Canada’s Social Safety Canada’s Social Safety Net Net A Backgrounder A Backgrounder Civics Studies 11/Social Studies 11 MUNDY 2008
Feb 02, 2016
Canada’s Social Safety Canada’s Social Safety Net Net A BackgrounderA BackgrounderCivics Studies 11/Social Studies 11MUNDY 2008
Social Safety NetSocial Safety NetRefers to the programs and
policies in place by a government meant to alleviate the effects of poverty
Social Safety Net programs allow ALL people to receive income, health care and other
Examples of programs include: pension plans, medicare, employment insurance, etc.
Also known as “demogrants”
Pension PlansPension PlansPensions are given to people who
are of retirement age (65 and older) as a source of income
Given that many cannot find work due to health issues, income cannot be generated any other way
Only some had family that could take care of them – others had immigrated to Canada, while some died in WWI
Pension PlansPension PlansFirst introduced in 1927 during
King’s minority government as coalition with Progressive Party
Basic pension = $240/aHad to prove hardship through
testOnly to British subjects who had
lived in Canada 20 years or more70 years and older
Pension PlansPension Plans1951 – Old Age Security ActGranted $40/mth - taxable70 and olderDirectly administered by Federal
GovernmentAlso created Old Age Assistance
Act for those 65-69 (also $40/mth)Jointly funded by feds and prov.
gov’ts
Pension PlansPension PlansIn 1964, became the Canada
Pension Plan (in Quebec, the Quebec Pension Plan)
While rate before this had been raised to $75/mth, still not enough for cost of living
Thus, new program required workers to contribute monthly to CPP
Would receive about 25% of average salary upon retirement
Pension PlansPension PlansIn 1975, spouces of contributors
to pension plan were allowed to receive benefits of partner’s plan
Currently payments have been reduced
Employment InsuranceEmployment InsuranceMonthly payments for those who
have recently lost their job and are looking for work
Meant to give minimal income during time searching for new employment so that person will not lose house, car, etc.
Once person is in new job or not found work beyond a certain time, payments end
Employment InsuranceEmployment Insurance1940 – created Unemployment
InsuranceBefore this, unemployed applied for
payments from municipal gov’t.From 1940, UI administered
federallyPeople may claim by showing proof
of employment between 420 – 700 hours (max $413/week)
Now called Employment Insurance
Family AllowanceFamily AllowanceA monthly allowance given to
families in order to assist them in raising children
Amount determined by number of children in household
Family AllowanceFamily AllowanceFirst introduced in 1945Amounts based on age:Under 5yrs old = $5/mth, 6-9yrs
= $6/mth, etc.Payments were non-taxable and
each family received benefit regardless of income
Family AllowanceFamily AllowanceIn 1978, this system was revised to
become Refundable Child Tax CreditFamilies with incomes under
$18000/a received $200/aFamilies over $26000/a received
nothingIn 1992, program became $85/mth
max for children up to 18 based on low-income
Child expenses were tax-deductible, though
Minimum WageMinimum WageFirst introduced in 1920’s both
federally and in various provinces in response to workers’ strikes (including Winnipeg General Strike)
Federal minimum wage is set for federal employees, while provinces set provincial minimum wage for all other employees working within province (usually lower than federal level)