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I1 To: I CHAIR AND MEMBERS COMMUNITY AND PROTECTIVE SERVICES II

I MEETING ON DECEMBER 10,2007

ROSS L. FAIR II

I GENERAL MANAGER OF COMMMUNITY SERVICES

TOWARDS AN ANTI-POVERTY STRATEGY FOR LONDON I I

RECOMMENDATION

That on the recommendation of the General Manager of Community Services this report BE RECEIVED for information purposes.

BACKGROUND

In its Throne Speech, the new Provincial Government committed to a number of measures dealing with the issue of poverty that had been identified in their election platform:

Establish a new cabinet committee to develop indicators and targets to measure and address poverty Affirmed its commitment to complete implementation of the Ontario Child Benefit ($1,000 per child by 201 1-2012) and to build a comprehensive poverty reduction strategyaround this benefit. Affirmed creating a comprehensive dental program for low-income Ontarians Affirmed increasing the minimum wage to $10.25/hour by 2010 Affirmed commitment to build more affordable housing Increase the number of child care spaces

' Expand the Pathways to Education Initiative and expand training programs

It has been announced previously that London North Centre M.P.P and Minister of Children and Youth Services Deb Matthews will be chairing a new Cabinet Committee tasked with developing a strategy to reduce poverty.

London City Council has been active on this issue and has made significant investments in discretionary programs for social assistance recipients and the working poor as well as supporting affordable housing initiatives.

Segments of the London community have been advocating for a poverty reduction strategy, including the community advocates group and the London Homeless Coalition. A shortwhile ago, a community forum on poverty attracted close to 300 individuals.

Given this activity, and recent funding announcements from senior governments we felt it appropriate to reflect on the relative state of poverty in this community. To that end, I will be appearing as a delegation to present a briefing to Committee. Please find the slide deck attached hereto as Appendix One.

As well, I will be seeking the advice of Committee relative to whether and how London should move to develop an anti-poverty strategy. If so, the Child and Youth Network would seem to be an ideal venue given the government's focus on child poverty and given that the network includes over 100 community institutions and agencies is focussed on improving outcomes for children, youth and families in London.

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PREPARED BY:

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RECOMMENDED BY:

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Ross L. Fair, General Manager

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for London

~ A Community and Protective Setvices Committee

December 10,2007

Defining Poverty Is Poverty an Issue in London? Key Trends and Indicators How London is Responding Going Fotward

* What Should be the Plan for London?

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Defining Poverty

. No consensus

r is to be distant from the meinstreem of sociely . “Jober and to excluded from the resources, oppodundtes and sources of sub’eciive and objective well-6eing which are readi available io otders Defining and Re-Defining Poverty: A CCS # Perspective (Cana d. Ian Council on Social Development, 2001)

- Multiple Measures of Low Income and Poverty - Low Income Cutoffs- LlCO - Market Basket Measure - MBM*

’ - Low Income Measure - LlM

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Is Poverty an Issue in London? What the Evidence Says

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%a mw.

. Particular groups are more likely to live in povelty - Recent Immigrants - Aboriginal Identity - Visible Minorities 5

23% of children and youth age 0 to 24 lived with low income

W S b l l 1546

* ~ . . . r r n m ~ . ~ a nrm

. 23% of children age 0 to 5 lived in poverty

'b 19% of children age 6 t o 17 lived in poverty

of youth age 15 to 24 lived in poverty

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Caseload Size

Marital Status of Families Receiving Ontario Works 43% (3,130) ofthe Ontario Works caseload are parents

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br rn n e

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n 4 The proportion and number of lone parent families receiving

dntrrrio Woks has been decreasing since 1999

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Ages of Children on the Ontario Almost half of children on the caseload are younger than 7 years o f age

l l C W

IC# y i 8 n 11%

- The number of children on the caseload in 2007 (5,884) is than in 2004 (6,872) while the total caseload is

?*)on , .

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.,-..,- I m u , 1 I 1S.U .... -. I..

I. _.. ..

- Child Care

0 In 2006, a total of4,312 children received child care fee subsidy through the Municipal Child Care Fee Subsidy Program - 3,482 low-income children - 830 children living in families involved with Ontario Works

Atotal of732 children living in families receiving Ontario Works received informal child care in 2006

* Significant increase in spaces, number of children in care and in demand for fee subsidy in M o 7

,. '.'~ ~~

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impact of recent Federal and Provincial anti-poverty initiatives:

*Increases to Minimum wage *Federal child and family benefits -Ontario Child Benefit *Increases to Social Assistance Rates

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Received from Earnings and Transfer8 (mlnimum wage)

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j ' * After 201 0, there is no mechanism for further wage incwases '.. 1 , " , ,., By 201 0 existin income supplementation Mi l not bridge the gap between .~: .~~i~:~,~ ~>>,,,,C\' ,.. Cdst ofl+tng adearnings for rnirimum wage w o r ~ f i - ~ ~ ~ ~ ~ ~ . . . : ~ ~ v a i l a b l l ~ o f additional suoootis such as health beneflb and child care is

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Cost of Raising a Child By 201 1, children's benefits will not meet the estimated cost of

new Ontario Child Benefitwll increase hcome for lancincome ilies v&h children

mlies receiving social assistance wll be slghtiy better off i+ ac~~anrs:en;timma bvnp)lylngatxinlli,nnt@ I5

, ; ' . ,

In 2008, a gap between social assistance rates, including the child benefits and cost of living remains for most families

T d d Manthlyheme. Saoirl Assistance +Child Beneillr .,..,A. WII-I.,-UM .,,I?*, ._a9 7 Y U

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El Gneflt Received (200SlO6) While the El surplus fund grows, fewer benefit

mWmr .I SImrNul bw r . m t . W W m rmml.TWn# r.mtmnM.n.. bmmfl 11-lnc.m= mn.1. m N m m w e r l *mlh.Phu

amm L M d m * h .fw LIIII.

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i;. .-.,.. , , , In 2004, 25% of London's unemployed workers received El beneflts. >:+ ,;. :., , \ , ~ , The 2007 maximum benefit rate of $423 per week is a 2% increase frwn the +:.x ... :.'.,,p!aXkwn level in 1996. Cost ofilving has increased by more than 20% ,s.;;.

d??'~~~' ! . , ' , &Ma. thah 17

Key Trends and Indicators

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Demographic trends may result in persistently high poverty rates

From 2001 to 2006:

Lone parents are more likely to lie in poverty

Lone parent families ). increased by 7.4% lo 17,320

Common-law families Children born into increased by 19.8% to 11,990

common-law families are more likely t o see the

i .i separation oftheir families

Social trends may result in persistently high poverty rates

* Poverty is deepenin among the most wlnerablp opulation groups, including lone paren e s and people receiving socia P ' assistance mm:

shelter system in London are families wlth chll % ren mrce:ernwnenanIaid

K;aor.yorm Repol9 - 12% to 15% of all individuals and families usin the emergency

~ h * l l g , R * ~ l m luaq - 40.9% of London Food roIrnllKl A R U f m d l l I Q

Bank clients are children and youth mce:The

- Immigration will fuel PO ulation growth yet new Canadians face high levels of unemploymen P and lower incomes m a : o m e o r c i t a q

, , j , , . A ) %?',, m ' While there are fewer refugee claimants. refugees are more ;s.ji-..i,, vulnerable and have higher needs than before, making it more difficult .,i.,',,.,

rate and obtain imployment and income cma:Bntrgitgmu II 20

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Geography Matters

Larger urban areas experience higher levels of poverty

In 2000,64% of the population in Canada lived in CMAs. but they were home to 70% of the poor population

London total population Bh largest city in Ontario in

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Recent Federal and Provincial anti-poverty initiatives have provided incremental but insufficient improvement .

Poverty remains a significant barrier for London families

* Much work remains to be donel

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How London is Responding

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Strategic Priorities

London has a vision that it is committed to the health and well-being of every Londoner

Our key priorities of Community Vitallty and Economic Prosperity support that vision

Our Social Policy Framework has been developed as a guide to achieving this vision

i

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Social Policv Fra , . .. ,, ,.

- Key Initiatives

Income Security Policy Paper Funding Basic Needs Ontario Works Transformation Labour Market Development Community Initiatives

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Income Security Policy Paper Recommendations

Reinvest El surplus into labour force strategies Expand the criteria and benefit structure of El proaram - that unemployed workers receive income replacement Review goals and objectives of special benefits to determine whether or not El is the appropriate program for delivering these special benefits

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Security Policy Paper Recommendations Sumorts for Low Income Workers - Implement a mechanism for ongoing increases in minimum wage,

beyond MZO - Implement a mechanism to increase amounts provided through existing income supplement programs to accommodate cost of living increase - Ensure that things like child care, extended health coverage, dental coverage, and affordable housing are provided adequately

Children's Benefits that total maximum child benefits reach the 65,000 (in

sure that families with children have income 18

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Irtcome Security Policy Paper Recommendations

Social Assistance Rates

Implement a mechanism for ongoing incremental increases Increase dental benefits and provide more affordable housing Undertake regulation reviews to continue to remove policies that unnecessarily penalize

id assistance recipients 20

City of London Funding for Basic Needs

MAPAG THAW Community Funding - At risk Youth - Community Development

Homelessness prevention programs NCB Emergency Fund

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T & W = q ? &*#

Ontario Worlts Transformation

Transition from income support to holistic work readiness development paradigm is working:

. Results impressive for OW London - reducing caseload -individuals finding and sustaining work

- Integrating services to assist needs of increasingly diverse and challenging caseload (wrap around)

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“““y Jd

Labour Market Development

Employment is the key to leaving poverty-London unique with presence of solid community based employment development work

Federal government - Malor new initiative -new labour market strategy does not

- lmmlgatlon -setletrent and p b training funding commence until 2008-09

mentation of LMDA - devolution of El ng to province

32 . .

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, ,,,".:". %,'?.. 'IC-

Labour Market Development

Local strategies around immigrant employment - Access Centre for Regulated Employment - Global Talent - Skills International website - London-Middlesex Immigration Employment Task Force

* Summit planned for January, 2008

Co-ordination between government funders to ensure holistic approach to services

SupporG ng innovative outcome based services

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Community Initiatives

Solid network of agencies and groups working to alleviate the impact of poverty on individuals, children, youth and families

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Going Forward

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'"W" 1 ,c

Going Forward

The new Provincial government is targeting Poverty: o Deb Matthews is the Minister of Children and

Youth and the lead on the Poverty strategy o Khalil Ramal is Parliamentary Assistant to

Minister of Community and Social Services

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3b

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Going Forward

Liberal government Poverty Strategy Components:

- . Complste~nioChldBnfito$i;1WpercMklbyM11 dbuiidpoverty

M t i n first year,work vAh community to develap povaty tag& and irrlicatos

reduction stratew wound this bnefit

Minimum wage ircleascs to $1 0.25 per how by 2010

545 million for a dental prowam for lonr-income Ontarians

*

. cia1 venture capltal fund to find new solutbns to difficuil sccld problems

ed child m e spaces. , .

37

. . Going Fomrard . , ,,

,i

Social supports outlined In Provhcial Liberal Party Platform:

- $300 million for Early Learning and Full Day Preschool Program . Increased funding and strong policy direction for mental health and addiction services

* Create a long term strategy for affordable housing that will contain a mix of non-profit and co-op housing

= Skills Training and Development - Apprenticeship

Second Career Strategy

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Going Forward

Significant local interest - London Homeless Coalition Advocacy -Community Forum on Poverty

Child and Youth Network well- d given focus on child poverty

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So What Should be the Plan for London?

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Recommendation

That the General Manager of Community Services BE DIRECTED to report back to Community and Protective Services in the new year on progress towards an Anti-Poverty Strategy for London

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