Earnings Exemptions

Year
2006
Number
B172
Sponsor(s)
Maple Ridge

WHEREAS British Columbia is the only province in Canada that doesnt allow people without disabilities who are receiving income assistance to keep any income they earn; AND WHEREAS earnings exemptions allow business and non profit employers to hire low income people for part time jobs: THEREFORE BE IT RESOLVED that the provincial government be urged to allow all people on income assistance to keep as much earned income as people with disabilities who are receiving income assistance.

Provincial Response

Ministry of Employment and Income Assistance The Ministry of Employment and Income Assistance Ministry has conducted numerous evaluations of the impact of changes to earnings exemptions, plus many observational studies. The Ministry has found that while earnings exemptions do encourage employable clients to work, they also discourage clients from working enough to become independent. Research has shown that earnings exemptions encourage clients to combine part-time work with income assistance on an ongoing basis rather than gaining full-time employment. Most of these clients would have worked even in the absence of the earnings exemption, and would likely have been independent of assistance. The Ministry, through research and evaluation has concluded that, instead of helping employable clients become independent, earnings exemptions increase dependency, making it harder for people to leave income assistance in the future. The Ministry believes that the best way to help employable clients is to get them quickly into paid employment, through ministry programs. A single person working full-time will have at least double the net income of a person on income assistance. Exemptions are provided to clients with the Persons with Disabilities PWD designation and those who receive assistance in the Persons with Persistent Multiple Barriers to Employment PPMB category because we know that they face severe barriers to employment and, as a group, are less likely to become independent. For these clients, combining part-time employment with income assistance is a desired goal, and earnings exemptions help these clients with the higher costs of employment.

Convention Decision
Referred to UBCM Executive
Executive Decision
Endorsed