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SOCIAL WORK IN CANADA
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An Introduction
Third Edition
Chapter 2: Income Security and Social Welfare
Chapter 2:
Income Security and Social Welfare
Social Work In Canada
Copyright © 2010 Thompson Educational Publishing, Inc.
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Income Security and Social Welfare
 The Emergence of Income Security
 Selective and Universal Programs
 Poverty and Inequality
 Canadian Federalism and Social Welfare
 Ideology: Why People Differ on What to Do
 Globalization and Social Welfare
Chapter 2:
Income Security and Social Welfare
Social Work In Canada
Copyright © 2010 Thompson Educational Publishing, Inc.
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The Emergence of Income Security
 Income security programs provide monetary
support to individuals or families
 They are often called “transfers” because they
transfer cash and other benefits from government
programs to individuals and families
 There are four types of Income security
Chapter 2:
Income Security and Social Welfare
Social Work In Canada
Copyright © 2010 Thompson Educational Publishing, Inc.
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The Emergence of Income Security
Four types of Income Security:
1.
2.
3.
4.
Chapter 2:
Income Security and Social Welfare
Social Insurance
Minimum Income
Demogrants
Income supplementation
Social Work In Canada
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The Emergence of Income Security
Social Insurance
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Follows insurance principle of shared risk
People contribute knowing not everyone will need it
Generally linked to employment; all workers contribute and are
therefore eligible for benefits
Employment Insurance, Workers’ Compensation,
Canada/Quebec Pension Plan
Chapter 2:
Income Security and Social Welfare
Social Work In Canada
Copyright © 2010 Thompson Educational Publishing, Inc.
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The Emergence of Income Security
Minimum Income
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Provide monetary assistance to those with no other
source of income
Geared towards those living in poverty
Quantity of assistance determined by minimum
amount necessary to meet basic needs
Social Assistance, also called welfare or workfare
Chapter 2:
Income Security and Social Welfare
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The Emergence of Income Security
Demogrants
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Universal flat-rate payments
Made to individuals or households on the basis of
demographic characteristics (such as # of children or
age)
Old Age Security, Family Allowance
Chapter 2:
Income Security and Social Welfare
Social Work In Canada
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The Emergence of Income Security
Income Supplementation
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Supplement income obtained elsewhere
Not intended as primary source of income
May have a broad entitlement
The National Child Benefit Supplement and the
Guaranteed Income Supplement
Chapter 2:
Income Security and Social Welfare
Social Work In Canada
Copyright © 2010 Thompson Educational Publishing, Inc.
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The Emergence of Income Security
Public Income Security Programs
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Employment Insurance
Workers’ Compensation
Social Assistance or Welfare
Canada Child Tax Benefit
Canada/Quebec Pension
Plan
Chapter 2:
Income Security and Social Welfare
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Disability
Survivor and Death Benefits
Old Age Security
Veterans Disability Pension
Occupational Benefits
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Copyright © 2010 Thompson Educational Publishing, Inc.
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The Emergence of Income Security
Employment Insurance (EI)
 Federally administered, dates back to 1941
 Provides level of income replacement to workers
temporarily unemployed
 Sickness, maternity, and parental benefits
 Seasonal industry workers
 Paid for through employer and employee contribution
Chapter 2:
Income Security and Social Welfare
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The Emergence of Income Security
Workers’ Compensation
 Provide provincially administered benefits
 Designed to protect workers against income loss due to
workplace injury or disease
 Employer funded
 First Workers’ Compensation program was in Ontario in
1914
 This was the first social insurance program in Canada
Chapter 2:
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The Emergence of Income Security
Social Assistance or Welfare
 Designed to provide minimal support to the deserving
poor or those deemed unable to work
 Expanded to include those in need but without
resources
 Residual program of last resort
 Provincial responsibility with some federal funding
 Provinces are free to design their own programs and
set level of benefits
Chapter 2:
Income Security and Social Welfare
Social Work In Canada
Copyright © 2010 Thompson Educational Publishing, Inc.
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The Emergence of Income Security
Canada Child Tax Benefit (CCTB) / National Child
Benefit Supplement (NCBS)
 Provides benefits to families with children
 Delivered through the tax system and direct cash
transfers
 Includes two aspects: the basic CCTB and the NCBS
 CCTB provides a tax credit to those who qualify, based
on an income test, as low- and middle-income families
with children
Chapter 2:
Income Security and Social Welfare
Social Work In Canada
Copyright © 2010 Thompson Educational Publishing, Inc.
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The Emergence of Income Security
Canada/Quebec Pension Plan (C/QPP)
 National contributory and earnings-related pension program
introduced in 1966
 Provides benefit for retirement, death, and long-term
disability
 Pay-as-you-go system
 Any funds not paid out invested into larger reserve fund
 Retirement, Disability, and Survivor’s and Orphan’s Death
Benefits
 Eligibility for the retirement benefit begins at 60 years of age
Chapter 2:
Income Security and Social Welfare
Social Work In Canada
Copyright © 2010 Thompson Educational Publishing, Inc.
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The Emergence of Income Security
Disability
 Severe and prolonged disability resulting in the
inability to participate in the labour force
 Earnings-related and basic flat-rate portion
 Recipients may also qualify for supplemental child
benefits if there are dependants
Chapter 2:
Income Security and Social Welfare
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Copyright © 2010 Thompson Educational Publishing, Inc.
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The Emergence of Income Security
Survivor and Death Benefits
 In case of contributor’s death, surviving family
members are eligible
 Benefits are intended to provide support to surviving
spouse and dependent children
Chapter 2:
Income Security and Social Welfare
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Copyright © 2010 Thompson Educational Publishing, Inc.
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The Emergence of Income Security
Old Age Security (OAS), Guaranteed Income
Supplement (GIS); Spouse’s Allowance (SPA)
 Between 1952 and 1989, all elderly Canadians received
Old Age Security
 Since 1989, the benefit is only for those who qualify
because of low or modest income
 Two related programs: GIS and SPA, supplement the
OAS for elderly with low incomes
Chapter 2:
Income Security and Social Welfare
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Copyright © 2010 Thompson Educational Publishing, Inc.
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The Emergence of Income Security
Veterans Disability Pension
 Available to those who apply to Veterans Affairs
Canada
 Must have a service-related permanent disability
resulting from injury or disease
 Based solely on the extent of the disability and the fact
that it is military-service related
Chapter 2:
Income Security and Social Welfare
Social Work In Canada
Copyright © 2010 Thompson Educational Publishing, Inc.
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The Emergence of Income Security
Occupational Benefits
 Directly tied to one’s workplace
 Includes both retirement plans and other insurancebased benefits (dental and drug)
 Savings plans with tax-supported provisions (RRSPs)
 Government foregoes the collection of tax
Chapter 2:
Income Security and Social Welfare
Social Work In Canada
Copyright © 2010 Thompson Educational Publishing, Inc.
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The Emergence of Income Security
Selective and Universal Programs
Selective Programs
 Limited to those who are determined to be in need
based on a means or needs test
Universal Programs
 Available to everyone in a category (e.g., seniors)
 All persons are equally eligible regardless of income and
financial situation
Chapter 2:
Income Security and Social Welfare
Social Work In Canada
Copyright © 2010 Thompson Educational Publishing, Inc.
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Poverty and Inequality
Poverty brought on by unexpected turn of events:
 loss of employment
 death or disability of a family breadwinner
 family breakup
 increased costs from major illness
 changes in economy
 not enough hours of work
 discrimination and unequal opportunities
Chapter 2:
Income Security and Social Welfare
Social Work In Canada
Copyright © 2010 Thompson Educational Publishing, Inc.
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Poverty and Inequality
Measuring Poverty:
 Low Income Cut-offs (LICOs)
Measure of the poverty rate in Canada; based on
average household spending on necessities (plus
20%) and varies according to region and family size.
Chapter 2:
Income Security and Social Welfare
Social Work In Canada
Copyright © 2010 Thompson Educational Publishing, Inc.
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Poverty and Inequality
Measuring Poverty:
 Low Income Measure
Measure of poverty used for international
comparisons based on one-half of the median
income of a country.
Chapter 2:
Income Security and Social Welfare
Social Work In Canada
Copyright © 2010 Thompson Educational Publishing, Inc.
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Poverty and Inequality
Measuring Poverty:
 Market Basket Measure
Proposed poverty measure based on the cost of
consumption rather than income.
Chapter 2:
Income Security and Social Welfare
Social Work In Canada
Copyright © 2010 Thompson Educational Publishing, Inc.
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Chapter 2:
Income Security and Social Welfare
Social Work In Canada
Copyright © 2010 Thompson Educational Publishing, Inc.
----------------------------------------------------
Chapter 2:
Income Security and Social Welfare
Social Work In Canada
Copyright © 2010 Thompson Educational Publishing, Inc.
----------------------------------------------------
Poverty and Inequality
Poverty in Canada:
 One in six Canadian children lives below the Statistics Canada
LICOs
 The rate of child poverty is the same today as it was in 1989
 In 2008, there were over 700 food banks in Canada
 In an average month, 704,000 people received food
 Over one-third of those being helped were under 18
Chapter 2:
Income Security and Social Welfare
Social Work In Canada
Copyright © 2010 Thompson Educational Publishing, Inc.
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Poverty and Inequality
Campaign 2000:
Campaign 2000 is a national anti-poverty
coalition named for the federal government’s
1989 pledge to end child poverty by the year
2000.
www.campaign2000.ca
Chapter 2:
Income Security and Social Welfare
Social Work In Canada
Copyright © 2010 Thompson Educational Publishing, Inc.
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Canadian Federalism and Social Welfare
 Social Welfare Reforms
 Canada Assistance Plan (CAP)
 Canada Health and Social Transfer (CHST)
 Canada Social Transfer (CST)
 Canada Health Transfer (CHT)
 Social Union Framework Agreement (SUFA)
Chapter 2:
Income Security and Social Welfare
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Copyright © 2010 Thompson Educational Publishing, Inc.
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Ideology: Why People Differ on What to Do
Left ↔ Right
Communism ↔ Fascism
Group ↔ Individual
Chapter 2:
Income Security and Social Welfare
Social Work In Canada
Copyright © 2010 Thompson Educational Publishing, Inc.
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Ideology: Why People Differ on What to Do
Workfare:
 Applicants must work to be eligible for benefits
 People work at specific job to get government cheque
 May require applicants to retrain or pursue selfemployment
 May involve working in a community or social service
agency
Chapter 2:
Income Security and Social Welfare
Social Work In Canada
Copyright © 2010 Thompson Educational Publishing, Inc.
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Ideology: Why People Differ on What to Do
Social Welfare Economics:
Keynesians
Monetarists
 John Maynard Keynes
 Milton Friedman
 Governments combat
unemployment
 Governments combat
inflation
 Social spending helps
economic recovery
 Social spending stimulates
inflation
 Spend money on social
programs to avoid economic
depression
 Safeguard economy by
controlling money supply
Chapter 2:
Income Security and Social Welfare
Social Work In Canada
Copyright © 2010 Thompson Educational Publishing, Inc.
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Globalization and Social Welfare
Economic Globalization
The growing integration and expansion of global markets
for goods, services, and finances.
Global Social Welfare
A concern with justice, social regulation, social provision,
and redistribution between nations.
Chapter 2:
Income Security and Social Welfare
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Copyright © 2010 Thompson Educational Publishing, Inc.
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Questions for Discussion
Discuss the assumptions behind the names
“welfare” and “workfare.” What is assumed by
requiring recipients to participate in work
placements in order to receive benefits?
Chapter 2:
Income Security and Social Welfare
Social Work In Canada
Copyright © 2010 Thompson Educational Publishing, Inc.
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Questions for Discussion
What are the implications of provincial control
over designing programs and setting social
welfare benefit levels?
Chapter 2:
Income Security and Social Welfare
Social Work In Canada
Copyright © 2010 Thompson Educational Publishing, Inc.
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Questions for Discussion
How might benefits received through the tax
system (tax credits and exemptions) be
perceived differently from direct cash
payments?
Chapter 2:
Income Security and Social Welfare
Social Work In Canada
Copyright © 2010 Thompson Educational Publishing, Inc.
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Questions for Discussion
Discuss reasons why poverty rates in Aboriginal
communities are higher than national rates.
What role does ideology play?
Chapter 2:
Income Security and Social Welfare
Social Work In Canada
Copyright © 2010 Thompson Educational Publishing, Inc.
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Questions for Discussion
What are some of the benefits of economic
globalization to social work practice? What are
some of the challenges?
Chapter 2:
Income Security and Social Welfare
Social Work In Canada
Copyright © 2010 Thompson Educational Publishing, Inc.
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Questions for Discussion
In what ways does economic globalization
effect Aboriginal populations in Canada?
Chapter 2:
Income Security and Social Welfare
Social Work In Canada
Copyright © 2010 Thompson Educational Publishing, Inc.
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Websites
 Canadian Centre for Policy Alternatives
www.policyalternatives.ca
 Caledon Institute of Social Policy
www.caledoninst.org
 Food Banks Canada
www.foodbankscanada.ca
Chapter 2:
Income Security and Social Welfare
Social Work In Canada
Copyright © 2010 Thompson Educational Publishing, Inc.