I APPEAL NUMBER PART C -DECISION UNDER APPEAL The decision under appeal is the Ministry of Social Development and Poverty Reduction (the "Ministry") reconsideration decision of July 23, 2019 (the "Reconsideration Decision"), which determined that the Appellant was not eligible for income assistance in the month of July of 2019, pursuant to section 10(2) of the Employment and Assistance Regulation ("EAR") as the Appellant's income for the month of May, 2019 had exceeded the amount of disability assistance otherwise payable to the Appellant, as determined under Schedule A to the EAR. PART D -RELEVANT LEGISLATION Section 11, Employment and Assistance Act ("EM") Sections 1, 10, 28, 33, and Schedules A and B, EAR
PART E -SUMMARY OF FACTS The Appellant is a sole reci p ient of income assistance. The information before the Ministry at the time of the Reconsideration included: • E-mail correspondence , dated June 28 , 2019 • The Appellant's Monthly Report (the "Report" • The Appellant's Re q uest for Reconsideration ("RFR" set out that that: • he had received $ 2 , 500.00 for p ainting work on May 28 Appellant's Monthly Report for May , however • he had received no income for June ; • he would be returnin g to work on Jul y • he had not completed a work search because he already had a fill one out. In his Notice of A p peal , the Appellant stated that he did not receive benefits for over a month because of work and that he had declared all his income. At the hearing of the ap p eal , the Appellant g ave evidence that: • he worked on a contract in May for which he was • he continued to wait for work but had nothing lined up after the May contract • he did not receive income assistance benefits in the month of June • he does not submit his Monthl y Re p orts to the Ministry or his work search information because he is not permitted to attend at Ministry offices and • he submitted his Monthly Report f o r May late in June • he did not provide work search information to the Ministry because he expected again when his employer had a contract from him • it took until Jul y before his employer was able to find another contract for him • he could not recall if he worked at all in the month of A work in his community in the winter months. The Ministry confirmed that, although section 33 of the EAR re complete their monthly re p orting re q uirement by the because of processing times, any net income received by a recipient in a particular month and reported by the 5 th day of the following month does not affect the recipient's income assistance until the month after the re p ort is submitted. For example , where a reci month of May , the net income f o r an Ap p ellant in May be deducted from the recipient's income until the month of Jul The p anel admits the evidence of the A p pellant and the Ministry re su p port of information that was before the Ministry at the time of the Reconsideration Decision to section 22( 4 ) of the EAA. I APPEAL NUMBER , to the Ministry from an employer of the A p pellant's ; ) , received by the Ministry on June 28 , 2019 ; ) , dated July 16 , 2019 , in which the A p pellant th ( , 2019 it should be noted that the , indicated that this was actually $2,200.00 ) ; 17 , 2019 ; and j ob and saw no reason to p aid $2,200.00 ; ; ; , as a result , a third p art y does this for him ; ; to be workin g ; ; and p ril but did note that it was hard to find q uires recipients of income assistance to 5 th day of each month for the p revious month , p ient would report his or her other income in the , if it exceeds any applicable exemption , would not y . p resentative as oral evidence in , pursuant
I APPEAL NUMBER PART F -REASONS FOR PANEL DECISION The issue in this appeal is whether the Ministry reasonably determined that the Appellant was not eligible for income assistance in the month of July 2019, pursuant to section 10(2) of the Employment and Assistance Regulation ("EAR") as the Appellant's income for the month of May of 2019 had exceeded the amount of disability assistance otherwise payable to the Appellant, as determined under Schedule A to the EAR. Statutory Framework Section 11 of the EAA, obligates a recipient of income assistance to submit reports monthly in forms prescribed by the Ministry and containing information prescribed by the Ministry: Reporting obligations 11 (1) For a family unit to be eligible for income assistance, a recipient, in the manner and within the time specified by regulation, must (a)submit to the minister a report that (i) is in the form prescribed by the minister, and (ii)contains the prescribed information, and (b) notify the minister of any change in circumstances or information that (i) may affect the eligibility of the family unit, and (ii) was previously provided to the minister. (2)A report under subsection (1) (a) is deemed not to have been submitted unless the accuracy of the information provided in it is confirmed by a signed statement of each recipient. Section 33 of the EAR sets out the specifics of what information referred to in section 11 of the EM must be submitted and when it must be submitted: Monthly reporting requirement 33 (1) For the purposes of section 11 (1) (a) [reporting obligations] of the Act, (a) the report must be submitted by the 5th day of each calendar month, and (b)the information required is all of the following, as requested in the monthly report form prescribed under the Forms Regulation, B.C. Reg. 87/2018: (i) whether the family unit requires further assistance; (ii) changes in the family unit's assets; (iii) all income received by the family unit and the source of that income; (iv) the employment and educational circumstances of recipients in the family unit; (v) changes in family unit membership or the marital status of a recipient; (vi\ anv warrants as described in section 15.2 <1 \ of the Act.
I APPEAL NUMBER Section 28 of the EAR sets out the maximum amount of income assistance that a family unit is eligible for in a given month: Amount of income assistance 28 Income assistance may be provided to or for a family unit, for a calendar month, in an amount that is not more than (a)the amount determined under Schedule A, minus (b)the family unit's net income determined under Schedule B. Section 10 of the EAR sets out that a family unit is not eligible for income assistance if the family unit's net income exceeds its income assistance entitlement under Schedule A to the EAR: Limits on income 10 (l) For the purposes of the Act and this regulation, "income", in relation to a family unit, includes an amount garnished, attached, seized, deducted or set off from the income of an applicant, a recipient or a dependant. (2)A family unit is not eligible for income assistance if the net income of the family unit determined under Schedule B equals or exceeds the amount of income assistance determined under Schedule A for a family unit matching that family unit. Section 2 of Schedule A sets out the amount of income assistance payable to a family unit in the circumstances of the Appellant: Item Column l Column 2 Column 3 Family unit composition Age or status of applicant or recipient Amount of support \ 1 Sole applicant/recipient and no dependent Applicant/recipient is under 65 years $385.00 children of age Section 4 of Schedule A to the EAR sets out the shelter allowance for which a family unit in the Appellant's circumstances is eligible: i Column 1 Column 2 iitem Family Unit Size Maximum Monthly Shelter 1 1 person $375 Section 1 of the EAR defines "earned income": "earned income" means (a) any money or value received in exchange for work or the provision of a service
I APPEAL NUMBER (b) Repealed. [B.C. Reg. 197/2012, Sch. 1, s. 1 (a).] (c) pension plan contributions that are refunded because of insufficient contributions to create a pension, (d) money or value received from providing room and board at a person's place of residence, or (e) money or value received from renting rooms that are common to and part of a person's place of residence; Section 1 (c) of Schedule B to the EAR sets out that all earned income must be included in the calculation of a family unit's net income unless it is deductible or exempt: Deduction and exemption rules 1 When calculating the net income of a family unit for the purposes of section 28 (b) [amount of income assistance] of this regulation, (c) all earned income must be included, except the deductions permitted under section 2 and any earned income exempted under sections 3 and 4 of this Schedule ... Section 2 of Schedule B to the EAR describes the deductions which are permitted from earned income Deductions from earned income 2 The only deductions permitted from earned income are the following: (a) any amount deducted at source for (i) income tax, (ii)employment insurance, (iii)medical insurance, (iv)Canada Pension Plan, (v) superannuation, (vi) company pension plan, and (vii) union dues; (b) if the applicant or recipient provides both room and board to a person at the applicant's or recipient's place of residence, the essential operating costs of providing the room and board; (c) if the applicant or recipient rents rooms that are common to and part of the applicant's or recipient's place of residence, 25% of the gross rent received from the rental of the rooms. Section 3 of Schedule B to the EAR sets out which exemptions in the calculation of a family unit's net income may be claimed in respect of earned income:
I APPEAL NUMBER Exemption -earned income 3 (1) Subject to subsection (2), the amount of earned income calculated under subsection (6) is exempt for a family unit. (2)A family unit may not claim an exemption under this section in relation to the first calendar month for which the family unit becomes eligible for income assistance unless a member of the family unit received disability assistance or income assistance in at least one of the 3 calendar months immediately preceding that first calendar month. (3)to (5) Repealed. [8.C. Reg. 145/2015, Sch. 1, s. 16.] (6)The exempt amount for a family unit is the lesser of the family unit's total earned income in the calendar month of calculation and the following: (a)$400, if the family unit is not described in paragraph (b), (c) or (d); (b)$600, if the family unit (i)includes a recipient who (A) has a dependent child, or (8) provides care to a supported child, and (ii)is not described in paragraph (c) or (d); (c) $700, if (i)the family unit includes a recipient who (A) has a dependent child, or (8) provides care to a supported child, (ii) the child has a physical or mental condition that, in the minister's opinion, precludes the recipient from leaving home for the purposes of employment or working, on average, more than 30 hours each week, and (iii)the family unit is not described in paragraph (d); (d)$700, if the family unit includes a person who has persistent multiple barriers to employment. Finally, section 4 of Schedule B to the EAR provides for certain small business exemptions: Small business exemption 4 (1) In this section and section 5, "permitted operating expenses" means costs, charges and expenses incurred by a person in the operation of a small business, under a self-employment program in which the person is participating, for the following: (a)purchase of sunnlies and products:
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I APPEAL NUMBER (A) consists exclusively of fu nds reserved by the r ecipient for the purpose of paying permitted operating expenses of that small business, and (B) the amount deposited does not increase the current balance of the separate account to a sum that exceeds $5 000, or (iii) is used for costs of renovations to the recipient's place of residence up to but not exceeding $5 000 in total or a greater amount accepted by the minister, if the renovations are part of a business plan accepted by the minister under section 77.2 of this regulation. Panel Decision The Appellant received $2,200.00 in pay f o r the month of May. He reported that income on his June Monthly Report and, although reported late, the information received by the Ministry for the Appellant's income in May was, as per the Ministry's practice of making it deductible from a recipient's income assistance two months later, was added to the Appellant's net income calculation for the month of July. As a sole recipient of income assistance, the Appellant is eligible for monthly income assistance in the amount of $385.00 per month, pursuant to section 2(1) of Schedule A to the EAR. He is also eligible for a monthly shelter allowance, pursuant to section 4(2) of Schedule A. As such, under sections 10 and 28 of the EAR, if the Appellant's net income exceeds the amount of income assistance provided for in Schedule A, the Appellant would not be eligible for income assistance in that calendar month. The starting point for calculating the Appellant's net income is to determine whether the monies received by the Appellant in May of 2019 are of a nature that they are required to be considered part of his net income. The $2,200.00 earned by the Appellant in May of 2019, which came from work done as a painter, clearly meets the definition of "earned income" set out in section 1 of the EAR as it was money received in exchange for work. Section 1 (c) of Schedule B to the EAR requires that all "earned income" be included in the calculation of a family unit's net income. In the result, the entire $2,200.00 must be included in the calculation of the Appellant's net income for the month of May of 2019. The next issue is whether any of the deductions or exemptions set out in section 1 (c) apply to the Appellant. There is no evidence before the panel about whether anything was deducted from the $2,200.00 paid to the Appellant that falls within the class of deductions described in section 2 of Schedule B to the EAR (i.e. income taxes, employment insurance premiums, etc.). Given that the $2,200.00 was paid under what the Appellant described as a contract, it stands to reason, however that no source deductions, statutory or otherwise, were made from the monies paid to the Appellant and the panel concludes that none of the deductions under 2(a) are applicable. Likewise, there is no evidence bef o re the panel that the Appellant provides room and board to anyone or received any rental income and, accordingly, subsections (b) and (c) also appear to not be applicable.
W i t h r e s p e c t t o t h e e x e m p t i o n s s e t o u t i n s e c t i o n 3 o f i n c o m e t h a t a r e c i p i e n t i s a b l e t o e a r n t h a t i s e x e m c a l c u l a t i o n , o n l y s u b s e c t i o n ( a ) c o u l d a p p l y t o t h e A u n i t s w i t h c h i l d r e n a n d s u b s e c t i o n ( d ) r e f e r s t o p e r s p e r s i s t e n t m u l t i p l e b a r r i e r s . S u b s e c t i o n ( 6 ) ( a ) p e r m i t s a f a m i l y u n i t t o h a v e u p t o i s e x e m p t f r o m i n c l u s i o n i n t h e f a m i l y u n i t ' s n e t i n c o e l i g i b l e u n d e r s u b s e c t i o n s ( 1 ) a n d ( 2 ) o f s e c t i o n 3 o t o $ 4 0 0 . 0 0 p e r m o n t h a n d n o t h a v e i t a d d e d t o h i s n h i s e n t i t l e m e n t t o i n c o m e a s s i s t a n c e i n t h a t c a l e n d a f o r t h e $ 4 0 0 . 0 0 e a r n e d i n c o m e e x e m p t i o n i n M a y o t h a t w o u l d h a v e t o h a v e b e e n i n c l u d e d i n h i s n e t i n c A s t h e A p p e l l a n t ' s n e t i n c o m e f o r M a y o f 2 0 1 9 w a s $ 7 6 0 . 0 0 e n t i t l e m e n t t o i n c o m e a s s i s t a n c e a n d a s h e r e c e i v e a n y i n c o m e a s s i s t a n c e f o r M a y u n l e s s s e c t i S e c t i o n 4 o f S c h e d u l e B t o t h e E A R p r o v i d e s f o r a s s e t o u t i n s e c t i o n 2 o f S c h e d u l e B t o t h e E A R , t h e r e A p p e l l a n t i n c u r r e d a n y o f t h e d e d u c t i b l e o p e r a t i n g e w a s n o s u g g e s t i o n i n t h e e v i d e n c e t h a t t h e A p p e l l a n i n t h e r e s u l t , s e c t i o n 4 ( 2 ) o f S c h e d u l e B t o t h e E A R I n t h e r e s u l t o f a l l o f t h e f o r e g o i n g , t h e p a n e l f i n d s t h A p p e l l a n t w a s n o t e l i g i b l e f o r a n y i n c o m e a s s i s t a n c e M a y o f 2 0 1 9 e x c e e d e d t h e a m o u n t o f d i s a b i l i t y t o w d e d u c t i o n o f t h e A p p e l l a n t ' s n e t i n c o m e f o r M a y w a i s n o t s u c c e s s f u l i n t h i s a p p e a l .I A P P E A L N U M B E R o f S c h e d u l e B t o t h e E A R , w h i c h d e s c r i b e t h e a m o u n t p t f r o m i n c l u s i o n i n A p p e l l a n t ' s n e t i n c o m e p p e l l a n t , a s s u b s e c t i o n s ( b ) a n d ( c ) r e f e r t o f a m i l y o n s w h o h a v e b e e n d e s i g n a t e d a s p e r s o n s w i t h $ 4 0 0 . 0 0 o f e a r n e d i n c o m e i n a c a l e n d a r m o n t h t h a t m e c a l c u l a t i o n fo r t h a t m o n t h . I n e ff e c t , i f o t h e rw i s e f S c h e d u l e B t o t h e E A R , t h e A p p e l l a n t c a n e a r n u p e t i n c o m e c a l c u l a t i o n fo r t h e p u r p o s e s o f r e d u c i n g r m o n t h . H o w e v e r , e v e n i f t h e A p p e l l a n t w e r e e l i g i b l e f 2 0 1 9 , h e s t i l l e a r n e d a n a d d i t i o n a l $ 1 , 8 0 0 . 0 0 i n M a y o m e c a l c u l a t i o n f o r M a y o f 2 0 1 9 . a t l e a s t $ 1 , 8 0 0 . 0 0 , w h i c h a m o u n t e x c e e d e d h i s l t e r a l l o w a n c e , t h e A p p e l l a n t w a s n o t e n t i t l e d t o o n 4 o f S c h e d u l e B t o t h e E A R a p p l i e d t o h i m . m a l l b u s i n e s s e x e m p t i o n a n d , a s w i t h t h e d e d u c t i o n s i s i n s u ff i c i e n t e v i d e n c e b e f o r e t h e p a n e l t h a t t h e x p e n s e s d e s c r i b e d i n s e c t i o n 4 ( 1 ) . L i k e w i s e , t h e r e t i s p a rt i c i p a t i n g i n a s e l f e m p l o y m e n t p r o g r a m a n d , a l s o a p p e a r s i n a p p l i c a b l e t o t h e A p p e l l a n t . a t t h e M i n i s t r y r e a s o n a b l y c o n c l u d e d t h a t t h e i n t h e m o n t h o f J u l y o f 2 0 1 9 , a s h i s n e t i n c o m e i n h i c h h e w a s e n t i t l e d . A s p e r M i n i s t r y p o l i c y , t h e s m a d e t o h i s J u l y i n c o m e a s s i s t a n c e . T h e A p p e l l a n t
A P P E A L N U M B E R I P A R T G O R D E R T H E P A N E L D E C I S I O N I S : ( C h e c k o n e ) [gj U N A N I M O U S □ B Y M A J O R I T Y T H E P A N E L [gj C O N F I R M S T H E M I N I S T R Y D E C I S I O N □ R E S C I N D S T H E M I N I S T R Y D E C I S I O N I f t h e m i n i s t r y d e c i s i o n i s r e s c i n d e d , i s t h e p a n e l d e c i s i o n r e f e r r e d b a c k t o t h e M i n i s t e r f o r a d e c i s i o n a s t o a m o u n t ? □ Y e s □ N o L E G I S L A T I V E A U T H O R I T Y F O R T H E D E C I S I O N : E m p l o y m e n t a n d A s s i s t a n c e A c t S e c t i o n 2 4 ( 1 ) ( a ) [gj o r S e c t i o n 2 4 ( 1 ) ( b ) [gj a n d S e c t i o n 2 4 ( 2 ) ( a ) [gj o r S e c t i o n 2 4 ( 2 ) ( b ) D P A R T H S I G N A T U R E S P R I N T N A M E A d a m S h e e S I G N A T U R E O F C H A I R D A T E ( Y E A R/ M O N T H / D A Y ) 2 0 1 9 / 0 8 / 2 7 P R I N T N A M E G u r j i t C h a p l i n D A T E ( Y E A R/ M O N T H / D A Y ) 2 0 1 9 -0 8 -2 9
You are being directed to the most recent version of the statute which may not be the version considered at the time of the judgment.