Raise the Rates - Demands

3. End the Clawbacks

End the clawbacks – let all people on income assistance have an earnings exemption of $500/month and allow parents to keep all child support payments.

Why do we want to restore the earnings exemption to $500/month for all?

Without an earnings exemption, every dollar earned is a dollar taken off the monthly income assistance cheque. That's a tax of 100% on earned income. BC is the only province in Canada that does not allow all assistance recipients to keep some of the money they earn.

Without an earnings exemption, it can be hard for people to transition off assistance and back into the workforce. It is especially important to people who are moving from medical or drug treatment into the workforce, as many cannot work full time because of their condition.

Not having an earnings exemption also unnecessarily criminalizes people who need to supplement their inadequate income assistance in order to survive, but do not declare their earnings because they will be clawed back by the Ministry.

What impact would this policy change have on people’s lives in BC?

Currently, people with disabilities on income assistance do have an earnings exemption of $500/month, so this policy change would affect those people without disabilities. (Reference)

Why do we want to end the clawback of child support payments?

At present, families on assistance who receive child support payments from an ex-spouse do not benefit from it while they are on assistance. That’s because the government claws back every cent of the payment from the income assistance cheque. Allowing families to keep child support payments would help them meet their basic needs.