Some Effects of Welfare Policy Changes

In 2002, BC had the second highest rate of poverty in the 10 provinces at 22.5% - Newfoundland had the highest rate but their provincial government has since adopted a poverty reduction approach to social services, while BC focuses on reducing the numbers of people on welfare.

The BC poverty rate for children was an astounding 30.1% (almost 1 in 3), compared to the Canadian average of 16.9%.

Source: "Low Income in Canada: 2000-2002 Using the Market Basket Measure" by Human Resources and Social Development Canada, June 2006 (though all figures are from 2002)

Maintenance exemption

The 2002 welfare changes ended the monthly $100 maintenance exemption for families with children. This means that all child support money paid to families on welfare by ex-spouses goes to the Ministry and not the child.

Single Parents

In 2002, female single parents in BC had a poverty rate of 57.9%, compared to the Canadian average of 45.6%.

The changes to welfare made in 2002 made life significantly worse for single parent families; some families saw their assistance drop by a total of $395 a month through a combination of cuts and clawbacks.

Single parents were the most frequent users of the earnings exemptions when they were allowed; now they receive up to $200 less a month.

The 2002 budget cuts at the Ministry of Human Resources took $36.4 million from the pockets of single parents between 2002 and 2004.

In 2000, more than half (55%) of BC children under 12 with single parents lived in poverty.

Sources: CCPA 2006 “Budget Savings on the Backs of the Poor”, First Call 2006 Child Poverty and Income Inequality in BC, and "Low Income in Canada: 2000-2002 Using the Market Basket Measure" by Human Resources and Social Development Canada, June 2006

Food Security

Using a basket of goods approach to determine the cost of food, shelter, and other living expenses, the Dietitians of Canada found that a family of four on welfare would be short $656 each month if buying healthy food for their family. As a result, often families on welfare resort to the use of food banks.

38% of food bank users in BC are children.

Sources: Dietitians of Canada 2005 “Little Money Left for Food for Some BC Families” and Dietitians of Canada 2004 “The Cost of Eating in BC”

Youth in Care

Older youth in care under the Ministry of Children and Family Development receive between $200 and $400 more than the $510 income assistance rate for a single 'employable' person - under the Independent Living Program for youth aged 17 years and older, the monthly support rate is approximately $700/month and within the Youth Agreement Program for youth aged 16-18, the rate is $878/month. At age 19, youth are required to leave care and, if they still need the financial support generally provided to other youth by their families, they must access income assistance. These youth report the decrease in income as a major area of concern in their transition out of care.

Source: "When Youth Age Out of Care - A Report on Baseline Findings" by researchers in the School of Social Work, University of Victoria, August 2005

Effects of 2007 Budget: Taking inflation into account, families are between $41 and $332 worse off than they were in 2001 despite the small welfare increases (see table on homepage).

In addition, the budget did not re-introduce the maintenance exemption or earnings exemption.