Good morning. My colleague and I are with the Income Security Advocacy Centre. It's a specialty legal clinic with a mandate to improve the income security of low-income Ontarians. Thank you for this opportunity.
Canada's income benefit programs need to be modernized to be responsive to today's economy and meet the needs of Canada's most vulnerable communities. Precarious employment is on the rise across the country. Part-time or short-term contract jobs rarely include benefits. Those jobs are disproportionately held by women, people from racialized and immigrant communities, and indigenous persons. Canada is relying on a growing number of temporary foreign workers to meet demand for labour. Because many of Canada's benefit programs are based on work-related contributions, they do not respond well to today's labour market and today's economy.
Today I'll focus on two programs: employment insurance and the Canada child benefit.
First, working Canadians need a better employment insurance program. As a result of both program rules and the rise in precarious employment, EI is playing a shrinking role in Canada's economic safety net. Across Canada, only 41% of unemployed people receive EI. In Ontario that number is 29%. Women fare even worse at 26%. Because on average they earn less than men, their benefit levels are lower.
We propose a number of solutions. Reduce qualifying hours to 360 across Canada. Introduce a minimum benefit level for all Canadians. Make extended parental benefits a real option for low-income parents by applying that minimum rate for the full benefit period. Increase the number of weeks of EI sick benefits. Restore migrant workers' access to parental benefits, which was ended by the previous government. Finally, make regular benefits available to temporary foreign workers by using an open work permit system for all migrant workers so they can meet the program requirements.
The Canada child benefit, on the other hand, has been a public policy success story. It's a tax-delivered benefit that reaches families across the country, and benefit levels are based on income, not contributions. The federal government has said that it has lifted tens of thousands of children out of poverty and is a driver for economic growth. However, unequal access to the child benefit means that some of the poorest children in Canada are not receiving it. The program needs some enhancements in order for it to fully meet its policy objectives.
The first issue is an eligibility requirement that's based on the immigration status of the child's parents. Some parents without permanent residence status are not eligible, while these same parents are deemed to be residents of Canada for income tax purposes. Despite the fact that many of their children are born in Canada, these families will not receive benefits for those critical early years, leaving these children with lifelong barriers to opportunity and success.
We've provided your staff with a report that details these issues and the negative impact on Canada's most vulnerable families. I can give the example of when a mother is sponsored by the father and he becomes abusive. If she leaves with the children, the children will no longer receive the benefit because the immigration status of the mother is in jeopardy. This policy drives women to stay in abusive relationships, or else they simply give up custody of their children. A simple solution to this problem is to amend the Income Tax Act. All parents who are considered residents for tax purposes should also be eligible for the tax-delivered benefit.
Other barriers to accessing the CCB exist even for those who are technically eligible. Many first nations families living on reserve do not file taxes and therefore are not accessing this benefit. Some progress has been made on this front, but more work needs to be done. The federal government should work with first nations to find a solution to this problem.
Serious problems can arise where eligibility is disputed by the Canada Revenue Agency. Benefits are suspended by the CRA while parents try to prove and reprove their eligibility. CRA appeal processes are neither accessible nor transparent. Families can go for months without benefits, often putting their housing at risk. The better the benefit gets, the bigger part of the budget it is for a low-income family. There's a serious impact when those benefits are suspended. A better and more accessible process needs to be devised.
Finally, our colleagues in legal clinics in northern Ontario have also reported that CRA audits seem to disproportionately impact first nation families. Those audits lead to suspension of benefits while eligibility is confirmed. The audit process needs to be reviewed to ensure that it does not inadvertently target first nation families.
Thank you. My colleague and I welcome any questions you might have.