Ontario seeks further research on a minimum basic income

By Nikolai Karpinski

BELLEVILLE – “Our system puts people into extreme, permanent poverty,” says Ruth Ingersoll, a local advocate for human rights.

Ingersoll, the executive director of the Community Development Council of Quinte, would like to see a guaranteed basic income for all Canadians. The Ontario government took a small step toward that this month by launching a public discussion on whether and how a guaranteed basic income could fit into the social-assistance system.

The government’s move follows the Nov. 3 release of a discussion paper titled Finding a Better Way: A Basic Income Pilot Project for Ontario. It was written by Hugh Segal, a former Conservative senator and a special adviser to the provincial government.

Segal’s paper says that the current social-assistance system in Ontario is inadequate in providing support for those in need. It calls for a pilot project to test the effectiveness of a guaranteed basic income.

Between now and next spring, the government is asking the public for input on how to design the pilot project that Segal has proposed.

In an interview with QNet News last week, Ingersoll said that the current social-support system has a number of eligibility regulations that are contrary to the purpose of the programs.

She gave as an example the requirement that anyone receiving assistance through Ontario Works (the provincial social-assistance program) must submit to regular checkups on their income status. That requirement, along with a review of their assets and the requirement to liquidate (turn into cash) some of them, can undermine the system’s ability to help people recover from poverty, she said.

The Ontario Ministry  of Community and Social Services says that the maximum asset limit for a single applicant for Ontario Works is $2,500, and the maximum asset limit for an applicant with a spouse is $5,000, plus $500 for each additional dependent other than a spouse. The ministry has a number of assets that are exempted from this process.

If someone on social support gets a job, or even a sizeable gift, their benefits are cut back, Ingersoll said – “So there is no incentive to work.”

A system that included a guaranteed basic income would be better, she said, because it would be more accessible.

The Mowat Centre, an independent public-policy think tank, recently released a research paper about past experiments on guaranteed basic income and how the results could help frame the Ontario government’s pilot project.

The centre’s paper defined basic income as “a regular predictable income sufficient to live a basic but dignified life.” While there are many forms basic income can take, in essence it’s a government policy that provides a minimum income that no one should fall beneath.

Segal’s report says that a guaranteed basic income would eliminate the lengthy process of applying for and receiving social assistance. Instead, applicants would only have to file their income-tax return demonstrating that they are in a low-income category.

According to a report released this year by the Angus Reid Institute, Canadians are “broadly supportive” of a basic income because it would make it easier for those in need to receive support and provide income security for working people.

At the same time, the study done by Angus Reid found that 63 per cent of Canadians believe a basic income would discourage people from finding employment, and that 59 per cent believe the program would be too expensive.

Bob Cottrell, a volunteer with the Poverty Roundtable, says a guaranteed basic income would be parrticularly beneficial for young people. Photo by Nikolai Karpinski, QNet News

Bob Cottrell, chair of the employment and income security working group of the Poverty Roundtable Hastings and Prince Edward, says there is still much to be decided about basic income.

“There’s been a fairly good consensus on both sides of the political spectrum in terms of support for the idea of a basic income, but it’s in the details,” Cottrell said. “What’s it going to cover? What’s the amount? And can you sell it politically?”

Cottrell agreed with a recommendation contained in the report by the Mowat Centre that a key focus of the pilot project should be Ontarians between the ages of 18 and 30. A basic income could help with the younger generation’s increasingly difficult transition into the workforce, he said.

“Maybe having a basic income is all they need to encourage that entrepreneurial and innovative spirit in young people – so they can actually go out and do something and not have to worry about the part-time crappy jobs that they are currently taking to pay off the bills.”

With files from James Gaughan