles of welfare recipients. 8. Provincial and territorial governments should accept reasonable
limits in the pursuit of welfare fraud. Measures such as
fingerprinting which are not routinely applied to other groups of
Canadians should not be imposed on welfare recipients. Governments
should take pains to distinguish between fraud and administrative
errors in their public statements about welfare. 9. Provinces and territories should provide the general public
with complete and up-to-date information about welfare and social
service programs and policies. At least once a year, governments
should publish comprehensive welfare and social service manuals
written in everyday language. 10. The federal, provincial and territorial governments should
work together to produce a national welfare information database
that is timely and readily available to the public. The database
should include provincial and territorial welfare caseload
statistics, rates and benefits, and detailed information about
day care and other subsidized social services. 11. Governments should make the creation of more and better jobs
their top priority. Job creation is good for all Canadians, not
just Canadians on welfare. -5- 12. "Workfare" should be banned outright. Encouraging able-bodied
welfare recipients to find some kind of work is acceptable.
Assigning them to specific menial or dead-end jobs as a condition
of welfare is bad social policy and is tantamount to servitude. 13. Minimum wages should be high enough to ensure reasonable
standards of living. The value of the minimum wage has plummeted
in most jurisdictions in Canada during the past generation to the
point that even a single person working full time at the minimum
wage winds up well below the poverty line. 14. All provinces and territories should have earnings exemptions
in their welfare programs that allow welfare recipients to enter
the work force without suffering huge financial penalties. Under
current arrangements in some jurisdictions, welfare recipients
lose a dollar of welfare for every dollar they earn beyond a token
amount. 15. All provinces and territories should provide assistance
for prescription drugs, dental care and eyeglasses to welfare
recipients and low-wage workers and their families. Losing
coverage for health care costs not covered by medicare is a
clear disincentive to work for welfare recipients.
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