The Don’t-Make-Sense Welfare Rules

Certain welfare rules on assets and earnings create disincentives to work. Welfare applicants are expected to deplete most of their assets before they are considered eligible for financial assistance. They often must sell work tools that could help them become independent; loans for business start-up may exceed the permitted “liquid asset exemption guidelines.” Earnings exemptions are often so low that they barely cover the additional costs associated with work, such as child care, clothing or transportation. Those who try to set up businesses may find that the earnings exemption rules prevent essential capitalization and the long-term probability of success. Provinces need to listen to welfare recipients and groups engaged in community economic development to make appropriate changes to their welfare rules.

ISBN – 1-894159-24-1