News

What Happened to Welfare Applicants Who Dropped from Radar?

Government failed to track those who stopped applying, then didn't file tax returns.

By Andrew MacLeod, 3 Feb 2011, TheTyee.ca

Foodline2

Delayed and forgotten? Food line in Vancouver's Gastown. Tyee Flickr Pool photo by The Blackbird.

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Many people who started applying for welfare in British Columbia but didn't finish the application process made more money than they would have had they received assistance, a British Columbia government study said.

But the study only included people who filed income tax returns for three years in a row, leading one welfare observer to conclude the government still knows little about how changes to the system in 2002 affected the most vulnerable.

At that time the government introduced, among other changes, a three-week delay in the process where applicants were expected to look for work. Murray Coell was the minister responsible, and his cabinet colleagues included current Liberal party leadership candidates Christy Clark, Kevin Falcon, George Abbott and Mike de Jong.

Before the change, eligibility for welfare would have been determined on the first visit, the "Outcomes of BCEA Applicants that do not Complete the Application Process" report said. The report was released to The Tyee in response to a freedom of information request, and has also been posted on the social development ministry's website.

After 2002, the number of people receiving temporary assistance declined rapidly, shrinking by about 65 per cent from 108,000 cases in 2001 to a low of 37,700 in 2006. The numbers, according to the most recent statistics the ministry's released, have since risen.

The government long argued that the shrinking caseload was the result of an increased emphasis on employment, and people were leaving welfare to take jobs. Observers, including the Canadian Centre for Policy Alternatives, said that while some people were of course leaving for jobs, the government had made it much harder for people to get welfare in the first place.

Six out of 10 dropped applications

In a March 2009, report called "Last Resort," the B.C. ombudsperson's office said the ministry had agreed to find out whether people who discontinue their application process move on to employment or educational programs within two months, and to report their findings publicly.

While the government's outcomes report obtained by The Tyee confirms many people fail to complete the application process, it adds little to what's known about what happens to those people.

"After the [2002] change in the application process, 58 per cent of applicants that were not exempted from the three-week work search requirement did not return for the second stage of the application process," the report said.

In other words, nearly six out of 10 people who turned to the ministry for financial help didn't come back for their second appointment three weeks later. "As these applicants do not return for the eligibility interview, little is known about their circumstances," the report noted.

The government's report used Statistics Canada tax data to track those people who didn't complete their welfare applications. A previous report on what happens to people who've been on welfare who leave it used a similar method. To be included in either study they couldn't have made another application for welfare and they had to have "filed their tax returns for three consecutive years."

That meant that more than four out of 10 of the people who didn't complete the application process were left out of the study.

HIGH RATE OF WELFARE APPLICATION PROCESS DROP-OUTS

People applying for welfare are much more likely to drop out of the application process than they are to complete it and be ruled ineligible.

In a 14-month period between July 2009 and Aug. 2010, there were 3,786 people who welfare system administrators found were ineligible for financial help from the government, according to figures released to The Tyee under a freedom of information request.

During the same period, twice as many people -- 7,562 -- started an application with the ministry but did not complete it.

In 2002 the ministry introduced a three-week wait between when a person first contacts a welfare office seeking help and when they are given an appointment to complete an application. Nearly 60 per cent of those required to wait three weeks did not return for their second appointment.

— A.M.

Low tax-filing rate 'considered normal'

The government's report is silent on the question of whether it can be assumed the people who didn't file income tax returns would be in any way different from the people who did.

Instead the report notes that the filing rate was "considered normal for this population" and argues that "Tracking clients who have filed for three consecutive years provides a more robust analysis by allowing us to track income levels in each year following the application for assistance."

It is also worth noting that the number who filed income tax returns declined over time. Of people who applied for welfare in 2000, 62.3 per cent filed returns. By 2004 the number had dropped to 55.4 per cent.

Despite the flaws, the report concludes that people who don't complete the application process are financially better off. "The median after-tax income of non-returning applicants is higher than what they would have received on full-time, full-year income assistance," it said.

And, "The median income of non-returning applicants increases over the two-year follow-up period, indicating that they are financially better off in the years after their uncompleted application for income assistance."

Too many missing from study: Klein

It's not surprising that many people move from needing welfare into work, said Seth Klein, B.C. director of the Canadian Centre for Policy Alternatives and a co-author of the 2006 report "Denied Assistance".

"We also clearly found that many of them did not land on their feet and many ended up homeless, and those are the ones we should be concerned about," he said. People who end up homeless are unlikely to file tax returns for the next three years, he said.

"Their study covers those who are of least concern to us in the grand scheme of things," he said. "The sample misses the people of main concern to us."

Klein also noted that even for those included in the study, while the incomes were significantly higher than they would have received on welfare, many remained below the poverty line. That goes to a key question the officials responsible for the system need to ask themselves, he said. "What's your goal? Is your goal to get people off assistance or out of poverty?"

Single women and families, with either one parent or two, were particularly likely to remain below the poverty line even with employment income according to data included in the government's report, Klein pointed out.

Homelessness continues to be a problem for communities throughout the province. Media reports this week on Vancouver's housing initiatives note that while 1,640 units will open in the next three years for people now living in shelters or on the street, it doesn't keep pace with the number of people who are becoming homeless.  [Tyee]

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  • chuckstraight

    1 year ago

    What happened?

    Like any that are no longer tracked, could it be they become part of the "news" that indicates unemployment went down?

  • jim1966

    1 year ago

    No Surprise Here At All

    The BC Liberals just don't get it do they?, Words like poverty, hunger and the like seem to be a foreign language to these people. Our Welfare/Disability system is BROKEN, BATTERED and has been ABUSED by an administration that has an idealogy about the poor, the sick or the elderly that could be considered inept. Here are some facts for your readers to consider about welfare and disability in BC, despite the BC Liberals claims they have put policy in place that discourages people from seeking help, the rates are too low for people to find decent housing. Welfare in it's current state was never designed to carry the burden our government now expects. It is a ministry that is broken and needs fixing, it's simple yet our government still IGNORES this issue. We as a society must accept that some of our fellow citizens will get sick or for some other reason cannot work and that this just part of life hands out to some people. Congrats to anyone on welfare who gets work or returns to school etc. But our government should be ashamed of it's record on this issue and poverty in BC. This is not about millions of dollars being mispent, it's about the fairness and equality that all citizens deserve, So far only one candidate has mentioned poverty as an issue in BC. That is a good start but much much more needs to be done to not only return some cases back to employment but more importantly to return dignity and hope to those in need

  • Skywalker

    1 year ago

    Where are they?

    Food Banks have an increase client load.

  • Frank

    1 year ago

    And let's not forget

    Some of their kids died too.

    I love dogs and I can see why that story was so upsetting, I'm sure it was to most people.

    But this government's policies have also meant little kids not reaching their 2nd birthday because Mr Campbell chose to help those that donate big bucks to the Liberal party instead of those too poor to care for their kids.

    He chose to spend his time making it harder for desperately poor people to access welfare and making it easier for foreign corporations to make a profit.

    And then the same man has the gall to whine that his family has been hurt by what people say about him in the blogosphere.

    21 dead children and he has nothing to say but he had time to talk to the media about how hard its been for his family.

  • carfreecity

    1 year ago

    where are they

    buses,vans, shelters, boats
    and dead

  • Luck

    1 year ago

    YES MAN WHERE ARE THEY..............

    ANOTHER GREAT ARTICLE BY TYEE AND ANDREW MAClEOD.

    I AM GLAD TO SEE THIS ARTICLE FINELY COME OUT. GLAD TO SEE STATS CAN REVISED THEIR UNEMPLOYMENT STATS ALSO.

    I MUST OF EMAILED A THOUSAND PEOPLE IN ALL WALKS OF LIFE TO TELL ME WERE THE JOB CREATION WAS.

    I SPOKE TO THINK TANKS, COLLEGES, UNIVERSITIES, JOB CLUBS, UNIONS, EMPLOYERS, COMMON PEOPLE IN THE STREETS WHO WERE DISMAYED.

    FACT IS FOLKS VERY FEW JOBS THAT WERE LOST CAME BACK OR WILL EVER COME BACK.

    OUR GOVERNMENTS ARE A TOTAL FAILURE TO RESPOND TO THE WANTS AND NEEDS OF RUNNING A COUNTRY LIKE A BUSINESS.

    MOST ARE TOO TOO ARROGANT TO LISTEN TO COMMON SENSE OR ANY INPUT FROM THE VERY PEOPLE THEY ARE TO REPRESENT.

    OUR UNEMPLOYMENT IS DOUBLE DIGITS AND WILL REMAIN THAT WAY UNTIL GOV. EMPLOYERS AND UNIONS CAN GET THEIR SHIT TOGETHER AND WORK TOGETHER.

    YOU GUESS WHEN PEOPLE GIVE UP YOU GET THE GOVERNMENT AT ALL LEVELS YOU DESERVE.

    APATHY CREATED THIS SHATTY MESS AND GETTING OFF OUR DUFFS WILL RESOLVE IT.

  • John Greg

    1 year ago

    A Complete Mess

    And a tower of greed -- the Campbell Liberals, that is.

    Over the last 30 years I've had some on and off experiences with the welfare folks. I won't recount all of that, of course, but I've got a good story.

    I was laid-off from a 50k annual tech writing job in 2003, and being poorly organized financially I had minimal savings and a high debt load. In late 2004 I ran out of money. I had managed to score a minimum wage make-work slave job at Book Warehouse but the hours were so few that I couldn't make my rent ($680), and eventually I was fired because of my ongoing requests for more hours -- the unemployment insurance folks deemed this a wrongful dismissal, so I was able to claim for EI.

    I went to welfare to see what my options were, and they were none and none. You see, aside from the fact I was collecting a voluminous $320 from EI my rent at that time was so high ($680 per) that I was not eligible for any assistance whatsoever even had I not been receiving EI. They said the only way they could accept my application was if I moved to some place with rent below $385 (there were really no such places even then, and anyway moving costs a lot of money) -- what kind of double think nonsense is that?

    So, after almost ten years at the same address I became homeless.

    I went back to welfare to see what my new "homeless" options were. I was now eligible for the support part of assistance, but of course not rent because I had no rent and was NFA (no fixed address).

    Now, the funny part of the tale is that while applying to welfare I had to guide my intake worker, who was new to the job, through the entire computer-based intake process because I, at my 2002 tech writing job, had built the web-site and eLearning system that the welfare people use. Talk about irony. In effect, I gave her a 45 minute skills training lesson at her job. Unpaid, of course. She was, to her credit, mortified.

  • Frank

    1 year ago

    Institutional unemployment

    Interesting article at the American Prospect about the US economy.

    The opening paragraph :

    "When he was CEO of General Electric, in 1998, Jack Welch pithily summarized his vision for corporate America: "Ideally, you'd have every plant you own on a barge to move with currencies and changes in the economy." Since then, corporations have discovered that they don't need barges in order to unmoor themselves from the American economy."

    And what I thought was a key paragraph :

    "The existing debate pits those who believe that the downturn is cyclical and that public spending can restore prosperity, against those who believe that it's structural -- that we have too many carpenters, say, and not enough nurses -- and that we should leave things be while American workers acquire new skills and enter different lines of work. But there's another way to look at the recession: that it's institutional, that it's the cumulative consequence of our leading banks and corporations investing in job-creating enterprises abroad rather than in the U.S."

    http://prospect.org/cs/articles?article=business_is_booming

  • realisticman

    1 year ago

    Jack Welch

    Well investing abroad to help create jobs is much, much better than simply sending them foreign aid. Particularly because so much aid becomes stolen and as long as foreign workers are employed they will not be likely to jump on to rusty boats to squeeze in here.

    Jack also indirectly points out that low corporate taxes are necessary for creating the conditions for investing and retooling. US corporate taxes are too high.

  • lynn

    1 year ago

    John Greg

    Your outstanding post should be required reading by all.

    It reveals so well the senseless, disorienting bureaucratic meanness that is now posing as our social safety net.

    There is a Kafkaesque 'Tower of Greed' book waiting to be written here.

    I hope one day you write it.

    "There is a determined though unseen bravery.... Noble and mysterious triumphs that no eye sees, and no fame rewards, and no flourish of triumph salutes. Life, misfortunes, isolation, abandonment, poverty, are battlefields that have their heroes; obscure heroes, sometimes greater than the illustrious heroes."

  • Frank

    1 year ago

    r'man

    Actually the Left and the Right in Canada agree that China shouldn't be on Canada's foreign aid list. So your argument is a red herring.

    As for Jack's desire for low corporate taxes, they can be set to zero and the work will still be done offshore. There's no reason to do it in the USA.

  • Marushka

    1 year ago

    The roads not traveled ... how are they available?

    Some people who are fortunate enough to figure out how to jump through the hoops of welfare applications will still never be employable.
    They are obnoxious, socially inept, or have no teeth. Who would hire them?

    They have no education, no skills, are mentally incompetent, emotionally incontinent, drug addicted, and simply can't be trained to do anything that will make a buck in a capitalist world.

    And Revenue Canada/StatsCan expects these people to file income tax every year? Why would they?

    Many others can't figure out how to jump through the hoops at all (they need help), and end up on the streets. Once there, it's extremely hard if not totally impossible to get them back to any kind of possible help.

    I'm a highly educated person but didn't know when, many years ago, I became disabled that I could apply for a disability pension through CPP. Why didn't I know this? Was it because my disability at the time affected my brain/thinking so I just didn't 'get it'? Did my family expect I would know this stuff and not realize that my brain was not at all functional, thus my ability to apply to the proper government agencies was totally inept?

    I'm now retired and have figured out how to apply for CPP, OAS, and GIS ... lucky me. Thanks to a guy who had aleady been through the process.

    I ran into a street lady tonight who I have seen for many years in my neighbourhood ... I had never given her a dime. A scrawny little woman, always pleasant but drug addicted to something like meth or whatever drug(s) makes you skinny and aggitated and destroys your life.

    For some reason tonight, I gave her a toonie, and then a $5 bill.
    I said: "I thought you were dead."
    She said: "I've know you for 10 years and you've never given me anything."
    I said: "It's your birthday present."
    She said: "How did you know it's my birthday? I just turned 40. Thank you!"

    She told me her name, and I told her mine, and we hugged quite long and intensely. I'm 65. She's 25 years younger and looks like my grandma. Who died at 92.

    What to do with people like this? Can she be saved? I doubt it. Can she be housed? Probably. If the goverment(s) were willing to provide assisted housing to homeless people.

    I suggest that all government people from the top down or the bottom up read Gabor Mate's book "In the Realm of Hungry Ghosts". He explains why some people are they way they are.

    We can't 'fix' people. But we can house most of them, and save a lot of money.

    When I was in dorms at UBC in the '60s, I lived in a 8' x 10' room (if it was that big) with shared washrooms/showers down the hall for 22 people per floor. It worked just fine. I could live in this small space for 2 years running.

    I suggest that a similar size accommodation be given to homeless folk. When the TV show "Da Vinci's Inquest" was shooting at a former women's prison, the cells looked better than the dorm rooms at UBC.

    Why are logic and simple solutions not ever available?

  • G West

    1 year ago

    Jack Welch

    Would that be the same guy who had a secret affair with the 'journalist' who actually co-authored his ridiculous book?

    Who was forced to resign from her position
    as editor-in-chief of the Harvard Business Review 2002 after she admitting to having been involved in an affair with Welch while preparing an interview with him for the magazine....and then became the 3rd Mrs Welch.

    Interesting managment style all right. I bet he has NO PROBLEM at all with the levels of executive compensation.

    Thanks for the link Frank!

  • jim1966

    1 year ago

    Your Article Inspires Hope And Dignity

    In my previous post I noted that our system(s) of support are broken and need repair and I still believe that. I wanted to repost to point out that poverty is an issue on many levels not just for the sick, or the elderley but for many working 3 or 4 jobs just to pay the rent or buy some food. Currently the rates for an employable individual are about $610.00 per month ($375.00 for shelter and the rest for food and any other basic need, based on the support amount an individual gets about $7.83 per day for all 3 meals, a person on disability assistance gets about $2.00 a day more for all 3 meals. As a person living with a chronic illness this (according to doctors, CCPA, Dieticians and the like) this amount is deplorable. The question I'd like to propose is two fold to this issue, one how do we as a society help those most in need that for whatever reason cannot help themsleves and secondly how do we fix a system of supports that is so old and outdated?. During the Campbell administration so many offices were closed, volunteer admin was discontinued and benefits were cut or reduced. Can any government rebalance this ministry and develop a plan not only to restore people to employment but to also assist in restoring people's faith and dignity within this ministry. Is legistated poverty the only solution that a government can come up with to aid social programs?. We as a society have a choice and as a voter who has paid into income taxes, cpp etc I honestly think that we deserve a bit better than what we have in place. The government needs to rehire staff within this ministry and restore some of the previous cuts (like schedule C for example), reducing or eliminating poverty has no quick fix, it will take money, time and effort from all levels of government. Poverty is a major issue in BC and I hope that the readers of the tyee will encourage thier MLA's to address this issue once and for all. It is after all about all of us and the protection of our future.

  • mary jane

    1 year ago

    for those who have been able

    for those who have been able to survive on a
    sub-sistance income.
    Sadly there are few Politian or the general public that care about the elderly, sick - disabled or just poor. I believe the liberals take advantage of this apathy or lack of understanding.
    the cut backs hit those on Income Assistance very hard and for many homelessness is the result. Only when facing this stone wall does a person realize how dumb it is to not have the help needed to get on with life.
    I have heard lately that even emergency food and shelter takes weeks.
    Start with these cut -backs :
    medical –equipment and other needs
    drug coverage
    dental -coverage
    eye exams + glasses
    must now be paid out of the grocery part of the monthly income
    fair appeals / tribunals liberals appointees got the jobs and as I understand it the rate of payment went especially for those who said no.
    the liberals have damaged many since they took over.
    There

  • mary jane

    1 year ago

    also

    If you need to contact someone in the ministry
    you are out of luck. the phones go to an 800 number and often cut you off then. The liberals created a maze that goes no where - such a rude attitude.
    So if a disabled person needs medical help from the worker - tough - you have to into the office. If you do get through the main word seems to be NO.
    When the world started to have problems gordon and gang (if the gave a darn) should changed the rules so workers would not end up suffering or homeless

  • VivianLea Doubt

    1 year ago

    John Greg

    I, too, wanted to express my thanks for your post. The personal is the political...

    Thank you.

  • jim1966

    1 year ago

    One Other Thing About Social Devlopment

    Curious, how the NDP has not mentioned much or critized this ministry and the deplorable levels of child poverty etc. British Columbians want good jobs, decent health care and a social safety net that not only provides dignity but equality, basic needs costs needs to be adjusted to at least bring people up to a level indexed in the bread basket that most governments use to determine assistance rates. Idealogy is another issue, remember not every low income person is shooting up their cheques or cracking out, some folks are trying to survive and contribute in society in many ways. Child poverty alone in this province is a disgrace and an embarassment worldwide. We as citizens must demand better, how?, Get out and vote at elections, ask questions about issues that concern you but most of all hold those in power accountable whenever possible. Laws can be changed and programs can be fixed if we the people demand an elected government do it. The media could make poverty an issue and a big one, just look at the Campbell governments record on welfare, poverty etc and you'll soon see a dismal non-caring, non-compassionate and unforgiving system and nothing more. Isn't it time for a change?

  • kurtdriver

    1 year ago

    Re: Consent

    I'm trying to understand if these people, who had not been on welfare in these three years consented to have the ministry have access to their tax records. They would have signed a consent form when applying, but surely it can't be valid three years later, and without having completing the process.

    Where they contacted and asked to participate?

  • jim1966

    1 year ago

    Kurtdriver

    When an individual applies for assistance the person(s) usually MUST give the ministry of Social Devlopment consent to release tax information etc and the like. The ministry as per this article did very little to follow up with these people and I think I know why. They simply don't care about where these folks went or why. Less caseloads per month mean less monies our government pays out, dismal as the rates are. Campbell's track record with this ministry is at best horrific. Cuts to needed benefits to pay for either corporate tax cuts etc is not only unhuman but just wrong. Canada is an awesome country but we need to adjust to changes both within our province and within our nation. The programs we have in place are good programs with a lot of front line staff who should be commended for the work that they do every day. The caseloads stats prove that each and every month. I hope that the tyee continues to report about these stories as all British Columbians need to know the "Truth" about Campbell and Co's social policy agenda(s). Which in my view to date has been nil.

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