A growing number of Canadians are turning to financial assistance in the face of the cost-of-living crunch. However, navigating eligibility and the bureaucratic processes can make it difficult to access much needed supports. Here’s a quick guide on how to navigate the complexities of financial assistance.
There are two central routes for those seeking financial supports in Ontario: employment insurance and Ontario Works. Employment Insurance (EI) is run by the federal government while Ontario Works falls under provincial purview. Other forms of financial assistance exist for people with disabilities, like the Ontario Disability Support Program, but individuals must meet the eligibility requirements and may be placed on a waitlist.
EI and Ontario works see increasing demand
As of Sept. 17, 867,940 Canadians were receiving Employment Insurance with 3,460 new recipients of the benefit since April 1. Similarly, 411,151 individuals were receiving benefits from Ontario Works as of June, a nine per cent increase from last year, according to the provincial government. Both programs have faced increased demand as housing and food costs skyrocket.
On the ground, front-line organizations, like Parkdale Community Legal Services, have more clients struggling to stay afloat. More people are turning towards legal clinics for help with issues accessing and retaining financial assistance, according to Lindsay Blair Holder, a community lawyer with Parkdale.
Intermediary organizations, like the charity Prosper Canada, who work with front-line organizations and governments, are also seeing an increase in people asking for help.
Both front-line organizations and food banks are seeing new clients come in, “which is always an indicator that more people are struggling and that the struggles are deepening,” Galen MacLusky, Prosper Canada’s Director of Frontline Programs, told the Toronto Star in an interview.
Food banks have seen a marked increase in demand, with one Toronto food bank recording a 40-year record-breaking high in demand for its services. Food costs have also grown amidst accusations against grocery giants of “greedflation” — alleging the increase in prices have been driven by corporate greed.
How to apply for EI
Employment insurance is paid into by most workers and can usually be claimed by workers who are traditionally employed. EI covers workers who have lost their jobs without cause and have been unemployed without pay for seven consecutive days within a year.
Applicants are also required to have worked a minimum number of hours over the past year — determined by the unemployment rate of the region — before applying for EI.
For Toronto, that means individuals need to have worked 665 hours over the past year in an insured job to qualify for EI.
How long you can receive EI for is also determined by your region. In Toronto, you can receive benefits for a minimum of 15 weeks to a maximum of 38.
There are also unique EI benefits for farmers, fishers, teachers, Canadian Force Members and self-employed people.
EI also includes maternity and parental benefits to new parents, which includes up to $650 for 15 weeks for maternity benefits and parental benefits that can be shared between parents.
The amount someone can receive from EI is dependent on their previous income and application, but generally, according to Employment and Social Development Canada, EI can cover 55 per cent of an applicant’s insurable weekly earnings. Insurable weekly earnings cover everything from wages to tips, bonuses and commissions. Applicants can expect their first payment about 28 days after they apply, according to the government’s website.
Individuals cannot apply for EI if they have voluntarily left their job or been dismissed for misconduct, which specifically includes cases where workers choose not to comply with mandatory COVID-19 vaccination policies.
EI also requires applicants to submit reports to Service Canada every two weeks to show ongoing eligibility.
Applicants will need their social insurance number, banking information, and employment information to apply online on the Employment Insurance website.
How to apply for Ontario Works
Ontario Works covers individuals in need of financial assistance who are still working and need help with food, shelter and other household costs.
Eligibility for Ontario Works is determined by an applicant’s income, assets and other holdings, meaning individuals will need to provide a broad range of financial documents to case workers. EI is also counted as income by Ontario Works, meaning any amount collected from EI would have to be included when applying for Ontario Works benefits.
The amount in benefits an individual can get from Ontario Works differs depending on family size, housing costs and other factors in eligibility, but a single person without any dependants could receive up to $733 a month, which includes both a basic needs and shelter allowance.
On top of Ontario Works, applicants also qualify for extra benefits ranging from family support and employment training to support for drug costs and health support. Ontario Works has an online application form that requires identification and bank information, but can also be reached through a toll-free phone line.
Individuals in dire need of short-term help can also apply for Emergency Assistance, which provides about $733 a month for up to 48 days to help pay for food and shelter.
Which should you apply for?
While EI is specifically for those who have lost their job, because it is a percentage of income, eligible applicants may receive more than the amount provided by Ontario Works. However, Ontario Works has fewer regulations around working insured hours.
Some common problems clients often come to Holder with usually centre on retaining benefits or having their application rejected. However, Holder encourages anyone in need of assistance to apply, even if they have been told they don’t qualify.
“I would say still apply and go through and complete the application process, because once you’ve completed an application and gone through completing the process, even if it’s a denial at the outset, once you have a decision, then at least there’s a process to appeal that,” Holder explained.
Holder also encouraged applicants or those unsure of whether they qualify for assistance to seek out neighbourhood legal clinics or community associations that can help address language or bureaucratic barriers.
Support and benefit processes are often complex and require applicants to navigate an unintuitive system, MacLusky added. He also advised that those seeking supports should also consider filing taxes through volunteer income tax programs to access benefits like the GST and HST credit or the Canada Child Benefit, which are all important to long-term stabilization of income.
Correction – October 3, 2023: This article was edited from a previous version that mistakenly said individuals have to go on Ontario Works prior to receiving ODSP. In fact, if eligible, individuals can receive assistance from Ontario Works while their ODSP eligibility claim is being assessed, but don’t need to be on Ontario Works first.
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