Item - 2021.EC21.2

The Economic and Community Development Committee recommends that:

1.  City Council approve the five principles below which are detailed in Attachment 1 to the report (April 12, 2021) from the General Manager, Toronto Employment and Social Services to inform Toronto's engagement with the Province of Ontario on the process of co-design and implementation of Ontario's Social Assistance Recovery and Renewal plan, including the end vision of an integrated human services delivery system that includes social assistance, children's services, and housing:

a.  prioritize client well-being and progression;

b.  commitment to engagement and collaboration;

c.  recognition of Toronto's unique size, diversity, and complexity;

d.  adequate and sustainable funding to drive best outcomes; and

e.  promoting local economic and social inclusion.

2.  City Council direct the General Manager, Toronto Employment and Social Services to report in the second quarter of 2022 on the co-design and implementation of Phase 1 of Ontario's Social Assistance Recovery and Renewal plan, including updates on the impact of the centralization of Ontario Works financial assistance application administration on related roles and functions at the City of Toronto's Application and Support Centre and Toronto Employment and Social Services, budget implications for the City of Toronto, and progress on the Provincial plan for human services integration.

3.  City Council, recognizing that a modern approach to social assistance should not only improve service delivery but also address the ability of social assistance clients to meet their basic needs, request the Province of Ontario to address the adequacy and structure of social assistance by implementing a new and modernized rate structure that uses an evidence-based approach to annual social assistance rate increases.

4.  City Council direct the General Manager, Toronto Employment and Social Services to engage with other divisions and Toronto Public Library, as well as community and workforce development stakeholders, as appropriate, to assess how the City of Toronto can best advance its workforce development priorities and support residents in a transformed employment services system, including whether the City should pursue the new employment service system manager role and, if so, in what configuration and report on findings and recommendations in the second quarter of 2022.

The General Manager, Toronto Employment and Social Services gave a presentation on Ontario's Social Assistance and Employment Service System Transformation Plans.

On February 11, 2021, the Ministry of Children, Community and Social Services (MCCSS) released "Recovery and Renewal: Ontario's Vision for Social Assistance Transformation." Ontario's new Social Assistance Recovery and Renewal (SARR) plan and vision for social assistance builds on previous announcements and work underway to transform the employment services system across the province and provide more efficient, person-centered supports for low-income residents.

It is anticipated that these changes will take place in three phases over the next four years. In the near-term this will result in changes to provincial and municipal roles for social assistance - both Ontario Works (OW) and Ontario Disability Support Program (ODSP). When fully implemented, Ontario's SARR plan will shift the functional focus for municipal delivery partners from eligibility determination and the administration of benefits and employment supports to the provision of life stabilization supports and service navigation for social assistance clients. The Province's longer term vision includes broader human services integration that extends life stabilization and service navigation for all low-income residents.

This report provides details on Ontario's social assistance and employment service system transformation plans, highlighting key elements, opportunities, gaps and risks. Overall, many aspects are positive, including the emphasis on life stabilization supports and human services coordination, the focus on expediting access to benefits and streamlining administrative processes and enhanced case management support for ODSP clients. Indeed, many such changes reflect previous City positions and actions, especially given the City's focus in recent years on enhanced service planning with OW clients, greater investment in life stabilization activities and the City's own Human Service Integration initiative. They are also aligned with TO Prosperity: Toronto's Poverty Reduction Strategy (PRS) which, among other things, highlights the need to improve the quality of and access to income supports, foster inclusive economic growth, create a seamless social support system and increase employment opportunities for low-income residents. To a large extent, therefore, the City has a firm foundation to build on and is well-positioned to work with the Province to inform and advance future system change.

However, the significant nature of change means that there are additional issues and potential risks which the City will need to monitor and address going forward. As a result, this report recommends principles to guide City engagement with the Province with regard to the process of co-design and implementation of social assistance renewal plans and the Province's broader end term vision of human services integration. Recognizing that in addition to improving service delivery a modern approach to social assistance should also ensure that social assistance clients can better meet their basic needs, it also recommends that the Province engage with municipalities on the introduction of a new and modernized rate structure and implement an evidence-based approach to annual social assistance rate changes that reflects locally specific costs of living. Finally, this report recommends that key City divisions, engaging community and workforce development stakeholders as appropriate, assess how the City can best advance its workforce development priorities and support residents in a transformed employment services system, including whether the City should pursue the new employment service system manager role and, if so, in what configuration.