Breaking the Cycle: Ontario's Poverty Reduction Strategy

PROGRESS

BUILDING ON THE FOUNDATION

In 2010, we continued to build on the foundational work that began in 2009. Children and families remain the key focus of our work in recognition that, through this approach, we can break the intergenerational cycle of poverty. In light of Ontario's economic climate, we have also taken quick, strategic action to meet the immediate needs of Ontarians hit hardest by the recession, and invested in building the economic and social infrastructure that is critical to achieving our poverty reduction goals.


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Stronger, healthier kids and families

All children should have what they need for the best possible start in life:

  • High-quality early learning and child care
  • Opportunities for educational achievement and success in later life
  • Families that have the resources and tools to support their children's well-being

High-quality early learning and child care

Full-Day Kindergarten Program

In September 2010, some 35,000 four- and five-year-olds in nearly 600 schools began participating in Ontario's first Full-Day Kindergarten Program, delivered by teams of teachers and early childhood educators. At many schools, a before- and after-school extended day option, led by an early childhood educator, is also available to families. This innovative program will expand to approximately 800 schools in 2011, offering programming for an estimated 15,000 additional children. By fall 2012, almost half of all four- and five- year-olds in Ontario will be enrolled in the program and by full implementation in 2015, it will benefit an estimated 247,000 children.


"In these tough times, it's encouraging to see the government is sticking to a strategy that will be as good for families and children as it is for Ontario's economic recovery. Early learning is one of the best stimulus investments a government can make to stem an economic downturn."

Annie Kidder, People for Education


Many studies have shown that full-day learning programs for four- and five-year-olds have a positive impact on academic, social and emotional development, better preparing them for Grade One. This gives children a better chance of finishing high school, going on to postsecondary education and getting a good job. These programs also give the children's parents more opportunities to work towards a better future for their families.

According to the experts, this is one of the most important investments we can make to break the cycle of poverty. In their report, Ontario in the Creative Age, Roger Martin and Richard Florida recommend the following, "Make early childhood development a high priority. This is the highest payoff investment we can make in our long-run prosperity." The government will invest $200 million this year and $300 million in 2011 to support the Full-Day Kindergarten Program. Investments will rise to approximately $1.5 billion by 2015, when the program is fully implemented in all of Ontario's elementary schools.

Quality child care

High-quality child care is critically important to the well-being of low-income families. In 2010, Ontario committed to permanently filling the funding gap left by the federal government with an investment of $63.5 million per year. This will maintain approximately 8,500 licensed child care spaces and 1,000 child care jobs, and will help ensure that low-income working parents continue to have access to affordable, high-quality child care, allowing them to play an active role in the labour force. This year's investment builds on progress previously made in the child care sector. Since 2003, Ontario has made child care more affordable by providing an additional 20,000 regular fee subsidies. In that time, licensed child care capacity has grown by over 67,000 spaces. Ontario is also supporting the child care sector through funding to stabilize local licensed child care as four- and five- yearolds enter the Full-Day Kindergarten Program.

In addition, the extended-day component of the Full-Day Kindergarten Program offers a cost-effective, seamless child care option for working parents.

Programming for the early years

We know that giving children rich developmental and educational experiences early in life is critical to building their future success. Ontario's early years initiatives provide children with high-quality early development programming, and engage parents as partners in their children's early development and ongoing education.

Making a Difference

Urban and Priority High Schools
The Alternative Education Program (AEP) at W.F. Herman Secondary School in Windsor is providing new opportunities to students who are struggling in the regular academic stream. As one student commented, "(The program) has helped me stay in school and not skip my classes…made me want to stay and do my work and get my credit. The motivation the teachers gave me helped a lot and motivated me to behave and not act up. Thanks to them, I'm going to get my two credits."


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Opportunities for educational achievement and success in later life

The best possible poverty reduction strategy is a good publicly funded education system. In addition to the specific initiatives described below, the Ontario government has, over the past seven years, been committed to making the province's publicly funded education system one of the best in the world. We are increasing student achievement and well-being, closing the achievement gap for struggling students and driving higher levels of confidence in publicly funded education. Working together, we are getting results: test scores are up, class sizes are down, the graduation rate continues to rise and we have labour stability in Ontario's schools.

Making a Difference

Parents Reaching Out (PRO) Grants
Through PRO grant support, Leslieville Junior Public School in Toronto offers a spring event for parents and children to make the future kindergarten experience in September easier, particularly for newcomers to Canada. As one parent wrote to the kindergarten teacher, "Thank you. I'm not at all worried about the move to kindergarten now. My son runs out of the door of our house and races to school whenever he hears it's time to come. It has been just as helpful for parents as the kids. As my son's future kindergarten teacher, you learned his name immediately and used it often. He responds well to that."

Opportunities for youth

The Youth Opportunities Strategy (YOS), through the Summer Jobs for Youth and Youth in Policing programs, are providing at-risk youth with valuable work experience. This experience helps youth gain confidence and learn important new skills that contribute to their future and the well-being of their communities. The number of jobs available through YOS more than doubled in 2009. With the addition of Sudbury and 12 new police services in 2010, this program is now operating in 32 communities across Ontario and provided more than 4,700 youth with full-time summer employment this year.

Making a Difference

Community Use of Schools – Priority Schools
The impact of the Priority Schools Initiative is reflected in this excerpt from Ontario district school board reports:

"The elimination of user fees has created opportunities for numerous groups that otherwise would not have been able to afford space for community activities…and increased parental involvement due to the increased access to schools for community use."

Grand Erie DSB Mid-year Report



"I started working in the warehouse, and they slowly integrated me into the floor. I dealt with customers and various people. I found that one of the best things was that it allowed me to speak to people, which I wasn't that great at before. At the end of the program, I actually got hired on by the company."

Michael, Summer Jobs for Youth participant


Youth Challenge Fund

We know that, given the right opportunities, Ontario's youth have endless potential. Since 2006, Ontario has allocated more than $30 million to the Youth Challenge Fund, which has supported 111 different youth-based projects designed to improve opportunities for Toronto's youth, specifically young people living in the city's 13 priority neighbourhoods.

Support for Crown Wards

Crown wards remain some of the most vulnerable children in Ontario. In order to improve outcomes for these kids, a number of initiatives have been developed to provide additional supports and services that will help them achieve success in later life. Some of these additonal supports include the following:


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Families that have the resources and tools to support their children's well-being

Financial stability

Providing improved financial stability to Ontario families and tax relief for all low-income Ontarians is an important component of the Poverty Reduction Strategy. As a result of investments and the government's comprehensive tax reform package, a single mother with one child, working full-time at minimum wage and accessing all available benefits, is now above the Low Income Measure (LIM50). See figure on page 12, adjusted to 2010, and learn more about the government's tax reform.

Making a Difference

Supporting Families: Ontario Child Benefit and Social Assistance
The Ministry of Finance has developed this scenario to illustrate the impact of the combined effect of current tax credits, federal and provincial transfers on income.

Change in Annualized Income since 2003 for a
Single Parent with Two Children (Aged 5 and 7)

Progress - Building on the Foundation - Change in Annualized Income since 2003 for a Single Parent with Two Children (Aged 5 and 7) graph

Notes:

  1. Tax credits and other transfers include the Canada Child Tax Benefit, National Child Benefit Supplement, Universal Child Care Benefit, Goods and Services Tax Credit, Ontario property and sales tax credits, and the Ontario Sales Tax Transition Benefit in 2010.
  2. Incomes are annualized as at the end of the calendar year shown.
  3. The family's annualized income would increase by $7,230 from $17,060 in 2003 to $24,290 in 2010.
  4. The family's annualized income would increase by $1,560 from $22,730 in 2009 to $24,290 in 2010. Source: Ontario Ministry of Finance.

Ontario Child Benefit

The Ontario Child Benefit (OCB) is the cornerstone of the Poverty Reduction Strategy. It provides support to low-income families so they can provide the essentials to help their children reach their full potential. This support can mean many things: food, clothing and shelter, or giving a child or youth the opportunity to take part in enriched summer or after-school programming. This support also reduces the barriers to moving from social assistance to employment by continuing to provide benefits to families, regardless of their source of income.

In the 2008 Poverty Reduction Strategy, we committed to further increasing the maximum Ontario Child Benefit annual payment to $1,310 per child within five years. In July 2009, planned increases to the OCB were accelerated by two years, providing low-income families with up to $1,100 annually for each child — almost $92 per month. This represents an increase of 83 per cent over the 2008 maximum payment and an increase of 210,000 children receiving the benefit. The full impact of the OCB increases are not fully reflected in the 2008 income indicators because of the lag in receiving Statistics Canada data. In 2010, the OCB is benefiting over one million children.

Access to health care

Important steps have also been taken to ensure that low-income families can support their children's health care needs.


"Research from around the world has shown that early intervention and access to preventive care are key to improving kids' oral health. Healthy Smiles Ontario is a good first step at addressing the oral health needs of this province's children. No child should have to suffer the often painful effects of dental decay, which is one of the leading causes of absences from school."

Dr. Lynn Tomkins, President,
Ontario Dental Association


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Opportunity for All

All Ontarians should have the opportunities and tools they need to succeed:

  • Tax relief for Ontarians
  • Access to jobs and a path out of unemployment
  • Fair minimum wages and working conditions
  • Safe and affordable housing

Tax relief for Ontarians

Ontario's comprehensive tax reform will lead to more jobs and higher incomes, and help sustain key public services, such as health care and education, by creating a stronger, more competitive economy. A December 2009 study2 conducted for the Canadian Centre for Policy Alternatives, updated in January 2010, concluded that the impact of the HST on low-income families is less, and that this is more than offset by the improved property and sales tax credit. As part of Open Ontario, the government is providing new tax relief for low- to middle-income Ontarians, starting in 2010. These include the following:

Making a Difference

Supporting Families: Helping Low-Income Working Families out of Poverty
Increasing tax credits, the OCB and the minimum wage supports low-income working families and creates incentive for people to join the labour force.

Single parent with one child, working full time at the minimum wage

Child is less than 6 years old

Progress - Building on the Foundation - Single parent with one child, working full time at the minimum wage child is less than 6 years old graph

Notes:

  1. The earnings are roughly equivalent to the minimum wage times 37.5 hours per week times 52 weeks per year.
  2. Property tax credit in 2010 based on monthly rent of $650.
  3. Federal transfers and the OCB/OCCS benefits are annualized amounts based on monthly benefit received in December.
  4. The property and sales tax credit (OPSTC), new sales tax credit and transition benefits are based on amounts paid in the calendar year. For simplicity the OPTSC is held constant at its 2010 value. Federal transfers include the CCTB, NCB, GST credit, UCCB and WITB.

"Expanding the range of refundable tax credits available to low-income Ontarians is an important piece of a 21st century income security system. When combined with education and outreach, refundable tax credits are an effective way of reducing poverty."

Michael Oliphant, Director of
Research and Communications,
Daily Bread Food Bank


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Access to jobs and a path out of unemployment

Support for Postsecondary Students

We know education increases the potential for prosperity and we know that seven out of every ten new jobs will require postsecondary education or training in the next decade. So, since 2003, we have increased high school graduation rates, increased assistance and created thousands of new spaces in colleges, universities and apprenticeships. Today, 200,000 more students are attending a postsecondary institution or pursuing an apprenticeship. Increasing the accessibility and affordability of a university or college education will ensure that Ontarians gain the skills and knowledge necessary to compete in today's job market.

Training

Making a Difference

Second Career
Melissa is a single mom who has struggled to break free of the cycle of poverty that dominated her life. When she was laid off from her job at an auto parts manufacturer, she explored retraining through Second Career, focusing on academic upgrading and skills training for a career in the health care field.

Melissa says, "Second Career offered me the chance to make the decision about my future and opened the door to an opportunity that would not have been there otherwise. I do not think that I could ever express my gratitude enough. Thank you to all those who have helped me and to Ontario for the Second Career program. I am proud of myself and my new skills to be able to help others. Second Career has made this possible."

We know that because of the recession and the changing job market, many Ontarians need to retrain and learn new skills in order to find work and get back on their feet.

Making a Difference

Women in Skilled Trades and Information Technology Training Programs (WIST/ITT)
Kathryn is 25 years old and has always loved being physically active and working with her hands. During employment at MacFarlane Construction and Maintenance, she found out about the WIST program. After being accepted and completing her studies, she was offered a job at Jamesway Construction and started the week after graduation. She has been employed there for almost a year and couldn't be happier. She has also recently been offered an apprenticeship in carpentry and, as a WIST graduate, can immediately advance into the second year of the program.

Commenting on the value of this program, television personality Mike Holmes said, "The Women in Skilled Trades and Information Technology Training for Women programs have been a resounding success for everyone involved. As an employer, I have benefited from the addition of a well-trained WIST graduate to my staff."

Employment

A variety of innovative programs and supports have been developed, based on what those who have experienced poverty told us were their biggest barriers to employment.

Making a Difference

Microskills- PARO Centre for Women's Enterprise
Thunder-Bay based PARO Centre for Women's Enterprise is a not-for-profit grassroots organization that is increasing the economic independence of women and their families by assisting in the start-up, development and growth of their micro-enterprises.

Self employment is a viable option for some women. Unfortunately, many women often do not have a sufficient credit rating to secure credit and are unable to borrow money from a bank. PARO's peer lending circles provide women with access to peer loans from $500-$5000 and provide women with the on-going supports they need to be successful.

Removing barriers

In January 2010, the Social Assistance Review Advisory Council (SARAC) was established to provide recommendations regarding the scope and terms of reference for a review of Ontario's social assistance system and advise the Minister of Community and Social Services regarding possible short-term changes to social assistance rules. The province has since moved forward with four rule changes aimed at reducing complexity, improving fairness and removing barriers. SARAC's final report recommending the scope and terms of reference for a social assistance review was received by the government in May 2010.

Moving forward, a two-person led commission has been created to conduct the Social Assistance Review in Ontario. This review will be guided by a vision of a 21st century income security system that enables all Ontarians to live with dignity, participate in their communities, and contribute to a prospering economy. The review will recommend ways to improve work-related outcomes, while providing appropriate income supports and access to opportunities that will enable participation in and attachment to the labour market, and guarantee security for those who cannot work. It will examine and determine the effectiveness of social assistance and how it affects, and is affected by, other parts of the overall income security system in Canada. The review will also speak to the role of the federal government in regard to income security for Ontarians.


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Fair minimum wages and working conditions

Fair minimum wages

In 2010, the minimum wage was increased to $10.25 per hour, the seventh consecutive year of increases since 2003. This represents an almost 50 per cent increase since 2003. Ontario now has the highest minimum wage among the provinces.

Improved working conditions

Making a Difference

Bridge Training Programs
An internationally trained early childhood educator (ECE) was able to find employment only in a fast food chain. Within less than a year of having started her Ontario Bridge Training Program, she is now a fully certified ECE educator and is working in her field again in Ontario.


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Safe and affordable housing

Affordable housing plays an essential role in addressing poverty. The government has invested some $2.5 billion to help create and repair more than 200,000 housing units and provide more than 35,000 new rent supplements to the most vulnerable people in Ontario. Ontario also invests approximately $450 million annually in housing and homeless services for Ontarians in need.

Long-Term Affordable Housing Strategy

To support the Poverty Reduction Strategy, the government is moving forward with a Long-Term Affordable Housing Strategy that brings us closer to improving access to adequate, suitable and affordable housing for the people of Ontario. We are helping families thrive by creating employment opportunities, promoting safe neighbourhoods and ensuring people have the resources, services and programs they need. This initiative responds to provincewide public consultations that indicated the housing system is too complicated and creates barriers for people living in, and for those delivering, affordable housing. The strategy establishes a solid foundation to transform the way affordable housing and social services are delivered in Ontario. A proposed Housing Services Act would support a more flexible and people centred approach so services could adapt to the specific needs of local communities.

Today, there are more than 20 provincial housing and homelessness programs, each operating independently of each other and with their own rules. People in need of services can find it discouraging and difficult to gain access to uncoordinated programs. A central element of the strategy is to consolidate the current patchwork of provincial housing programs and allow municipalities to develop locally-based solutions to meet the needs of families and individuals.

During consultations, some of our partners proposed creating an Ontario Housing Benefit to help low-income Ontarians pay rent. Current financial challenges do not allow us to proceed to implement such a program at this time. However, this does not prevent the Ministry of Municipal Affairs and Housing from working with the Ministry of Community and Social Services and our housing partners, to explore this and other options for low-income Ontarians.

Social housing renovation and retrofitting

The provincial government is investing $622 million, which is being matched by the federal government through an Affordable Housing Agreement, reached in 2009, to provide a total of $1.2 billion in new funding for affordable housing. To improve the health and safety of residents in social housing communities, and enhance accessibility for seniors and persons with disabilities, $700 million has been invested through the Social Housing Renovation and Retrofit Program to fund the repair and energy efficient retrofitting of more than 173,000 social housing units in Ontario. As well, the new funding includes $540 million to build more than 4,500 new affordable housing units, with some $307 million for the creation of affordable rental housing for low-income seniors, and more than $57 million for the creation of affordable rental units for persons with disabilities.

Through Infrastructure Ontario, the government has also provided over $200 million in loans to not-for-profit social and affordable housing providers to reduce utility costs, improve energy efficiency, revitalize properties and improve the quality of life for tenants in communities across Ontario. This investment has saved municipalities and housing providers over $13 million through the construction period and the term of the loan due to Infrastructure Ontario's competitive rates.

Support for tenants

More than 23,800 Ontario families have avoided eviction thanks to the Provincial Rent Bank Program, which helps people stay in their homes by covering rental costs for up to two months. As part of the Poverty Reduction Strategy, the government stabilized funding for the Rent Bank at $5 million per year. Since inception of the program in 2004, the government has invested more than $33.8 million.

Making a Difference

Ontario Child Benefit

"It helps parents provide new experiences for their children and it helps with the day-to-day living."

Family support worker at Jane/Finch Community and Family Centre


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Stronger Economic and Social Foundations

Strong economic and social foundations are critical to a prosperous and healthy Ontario:

  • A growing economy that provides jobs and builds futures for all Ontarians
  • Strong communities and community-based services
  • A not-for-profit sector that is valued and supported

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A growing economy that provides jobs and builds futures for all Ontarians

Open Ontario Plan

The Ontario government has launched an ambitious five year plan called the Open Ontario Plan to strengthen our economy and create more jobs for Ontario families. Open Ontario directly supports the goals of the Poverty Reduction Strategy through new investments in job creation, health care and education. It represents a critically important foundation for achieving our poverty reduction targets over the next three years, which depend on a prosperous and growing economy. Open Ontario will stimulate the economy and generate new jobs by improving Ontario's infrastructure, creating an economic climate that will attract new investment and help business thrive, supporting innovation to seize new global opportunities, and ensuring that Ontarians have the skills and education they need for the job market of the future.


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Strong communities and community-based services

Supporting community-based organizations

Through the Ontario Trillium Foundation, community-based organizations have received grants of $63 million over four years to support a wide variety of programs across Ontario that address poverty and its effects. These programs respond to local needs and have a diverse focus, ranging from early childhood development, school readiness and literacy to supports for youth at risk, employment and job training, social and recreational facilities and services, community infrastructure, and programs within Aboriginal communities.

Making a Difference

Vibrant Communities – Local Action to Reduce Poverty
Vibrant Communities is a pan-Canadian initiative through which 13 communities have experimented with new and innovative approaches to poverty reduction. These approaches emphasize collaboration across sectors, comprehensive thinking and action, building on community assets, and a long-term process of learning and change.

With funding support from the Ontario Trillium Foundation, Tamarack is expanding their learning centre activities across Ontario's largest communities. Focusing on poverty reduction, this project is helping communities work together across multiple sectors to address difficult social problems. Through coaching supports, access to on-line audio seminars, communities of practice, resources, and access to conferences, Tamarack is helping communities across Ontario build their capacity to work collaboratively and developing outcome measures for vibrant communities. Measuring Community Change is a series of papers published by Tamarack detailing this work.

Improved access to services

The Ministry of Health and Long-Term Care has partnered with United Way Toronto's Building Strong Neighbourhoods Strategy, to provide better access for grassroots community groups and residents where services were inadequate or non-existent. These Community Hubs are places where independent community partners come together to provide a full range of services that best meet the needs of their high-risk communities. Services range from health care to settlement services for new immigrants. In 2010 three community hubs were launched in priority neighbourhoods in the Greater Toronto Area, including Eglinton East/Kennedy Park, Westin-Mount Denis, and Crescent Town.

In order to make better use of community resources across the province, the Ministry of Education released a Facility Partnerships Guideline to all school boards in 2010 to encourage working with community partners to optimize the use of public assets owned by school boards.

Integrating community facilities

The newly expanded Priority Schools Initiative provides funding to selected school boards to offer not-for-profit groups free access to school space outside regular school hours. This means eligible not-for-profit groups can offer more affordable or free programs in communities where the need for access is greatest. This initiative is reaching 175 schools in 32 school boards in the 2010–11 school year. Part of the Community Use of Schools Program enables not-for-profit organizations to offer more affordable programming in the community, and helps students and families benefit from expanded access to programs and services. As of March 2010, there were over 550,000 visits to programs held in priority schools in the 2009–10 school year, and over 1,100 permits had been granted to not-for-profit groups.


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A not-for-profit sector that is valued and supported

Legislative reform

Important steps have been taken toward Reform of the Corporations Act that would result in new and modern legislation governing not-for-profit organizations incorporated in Ontario. The Not-For-Profit Corporations Act, 2010, which received Royal Assent, will benefit a wide variety of organizations, including those providing services and resources for Ontario's most vulnerable. The new act is intended to facilitate the operations of these not-for-profit organizations and encourage economic growth.

Partnership with the not-for-profit sector

Through the recently launched Partnership Project, the government has initiated provincewide discussions on how to strengthen its relationship with Ontario's not-for-profit sector. The project is a collaboration between the Ministry of Citizenship and Immigration and the Ontario Trillium Foundation, and is intended to better organize and facilitate the government and the not-for-profit sector's ongoing efforts to support individuals and communities. Not-for-profits in Ontario are a vital pillar of the province's economy, and provide resources, services and information to those affected by poverty. The Partnership Project is part of the Government of Ontario's ongoing effort to reduce administrative barriers and improve services for not-for-profits so that they can spend more of their time and resources assisting vulnerable Ontarians.

Supporting social innovation

The government is exploring a variety of approaches to support social innovation and social enterprises in the province. In order to be successful in poverty reduction, we will have to pursue innovative and creative new ways of doing things.


2 Not a Tax Grab After All, A Second Look At Ontario's HST, Canadian Centre for Policy Alternatives, available at www.policyalternatives.ca.  Return to text


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Breaking the Cycle: The First Two Years

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