Basic income advocates say pilot program was not ’failing’

City of Kawartha Lakes officials involved with the basic income pilot program are challenging the provincial Conservatives’ claim that the program was “failing.”

In the legislature’s question period on Aug. 8, several media outlets reported Social Services Minister Lisa MacLeod said the program is “failing, and it’s plain and simple.”

MacLeod also claimed a “sizeable number, over 25 per cent, have either dropped out or were failing to meet their obligations such as filing their taxes.

“It calls into question whether the $150 million being spent is actually going to be with valid research,” she said.

The basic income pilot program, launched by the Liberals in April of last year, was a threeyear experiment to determine whether regular, no-stringsattached payments improve health, education and housing outcomes for people living in poverty. Under the program, which was set up in test communities of Lindsay, Thunder Bay and Hamilton-Brant, more than 4,000 people would have received up to $17,000 a year; couples would receive up to $24,000.

About 2,000 people in Lindsay enrolled (a total of 6,000 in the three communities). Those eligible were between ages 18 and 65.

The program was estimated to cost $50 million over the threeyear period. In an article on Aug. 2, the Star reported “MacLeod trotted out new arguments for ending the three-year pilot program, which cost $50 million annually, saying that to adopt it province-wide would cost $17 billion — about $7 billion more than is now spent on Ontario Works and the Ontario Disability Support Program for about 1 million Ontarians.”

The new Conservative government announced the program’s cancellation on July 31 but has yet to announce an effective date, other than to say payments would be made to September.

In an interview, Labour Minister and Haliburton-KawarthaLakes-Brock MPP Laurie Scott said the government wants a “compassionate” wind down to the program. She said the reason for the cancellation was MacLeod heard many concerns about the program during her initial briefings as the new minister.

Scott identified those concerns in a response on Aug. 14.

“As an MPP, I advocate on behalf of all the residents of my riding. The decision to wind down the basic income project was a difficult decision for the government. We want to help people be successful and want to help them break the cycle of poverty. Basic Income project participants will be transitioned back to Ontario Works (OW) and

ODSP. Where possible, they will receive assistance or training to find jobs. In addition to this assistance, the government announced an increase of 1.5 per cent in OW and ODSP rates. Minister MacLeod will soon announce details of the wrap-up of the Basic Income project.” (The increase to OW under the Liberals was three per cent; the PCs cut that increase to 1.5 per cent.)

This Week also contacted Minister MacLeod’s office asking the same question. Her office responded with a statement in an email on Aug. 17.

“Ontario is working on a plan to reform social assistance so that it helps more people break the cycle of poverty, re-enter the workforce and get back on track. As part of this reform, the government will be winding down Ontario’s Basic Income research project in order to focus resources on more proven, affordable and responsible approaches.

“We know that a notable number of people appear to be ineligible, either because their incomes were too high or they didn’t file their taxes.

“It also would have been costly to implement across the province – according to the federal parliamentary budget officer it would cost $17 billion in Ontario.

“We will always be there to help those who are struggling, but we will also help them get back on their feet, and begin to plan for better futures. We will wind down in a compassionate and responsible way and we’ll share more details on the process in the coming weeks. Advance notice of the final payment date will be provided.”

Mike Perry, past president of the Lindsay and District Chamber of Commerce , who also played a role in promoting the basic income pilot, said MacLeod has been invited “in good faith to come to Lindsay to meet the people who are being hurt by this planned cancellation and again call upon the new Ford government to complete the basic income pilot.”