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)