Disincentives to Employment: Oppressing Recipients Trying to Transition into the Work Force.

Ontario Works policies put disincentives to work in place thereby oppressing recipients of Ontario Works who are trying to leave the system. While it would seem that a disincentive to employment should make those in need of income attracted to Ontario Works, recipients of Ontario Works are oppressed when they face disincentives to employment because inadequate monthly allowances for work already place a disincentive to remain within the program. The disincentive to remain in the program faced by recipients makes employment more attractive, yet punitive measures in place within Ontario Works prevent them from making the full transition into the work force they need to make in order to get off social assistance.

One disincentive that makes the transition into the work force less appealing is the rather immediate loss of the Ontario Works Health Benefit. Prior to 2005, recipients of Ontario Works who left the program would lose their health benefits immediately. After 2005, a small extension period was added, with a minimum of 6 months of coverage up to a maximum of 12 months. This extension period is however inadequate, as it does not reflect the amount of time that it takes former recipients of social assistance to find more favourable employment that offers a health plan. Since Ontario Works recipients participate in low-skilled labour, it takes years of additional employment training for them to find meaningful work.

Under the Work Incentive Program of 1979, recipients making the transition into the work force were provided a 2 & ½ year transition period, giving them time to transition from the low-skilled labour they entered the job market into to more desirable jobs offering a health plan. Unfortunately, the continued retraction of funds for social assistance which had the most felt impact in 1995 reflects in the inadequate supports for a transition period within Ontario Works, thereby perpetuating disincentives to enter the work force for recipients that truly are actively seeking employment.

The retraction of funds has also impacted dental coverage, which, when in place for existing recipients, “falls short” of their needs. While benefits for children and adults with disabilities are mandatory, benefits for non-disabled adults are “permissive” with the final decision being made by municipalities. When non-disabled adults ARE permitted dental coverage, it is inadequate. The dental benefits for non-disabled adults does not offer much of the restorative dental care that they are in need of--care of a much needed cosmetic value (i.e dentures, surgery to replace a lost tooth) for many recipients that would help them with the interview process when they do seek employment.

The failure of Ontario Works to provide adequate dental care for existing recipients, and an adequate extension period on health care for transitioning recipients makes entry into the work force impossible. Inadequate coverage during transition oppresses recipients of Ontario Works who want to find jobs because the program already sets them up for immediate participation in unskilled, low-paid labour with no health coverage in place. Without an adequate transition period, recipients who attempt to enter the labour force who do not find jobs with health coverage before their transition period is up become attracted to Ontario Works because they cannot afford to work in under-paid jobs without health coverage. Individuals who fall into this trap are then forced to be oppressed by the inadequate pay offered by Ontario Works because they cannot escape a program that has no mechanisms in place to help them ensure their basic needs are covered while in transition.

Information about Ontario Works health coverage obtained from:

Income Security Strategies for Working-Aged Adult. St. Christopher House. June, 2004. http://www.stchrishouse.org/modules/ImageAV/images/IncomeFinal.pdf

TD Economics Special Report: "From Welfare to Work in Ontario : Still the Road Less Travelled." September 8, 2005.