Monthly Archives: April 2018

Is a Basic Income Guarantee the Right Choice for Ontario?

Ontario has introduced basic income pilot projects in 3 Ontario communities that aim to provide a living wage for all. For those who believe in a living wage, the question is whether or not the approach being tested in the Ontario pilot projects is the best way to achieve this objective.

Introduction

In 2017, Ontario introduced pilot projects related to a Basic Income Guarantee (BIG) benefit in three Ontario communities. The Ontario pilot projects apply to both low-income individuals in the workforce and low-income individuals not in the workforce. The objective of the pilot projects is to assess whether there is a simple way of providing a living wage that would lift all Ontarians out of poverty.

Before assessing BIG in the context of both working and non-working low-income Ontarians, here is how the BIG benefit works in the three Ontario pilot programs now underway.

Four thousand low-income Ontario residents in three communities have been offered a spot in the pilot study. Non-working Ontarians receive a Basic Income payment instead of standard social assistance and those working will receive what amounts to a wage supplement. The annual payment is set at $16,989 for single individuals, or $24,027 for married couples. An additional $6,000 per year will be provided to individuals with disabilities. Recipients get to keep any child benefits, dental and pharmaceutical access, and disability supports to which they are already entitled. However, their Basic Income payment shrinks by 50 cents on each dollar of work related earnings, and by 100 cents on the dollar of CPP or EI income.

Eligible participants are those living on a low income (under $34,000 per year if you’re single or under $48,000 per year if you’re a couple). There are no asset tests involved in determining eligibility. Continue reading