Ontario is facing the potential for wide scale job losses. High inflation and, more recently, the impact of tariffs hitting the province have pushed conversations about our social safety net into the spotlight. Learning about our provincial social assistance programs is now more important than ever, and there are 5 things everyone should know about Ontario Works (OW).
Why does Ontario Works matter?
Many people may not realize that most Ontarians who lose their jobs don’t qualify for Employment Insurance (EI). Last year, only 27% of unemployed people in the province were eligible, despite 48% contributing to the program. Without the support of EI, many have no choice but to turn to provincial social assistance programs like Ontario Works.
But, after decades of disinvestment, Ontario’s social assistance programs are no longer able to keep people on their feet when the unexpected happens.
When people fall through the cracks left by OW, food banks are left to fill the gaps. For years, we’ve been raising the alarm that food banks are already stretched to their limit. Now, tariffs have the potential to lead to thousands of people in the province losing their jobs. This could drive even more people to need the support of a food bank, and push the food bank network past its breaking point.
Improving our social assistance programs is just one solution at the government’s fingertips to keep everyone on their feet during challenging times in Ontario.
But what is Ontario Works, and why are people who need it often left to turn to a food bank?
What is Ontario Works?
Ontario Works (OW) was originally created in 1997. The original purpose was to “provide financial assistance to those most in need while they meet obligations to become and stay employed.” It was a program designed to promote re-entering the workforce and long-term financial resilience. Unfortunately, today OW is failing the people that need it.
The OW rate consists of a shelter amount and a basic needs amount. Combined, the maximum a person can receive from OW is $733.
As you can imagine, instead of keeping people on their feet while they look for a new job, this amount forces people into poverty. OW often makes it hard for the people that need it to make ends meet.
Here are the 5 things everyone in the province should understand about Ontario Works:
1. Ontario Works rates are so low that recipients can’t keep a roof over their head.
If someone needs to turn to OW, the highest amount they can receive is $733. This financial assistance is intended to cover the cost of housing, food, electricity, heat, clothing, and other necessary items.
It’s clear that this rate has not kept pace with the cost of living. Take housing alone: in 2023, the average asking price for a bachelor apartment in Ontario was $1,612. The math here just doesn’t add up. These housing costs exceed the total amount provided by OW by $879. If this is the case, where does the remainder for food, bill payments, and other necessary expenses come from?
Such a large gap between the current cost of living and social assistance rates makes it impossible for someone on OW to afford their basic needs. Trying to make up the difference and stay afloat can create barriers to spending time looking for work. Keeping OW rates stuck below the poverty line works against the program’s intent of providing assistance so people can look for work.
Comparing the cost of rent and food to the Ontario Works maximum allowances for shelter and basic needs. Note that this comparison does not include other basic needs, such as the cost of transportation, clothing, or utilities. This graph and more information can be found in the Hunger Report 2024.
2. It costs money to look for a job, and OW doesn’t provide enough.
It can be easy to forget, but there are hidden costs to looking for a job. When a person is struggling to afford food, paying for job-searching expenses can become nearly impossible.
These costs can seem small, like buying paper to print resumes on, transportation and childcare costs for interviews, and proper interview attire. Each expense adds up when someone can’t make ends meet.
Insufficient OW rates make it harder for people seeking to re-enter the workforce to keep up with these costs. Rather than giving recipients a hand up as they look for work, these low amounts create active barriers to people trying to find employment.
3. Many people on OW do work. But the amount they receive is clawed back after the first $200 they make a month.
When an OW recipient earns income from working, the money they receive is clawed back at a rate of 50 cents for every dollar earned after the first $200 a month. When this rate was established, minimum wage was much lower and $200 went a lot further.
Additionally, when a worker makes $1,666 a month (the equivalent of 22 hours per week at minimum wage), their full OW amount is clawed back. Then, they then lose access to the financial support and other benefits the program offers.
This means that OW recipients are cut off from financial assistance while still not earning enough to get by. In this situation, it becomes even harder for people on OW to move out of poverty.
Angela, a character in our interactive tool Fork in The Road, and her story highlight some of these challenges. As someone on OW who works, her wages are clawed back, and she is left her in a similar financial place as before her shifts. Learn more about Angela’s experience and walk in her shoes by selecting her story in Fork in The Road.
4. The lack of quality jobs in the province makes it hard to exit the Ontario Works program.
Even though many people on OW are working, seasonal, part-time, and gig work are making up bigger portions of Ontario’s job market. These jobs tend to have lower pay, less hours, and provide little or no access to stability and benefits like sick days.
This can mean even after gaining employment, people may need to return to the program after being laid off. It can also mean those working may need to stay on the program because they need to keep looking for another job to secure the income they need to cover their expenses.
5. Strong employment and skills programs are important for supporting people as they move off of the program.
Providing people with employment and skills supports is essential to helping them exit the Ontario Works program.
Throughout the province, food banks have been stepping up to provide employment supports to help people gain financial independence. Many food banks in our network offer employment services and training programs. Some programs even provide the opportunity to be paid and gain guaranteed employment by the end of the training.
Programs like these can make it easier for those on OW to secure stable, quality jobs that pay enough to afford today’s cost of living.
A better future for Ontario Works is possible
Food banks are doing what they can to fill the gaps by providing food assistance, advocating for quality jobs, and providing employment supports. However, we are not a long-term solution to poverty in the province. As we navigate the uncertainty of the coming months, Ontario’s social assistance programs may become more important than ever. We cannot continue to rely on food banks to fill these gaps left in the social safety net.
Making improvements to Ontario Works will begin to address one of the causes of poverty in the province today. A better future is possible if our province takes bold action. If we invest in people, we can build an Ontario where everyone can stay on their feet when the unexpected happens.
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