Changes for UI, social assistance proposed

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Selected issues for discussion in the federal government's paper Agenda:" Jobs and Growth, Improving Social Security in Canada.

Unemployment Insurance

Long-term unemployment in Canada is particularly pervasive among Aboriginal people or those groups dependent on a single industry or resource, reads the paper. The unemployment rate for Aboriginal people is approximately twice that of the rest of the Canadian population.

One suggested change to the system would create a two-tier system, with the first tier giving the basic insurance to occasional UI claimants. The second tier would be reserved for frequent UI claims, or a person who uses the program three or more times within five years. Claimants would see reduced benefits and more active assistance in finding a job.

Education

In Canada, the provinces are responsible for education, but the federal government supports post-secondary education to the tune of $8 billion a year. This is done through transfer payments which are used to run universities and lessen the cost of tuition. Canada also supports $1 billion in loans and grants to students.

The federal government proposes to shift spending from support to institutions to expanded loans for students. What may result then is higher tuition fees and greater debt load for students upon entering the work force.

Social Assistance

Currently there are two main federal programs designed to support those who can't work, are low-income families, or people with a disability and children.

The Canadian Assistance Plan shares the cost of social assistance and services with the province; Child Tax Benefit provides income support to families with children.

CAP has been criticized as working in a way that dissuades people from getting off welfare by making families lose support and needed services if they get a job.

The federal government suggests replacing CAP with block funding for welfare and social services to the provinces, giving them greater freedom in how the money is used. The block fund could be transferred to the province without conditions, or provinces may be required to conform to national welfare standards.