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Updated November 2010 |
This section is an excerpt from the Ontario Works Act, 1997 prescribed by the Province of Ontario.
This policy is one aspect of a comprehensive service planning strategy designed to assist clients in achieving and/or maintaining a stable living environment that will enable him or her to participate in Ontario Works (OW) and achieve employment and independence.
It is recognized that clients may require financial help, on a one-time or longer term basis from family and/or friends to assist with meeting basic needs. As part of the service planning process, it is necessary for the client and the caseworker to work together to develop a mutually agreed upon action plan to deal specifically with an ongoing need for gifts, loans and/pr donations to meet their basic needs. The action plan must be flexible and considerate of the client's needs and circumstances.
Each case must be assessed on an individual basis with every effort and attention given to problem resolution. Options should be discussed and presented to the client so he or she can make an informed decision.
The goal of service planning is to link the client with supports required to address his or her needs while reducing the risks associated with the client's inability to meet basic needs such as food and shelter. When exercising discretion, it should always be in the interest of the client's achievement of stability in order to eventually pursue financial independence through employment.
Underlying this policy is the fundamental commitment to provide supports necessary to enable an individual to reintegrate or relocate within the community and to achieve independence from social assistance through employment.
While in receipt of OW, an individual may receive financial help from relatives or friends. Determining the type, frequency, value and source of the payment will assist the caseworker in assessing if the income is chargeable or non-chargeable. Regardless of whether the income is chargeable or non-chargeable, a detailed action plan must be developed to identify community supports that the client can access to assist him or her to manage financially without the additional income.
A payment can be in the form of money or support-in-kind, which may include but is not limited to: food, diapers, clothing, furnishings appliances and assistance with rental and/or bill payments.
Small cash value gifts or payments that are provided infrequently from family or friends will be exempt as income. However, payments that are received regularly over a 12 month period are no longer considered casual and may be treated as income.
A gift or payment of large value may be considered exempt as income only once in a 12 month period.
Prior to determining if the payment is chargeable, the circumstances of the client must be taken into consideration.
Value
The amount of the payment must be taken into consideration. Payments intended to cover the cost of the client's identified need, regardless of the amount, may be considered as non-chargeable income. Any amount received in excess of the client's identified needs will be chargeable income.
Any payments from an individual who has a legal obligation to support the participant or their dependents will continue to be deducted at 100% unless the payment is for a specific occasion such as a holiday or birthday.
All non-cash gifts of small value are exempt as income. This may include things such as bags of groceries, gift cards, etc.
A gift received on a one-time basis, or for a short period of time and is intended to meet the client's identified needs is a casual gift. Casual gifts are non-chargeable income.
A client receives a one time payment of $450 to assist with shelter costs. As this money is considered a casual gift used to meet specific identified needs of the client, it is treated as non-chargeable income and will not affect the client's OW entitlement.
There are two types of loans that a client may receive - formal or informal.
Formal loans are loans from a recognized lending institution with a signed agreement and an established repayment schedule.
A portion of, or the full amount of the formal loan is considered non-chargeable income in the following situations:
Business Operation
The total amount of loan must be reinvested for the development and maintenance of the business. Any portion that is used for other purposes is chargeable income.
Medically Necessary Health-Related Issues
Loans received for medically necessary health related items are exempt where no other government provision is available to provide for the cost. This can include orthodontic care or necessary prescription medication not covered under Ontario Drug Benefit (ODB). This may be a one-time casual payment towards the cost of the required item. In other instances, the loan may be provided on an ongoing basis to offset the cost of the item pending receipt of assistance from the Trillium Drug Plan (TDP) or the Ministry of Health and Long Term Care's Special Drugs Program.
Direct School Related Costs
Loans or gifts from family or friends may be exempted as chargeable income or assets where they are provided for direct school related costs such as tuition, books and compulsory fees where there is no government assistance available. In addition, the caseworker must review the individual's participation requirements to assess if the education and training will support the client's shortest route to employment. The caseworker must refer to Eligibility at Post Secondary Institutions before making the determination of eligibility.
Loans for Household Items
Loans used for the purchase of household items necessary for the well-being of one or more members of the benefit unit are exempt as income. Household items necessary for the well-being of the benefit unit are such items as groceries, clothing, furniture and appliances.
Where practical, participants should obtain prior approval for these items.
Rent Bank
This project is one component of an overall city eviction prevention strategy. Funding has been provided to community agencies to assist with direct intervention to prevent eviction.
OW clients have access to the Community Start Up and Maintenance Benefit (CSUMB) and Shelter Fund. However, if they do receive assistance from the Rent Bank, this assistance is non-chargeable.
Credit Card Advances
Advances from credit cards will be considered a formal loan and not considered as chargeable income, providing they are used to assist the client in meeting his or her basic needs such as: purchasing food and paying shelter costs
Advances used by the client for items other than basic needs will be considered chargeable income.
Informal loans are loans from sources such as family or friends. Informal loans may be received on a one time or an ongoing basis.
These loans are generally considered chargeable income when received and deducted at 100%. Exceptions to this includes a loan that is intended to assist a client with:A donation, regardless of its value or frequency, received from a registered religious, charitable or benevolent organization is non-chargeable income.
Inheritances and windfalls of $1,000 or less shall be deemed to be a casual payment of small value and non-chargeable income. If the inheritance or windfall exceeds $1,000, the total amount is considered chargeable income.
