Opinion

'Welfare to Work' Didn't Work

BC Libs sat on own report showing no real gains.

By Bruce Wallace, 12 Nov 2007, TheTyee.ca

Salvation Army statue with homeless man.

Homeless in Vancouver. Photo by C. Grabowski.

The B.C. government claims to be doing a great job of moving people off welfare into better lives. But its own welfare ministry, the Ministry of Employment and Income Assistance, compiled a report in February 2007, titled Outcomes of Those Leaving Assistance, that summarizes new research contradicting the government's claims of success.

And the government waited eight months to release that report, until a reporter surfaced its existence just last month.

Five years of 'good news'

For the first time, the ministry has been able to track the tax returns of people who no longer access welfare to determine how many are working. This new report clearly shows there has been no increase in the numbers of employable welfare clients declaring employment income after leaving welfare.

For five years, the welfare ministry has been telling us that the massive reduction in our welfare caseload was due to successfully moving people from welfare to work. We were fed a good news story that its strict welfare policies resulted in "better lives, more independence and a higher standard of living for many British Columbians."

In 2002, the ministry promised "to end the culture of welfare dependency and introduce a new era of employment and self-sufficiency," and with each drop in the caseload, it reported "our approach is working."

Most recently, Claude Richmond, the minister responsible for welfare in B.C., wrote a letter to the editor of the Times-Colonist stating, "Federal/provincial taxation data shows 81.5 per cent of expected-to-work clients who left income assistance did so for employment."

Investigative reporter Andrew MacLeod at Monday Magazine contacted the ministry, requested the source of this new statistic and uncovered the unreleased six-page report (which was then posted on the ministry's website following his request).

No increase in welfare to work

The objective of the report is to finally determine if more people are being moved from welfare to work since the government's welfare changes of 2002. While the minister's letter assures us that 81.5 per cent of expected-to-work clients who left income assistance did so for employment, this is actually a small reduction from the past when 83 per cent declared employment income.

Despite all of the programming and claims of success, there has been no noticeable increase in moving employable clients from welfare to work.

In addition, the research reports on only the 75 per cent of clients who actually filed a tax return, meaning even less is known about the well-being of a quarter of past welfare clients.

The real variable: barriers to getting aid

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.

As the ministry's report states now, "[l]ess than one-half of Persons with Persistent Multiple Barriers (PPMB) clients have employment income in the year after exiting IA (40.4 per cent)." This is a significant reduction from the pre-2002 rate of 56.3 per cent. These are people without incomes and without welfare. While many have just been shifted from provincial welfare to federal CPP benefits, there are many unknowns. 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.

Yes, the ministry can claim the "lowest level on income assistance in 25 years," but with this new report, it cannot claim that this massive caseload reduction was due to more people moving from welfare to work. Just helping far fewer people is not necessarily good news if they are not better off.

Of course, the bigger story is what is not in the report. Just because someone reports employment earnings, even $10, does that mean they are self sufficient or better off? While the report counts the number of people declaring income on their tax returns, it does not tell us how much income was declared.

Where's the promised performance measure?

Are people better off working than on welfare? In 2002, when the public was told our welfare system was being changed to move people from welfare dependency to self sufficiency, the ministry promised a performance measure that would track the outcomes of its policies, specifically asking, "Are families better off (i.e., do they have more income) once they leave income assistance?" This new research fails again to provide the necessary evidence to assure public accountability.

Finally, this report continues to focus all of our attention on those leaving welfare, when the dramatic caseload reduction in B.C. has been largely a result of changes to the front door of welfare. Last year, I co-authored the report Denied Assistance: Closing the Front Door on Welfare in B.C., which analyzes ministry statistics obtained through FOI requests that show the drop in the province's welfare caseload is not the result of more people leaving welfare, but rather fewer people entering the system and accessing assistance. Where is the ministry research that follows the tax returns of the thousands of people denied welfare?

Again, in 2003, the ministry promised future surveys to follow up with those who sought welfare but were diverted (didn't get it), to see if they had found employment. Again, this report breaks that promise of accountability. In fact, there are currently no evaluations or performance measures to ensure accountability focused on the drastic changes to the eligibility criteria and application process that have arguably played the most significant role in reducing the welfare caseload in B.C.

Change the story

The government's tired narrative about more people leaving welfare for work is not supported by its own evidence. Welfare reform in B.C. cannot be declared a success. The government clearly needs to address the much more complex goal of reducing poverty, not just reducing the caseload.

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35  Comments:

  • murdock

    12-11-2007

    Working Around Welfare

    from the Tyee's own pages.

    http://thetyee.ca/Life/2007/09/04/Wages5/

    humorous, yet truthful at the same time:

    Quote:
    Every so often, usually after a change in government, the order would come down from on high to the workers on the front line. It was a new era and the chieftains in the legislature had promised to clean up the system. They couldn't give two shits about it but it cost nothing to give the order and the employees down on the pavement had no choice but to carry it out as best they could. They went through the filing cabinets and called in anyone who wasn't crippled or certifiable and asked you why you couldn't find a job.

    The reality, said very well.

  • Grumpy

    12-11-2007

    Um....er....

    See the homeless all about? Is our social welfare programs working? No question BC is a failure, but until the Asper media empire start reporting the real news, instead of Liberal News Releases, nothing will change.

    Oh yes, the NDP were/are just as bad, because BC society is both mean spirited and ignorant.

    The real problem is us! Do we demand change? No. "I'm all right Jack" reigns supreme!

  • morechatter

    12-11-2007

    Who Benefits

    It had already been established some time ago by the Frazer Institute that the millions and millions of dollars spent by the minister was for waste as the number of people who found employment found it on their own without using the minister's bogus employment programs as the numbers had not changed and they where all very well aware of those facts. Despite questionable conduct by employment agencies minister gave one agency a whopping 20 million dollar bonus off the backs of the poor. I might add it was very difficult for the institute to get their hands on the necessary info. So why a program that throws away millions and millions of tax payers dollars despite them knowing it is money down the drain while placing many in need on the streets?

  • Skywalker

    12-11-2007

    You may be right Grumpy but....

    when you have a budget wallowing in surpluses, all due to increased fees, more money from the feds and higher world commodity prices, you would think that the liberals could afford to be more a bit generous than the NDP were in the 90's. If the means are there without risking any red ink then the failure to act is much more serious.

    I can't come up with anything Campbell has done to be rewarded with his good fortune. I can't even give him credit for the war in Iraq which has destabilized oil production so that we now have greater revenue in gas and oil. Perhaps he can take credit for Katrina...who knows. The point is that if you have the means and fail to act, your failure is greater.

    When the NDP took over it took them more than 7 years to get rid of the operating deficit the Socreds left. That is part of the financial record but we hesitate to mention it because it will not convince the folks who have been duped by CanWest. It does not negate the truth. But again the point is that generosity does not increase with one's wealth and the same can be said of governments.

  • Marysue

    12-11-2007

    neocons abhor welfare

    If you want to know what goes on in a neocon brain (one with no conscience), read Naomi Klein's book on Shock/Disaster Capitalism. Milton Friedman preached that unfettered capitalism created wealth. Ha! That wealth was already there--in our minerals, soil, water, trees, wildlife and plants. How could a man so obsessive and wrong-headed like Friedmanan be so well-followed? His crap is still being taught in our universities. His idiocy put into practice has caused misery all over the planet, and torture and murders were done to to get his kind of capitalists in power--Pinochet, Noriega, George Bush (father and son) and others around the world. The planet is getting toasted, while unfettered capitalists exploit the earth for no one's benefit, but their own. They don't care if they wreck it for tomorrow. Contrast that with governments that encourage sustainability and good social programs and tell me which world you'd rather live in! We are our brothers' keepers. We have to care for our commonwealth. Think about it--if Christ had been a capitalist, he would have charged for those loaves and fishes. This government and its ilk want to privatize our health and welfare. They want to make money off the sick and poor. That's what Friedmania is all about. Don't vote for the privateers next time--if you get a chance to vote. They are working hard to take away that democratic right--NAFTA, now TILMA.

  • Birch

    12-11-2007

    Program Purpose

    Whatever the touted purpose of welfare-to-work and other such programs, the real purpose of Liberal policies has always, and continues to be, primarily, to lower the tax load. Taking care of the sick, educating the ignorant, and housing the homeless are not goals or priorities for the Liberal government. Never have been.

    However, to be seen to have those goals by those hoping for some kind of humane government is not a bad thing. Thus the spin industry the government employs. It helps get undecided votes come election time.

    Hard-core Liberals, nee Socreds, have rarely cared two hoots for public services, and any lip service to efficiency has only been window dressing.

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