Leading Collaboration to Increase Cumulative Impact: Evidence from Ontario s Poverty Reduction Strategy
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1 Leading Collaboration to Increase Cumulative Impact: Evidence from Ontario s Poverty Reduction Strategy 4.5 million Canadians live in poverty. Over 1.5 million are in Ontario. The estimated yearly cost of poverty in Ontario is between $32 and $38 billion and, in Canada, between $72 and $85 billion 1. We have a responsibility to listen to those with lived experience of poverty and collaboratively make meaningful and measurable change. Ontario is a leading jurisdiction in the fight against poverty and, while progress has been made, the journey continues. 2 We enacted legislation and implement a comprehensive Poverty Reduction Strategy that sets bold targets on a five year cycle. This framework for investing in poverty reduction/prevention policies, targeted interventions, and programs encourages cross cutting, landmark investments. This builds foundations for future efforts and powers a broader infusion of resources into the system. The Strategy is as an overarching framework for community partners to design and implement responsive, appropriate local solutions. The federal government should follow Ontario s leadership and build on our successes. Our strategic framework works in Ontario and can work across Canada. We are a strong partner with a large and diverse population, offering one of the biggest opportunities to show national progress on poverty reduction. A successful Canadian Poverty Reduction Strategy (C-PRS) can leverage and complement Ontario s efforts and leadership. Ontario recommends the C-PRS: (1) focus on measuring progress and cumulative impact (2) leverage the impact of transfers and targeted supports (3) prepare people for, and help them succeed in, employment (4) improve access to income-based benefits and programs (5) support innovation and move the needle (6) encourage approaches identified and delivered by Indigenous people, for Indigenous people 1 Laurie, N. (2008). The cost of poverty: An analysis of the economic cost of poverty in Ontario. Toronto, ON: Ontario Association of Food Banks. 2 For more information see 1
2 (1) Focus on Measuring Progress and Cumulative Impact 3 What gets measured gets done. Ontario set bold poverty reduction targets: to end chronic homelessness by 2025; and lift 25% of children out of poverty in five years. We continue to implement cumulative impact principles across government and with our partners by developing shared language, working towards common objectives, targets and indicators, and supporting mutually reinforcing activities. Ontario s Strategy defines poverty using a low income measure (LIM). 11 indicators assess the impact of programs and services. This offers an evidence based approach for making adjustments, and repurposing resources. Ontario s ministries use a Theory of Change approach 4 to align work with indicators, driving successes across the organization. Align with us and support our collective efforts to: develop an evidence base and link outcomes to progress increase our respective ability to reduce poverty improve outcomes. Ontario welcomes the opportunity to share our expertise. Canada can align with and strengthen our work by including a LIM-based income measure; introducing a national Material Deprivation Index; and refining other C-PRS measures. Success Story: The benefits are clear: the connection between the Ontario Child Benefit (OCB), the Canada Child Benefit (CCB), and additional provincial income supports demonstrate how partnerships can result in positive cumulative impact to reduce child poverty. The OCB provides a maximum annual payment of $1,356 per child. This amount will rise with inflation to help families keep pace with cost of living increases. The federal government s investment through the similarly modelled CCB maximizes the support. The commitment made to indexing the CCB is essential to the success of these joint efforts. Ontario is allowing families to keep the OCB or social assistance income, further increasing the lift provided by the CCB. This reduces the number of children living in poverty, including almost 260,000 children in families who receive social assistance that also benefit from the CCB. 3 Aligning and working towards mutually reinforcing goals will result in greater achievements than if we work alone. 4 For more information see 2
3 Ontario is further accelerating income impacts for families on social assistance who receive child support payments by allowing them to keep 100% of the payments, increasing the monthly income of almost 19,000 families. (2) Leverage the impact of transfers and targeted supports The success of targeted interventions like the OCB and CCB showcases how increasing income supports makes a tangible difference. Canada has an opportunity to maximize results by aligning with Ontario s best practices and following our lead to provide a comprehensive income security system. While earned income provides the best opportunity for individual success, Ontario s income security system helps meet basic needs, maintain health, pursue education, care for family members, and participate fully in their communities. We are striving to do more by moving forward with a Basic Income Pilot to test whether a basic income would provide more consistent, predictable support. We look forward to sharing results with the federal government, jurisdictions across Canada, and around the world. We look forward to working with you on supporting this innovative study s success by sharing data to facilitate planning and evaluation. We also look forward to working together on program and policy issues to support implementation, including how income support received by participants would interact with the income tax system, Employment Insurance and other federal income security programs. The C-PRS can work in tandem with Ontario s investments in other ways. Ontario funds programming which provides the largest benefit to low income Ontarians, including: ensuring all children and students have access to rich learning experiences that begin at birth and continue into adulthood; modernizing employment and training supports to create a highly skilled workforce; and, investing in affordable and supportive housing, and supporting communities to develop local solutions to homelessness. Ontario will continue to support early childhood education and learning, and the C-PRS can build on our investment, and our offer to work together on the implementation of Canada s National Early Learning and Childcare Framework. For older students, the C-PRS can leverage Ontario programs by making postsecondary education more affordable for students from low-and middle-income families. (3) Prepare people for, and help them succeed, in employment Ontario increased the general minimum wage to $11.40 per hour and indexed it to inflation, boosting the earning power of vulnerable populations. The federal government can align with Ontario s efforts to support adequate earned incomes and labour market success by significantly enhancing the Working Income Tax Benefit (WITB) and increasing its uptake. Federal reforms to the WITB allow provinces and territories to tailor the benefit to align with 3
4 their own minimum wage rules and social assistance systems, enabling jurisdictions to integrate the WITB into existing income security systems. A WITB enhancement would provide flexibility to further integrate the benefit. C-PRS can improve accessibility of Employment Insurance (EI) funded training to increase flexibility, inclusivity and funding of services and programming for insured and uninsured, unemployed or employed persons. About 70 % of federal funding for training is tied to current or recent EI recipients, which makes the largest source of federal training funding inaccessible to those who need it. In 2015, only 29% of unemployed workers in Ontario received EI regular benefits. A growing share of unemployed workers faces difficulties accessing income support and EI-funded training. The $700 million annual federal commitment in increased funding through Labour Market Transfer Agreements (LMTAs) indicates positive change. The renewal of the LMTAs presents an opportunity to secure additional flexibility and funding to support the dynamic continuum of labour market needs and serve the full population requiring skills training supports, including persons with disabilities, recent immigrants, Indigenous people, and those with low levels of essential skills. Ontario led the way with the Accessibility for Ontarians with Disabilities Act 2005 which makes accessibility part of recruiting, hiring and supporting employees with disabilities. Ontario offers programs and services to respond to the diverse experiences and aspirations of people with disabilities, including how they prepare for, find, and maintain employment. We are also developing an employment strategy to break down barriers with active partnership from employers and people with disabilities. The federal government supports some of these programs through Agreements. To yield greater cumulative impact and positive outcomes for persons with disabilities C-PRS can partner with Ontario to increase labour market attachment, and unify frameworks connecting initiatives, policies and programs. (4) Improve access to income-based benefits and programs We can t assume that all Canadians are already part of the tax and income-based benefits delivery system. Ontario supports the Canada Revenue Agency mandate to prioritize the design of and access to client-focused income transfer programs. This includes ensuring that Canadians who are entitled to, but not receiving, tax benefits are encouraged to do so. Relevant for low income people, in general, there is also a very specific need to hear and understand the experience and concerns of Indigenous people. The C-PRS can better support access to benefits by: Working with partners to enhance access and availability of financial empowerment services and supports including financial literacy education, tax filing services and financial coaching. 4
5 o Ontario is leading the way by funding a Financial Empowerment and Problem Solving program that reached 6400 low income participants and secured $10,465,827 in total income tax for the participants; and $3,512,903 in other benefits. 5 Finding opportunities to incorporate the application for provincial benefits into the tax return, since it increases the cumulative impact of tax filing, and access to income-based benefits provided by all levels of government. Collaborating on service delivery, including adding applications for the Registered Education Savings Plan and the Canada Learning Bond to Ontario s online 4 in 1 Newborn Bundle. (5) Support Innovation and Move the Needle Innovation and moving the needle on poverty reduction is a central focus for Ontario. Ontario designed the Local Poverty Reduction Fund (LPRF) to spur local innovative solutions to poverty reduction that focus on preventing people from falling into, or lifting people out of poverty. Federal efforts should support innovations that challenge status quo approaches and band aid solutions to poverty reduction. Ontario welcomes working within the C-PRS to share lessons and data, and contribute to alignment of indicators and targets. Ontario recognizes the high social and economic costs of homelessness and is developing a provincial chronic homelessness indicator. We have mandated communities across the province to enumerate homeless people to help monitor progress towards ending chronic homelessness by To increase cumulative impact on housing and homelessness, Canada is encouraged to support Ontario and off-reserve Indigenous partners to provide dedicated investments in off-reserve affordable housing. This is in addition to Canada s responsibilities for increased funding to address housing conditions onreserve. Ontario supports new federal funding for initiatives which address core housing needs in Indigenous communities as well as the exploration of federal policies and practices related to services that may unintentionally contribute to flows into homelessness. Ontario is developing a food security strategy to address physical and economic access to sufficient, safe, and nutritious food, including for remote Indigenous communities. The C-PRS can build on Ontario s leadership by including food security initiatives that align with those of the Nutrition North Canada Program. 5 Prosper Canada. Financial Empowerment and Problem Solving (FEPS) Project: Year 1 Report (July 1, 2015-March 31, 2016). May 31, b289258/Financial-Empowerment-and-Problem-Solving-(FEPS)-P.aspx Accessed December 7,
6 (6) Support approaches identified, and delivered by, Indigenous people, for Indigenous people 24% of Ontario s Indigenous population lives below the poverty line compared to 14% of the non- Indigenous population 6. Ontario and Canada have a historical partnership of delivering services to Indigenous people. We share a goal of reconciling relationships with Indigenous peoples, and closing socio-economic gaps between Indigenous and non-indigenous people. The C-PRS can encourage collaborative service delivery and support community-led solutions which align with The Journey Together (Ontario s response to the Truth and Reconciliation Commission s Calls to Action) to meet the needs that Indigenous communities identify for themselves with culturally appropriate solutions that they deliver. 6 Statistics Canada, 2011 NHS. Statistics Canada classifies its Indigenous-specific data using the term Aboriginal. 6
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