In June, the Ministry of Social Development (MSD) announced a number of changes to the welfare regulations that will affect people on income and disability assistance. These changes are generally positive steps that include such things as increasing the asset limits and earnings exemptions for most people on assistance. Unless otherwise indicated, these changes take effect October 1, 2012

On July 3, the Minister of Social Development announced that funding for some of the medical equipment and supplies that was cut in April 2010 would be restored. These changes will be implemented in October 2012

Listed below are the new rules and benefits that impact people on disability assistance (PWD):

New medical items that will be covered by MSD: Ventilator supplies, Bariatric Scooters, Standing frames, Positioning Chairs, Non-conventional glucose meters, Inhaler accessory devices, Apnea monitors, Toe orthoses, Underliners for orthoses, Syringes for medication, A second floor-to-ceiling pole, Foot abduction orthosis, Transfer aids, Positioning items on a bed, Tracheostomy supplies, Nebulizers, Humidifiers for tracheostomy patients.

New exemptions and limits for PWD

• Increasing the asset limits for individuals to $5,000 (up from $3,000)
• Increasing the asset limits for couples and families to $10,000 (up from $5,000)
• Increasing the earnings exemption for singles on PWD to $800 per month (up from $500)
• Increasing the earnings exemption for couples who both have the PWD designation to $1,600 per month (up from $750)
• Increasing the non-discretionary trust exemption lifetime limit to $200,000 (up from $100,000)
• Increasing the trust disbursement exemption for “promoting independence” to $8,000 per year (up from $5,484) and allowing the person on PWD to decide how this money can be spent to promote their independence (rather than MSD)
• Exempting income tax refunds (previously tax refunds have been exempt to the earning exemption limit)
• Reducing the wait period for earnings exemptions to one month for new applicants, and eliminating the waiting period for PWDs returning to assistance (previously the wait period has been 3 months)

About the earnings exemption

It should be noted that recipients can take advantage of the new earnings exemption as early as August 2012. For example, if someone on PWD earns $700 in August 2012, they are required to report the income on their cheque stub that must be returned to MSD by September 5, 2012; then the new earnings exemption of $800 is applied by MSD to their October disability assistance cheque (sent out in the last week of September) which means that there would be no deductions as $700 is under the new exemption limit.

Furthermore, MSD has agreed to consult with the BCCPD and other members of the Disability Without Poverty Network on a new annual earning exemption for PWDs that will be introduced next year. An annual exemption benefits people who earn high amounts over a short period of time.

Other changes in welfare regulations

Additional changes announced by MSD include:

• Mandatory income tax filing starting in 2013 – there will be exemptions for those who are at risk, such as fleeing an abusive spouse
• For people on basic income assistance, a new $200 per month earnings exemption
• For families with children, an increase in the annual school start up supplement (effective July 1, 2012)
• Extended work search requirements for new applicants for basic income assistance who are able to look for work. This period will be 5 weeks instead of 3 weeks

For more information

The link to the provincial government’s news release and backgrounder on restoring medical equipment and supplies is: http://www2.news.gov.bc.ca/news_releases_2009-2013/2012SD0016-000962.pdf

The link to the news release and backgrounder on changes to earnings exemptions, asset limits, and other regulations is: http://www2.news.gov.bc.ca/news_releases_2009-2013/2012PREM0079-000835.htm

Or, you can contact Advocacy Access at 604-872-1278 or toll free 1-800-663-1278

The Minister of Social Development, Stephanie Cadieux, made a surprise announcement today that the provincial government is restoring funding for medical equipment and supplies for people on income and disability assistance. In April 2010, a wide range of medical equipment and supplies were cut from the MSD’s health benefit program. Starting October 2012, MSD will now fund items such as: ventilator supplies, positioning chairs, syringes for medication delivery and transfer aids. For a list of items, see the provincial government’s news release and backgrounder: http://www2.news.gov.bc.ca/news_releases_2009-2013/2012SD0016-000962.pdf

Changes to disability benefits in B.C. welcome but fail to address the real problem.

FOR IMMEDIATE RELEASE

Vancouver, B.C., June 11, 2012 – While the government’s changes to income assistance are welcome, they fail to address the real problem, especially for the many individuals with disabilities who are relying on the Province’s Disability Benefits. The Disability Without Poverty Network* is calling on the Province of B.C. to increase the Persons with Disabilities (PWD) Benefit to reflect the cost of living in this province.

Some of the changes announced today by the Ministry of Social Development include an increase from $500 per month to $800 per month in the earnings exemption (the amount of money a person can earn from employment before their PWD benefits are clawed back) and greater flexibility around earnings calculations (people receiving PWD benefits will be able to calculate earnings yearly instead of monthly). Monthly assistance rates, however, remain unchanged.

“An increase in the earnings exemption is a positive step forward,” says Jane Dyson, Executive Director of the BC Coalition of People with Disabilities. “It will give people with disabilities who are able to work more opportunities, but without an increase in rates, people with disabilities who cannot work will continue to slide deeper and deeper into poverty.”

“As other provinces across the country increase their disability benefit rates, B.C. is rapidly falling behind,” says Faith Bodnar, Executive Director of the BC Association for Community Living. “People with disabilities are forced to choose between rent and food; the time for an increase in benefits is long overdue.”

The Facts – PWD Rates in B.C.

• Over the last decade the cost of living has increased dramatically in B.C. but the disability benefit rates have not kept pace.
• Since 2001, the PWD rate has increased by only $120 per month, while the cost of basic essentials such as food, shelter and basic communication has continued to increase. This means that there is a growing gap between the basic cost of living and what a PWD recipient can afford.
• A person receiving PWD benefits receives $375 per month for housing and $531 per month for basic living expenses such as food, clothing, housing, and personal care. As shelter costs increase, people are forced to use an even greater portion of their support to pay for housing and cannot afford the basic necessities.
• In 2005 B.C. the assistance available to people with disabilities was second highest among all of the Provinces. Since 2005, B.C. has continued to fall behind as other provinces and territories make adjustments to their rates. In July, B.C. will have fallen to 4th place among all of the Province’s and 6th place overall in terms of the assistance provided with Alberta, the Yukon and Saskatchewan have recently increasing their rates.
• Research produced by the School of Public Policy at the University of Calgary observed that the level of assistance available to a single person with a disability in B.C. is approximately $300 per month below the income deemed acceptable for a low income senior based on the standards established under the Federal OAS/GIS programs.
• The Disability Without Poverty Network proposes an increase to the PWD rate to a minimum of $1200 per month to better reflect the actual cost of living in B.C. and to bring the rates in line with other vulnerable groups such as seniors. (Overdue: the Case for Increasing the Persons with Disability Benefit in B.C.)

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  Media Contacts:

• Faith Bodnar, Executive Director, BC Association for Community Living, 604-764-2591
• Jane Dyson, Executive Director, BC Coalition of People with Disabilities, 604-875-0188 
• Lorraine Copas, Executive Director, Social Planning and Research Council of BC (SPARC BC), 604-718-7736

*The Disability Without Poverty Network includes the BC Association for Community Living (BCACL), BC Coalition of People with Disabilities (BCCPD), Canadian Mental Health Association, BC Division (CMHA), Community Legal Assistance Society (CLAS) and Social Planning and Research Council of BC (SPARC BC)