What is Social Assistance Payment?

Canada has one of the best welfare governments in the world. It takes care of its people during their life at times of financial crises with various programs like Canadian Pension Plan, Old Age Pension and Social Assistance Payment. When all other resources of an individual and his family are exhausted, the Social Assistance Payment steps in as the last resort to help out in times of need with either cash or in kind - with goods and services to help out in the basic necessities for that individual.

Wikipedia describes social programs in Canada include all government programs designed to give assistance to citizens outside of what the market provides. The Canadian social safety covers a broad spectrum of programs and has a wide range of government transfer payments to individuals, which reached $176.6 billion in 2009. Only social programs that direct funds to individuals are included in that cost. Programs such as Medicare and public education are additional costs.

How do Social Assistance Payments Work?

The Canada Revenue Agency has a good explanation for social assistance payments. Social assistance payments are payments made to beneficiaries or third parties based on a means, needs, or income test and include payments for food, clothing, and shelter requirements. These payments are usually made to individuals, impaired individuals in nursing homes or similar accommodations and elderly individuals (generally over 64 years of age) whether or not they live in nursing homes or similar accommodations. These amounts are not taxable, but you must include them in your net income to ensure any benefits that you may be entitled to are calculated properly. These benefits include the OAS Supplement, the goods and services tax/harmonized sales tax credit, the Canada Child Tax Benefit, as well as certain provincial or territorial tax credits and certain non-refundable tax credits.

What are Canada’s Policies regarding Social Assistance Payments?

The Canadian constitution governs and regulates the design and delivery of the social assistance payments though the actual distribution may be governed by the regulations of the various provinces. Only Ontario is the exception where the local municipality pays the people who can be, but are not employed, while the provincial government takes care of disability payments.

Individuals and their families who live on reserves also get the social assistance payment, even when they opt to live off the reserves. After going through a multitude of reforms and realignments, now the Canada social assistance is administered under two different names – the Canada Health Transfer and the Canada Social Transfer. They each cater to health and medical needs and all other necessities like higher education after high school, social security and development in early childhood. The only requirement is proof of need for such assistance. Even the required residency period minimum has been waived.

How does Social Assistance in the Provinces Work?

Once the need is proven, the provincial government has to pay out the social assistance irrespective of how long the recipient has lived there. The applicant has to prove that he is a resident while applying and while receiving the social assistance. While applying for the assistance, the applicant is required to submit proof of his necessities, his resident status and his medical records in case of disability assistance and also authorize the checking of his documents with the bank or his employers. The applicant is also obliged to report any change in his financial status like a new job or inheritances and anything like that.
As a condition for the provision of social assistance payment, all able bodied people are encouraged and required to try and seek gainful employment. The end purpose to this assistance is to help people get back on their feet after suffering financial losses or losing a job. To this end, the provincial governments even provide training and rehabilitation to help people to try and find employment and become productive members of society.
Some provinces in fact require that those able bodied people seeking assistance to sign an agreement to this effect. In case of single parent families, the government may insist on legal recourse to force the absent parent pay child support, and also to seek employment once the child has reached a certain age. In case of people with disabilities, medical records have to be submitted. As a rule, students pursuing education post-secondary level are not eligible and anyone has to first pass the needs test to qualify for this assistance.

Taking Care of its Citizens

The Canadian Government knows how to take care of its citizens. With its system of making social assistance payments and the efficiency of government agencies like the Canada Revenue Agency and local governments, citizens and their dependents can now be assured of the best welfare assistance.

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