During a long meeting that featured public speakers and a staff presentation, attendees of the Emergency and Services committee left without a clearer understanding of the over $57 million that has been incorrectly allocated in Hamilton for Ontario Works. Stuart Beumer, Director of Ontario Works, discussed some challenges faced by the department in trying to meet provincial goals for helping social assistance recipients and keeping pace with other cities in Ontario. The outlook was grim, revealing that only 5 percent of OW recipients in Hamilton found jobs compared to 10 percent across the province, and around one third of recipients return to the program within a year. His presentation indicated that the average client stays on the program for three years.
Two speakers shared their negative experiences renting to OW recipients, stating that various forms of welfare fraud are prevalent, and it seems like the city’s OW department is struggling to address these issues. Hafeez Hussein provided statistics suggesting that other cities in Ontario are doing a much better job than Hamilton at recovering what is known as “overpayments” within the OW community. Both Hussein and Michelle Mc Donald exited the rental business after facing losses from tenants who submitted fake leases to qualify for shelter allowances and then skipped out on rent payments along with property damage.
There was quite a bit of confusion about who handles monitoring fraud and overpayments. Municipalities were previously responsible for initial contact regarding OW benefits before the province took charge of processing applications. However, this mostly online process approves nearly everyone who applies instantly triggering benefit payments right away. Beumer explained that his staff later have to review some applications to verify information or potentially cancel eligibility. He described what seemed like many safeguards designed to prevent issues but these don’t align with what those who spoke at the meeting experienced or with Rose Marie, Board Member and Chair at SOLO – Small Ownership Landlords Ontario, who wrote in her submission, “ Weak oversight creates broader impacts on housing stability, confidence in public administration, and trust that public funds are being used for their intended purpose. Small landlords housing Ontario Works recipients may face financial hardship when shelter allocations do not translate into rent payments. Taxpayers also expect assurance that appropriate safeguards exist to protect public resources.”
Councillor Tammy Hwang asked Director Beumer about the gap between delegates’ concerns regarding lax enforcement within the system versus his statements suggesting otherwise. At this moment, General Manager Grace Mater intervened to defend the department from what appeared as a social justice perspective.
Mater’s department faces not only challenges related to Ontario Works but will also be scrutinized further when Auditor General Charles Brown submits his report on this situation expected in September; they’re also managing ongoing issues related to cost overruns with Barton Tiffany while overseeing daily operations of homeless shelters.
Interestingly enough, similar to past discussions surrounding encampments over recent years, this report presented during committee discussions completely neglects significant underlying issues-namely addiction and mental illness-which undoubtedly contribute both to homelessness numbers as well as those receiving support through Ontario Works programs. Despite being major factors affecting these situations, addiction-related problems alongside mental health struggles receive scant attention either here or in earlier reports submitted concerning this department.
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