December 11 2007
Kamloops Daily News

Welfare 'reform' makes no difference to outcomes

Kamloops MLA Claude Richmond claims that his welfare-to-work
program is effective. "Since 2001, we have taken 111,000
people off welfare rolls and put them back into the
workforce," says the Minister of Employment and Income
Assistance.

The only way he can make such a claim is to track the
progress of individuals. Otherwise there is no way of
knowing whether those leaving welfare are actually getting
jobs.

And that's just what he has done. Richmond's ministry
tracked individuals by means of their income tax returns.
When former welfare recipients get a job it will be obvious
when they file taxes.

You might think that Richmond would be eager to circulate
such a report if it contains good news but it only became
public after he recently quoted the report in the Victoria
Times-Colonist. In his letter, Richmond boasts:
"Federal/provincial taxation data shows 81.5 per cent of
expected-to-work clients who left income assistance did so
for employment."

Not until a reporter looked for the source of Richmond's
statistics did the report surface on the ministry's website.
The report, called Outcomes of Those Leaving Assistance, was
written in February 2007.

Richmond accurately quotes the report but he fails to tell
the whole truth. Yes, the report from his ministry shows
that about 4 out of 5 former welfare recipients got jobs.
That would be remarkable except that it is the same number
who got jobs before Richmond's welfare reform started.

That's right - - there was no difference in success rates
before and after 2002. Thousands of welfare recipients were
hassled by the Richmond's ministry for no good reason.

The report itself makes it clear that the success rates are
not significantly different after 2002. "Although the
proportion of employable clients having employment income
has declined, the magnitude of the decline is not
statistically significant."

It would have been more honest for Richmond to say that his
welfare reform has not been any more successful than before.
And it would have been refreshing to hear the minister
retract his claim that the get-tough program did not put an
end to "the culture of welfare dependency and introduce a
new era of employment and self-sufficiency," any more than
before he took control.

What's worse is the statistics that show that conditions for
the most vulnerable welfare recipients has worsened. Before
the Liberal welfare reform, 56 per cent of those who have
difficult employability problems (in the jargon, Persons
with Persistent Multiple Barriers) found work. After
reform, their success rate was reduced to 40 per cent.

Reporter Bruce Wallace explains: "Of greater concern is the
unreported fact that the more vulnerable clients are less
likely to be employed since the introduction of the new
welfare rules," in his article in TheTyee.ca online news
journal.

Yes, Richmond's ministry can claim the "lowest level on
income assistance in 25 years," but that's hardly anything
to brag about. The report shows that the tough-love
reductions in welfare rolls have increased hardship for
many, not a return to work.

While some older workers moved from welfare to Canada
Pension Plans, "It would be fair to conclude that moving
more people with persistent and multiple barriers off
welfare but not into jobs could be contributing to
homelessness in B.C.," says Wallace.

What the report doesn't say speaks volumes. It doesn't tell
the poverty of the working poor. They would have trouble
believing that they are better off because they have jobs,
as Richmond claims.

A recent report from Campaign 2000 revealed that many in
B.C. are working poor. It's especially bad for working
parents. In families with at least one person working, 85
per cent of their children contribute B.C.'s shameful child
poverty - - the worst in Canada.

Being on welfare is no better. A family of four living on
welfare receives $20,451 annually but they need at least
$11,000 more to survive.

B.C.'s booming economy has created two classes of citizens;
those who can make a good living and those in poverty on
welfare and in low-paying jobs.

Affordable housing would help but the real estate boom has
pushed housing out of reach of many. Richmond says that
those who qualify can get $900 for housing.

Questions remain: What is the annual wage of those who left
welfare for jobs (it's on their tax returns) and how many
actually receive the $900 subsidy.

The whole truth, not just selected facts, would be
appreciated.


David Charbonneau is the owner of Trio Technical.
He can be reached at dcharbonneau13@shaw.ca

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