Brian* is on ODSP. He called me today.
Brian is legally blind. He was part of the Basic Income Pilot Project. But now he is back on ODSP after the Ford Government cancelled it…even though they campaigned on promises not to cancel it.
It has been difficult for Brian to find a job. He said most people who are blind face so many barriers to landing a job…no matter how many jobs are available. But he has one.
Brian started his part-time job last year. It pays him $850 every two weeks, after taxes and deductions.
Because he earns more than $200 per month, the amount of support he receives from ODSP is reduced. Most months – 10 of the year to be exact – Brian receives two paycheques for a total of $1,700 per month. In these months, his ODSP is reduced by $750. Instead of $1,269, his ODSP support is clawed back to $519.
When you get paid on a bi-weekly basis, there are always two months of the year where you get three paycheques instead of two. Currently, the government calculates ODSP income support based on the amount of employment income a person earns in each month. The more you earn at your job for the month, the less you get from ODSP for that month. In months where you get three paycheques instead of two, your income is 50% higher than the other months, erroding your ODSP cheque even further.
In the months where Brian receives three paycheques, he earns $2,550 and his ODSP is clawed back by $1,175, chopping it down to $94 for the month.
Over a one-year period, Brian earns $22,100 from his job and ODSP provides him with $5,378. Combined, Brian’s annual income is $27,478. But that is going to change.
Last November, Lisa MacLeod, the Minister of Children, Community and Social Services, announced changes to ODSP’s income rules. In an effort to fix a broken system and restore dignity for Ontarians with disabilities, Minister MacLeod said her government will be leaving more money in people’s pockets. Unfortunately, this will not be the case for everyone on ODSP.
Related: ODSP and Employment Income: The Proposed Rules Won’t Help Everyone
The changes have not been implemented as of yet. But how much support will Brian receive once the new rules do set in? Because of the amount he earns by working, his ODSP for the year will be reduced from $5,378 to $3,153. This $2,225 reduction will be a 41% cut in his disability income benefits.
Brian will watch his combined annual income from working and ODSP drop from $27,478 to $25,253 in one fell swoop. A loss of 8.1%.
Imagine your annual income dropping by 8.1%. Just like that. Now, imagine you are legally blind. You might wonder how secure your part-time job is. And if you lose that job, would you be able to find another one? And how long would that take, given how long it took to land the one you have now?
|
Current Rules |
Future Rules |
$ Change |
% Change |
|
|
Brian’s annual income from working: |
$22,100 |
$22,100 |
– |
|
|
Brian’s annual ODSP income support: |
$5,378 |
$3,153 |
– $2,225 |
– 41% |
|
Brian’s combined annual income: |
$27,478 |
$25,253 |
– $2,225 |
– 8.1% |
Imagine your annual income dropping by 8.1%. Just like that. Now, imagine you are legally blind or some other type of disability. You might wonder how secure your part-time job is. And if you lose that job, would you be able to find another one? And how long would that take, given how long it took to land the one you have now?
This cut to Brian’s ODSP will effectively shut the door on putting aside enough for even a modest emergency fund. It is tough enough to set aside some savings right now. The Ford government’s changes will make it next to impossible for Brian to build up even a small reserve to deal with the unexpected expenses that inevitably come.
Brian wasn’t aware of the forthcoming changes. After explaining what will happen to his ODSP support, his first question spoke volumes. He asked me If he should ask his employer to pay him less so he wouldn’t lose so much of his ODSP. Can you imagine a scenario where you would contemplate asking your boss to pay you less?
The calculations tend to be confusing. I told Brian getting paid less wouldn’t improve his overall bottom line, but I understood why he was asking. A sudden drop in his income, even a couple hundred dollars per month, meant he would have to make some difficult adjustments and forgo some things he was working hard to achieve.
In no way did the news somehow restore dignity Brian might have been lacking. More like the wind was knocked out of his sails. He was realizing the broken system he relied on to keep his head above water will soon be broken some more by a government who claims to be fixing it.
Minister MacLeod, your new rules will leave less in Brian’s pocket…not more. He will be worse off. Your new rules will reduce his ODSP support by more than 41% and his overall income by 8.1%. Think about what an 8.1% pay cut would be like and keep in mind he makes far less than you do.
Brian is one of thousands with a disability on ODSP and working.
*Not his real name.
Ron you may want to inquire how non disabled spouses will now largely be responsible for the support and care of the other spouse and live together well below poverty when other households are allowed two incomes
The changes to ODSP’s treatment of income will put more pressure on working spouses of those with disabilities on ODSP because their income will result in a larger reduction of ODSP benefits, if the working spouse earns more than $13,200 net after taxes and deductions per year. To get off of ODSP, families must be able to build up a financial buffer, an emergency fund. They need at least a small one. If a person or a family does not have any savings whatsoever and live from paycheque to paycheque, they will fall behind. Either you are ahead or you are behind. It is impossible to sit at the breakeven point on a week to week or month to month basis. If a family can’t manage to maintain a surplus, it will fall into debt, fall behind on bills and be at even greater risk of not being able to cover the basic essentials of life or the inevitable unexpected expense that must be covered.
My wife is on ODSP so my income affects her’s as well. Something else the article does not mention is if you are being paid weekly it’s four times a year your income could drastically suffer.
Yes, under ODSP’s current treatment of income, there would be four months or possibly five, depending on which day of the week is payday, where you would receive five weeks of pay which would increase the clawback amount. This won’t be the case with the new treatment of income rules because the clawback will be based on annual income instead of monthly. This does not necessarily mean a person who is paid on a weekly basis will have more money in their pocket, though. Their net amount of income for the year (employment income plus ODSP) will fundamentally depend on the amount they earn through employment.
The Ford government is forcing more people into the under ground economy thus denying them any security & benefits of having deductions taken from wages. This is just another example of the short sighted & heartless way this (if you can call them this) government operates. The people of this province will not soon forget the Ford government.
These factors also do not include people living in “geared-to-income housing”. Living on ODSP and working. Each month I have to report my income (which changes due to hours worked) So my rent fluctuates, ODSP will only pay a maximum of $479 for a single person and this amount includes utilities. If my rent is higher, there is no extra money. and I’m forced to pay my bills out of pocket.
My ODSP was $890 as my rent was $93 (I was not receiving the full amount for housing costs.)
I started working at 40 hours a week at $14= gross income for month of $2330
Housing now charges $ 773 for rent. (29% of gross income)
Net pay is $2277
ODSP Gives $1251) $672+479+100 ( $100 for having a job) But then takes $1038 from your cheque Leaving you with $238 Plus your working income. ODSP is no longer paying the rent or utilities.
For several months I worked where my income was more then my ODSP so I got nothing. My rent was jacked up and retroed and now I’m behind in rent and bills. Neither Government works together and deductions are calculated differently. So I am having to chose what gets paid and what has to wait.
By the way, Phone, internet and vehicles are counted as luxuries. But these are needed. my phone and internet are essential for my work as is my vehicle. I also need to pay insurance. Non of these expenses can be claimed as expenses with ODSP or Housing. My intire pay goes to rent, hydro, gas(home), car payment, insurance, gas (vehicle), cell phone and internet. My expenses are aprox $120 less then my income. So how do I afford food and any emergencies????
Do you have anything about a person who is self-employed and receiving ODSP. I’m single , no children been getting ODSP since 2009 I was paranoid to work because when I was approved and received ODSP it was minutes of saving myself from being evicted from my current Toronto apartment. I’ve started back my business as self-employed person in 2018, so far 2018 and 2019 there is no profit so my disability income stays “stable” but I am constantly worried what happens if my income is clawback and I am constantly worried what will happen if my pre-authorized payment from ODSP is missed.
There is an ODSP policy directive dedicated to the treatment of self-employment income. It is has a fair bit of information in it. Some of it is straight-forward, some of it not so much. It does explain how business expenses and business assets are treated. For one, you are allowed to have up to $20,000 in business assets, possibly more with approval from the Director of ODSP. Here is the link: https://www.mcss.gov.on.ca/documents/en/mcss/social/directives/odsp/income_Support/5_4.pdf
Holding back all the things I would like to say to the government at this another fine moment in our history of struggle.
I’m on disability my wife is not , this new plan will WILL cause my family to either be out on the streets and force me to do whatever I have to along with EVERY OTHER DISABLED person to do the same, so what are my choices,well I can what ….. I can turn to a life of crime and try and be able to just pay rent or I can watch as my family falls to the political agenda and complete ruin ,, but wait I can’t even turn to a life of crime because I’m NOT ABLE to work ..why would anyone do this to its own people.its disgusting , another question is this why is this government hitting the disabled people here not the ow or welfare system , which a lot of people just sit and ride on when they can work they are going after the ones who cannot work. What the hell am I supposed to do now .. this new agenda will prob cause my wife to stop working and collect welfare now which thousands will prob be forced to do also which in turn will cost more money for now supporting the people that can work but are being forced into unemployment. Just a quick note , after deduction from my wife’s work now I’m able to pay rent and I have a whole 45$ to last me the month this will bury us ,for my wife to ,Stay working and me on disability has now been made impossible.. thanks very much for pretty much putting nails in all our coffins.
First, the government decided they will not change the rules about the treatment of income. It seems that too many people are not aware of the reversal. I just wrote an article about this: Proposed ODSP Changes Reversed by Ford Government.
The government had planned to change how Ontario Works (OW) would treat income as well. They decided to axe these plans as well. I appreciate your upset. I am less than impressed by the government’s handling of social assistance. I do not agree that a lot of people on OW just site and ride the system, though. I do not believe people choose to be on social assistance, which puts you far below the poverty line.
Once again a Conservative government is going after the vunerable in our society.It is a disgrace that in the province of Ontario this happens.
The government backtracked on implementing these changes. The reversal has not created much comfort for those on the program, though. Proposed ODSP Changes Reversed by Ford Government