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Ontario government press release

Breaking the Cycle - Ontario Sets Target To Reduce Child Poverty 25 Per Cent Over 5 Years

TORONTO, Dec. 4

Ontario's poverty reduction strategy will reduce the number of children living in poverty by 25 per cent over 5 years - lifting 90,000 kids out of poverty - by boosting benefits for low-income families and enhancing publicly-funded education.

The strategy will represent an additional annual investment of over $1.4 billion at full implementation - including $300 million in new targeted initiatives:

- $1.3 billion annually for the Ontario Child Benefit - including a $230 million annual increase - means that 1.3 million children in low-income families get up to $1,310 a year.
- $70 million annually in a range of new educational and community projects, such as parenting supports for low-income families and outreach programs for vulnerable youth.
- $54 million in down-payments made in the 2008 Budget for dental care for low-income Ontarians and an expanded student nutrition program.

The Budget also included $100 million in one-time funding to assist with repairs to about 4,000 affordable housing units.

The plan also includes the implementation of full-day learning for 4 and 5 year olds, with part of the initial focus on low-income neighbourhoods.

The government intends to introduce legislation in spring 2009 that, if passed, would commit Ontario to annual reporting on key indicators of opportunity such as income levels, school success, health care and housing.

QUOTES

"Tackling poverty is the right thing to do for our families, and for our economy. This plan is all about investing in education and supports so that more kids can reach their full potential," said Deb Matthews, Minister of Children and Youth Services and Chair of the Cabinet Committee on Poverty Reduction.

"In these tough economic times, the increase to the Ontario Child Benefit is very significant and long-lasting for the 1.3 million children in low-income families," said George Smitherman, Deputy Premier, Minister of Energy and Infrastructure and Vice-Chair of the Cabinet Committee on Poverty Reduction. "In communities across Ontario, our strategy will ensure that more children can get out of poverty forever as well as ensure there are fewer children falling into poverty."

QUICK FACTS

- Meeting the "25 in 5" target will require provincial investments, federal investments and a growing economy.

- The full implementation of this strategy means a single parent with two children under age 13 working full time at minimum wage will have a 54 per cent higher total income than it was in 2003.

LEARN MORE

Visit http://Ontario.ca/breakingthecycle

BACKGROUNDER
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BREAKING THE CYCLE: ONTARIO'S POVERTY REDUCTION STRATEGY

Ontario's poverty reduction strategy will represent a total annual investment of over $1.4 billion at full implementation. The following are key components of the strategy.

TARGETS AND MEASURES

The strategy sets a target of reducing the number of children living in poverty by 25 per cent over 5 years - that would translate into 90,000 kids being lifted out of poverty. Reaching this target will require provincial investments, federal investments and a growing economy.

The government intends to introduce legislation in spring 2009 that, if passed, would commit Ontario to annual reporting on key indicators of opportunity such as income levels, school success, health care and housing.

THE ONTARIO CHILD BENEFIT

The Ontario Child Benefit (OCB) gives low-income families the financial support that they need to provide essentials like food and shelter for their children. The OCB helps build a stronger economy by making it easier for parents to transition from social assistance to work.

The strategy includes a $230 million annual increase to the Ontario Child Benefit (OCB) at full implementation. This will provide 1.3 million children in low-income families with up to $1,310 a year. When fully implemented, the OCB will represent a total investment of about $1.3 billion per year.

EDUCATION

This plan builds on previous investments made over the past five years in key areas such as education. New investments include:

- $7 million annually to develop a Community Hub Program that will focus on using schools as hubs that respond to community needs related to poverty reduction and student achievement.
- $10 million annually in an After School Program that will support children in high needs neighbourhoods with new programming focused on physical activity and wellness.
- $6 million annually to triple the number of Parenting and Family Literacy Centres to a total of 300 across the province.

STRONGER KIDS, STRONGER COMMUNITIES

This strategy includes a series of new and enhanced initiatives designed to help low-income children and families:

- $12 million more annually for the Youth Opportunities Strategy to give kids in priority neighbourhoods more access to skills training and mentorship programs.
- $19 million more annually in a Crown Wards Success Strategy to support kids as they leave care and make the transition to independence.
- $5 million annually in a new Community Opportunities Fund to give local leaders support to co-ordinate neighbourhood revitalization projects.
- Stabilizing funding to the Provincial Rent Bank Program at $5 million per year to provide temporary financial assistance to people facing possible eviction.
- Introducing legislation that, if passed, would regulate temporary help agencies - and investing an additional $10 million to hire new employment standards officers to make sure that workplaces are safe and employees get the money they earn.

2008 BUDGET DOWN-PAYMENTS

The strategy builds on the down-payments made in the 2008 Budget:
- $45 million annually to provide dental care for low-income Ontarians.
- $9 million annually for a student nutrition program to provide healthy meals and snacks for children in school so they are ready to learn.
- $100 million in one-time funding to assist with repairs to about 4,000 affordable housing units.

EARLY LEARNING

The strategy includes the implementation of full-day learning for 4 and 5 year olds, with part of the initial focus on low-income neighbourhoods.

In addition to improving readiness for success in Grade 1 and beyond, this initiative will free up important early learning resources to help more parents access additional quality child care and learning opportunities for their children.

Dr. Charles Pascal was appointed in November, 2007, to provide advice about how to begin program implementation. His recommendations are expected in the spring of 2009.

SMARTER GOVERNMENT

The strategy will look at ways to make sure that the government is getting the most for every dollar it spends to support low-income families.

The government will undertake a review of social assistance with the goal of removing barriers and increasing opportunity - with a particular focus on people trying to move into employment from social assistance. The review will seek to better align social assistance and other key programs and initiatives and better communicate program rules to achieve the aims of increasing opportunity for the individual.

People living in poverty often require multiple forms of government assistance. The government will undertake to look at programs with a person-centred approach in order to provide an improved understanding of how to better align programs so they address the issues of those they are designed to help. This work will begin in 2009.

The strategy will also establish a Social Policy Institute that will focus on evidence-based social policy development and the evaluation of social policy interventions.

WHAT PEOPLE ARE SAYING ABOUT ONTARIO'S POVERTY REDUCTION STRATEGY

"This plan is the crucial foundation we need to prevent and reduce poverty in Ontario. For the first time we have a government who will measure poverty, set a clear target for reducing poverty, and who will report on their progress. And the commitment to legislate the plan is extremely significant. We will work with the government to make sure this plan is implemented as quickly as possible."
Jacquie Maund, Campaign 2000 and 25 in 5

"Clearly the Premier is a man of his word. I am proud to live in an Ontario that has taken national leadership on the reduction of poverty. This is a historic moment in the fight against poverty in Canada. For the first time, a government has set a public target for poverty reduction and with clear indicators and investments needed to reach this target."
Gail Nyberg, Daily Bread Food Bank

"In these challenging economic times, the McGuinty Government's plan to reduce child poverty is prudent and thoughtful. The focus on education and skills and the increase to the Ontario Child Benefit make this a strong economic plan as well as a strong poverty reduction plan."
David Pecaut, Chair, Toronto City Summit Alliance

"The fact that the Premier has followed through on a poverty reduction strategy commitment even in the toughest of economic times is very commendable. It signals a recognition of the dovetailing of the kind of action that is required in both stimulating the economy and tackling poverty -and the relationship between the two. In times like these, simultaneous actions for the short- and long-term are critical."
Hon. Roy J. Romanow

"I am pleased to see the provincial government is taking action to address this incredibly important and pressing issue. Breaking the Cycle is a comprehensive and progressive strategy that will accomplish our shared goals of reducing poverty. I look forward to continuing to work with the Premier to bring opportunity to all Torontonians and to make real and lasting improvements in their lives."
Mayor David Miller

"This is truly a historic day for this province. For the first time in Canadian history, a government is setting a target to reduce poverty based on a defined measure. We have seen the impact in other jurisdictions of this type of leadership. Ontarians will look back on this day with pride."
Michael Mendelson, Caledon Institute of Social Policy

"With this announcement Ontario is turning the corner on poverty. In these challenging times, the Premier has affirmed that we are all in this together. That we will overcome the challenges ahead and do all that we can to ensure that no child will be left behind. We applaud the plan and now look forward to working with the government to begin to implement it as quickly as possible. June Callwood must be smiling today."
Rabbi Arthur Bielfeld, June Callwood Campaign against Child Poverty

"There is a lot more work to do before we can say we have succeeded, but today we have built the foundation for real progress on poverty. We should celebrate this achievement. We will be focusing now on the next steps - the work that needs to be done to implement the plan announced today. We'll also be looking to the federal government to stop shadowboxing with the province and step in as a full partner in this initiative. The key will be to hit the ground running on the process, to have deadlines for this work on the near-horizon, and to start implementation within the next year."
Pat Capponi, Voices from the Street and 25 in 5

"Today's announcement will change our conversation with government. We have come a long way from the poor-bashing of a decade ago. We look forward to working with the provincial government to immediately launch Ontario's review of social assistance - because the changes to social assistance that were implemented in the 1990s are out of date for today's economic and political reality and it is about time that we took leadership on this issue. Too many people have been left behind. We need all Ontarians at their best as we ride out this economic storm."
Cindy Wilkie, Income Security Advocacy Centre

"It's a whole new day in Ontario. The Premier deserves credit for standing firm and seeing the connection between the investments we need to make in poverty reduction and the kinds of outcomes that we need to get our economy back on track. Every budget commitment in the coming years is like a seed planted firmly in the ground - and if we want those seeds to sprout by 2013, we need to start planting now."
Ernie Lightman, Economist and Professor of Social Policy, University of Toronto

"The people of Ontario said they wanted better from our government - they said they wanted leadership for a more hopeful place to live. Today's poverty reduction strategy is a long-awaited but crucial foundation on which we can build real progress to reduce poverty in Ontario. The next step is to build on the commitments laid out in the foundation and to secure investments in upcoming budgets. This is a good beginning; now let's get to work building on these commitments."
Peter Clutterbuck, Social Planning Network of Ontario and 25 in 5

"Ontario will never fully resolve the problem of poverty until the labour market provides fair pay and creates safe working conditions. Turning the corner on working poverty means recognizing that hard work must lead to a decent living. Today's announcement recognizes that anybody who is out there earning a living should have their basic rights protected - it throws some muscle behind enforcing these rights right in the workplaces where Ontarians earn their paycheque. This is good news for hard working Ontarians."
Deena Ladd, Workers Action Centre

"Throughout Ontario's history there have been bold moves made by governments to tackle social inequality. And this is one of them. The first targets and measures are being set today in Ontario, and this will lead other provinces to follow suit. And while this is a long-term plan, there are significant changes in the short-term to remove barriers people face within our social assistance system. This is a big day for Ontario."
John Stapleton, Metcalf Foundation and St. Christopher House

"I have advocated three principles for the fight against poverty. First, we must develop appropriate measures and targets of poverty because you can't improve what you can't measure. Second, for adults the focus should be on providing incentives for attachment to the workforce. Third, ultimately the poverty cycle will only be broken through better education for all children. The plan announced by Ontario today adheres to all three principles and hence I find it encouraging. Reliance upon the Low Income Measure is sub-optimal but I note and support the intent to develop more appropriate measures. The plan recognizes that there are disincentives in the current system to work and appropriately places much emphasis on education."
Don Drummond, Senior Vice President and Chief Economist, TD Financial Group

"The McGuinty government's poverty reduction strategy is a dynamic response to those of us concerned about poverty in Ontario. By increasing the Ontario Child Benefit, setting practical poverty reduction targets, strengthening the machinery of government to help low income people, and calling to the table the full complement of governments, business, organizations and citizens, the Government has made "25 in 5" a reachable goal."
Alan Broadbent, Maytree Foundation and Avana Capital

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http://ontario.ca/breakingthecycle

For further information: Laura Dougan, Minister's Office, (416) 212-3394; Anne Machowski-Smith, Ministry of Children and Youth Services, (416) 325-5156