Letter from Premier McGuinty to the OCSJ

The Premier of Ontario
Legislative Building
Queen's Park
Toronto, Ontario
M7A 1A1

Le Premier ministre de l'Ontario
Édifice de l'Assemblée législative
Queen's Park
Toronto (Ontario)
M7A 1A1

October 17, 2006

Ms. Joanne Bazak
Mr. Fred Hahn
Co-Chairs
Ontario Coalition for Social Justice
305-15 Gervais Drive
Toronto, Ontario
M3C 1Y8

Dear Ms. Bazak and Mr. Hahn:

Thank you for your letter on behalf of the Ontario Coalition for Social Justice regarding proverty in Ontario. I appreciate your taking the time to share your organization's concerns about this vital issue.

Our government remains committed to making the appropriate supports and opportunities available to all Ontarians because we believe everyone has the right to particpate in Ontario's properity. And, by streamlining the administration of social assistance programs, we are working to make sure that everyone is treated fairly and receives the help needed to change lives for the better.

We are on the side of the most vulnerable in Ontario. That is why we are improving income security programs for low-income adults and families by increasing social assistance basic needs and maximum shelter allowances for recipients of Ontario Works (OW) and the Ontario Disability Support Program (ODSP) by two per cent. As announced in the 2006 Ontario Budget, this increase will provide an additional $33 million in benefits in 2006-07 and $80 million in 2007-08 and beyond. Municipalities will not be required to share the cost of the increase in 2006. This follows our previous raise in social assistance rates by three per cent in 2004-05 -- the first in 12 years.

We are also allowing recipients to keep the July 2004, 2005 and 2006 increases to the federal National Child Benefit Supplement, as annouced in our 2006 Ontario Budget. This means an additional $56 million in 2006-07 and $75 million in 2007-08 for families receiving social assistance. When added together with the two per cent increase in social assistance rates, this will put $1,620 more into the pocket of a single parent with two children than in 2003-04.

These initiatives are in addition to the progress we have already made in helping to enhance income support for low-income Ontarians. We have restored the nutritional allowance for pregnant women receiving social assistance, eliminated the lifetime ban on social assistance for those who commit welfare fraud, and implemented policies that provide greater future educational opportunities for social assistance recipients.

OW and ODSP recipients who are able to work will also get the work opportunities, training and incentives they need to help them find employment through the creation of our government's new $2.1 billion Jobs and Skills Renewal Strategy -- a comprehensive plan to maintain Ontario's skills advantage. We are also continuing to improve programs to help working-age adults make the transition from social assistance to paid employment by investing $4 million in a new Employment Innovations Fund: this will engage employers in expanding job opportunities for OW and ODSP recipients.

This most recent investment builds on our previous initiatives that support the transition to work and includes the following measures:

• increasing earnings exemption rates to 50 per cent on all earnings
• extending health benefits for six months for those leaving OW, and indefinitely for those leaving ODSP for employment, unless employer health benefits are available
• increasing the maximum deduction for informal child care costs for assistance recipients rom $390 to $600 per month
• creating a new employment benefit of up to $500 to help OW recipients pay for job-related expenses, such as uniforms and transportation, when they find employment -- and a new monthly case allowance for ODSP clients to help cover expenses when they find jobs
• providing scheduled increases in minimum wage, reaching $8 per hour in 2007.

My colleagues and I will continue to do our utmost to restore fairness, hope and dignity to the individuals and families who rely on Ontario's social assistance programs. Our plan will result in a stronger economy, stronger communities and a stronger Ontario.

Thank you again for writing. We look forward to continuing to work with you and your fellow Ontarians to improve quality of life for all.

Yours truly,

Dalton McGuinty
Premier

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