Homeless people living in shelters across Ontario have begun receiving a lump-sum payment every month, prompting some concerns that the change from smaller, weekly payouts could result in binge spending and a host of social problems.
The money, formerly known as the Personala Needs Allowance, had been distributed in weekly amounts of $28 to those who stayed in a shelter all week.
But the Ontario government recently changed the system.
As of Jan. 1, the renamed Basic Needs Allowance is now given as a significantly larger monthly payment.
The new amount is $230, which totals $118 more than the PNA had provided each month when given in weekly instalments.
In an interview with the CBC earlier this month, Ottawa police Staff Sgt. Kal Ghadban expressed concern that welfare payments similar to the new Basic Needs Allowance have created problems in the past, as crime rates went up because recipients were spending the money right away.
“They would live like kings and queens for a week, and then wouldn’t have two nickels to rub together for three weeks,” Ghadban stated. “By the third and fourth week, we’d start seeing our break-ins and thefts from vehicles going up again.”
Some advocates for homeless people are also worried that the large, lump sum payments could lead to increased crime, drug and alcohol abuse.
The revamped payout program is part of the Community Homelessness Prevention Initiative run by the Ontario Ministry of Municipal Affairs and Housing.
It has earmarked $246 million for the program for 2013-14, which replaces the previous allowance which was issued by Ontario Works.
The change to a different department enables local service managers to use the money “to address local priorities and to better meet the needs of individuals and families who are homeless or at risk of becoming homeless,” according to the Ministry of Municipal Affairs and Housing’s website.
While the program started last month, the first round of payments did not go out until the week of Feb. 11.The change means that local shelters and service centres in Centretown and across Ottawa have had to adjust to the new system.
Centre 507, located in the Centretown United Church on Bank Street, has a Rooming House Tenant Program and is among the agencies involved in supporting homeless people in Ottawa.
A spokesperson from Centre 507 could not be reached for a comment about the new program.
Lewis Novack, a second-year Carleton University student, is the community service chair of the Rohr Chabad Student Network of Ottawa, a Jewish students’ group on campus.
Chabad has been involved in many events that involve making and serving food at Shepherds of Good Hope and The Ottawa Mission.
He thinks it’s not the money – or the lack of it – that causes problems, but the lack of effective assistance programs to help people budget their social assistance income.
“There should be programs that teach people how to manage their money,” Novack says.
“Saying people without money cause crime is an inadequate statement. (The problem isn’t) solved by locking them up in jail, but rather by creating outreach programs.”
The Ottawa Mission, in fact, does have a budgeting program, which teaches people how to spend their money wisely and even helps people set up bank accounts.
Staff members at homeless shelters and service centres in Ottawa were notified of the new allowance a few weeks ago and have had some time to prepare themselves to deal with it.
Even though addiction counsellors at The Ottawa Mission have expressed concerns about the change, Shirley Roy, the downtown shelter’s community relations manager, says it’s working to try to create a smooth transition.
“People may have a hard time budgeting their money, but we’re going to try our best to work with people who have concerns over their money (management) skills,” she says.
Right now, the mission is focused on working to “try to streamline the process” to make sure it succeeds, she says.
But the effects of implementing the Basic Needs Allowance – positive or negative – won’t be seen for another few months.