Welfare and Disability Payments Fall Behind Inflation
A report by Ontario’s Financial Accountability Office (FAO) has revealed that welfare and disability payments in the province have lost significant buying power over the past decade when adjusted for inflation. The findings underscore a growing gap between Ontario’s self-proclaimed status as an “economic powerhouse” and the reality faced by its most vulnerable residents.
According to the FAO, a single person on Ontario Works—the province’s welfare program for employable individuals—receives a maximum of $8,796 per year. This amount is intended to cover both rent and basic needs. For those on the Ontario Disability Support Program (ODSP), the annual maximum is $17,232. Neither figure comes close to Ontario’s official poverty line of $27,624 for a single person.
Inflation Erodes Purchasing Power
The FAO calculated that once inflation is factored in, welfare payments now have about $2,000 less buying power than they did a decade ago. For ODSP, the loss is approximately $500. The report highlights that while ODSP recipients received a 1.9 per cent inflationary increase on July 1—amounting to just $28 per month—those on Ontario Works have not seen any increase since 2018, when Premier Doug Ford was first elected.
Combined, roughly 650,000 people rely on disability or welfare in Ontario. Including partners and children, close to one million individuals depend on these programs. “If the goal of Ontario’s poverty payments is to enable people to lead a basic existence, it’s falling far short,” the article states.
Ford Government’s Record on Disability Promises
In the 2022 election, the Progressive Conservatives promised to increase ODSP payments by five per cent and index them to inflation thereafter. However, critics argue that this promise fails to address the inadequacy of the base amount. The five per cent increase did not even make up for Ford’s 2018 decision to reject a Liberal plan to raise rates by three per cent annually for three years, opting instead for a one-time 1.5 per cent increase.
The disparity is stark when comparing how MPPs treat themselves versus the poor. After denying themselves a raise for 16 years following 2009, MPPs last year approved a 35 per cent salary increase, followed by annual adjustments matching those of federal MPs. This year, that meant a 4.2 per cent raise—more than double the percentage given to ODSP recipients and infinitely better than the zero increase for welfare recipients.
Ontario’s Poverty Payments Among Lowest in Canada
Ontario’s welfare rates for single employable people are the second-lowest in Canada, behind only Nova Scotia. On disability support, the province ranks in the middle of the pack. The article notes that Premier Ford is “fond of calling Ontario an ‘economic powerhouse,’ but when it comes to the poor, he’s suffering from an empathy deficit.”
The FAO report underscores that even with the recent inflationary adjustment, ODSP payments remain insufficient. For welfare recipients, the prolonged freeze since 2018 has left them further behind. As the cost of living continues to rise, the gap between Ontario’s economic rhetoric and the lived experience of its poorest citizens widens.
