Welfare Eligibility (21:III)
This section deals with eligibility for income assistance, PPMB assistance, and disability assistance, but not for hardship. Please see Section V: Hardship for information on eligibility for hardship assistance.
A. Application Process
Applicants for income assistance, PPMB assistance, and disability assistance must comply with the application process set out in s 4 of the EAR and s 4 of the EAPWDR, and are subject to the numerous eligibility requirements set out below.
B. Obligation to Provide Information to MSDSI
MSDSI staff are empowered (by s 10 of the EAA and s 10 of the EAPWDA) to require welfare applicants and recipients to demonstrate their eligibility by providing relevant information. MSDSI employees are also empowered to independently verify that information.
At the same time, welfare recipients are obliged to respond to enquiries by MSDSI, submit reports to MSDSI as requested, and alert MSDSI to any changes in their circumstances that may affect their eligibility (s 11 of EAA and s 11 of EAPWDA). Section 33(1) of the EAR requires that by the fifth day of each calendar month a recipient of income assistance or PPMB assistance must submit a report (in a prescribed form) giving relevant information about eligibility. Meanwhile, s 29 of the EAPWDR requires that those on disability assistance submit the form only when there is a change in their circumstances that may affect their eligibility for benefits (e.g. change in their assets, income, or familysituation).
If an applicant fails to comply with MSDSI’s requirements to provide accurate information on factors affecting eligibility, this may result in the suspension or reduction of benefits.
Note that a “trusted third party” must witness many MSDSI forms. This can be a welfare worker (EAW) or other MSDSI staff. If an applicant cannot get to a Ministry office in person, the Ministry may accept a signature from another government worker or a prescribed professional (doctor, nurse, nurse practitioner, social worker, psychologist, chiropractor, or physical/occupational therapist).
To be eligible for income assistance, PPMB assistance, or disability assistance, applicants must show that they meet the:
- asset limits;
- income limits;
- citizenship requirements; and
- age requirements.
To be eligible, applicants must also:
- pursue all other forms of support;
- assign any spousal support rights to MSDSI (effective May 1, 2015, the assignment of child support rights to MSDSI is voluntary).
- have been financially independent for two years in the past (with some exceptions as discussed below);
- complete a three or five-week work search (with some exceptions as discussed below) and;
- comply with employment-related obligations and an employment plan (with some exceptions, discussed below).
Those wishing to receive disability assistance or PPMB assistance must first show they qualify for PPMB or PWD status under the relevant sections of the legislation (s 2 of the EAA for PPMB status, and s 2 of the EAPWDA for PWD status).
The above eligibility criteria will be discussed briefly below. Certain applicants who do not meet the eligibility criteria for income assistance, PPMB assistance, or disability assistance may still be eligible for hardship assistance. See Part 4 of EAR and Part 4 of EAPWDR for details.
C. Asset Limits
In order to be eligible for income assistance, PPMB assistance, or disability assistance, applicants must exhaust their assets. As noted above, welfare is a “payer of last resort”. Accordingly, the EAR (ss 11-13) and the EAPWDR (ss 10-12) set out limits on which assets a person can possess and still remain eligible for income assistance, PPMB assistance, or disability assistance.
Asset limits vary depending on the size of the family unit receiving welfare and the type of welfare the family unit is receiving.
Read the EAR (ss 1 and 11-13) and the EAPWDR (ss 1 and 10-12) carefully to identify the asset criteria. and note in particular the definitions of “asset”, which is set out in s 1 of the EAR and EAPWDR.
The following table summarizes the asset limits for different family sizes applying for or receiving different forms of welfare. A more detailed table is available at http://www.eia.gov.bc.ca/mhr/assets.htm.
| Applicant | Maximum Allowable Assets |
|---|---|
| Single person on income assistance or PPMB | $2 000 |
| Family (more than one person) on income assistance or PPMB | $4 000 |
| Single person on, or applying for, disability assistance | $5 000 |
| Family (more than one person) on, or applying for, disability assistance | $10 000 |
1. Exempt Assets
Students should review s 10(1) of EAR and s 10(1) of EAPWDR in detail to see if any of a person’s particular assets are exempt, i.e. do not count toward their asset limit. Some key exempt assets are:
- clothing and necessary household equipment;
- vehicles (limit one per household and only if used for day-to-day transportation needs. Note that for those on income assistance and PPMB there are additional limits set out in s 11(1)(b) of the EAR). Note: If someone is applying for or receiving income assistance or PPMB assistance, and MSDSI expects the individual to look for and accept work, he or she can have a car with up to $10 000 equity in it that is used for daily transportation. However, the Ministry will count any other vehicles owned towards the family unit’s asset limits. (This does not apply to persons applying for or receiving disability assistance, whose primary vehicle is exempt with no limit on the amount of equity in it);
- a family unit's place of residence;
- a child tax benefit or GST credit under the Income Tax Act (Canada);
- A BC early childhood tax benefit;
- a sales tax credit under the Income Tax Act (British Columbia);
- a registered disability savings plan or “RDSP” (see http://www.rdsp.com for more information); an uncashed life insurance policy with a cash surrender value of $1 500 or less; and
- business tools;
2. Asset Development Accounts are Exempt Assets
Section 12 of the EAR and s 11 of the EAPWDR provide that the MSDSI may approve savings accounts for the purpose of “future self-sufficiency”, and that these accounts will be exempt assets. 3.Disability Trusts are Exempt A ssets Under s 13 of the EAR and s 12 of the EAPWDR, assets of up to $200 000 can be held in a non-discretionary trust for a person with PWD status (or an applicant for PWD status, or for another individual with disabilities in certain circumstances) without disqualifying the person from income assistance or disability assistance. There is no limit on the amount that may be held in a discretionary trust. D.Income Limits In order to be eligible for income assistance, PPMB assistance, or disability assistance, applicants must exhaust all other sources of income to support themselves and their dependants, except for income specifically exempted by legislation or policy. The net income limits for welfare recipients are set out in s 11 of the EAR and s 9 of the EAPWDR. Schedule B in both regulations sets out the manner in which a person’s net income is calculated for the purpose of welfare eligibility. 1.Types of Income Relevant to Income Limits The MSDSI distinguishes between earned and unearned income for the purpose of the net income calculation. EARNED INCOME.EAR, s 1 and EAPWDR, s 1 define “earned income” as: •any money or value received in exchange for work or the provision of a service; •pension plan contributions that are refunded because of insufficient contribution to create a pension; •money or value received from providing room and board at a person’s place of residence; or •money or value received from renting rooms that are common to and part of a person’s place of residence. UNEARNED INCOME.EAR, s 1 and EAPWDR, s 1 define “unearned income” as any income that is not earned income. They give a non-exhaustive list of examples including: any type of CPP benefits; WCB benefits and other disability payments and pensions; inheritances; rental income from land or property;