Item - 2019.EX8.9

Earlier in the meeting, Mayor Tory advised City Council that the Ministry of Children, Community and Social Services has informed the City that the Transition Child Benefit program will remain unchanged.

The Executive Committee recommends that:

1.  City Council authorize a draw of up to $8.4 million from the National Child Benefits Support Reserve Fund to establish a new temporary City benefit (the Temporary Family Housing Benefit) for Ontario Works families to be administered by Toronto Employment and Social Services for up to six (6) months, effective November 1, 2019, and focused housing support provided by Shelter, Support and Housing Administration.

2.  City Council authorize an in-year budget adjustment to the 2019 Approved Operating Budget for Toronto Employment and Social Services of $2.0 million gross and zero net, with funding to be drawn from the National Child Benefits Support Reserve Fund.

3.  City Council authorize an in-year budget adjustment to the 2019 Approved Operating Budget for Shelter, Support and Housing Administration of $133,300 gross and zero net, and a complement increase of eight (8) temporary positions, with funding to be drawn from the National Child Benefits Support Reserve fund.

4.  City Council direct the General Manager, Shelter, Support and Housing Administration, as part of ongoing discussions with both the Province of Ontario and the Government of Canada over the increased demand for City shelter services by refugee claimants, to seek additional and specific funding to alleviate the financial pressures caused by the elimination of the Transition Child Benefit.

5.  City Council request the Province of Ontario and the Government of Canada to immediately fund the Transition Child Benefit to prevent increased pressure on Toronto's shelter system. 

6.  City Council request the Province of Ontario to adopt the Temporary Family Housing Benefit as a permanent provincially-funded program to provide continued support to families experiencing financial pressures caused by the elimination of the Transition Child Benefit. 

As signaled in the 2019 Ontario Budget, effective November 1, 2019, all Transition Child Benefit payments for current social assistance recipients will end and no new applicants will be eligible to receive the benefit. Currently, eligible families in receipt of Ontario Works receive up to $230 per month/per child to assist with the costs of basic necessities (food, clothing, etc.) for children. The elimination of Transition Child Benefit will significantly impact families who are ineligible for federally administered Canada Child Benefits due to their status in Canada (i.e. refugee claimants); and any Ontario Child Benefit due to their previous year's income reported on their income tax return (e.g. applicants who lose their job and then apply for social assistance).

The loss of Transition Child Benefit for families will have a significant "ripple effect" on housing outcomes, with: (1) families in shelters becoming unable to leave the shelter system; (2) families who have left the shelter system becoming unable to maintain their housing and returning to shelters; and (3) families in private market rentals who cannot afford their rent facing homelessness. Together, these impacts will pose a significant challenge for Toronto's emergency shelter system, which is already at full capacity. If no action is taken to prevent homelessness and divert families from the shelter system, significant costs to the City are anticipated.

The proposed Temporary Family Housing Benefit and accompanying measures recommended in this report will help families who are housed and impacted by the elimination of Transition Child Benefit to maintain existing housing and/or relocate to more affordable housing. In doing so, the Temporary Family Housing Benefit will reduce health and safety risks to families in housing who would otherwise face additional housing pressures including risk of eviction; reduce disruption during the school year so that children do not face additional challenges; and alleviate additional pressures that would otherwise be placed on the City's emergency shelter system during the already high-demand winter months, potentially saving the City's shelter system millions of dollars depending on how many impacted families could otherwise lose their housing this winter.