Province moves forward with pilot project for guaranteed minimum income

By News Staff and The Canadian Press

Ontario is moving forward with a promise in this year’s budget that could mean big changes in the lives of the province’s most impoverished residents by giving them a guaranteed minimum income.

In February, the government said it would undertake a pilot project to test the idea “that a basic income could build on the success of minimum wage policies and increases in child benefits by providing more consistent and predictable support.”

And now, it has appointed former senator Hugh Segal to help design the project and come up with criteria for eligibility, delivery models and a plan for evaluating the results. He’ll present a discussion paper in the fall.

“I am delighted to be working with the government to help lay the groundwork for a basic income pilot in Ontario,” said Segal, who is working on the project pro bono.

“The potential for a basic income to transform income security in Ontario and across the country is tremendous, and I look forward to contributing to this bold initiative.”


Related stories:

Ontario will test idea of a guaranteed minimum income to ease poverty

Precarious work, technological advances drive basic income interest


Proponents say a guaranteed minimum income, which would see families living below the poverty line topped up to a set level, would be more efficient and less costly than administering the existing series of social programs that help low-income residents.

They also say poverty is one of the biggest determinants of health, and a guaranteed minimum income could mean reduced health-care costs.

About nine per cent of Canadians live in poverty, but the numbers are much higher for single mothers and indigenous communities.

Canada experimented with a guaranteed minimum income in Dauphin, Man., in the early 1970s. The so-called Mincome project found it did not discourage people from working, except for two key groups: new mothers, and teenaged boys who opted to stay in school until graduation.

The concept is on the radar of the federal Liberals, too. A Liberal-dominated parliamentary committee called on the Trudeau government to explore the concept of guaranteeing people a minimum income in a pre-budget report tabled in March.

Finland, Netherlands and Kenya are all also looking at developing pilot projects that test the idea of a guaranteed annual income.

In October, Ontario’s minimum wage will increase from $11.25 to $11.40, the highest of any province in Canada.

Top Stories

Top Stories

Most Watched Today