Welfare to Work

Phase 2

Provincial and Territorial Updates

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NUNAVUT

Phase 2 Territorial Update

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Summary

On April 1, 1999 the Nunavut Territory was created. Upon division from the Northwest Territories a 13th welfare system was established.

Nunavut as a part of the Income Support Program adopted the NWT Productive Choices Program at division. The focus of the program is to assist and encourage individuals to make decisions and productive choices from among community opportunities in wellness, learning, training and work experience to gain and maintain a greater degree of financial independence.

The program provides temporary financial support on a conditional basis. It allows for a targeting of program and service support to specific groups such as youth and it focuses on maintaining individual responsibility. The program began in the NWT on January 1, 1997.

The program has five objectives:

Productive activities can be in the areas of employment, training, upgrading, career supports, harvesting activities or community volunteer work. Wellness activities can be in the areas of alcohol or drug treatment, mental health, family support, medical treatment, aged and handicapped support.

All income support recipients considered employable must make and participate in Productive Choices. If participants refuse a productive choice or do not follow through on an agreed choice, their benefits are suspended for two months. Any applicant or recipient who is aggrieved by a decision of an officer respecting the granting, refusal, suspension, reduction or amount of social assistance has the right to appeal.

People older than 60 and people with disabilities are not required to participate. Additionally, a productive choice exemption may be introduced for adults with dependants who are experiencing hardship. A person does not have to be in receipt of income support to gain access to a productive choice activity.

Another feature of this program is that under the current legislation communities have the authority to design and deliver local social programs, including income support programs, subject to full compliance with legislation and policy requirements.

The Nunavut Government has committed to continue the work that has been done with communities to create more local options and additional opportunities for governance.

Communities taking on the responsibility for the program can direct support toward programs that strengthen traditional activities, motivate youth to make productive choices, create jobs, further education and training through expanded child care and incentives, provide healing for communities and families and ensure secure income for those most in need. As a general principle, services are offered in accordance with need, but there is an emphasis on youth.

If communities decide to take on responsibility for the program an evaluation is an essential part of Productive Choices. Each community must establish a long-term strategic plan and a results evaluation framework and ensure that an annual audit will be conducted. Every three or four years, longitudinal surveys will be conducted to determine who is in the program and to measure the program’s impact on participants.

At the present time communities in Nunavut have chosen not to take on responsibility for the Income Support Program.

Income support payout in 1999/00 was $21.584 million, approximately 1.7 million dollars less than the previous year. In 1999/00, there were approximately 27,309 people receiving social assistance; the caseload has remained relatively stable.

Information on the program is provided to participants and the public through the local Income Support Worker, who explains the program’s objectives, rules and expectations. Participants are required to report to their worker on their participation in the activity or program. It is intended that case managers be available to assist individuals with supportive problem-solving, assessment, issuing of benefits and facilitating use of community resources. However, participant’s access to staff differs from community to community.

In Nunavut, career counseling for Income Support clients is a key process to allow clients to identify strengths and skills that can be developed to achieve a self-reliant lifestyle.

The signing of the Labor Market Agreement in April of 2000 has allowed the Department of Education to identify and allocate funds to increase career development capacity throughout Nunavut. Training courses began in December 2000 to start building career counseling capacity skills for both Career Development Officers and Income Support Workers.

Welfare-to-Work Programs

Program

Productive Choices

Description

Productive Choices is part of the Nunavut Income Support Program and is mandatory for all income support recipients considered employable. The focus is to encourage recipients to make productive choices from among community opportunities in wellness, learning, training and work experience to gain a greater degree of financial independence.

The program provides temporary financial support on a conditional basis. It allows for a targeting of program and service support to specific groups such as youth and it focuses on maintaining individual responsibility.

The program includes

Goals

Productive Choices has the following goals:

Objectives

The program has five objectives:

Program Rationale

Relatively few work opportunities exist in Nunavut, and it is difficult to provide income support benefits without creating disincentives to work. The combination of relatively high benefit levels, limited employment opportunities and a narrow benefit-wage differential leaves few compensatory options. Simply, there are few incentives for recipients to want to permanently exit the program.

Productive Choices is based on the assumption that residents wish to be employed and that most will do what they can to become independent from income support programs if given meaningful opportunities to do so. The focus of the program is to provide residents with supports to attain their presumed financial independence objective. While employment is a mainline productive choice of most communities, some communities stress other choices. The relative importance of employment as the main productive choice is directly related to the number of employment opportunities available in a community.

The Government of Nunavut is working towards establishing an Inuit Employment Plan and has committed that there will be 85% Inuit Employment by the year 2020.

History

In 1991, the NWT Special Committee on Health and Social Services was created to report on the adequacy and management of income support benefits. People told the Committee that the income support system was tough to get into and even tougher to escape. They said that every step should be taken to encourage pride, a desire to work and a sense of initiative in people who receive income support.

In July 1994, the NWT government published the report Creating Choices: Solving the Income Support Puzzle. The report talked about the need to shift the focus of income support toward more community responsibility and choice and to redefine the government’s role in income support. The following year, the Social Assistance Program was transferred from the Department of Health & Social Services to the Department of Education, Culture and Employment to link the financial support of people in need to education and training programs. To reflect the change in approach, the name of the program was changed from Social Assistance to Income Support. It includes many territorial programs, such as childcare subsidies, harvester’s assistance, youth initiatives and social housing.

The demise of the CAP Act and the introduction of the Canada Health and Social Transfer created a new opportunity for income support reform in the NWT, because most of the former programming restrictions were eliminated.

In January 1995, a Minister’s forum held discussions with community representatives across the NWT. Consistently, people said that change was needed and emphasized the following directions:

Pilot projects in five test sites were implemented to test community delivery models and to explore the availability of resources at the community level. These pilots were intended to improve service by increasing training and education opportunities, increasing community initiatives for employable social assistance recipients and allowing social service workers more time to focus on family support while encouraging community empowerment and decision-making.

An evaluation report published in February 1996 indicated that the pilots had been unsuccessful. Systems and programs in communities were like stovepipes: there was no integration, a necessity if communities are to have a range of productive choices to offer. The pilots did show that the key to community integration is the front-line worker, who is normally the person assessing the needs of the individuals seeking income support. The front-line worker must understand the purpose of the program and must have the basic training to determine the needs of the whole individual, including eligibility for financial support, need for social or health-related treatment or intervention (wellness activities), ability to work and need for training or education opportunities (productive activities). When the front-line worker takes on this expanded role, the program changes from one that passively administers social assistance benefits to one that actively addresses the causes of poverty.

On April 1, 1999 the Nunavut Government was created. The Social Assistance Act, Regulations and policies of the NWT were carried over and officially adopted by the Nunavut Government.

In the fall of 1999, the Minister of Education asked that a Terms of Reference be developed for the expressed purpose of conducting a formal review of the Income Support Program for the territory of Nunavut. The terms of reference that were developed and, ultimately, approved by Cabinet identified several reasons for undertaking such a review. Among the most critical reasons were the growing numbers of Nunavumiut receiving income support and the need for coordinating and integrating the income support program with other government initiatives. Another driving force behind the review was the importance of developing and implementing a program that meets the needs of the people of Nunavut and encourages self-reliance.

During the review it was confirmed that most Nunavumiut do not understand the Income Support Program. People do not know what the intent of the program is, what to expect when making an application or what is expected of them if they receive support.

Although the productive choice model and productive activity model was generally viewed as an acceptable approach, the foundation of the program needs to change to better meet cultural realities of Nunavut consistent with “Qaujimajatuqangit”, the Inuit tradition of sharing. Inuit Qaujimajatuqangit is defined by customs, language, beliefs and values based on past traditions, present context and future adaptations. The Government of Nunavut recognizes that IQ is an essential source of information for the formation of healthy and sustainable communities.

Program Activities

Main Activity

The overall purpose of the program is to enable people to make productive choices according to their health, abilities and efforts from among community healing, education, training and work (wage and land-based) opportunities.

Specific Activities

The program covers the following types of activities:

Applicants for income support meet with an Income Support Worker and can be referred to a Career Development Officer who follows a three-step assessment process:

During the first two months, income support recipients receive food, shelter and utilities. If still in receipt of assistance after two months, the recipient makes a productive choice, after which a wider array of benefits may be issued. The wider array of benefits includes such items as clothing, education, furniture, emergency, day-care and income exemptions. If participants refuse a productive choice or do not follow through on an agreed choice, their benefits are suspended for two months.

Productive activities can be in the areas of employment, training, upgrading, career supports, harvesting or community work. Wellness activities can be in the areas of alcohol or drug treatment, mental health, family support, medical treatment, aged and handicapped support.

All income support recipients with the exception of those older than 60 and people with disabilities must make productive choices. A person does not have to be in receipt of income support to gain access to a productive choice activity.

Training and Educational Activities

The very high number of secondary school dropouts is a major challenge for Nunavut. Much of the skill-focused training available through the Employment Insurance Program is targeted toward those who are EI eligible. Therefore, many of the training and education programs in Nunavut must aim to change attitudes and promote skill development among Income Support recipients. Short-term skills programs are needed to prepare Income Support clients for work in occupations that do not require an academic post-secondary education. A network of training and incentives is also needed to encourage individuals to acquire needed skills such as, literacy, numeracy, life skills, budgeting skills, job search skills and traditional land skills. This skill development is seen as an important way to access and succeed in technical and academic training. Training on the job programs is essential for the development of skills in Nunavut.

Employment-Based Activities

Private sector, public sector and non-profit employers participate in the Department of Education’s employment-based activities. Nunavut along with the NWT has already had considerable experience with employment agreements for Northerners; employers have not been consistently satisfied with the quality of work performance.

The focus of Productive Choices is on training rather than employment, because most recipients, in light of their education and skill levels, are eligible for entry-level jobs at best. Thus, an emphasis on employment would only promote the ghettoization of income support recipients. Other priorities of the program are community wellness and traditional language and culture.

Program Design and Implementation

Responsibility for Design

The Department of Education, along with local communities, is responsible for designing the program. Communities have the authority should they wish, to design and deliver local social programs, including income support programs, subject to full compliance with legislation and policy requirements. Multi-year funding agreements may be signed between the two levels of government.

Responsibility for Implementation

Local communities are encouraged to take responsibility for the implementation and administration of the program.

Further to the terms of the funding agreements, community programming meets the following criteria:

Local Flexibility in Program Design and Implementation

Because of their flexibility in designing and delivering locally appropriate programs, communities can direct support toward programs that strengthen traditional activities, motivate youth to make productive choices, create jobs, further education and training through expanded child care and incentives, provide healing for communities and families and ensure secure income for those most in need.

Duration of the Program

The program began January 1, 1997, and is ongoing. Participants must leave the program if they have not made a productive choice.

Funding and Program Costs

Type and Amount of Financial Assistance for Participants

Financial assistance is provided to participants on the basis of their eligibility for general social assistance. The following assistance is provided:

Deadlines and Subsidies

Program participants do not lose access to supplements or subsidies if program deadlines are not met.

There is no claw-back from money received from land claim settlements.

When a person applying for assistance is entitled to maintenance under a maintenance order as defined in the Maintenance Orders Enforcement Act, the person must assign the maintenance order to the Director. Very few Nunavumiut take advantage of this program.

Program Funding

Income assistance costs in Nunavut communities have gone from $4.1 million in 1992 to $23.3 million in 1997.

Income support payout in 1999/00 was $21.584 million, about 1.7 million dollars less than the previous year.

The ability to block fund communities delivering Productive Choices began in July 1997. Block funding means that communities keep surpluses; deficits must be made up from other community programs and funding sources within one year. The criteria used to allocate block funds include

There are no block-funded communities in Nunavut.

Subsidized Child Care

Productive Choice participants are eligible for child-care expenses, and communities may choose to expand child-care programs. Day-care user subsidies have been integrated under Income Support.

Program Participants

Eligibility Criteria

All categories of income support recipients are eligible for Productive Choices.

People considered unemployable receive financial support that meets basic living needs and addresses quality-of-life expenditure issues.

Although potentially employable, seniors and people with disabilities are considered less capable of competing for employment opportunities. Many seniors are unaware of the many support programs offered by the Nunavut government or the Federal government and often turn to the Income Support Program for assistance.

Supports for people with disabilities are individualized through the Department of Health and Social Services on the basis of need.

Although, as a general principle, services are offered in accordance with need, there is an emphasis on youth in Nunavut.

Over the course of the next several years Nunavut must prepare youth for meaningful participation in the labor market. This will be facilitated through developing cooperative education programs in Nunavut secondary schools. Youth internship programs will also be introduced throughout the territory to provide work experience and skills acquisition in partnership with public, private and not for profit employers.

Youth educational support reflects the assumption that the best long-term employment support consists of education and training for people 24 years of age or under. Financial benefits are available for young people interested in developing skills either in school or on the job.

Caseloads

In 1999-00, there were 27,309 people receiving social assistance in Nunavut. The number of cases has remained relatively stable since division.

All income support recipients with the exception of those older than 60 and people with disabilities are required to make productive choices.

Although a high percentage of people receiving social assistance in Nunavut are assessed as employable, many of them have social, medical or learning needs that prevent them from being productive members of their families and communities.

The following types of information about participants are gathered:

The following provides an interesting perspective on the Nunavut income support programs:

Nature of Participation

Participation in Productive Choices is mandatory for income support recipients. An Income Support Worker consults with recipients or applicants to determine when they are to begin participation in any activity or program and how long their participation should last.

If participants refuse a productive choice or do not follow through on an agreed choice, their benefits are suspended for two months.

An applicant must participate in the activities and programs recommended by the worker unless

Additionally, a productive choice exemption may be introduced for adults with dependents who are experiencing hardship.

Participants make productive choices that meet their needs and are available in their community. If the community is unable to provide certain services as stipulated by the program (e.g., child care), or if a service associated with a particular productive choice is unavailable, income support benefits will be maintained until services are available.

Orientation and Follow-up

Information and orientation are provided to participants and the public in two ways:

Participants are required to report to their Income Support Worker on their participation in the activity or program. During this monitoring, workers may change their recommendation about an activity or program. Income Support Workers are required to review their recommendation on the request of the applicant.

It is intended that case managers be available to assist individuals with supportive problem-solving, assessment, issuing of benefits and facilitating use of community resources. However, participant’s access to staff differs from community to community. A staff presence in each community is vital to providing adequate access to various programs offered in Nunavut. The Department has undertaken a policy of cross training between Income Support Workers and Career Development Officers. This means training staff in different positions on the same knowledge and skills.

Appeals Process

Social assistance appeal committees are established by the Commissioner of Nunavut. Any municipal council or settlement council may petition the Commissioner to establish an appeal committee for its community.

Any applicant or recipient who is aggrieved by a decision of an officer respecting the granting, refusal, suspension, reduction or amount of social assistance has the right to appeal. An appeal can also be made about the individual’s participation in Productive Choices.

Every applicant is advised in writing of the right to appeal and is, on request, provided with clear instructions on appeal procedures. Within 30 days after receiving notification that an applicant requests an appeal, the chairperson of the appeal board/committee holds a meeting of the committee and issues a written ruling.

The Appeal Board, after the hearing, may make one of three decisions:

In addition, the Appeal Board may issue such other order as may be necessary to resolve the appeal. Basic assistance is granted while an appeal is made and heard.

The Director recommends people to the Commissioner for appointment to the Social Assistance Appeal Board. No official of the Department of Education in the public service of the Nunavut is eligible. An appointment to the Appeal Board has effect for two years.

The Community

The Employment Base

Program Design Considerations

The unemployment rate in the Nunavut is the highest in the country, and competition for available jobs is intense. The government actively supports the hiring of local residents over the importing of skilled southern labour.

It is difficult for a family wage earner in Nunavut to earn sufficient income for the family to remain financially independent. The Nunavut minimum wage does not adequately cover minimum costs of living for income recipients, although it continues to have significant application for singles, especially youth, and some people working in the hospitality industry, where commissions or tips supplement minimum wages. Despite the high cost of living in Nunavut, the minimum wage, an average of $7.00 an hour, is not correspondingly higher than those in other jurisdictions; in fact, it is lower than those of British Columbia and Ontario.

Most unskilled wage jobs pay less than what a person can receive through income support. This potential disincentive for a growing number of "working poor" people who would prefer wage employment is particularly strong for earners who have large families. There is a heavy dependence on income support programs as a source of alternative income, most notably during the long winter months; this dependence demoralizes Nunavut residents.

Job growth cannot be expected in most communities. The geographic location, harshness of the Nunavut climate and cost of creating wage jobs present significant constraints to economic activity and stable labour market growth, constraints that other jurisdictions do not face. Although the Government along with the Regional Inuit Associations provides considerable direct and indirect subsidy assistance for new businesses, Nunavut does not possess the financial resources to compete well with southern jurisdictions. Partnerships with employers are a priority for program development as well as to increase training and employment capacity. The most promising new employment opportunities appear to be in the developing mining industry, tourism, hospitality, construction and the public sector.

Employment Equity, Targeting and Displacement

Services offered and delivered are based on individual need; gender is not considered.

In light of labour market conditions, displacement of workers already holding paid jobs in the local economy is a non-issue.

Community Services

Single-Window Access

The integration of training, employment and income support programs is a cornerstone of welfare reform in Nunavut.

The objective is to work toward a single adult training and employment service delivery system within the Department of Education. The people receiving services from the Department should not have to concern themselves with funding streams or divisional mandates. This goal will assist Nunavumiut to take their place in the Nunavut economy.

Community Diversity

The flexibility of the Productive Choices program allows communities to direct support according to their specific needs and situations.

In Nunavut 85% of the residents are Inuit and a disproportionate number of them are in receipt of income support benefits. Regulations on harvesting and the emphasis on healing activities are examples of program aspects relating to this culture.

Program Evaluation

Evaluation Plan

Evaluation is an essential part of Productive Choices. Each community must establish a long-term strategic plan and a results evaluation framework and ensure that an annual audit will be conducted. As part of the devolution of responsibility for the program to the community, a community-driven accountability framework will be developed. This framework will have four guiding principles:

Every three or four years, longitudinal surveys will be conducted to determine who is in the program and to measure the program’s impact on participants.

No budget or plans have been set for overall program evaluation at this time.

Outcome Data

Data are being collected to track the following outcomes:

Participant Evaluation

The participant’s interest and continued performance in the program will be evaluated through effective case management.

Labour Market Development Agreement

Nunavut’s Minister of Education and Canada’s Minister of Human Resources Development in Iqaluit signed the Labor Market Development Agreement on May 11, 2000. The LMDA is in effect for two fiscal years starting in 2000, with the requirement of a one-year advance notification of termination.

The LMDA devolves to the Territory the authority to design and deliver labor market programs. The Department entered into an agreement as a “pilot project” to develop

the physical and human resources infrastructure required to deliver government labor market programs throughout Nunavut. The LMDA’s primary focus during the next two years is to build capacity needed for labor market interventions to be effective.

Other Issues

In Nunavut, many "working poor" families are worse off financially than many people in receipt of income support benefits, because recipients are provided with assistance not available to the working poor. The most significant benefit differential relates to housing, because the housing cost outlay of the working poor is a much higher percentage of income than it is for the income support recipient. Thus, income support programs can be highly attractive to the working poor.

Planned Changes and Directions

On May 10, 2001, Cabinet approved the tabling of the “Nunavut Income Support Policy Review, Ikajuqatigiit – Sharing the Knowledge and Support” Final Report at the sitting of the 5th Legislative Assembly session in Cambridge Bay.

The Department of Education will be consulting with other Departments, Designated Inuit Organizations, Hamlets and other interested parties on formulating a management response to the Final Report.

The report contains a total of 46 recommendations. The following is an overview of the six most significant themes emerging;

The Department has already begun to review the cost of food and clothing in communities and the money it gives to clients to purchase these items. The Department has also begun developing training for Community Income Support Workers to provide career counseling.

The management response will be prepared and forwarded to the Standing Committee in late September 2001.

Contact

NAME:

Sandy Teiman

TITLE: Director, Income Support Program
ADDRESS: Department of Education
Government of the Nunavut

P.O. Box 1000, Station 950

Iqaluit, NU

X0A 0H0

E-MAIL: steiman@gov.nu.ca
TELEPHONE: (867) 975-5680
FAX: (867) 975-5690


Last Revised: Mon, Dec 17, 2001

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