Ministry of Social Development and Poverty Reduction

Part C – Decision Under Appeal

Appeal Number 2022-0113

The decision under appeal is the Ministry of Social Innovation and Poverty Reduction (the ministry) dated May 17, 2022 that denied the appellant income assistance because her net income is more than the rate of assistance for her family unit size.

Part D – Relevant Legislation

Employment and Assistance for Persons with Disabilities Regulation (EAPWDR) sections 1, 2.01, 9, and 29 Schedule A sections 1, 2 and 4 Schedule B sections 1, 6 and 7

Employment Insurance Act section 22, 23 and 23.2

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Part E – Summary of Facts

Appeal Number 2022-0113

From ministry files:    The appellant and her spouse receive disability assistance as a couple. The spouse is over 65 years of age and has Persons with Disabilities designation. The appellant is under 65 years of age. Her file has been open since December 10, 2021.



The ministry receives information from Service Canada in an electronic data match called the EI/MHSD Common Claimant Report.

A Common Claimant Report dated April 25, 2022 shows the appellant received EI payments of $444 weekly for 7 weeks starting on February 27, and so on March 6, March 13, March 20, March 27, April 3 and April 10, 2022. She did not receive EI for the week starting February 20, 2022.

In her monthly report dated April 25, 2022 and, according to ministry records, received on April 29, 2022 the appellant declared $1332 for EI received in March and her spouse declared $475.20 for Old Age Security (OAS) and $545.92 for Canada Pension Plan (CPP).

The appellant’s bank statement confirms a deposit of $1332 for EI on March 11, 2022. The spouse’s bank statement confirms a deposit of $475.20 for CPP and $ 545.92 for OAS, both deposited on February 17, 2022.

In her request for reconsideration dated May 5, 2022 the appellant wrote that she did not understand that her EI was not exempt - this misunderstanding has left her without funds to move. She lives in a hotel that she is required to leave by May 15, 2022. She also needs to take a 48 hour trip “to the coast” to visit her father-in-law who has fallen ill. She has to come up with money for rent, gas, a moving truck, and a $175 tow bill.

In her Notice of Appeal dated May 31, 2022 the appellant wrote “I am still in need of assistance to prevent becoming homeless with a 65 year old disabled husband. Ended up on EI - and 70$ over being eligible for assistance - but need (immediate help for shelter deposit)”.

At the hearing the ministry summarized the reconsideration decision and clarified that eligibility is determined month to month. If a client is not eligible for assistance they are automatically not eligible for benefits such as a moving supplement or a crisis supplement. The appellant did not attend the hearing.

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Part F – Reasons for Panel Decision

Appeal Number 2022-0113

The issue in this appeal is whether the ministry decision that denied the appellant income assistance because her net income is more than the rate of assistance for her family unit size is reasonably supported by the evidence or a reasonable application of the legislation.

Under section 1 of the EAPWDR, "unearned income" means any income that is not earned income, and includes, without limitation, money or value received from employment insurance, any type or class of Canada Pension Plan benefits and Federal Old Age Security.

Section 2.01 of the EAPWDR applies for assistance for a calendar month after April 2020. As of December 13, 2021 it states (in part) that employment insurance for a period ending before November 21, 2021 is exempt from income calculations if someone in the family unit was eligible for disability assistance on April 2, 2020.

Section 9(2) of the EAPWDR states a family unit is not eligible for assistance if the net income of the family determined under Schedule B equals or exceeds the amount of income assistance determined under Schedule A.

Section 29 of the Regulation says a person must report income by the fifth of the month after the month they receive it. The ministry uses this information to calculate the appellant’s net income and eligibility for her next month’s disability assistance. For example, she must report the income she received in March by April 5, and it affects her May assistance.

Sections 2 and 4 of Schedule A outline the maximum allowable rate of support and shelter for the size of the family unit before net income deductions. For a couple in which one recipient is a Person with Disabilities, the other is not and is under 65 years of age the rate of support is $1378.50, and the rate of shelter is $570 for a total of $1948.50.

Schedule B of the EAPWD Regulation shows us how to calculate net income: Section 1 lists the types of income that are exempt from the net income calculation and says that a family unit’s net income includes all earned and unearned income, except for the permitted exemptions and deductions under Schedule B.

Section 6 (a) says the only deductions permitted from unearned income are any income tax deducted at source from employment insurance benefits.

Section 7 lists unearned income that is exempt for the purposes of calculating net income. Employment Insurance is not exempt as income unless it is for maternity, parental or benefits to care for a critically ill child. Canada Pension is not exempt unless it is for an orphan’s benefit or a disabled contributor's child's benefit paid or payable under the Canada Pension Plan.

Appellant’s Position The appellant argues she should be eligible for disability assistance because she did not understand that her EI was not exempt and as a result she is left without funds for rent, gas, moving expenses. She also needs money for a 48 hour road trip to visit her sick father-in-law. Without assistance the appellant and her 65 year old disabled husband will be homeless.

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Appeal Number 2022-0113 Ministry’s Position The bank statements the appellant provides confirm she received $1332 EI in March and her spouse received $475.20 for OAS and $545.90 for CPP. As the appellant and her spouse were not eligible on April 2, 2020 and her EI is paid for a period after November 21, 2021 an EI exemption as set out in section 2.01 of the EAPWDR does not apply in the appellant’s circumstances. As the appellant’s EI is not for maternity, parental or benefits to care for a critically ill child, it is not exempt under Schedule B of the EAPWDR. Similarly, as the appellant’s spouse’s CPP income is not for an orphan’s benefit or a disabled contributor's child's benefit, it is not exempt. There are no exemptions permitted for Federal Old Age Security income.

In March the combined income of the appellant’s family unit is $2353.10. As the appellant’s income is more than the $1948.50 rate of assistance under Schedule A she is not eligible for disability assistance. The ministry noted that the appellant’s monthly EI will increase to $1776 per month and her spouse’s OAS and CPP is also expected to continue for a total of $2797.10 per month.

Panel Decision: The panel finds that the ministry decision that denied the appellant income assistance because her net income is more than the rate of assistance for her family unit is reasonably supported by the evidence and is a reasonable application of the legislation in the circumstances of the appellant.

The panel finds the ministry determined correctly that none of the 3 types of family income is exempt from income calculation. The appellant’s EI is not exempt because she was not eligible on April 2, 2020 and only started receiving it after November 21, 2021 (a cut-off date set out in section 2.01 of the EAPWDR), and because there is no evidence that it is for maternity, parental or benefits to care for a critically ill child as set out in Schedule B. Similarly, there is no evidence that the spouse’s CPP income is for an orphan’s benefit or a disabled contributor's child's benefit. There are no exemptions permitted for Federal Old Age Security.

The panel further finds the ministry correctly calculated the combined family income as documented by the appellant’s and her husband’s bank records, her Common Claimant Report and her monthly report. In March 2022 she received $1332 for EI and her husband received $475.20 for OAS and $475.20 for CPP. These amounts add up to a family income of $2353.10 which is more than the assistance rate of $1948.50 set out in Schedule A.

The panel sympathizes with the appellant who faces financial problems because she was under the misapprehension that her EI would be exempt from her family income. The panel notes that only earned income and certain Workers Compensation Act payments qualify for the annual exemption limit. However, the panel finds the ministry reasonably concluded that her EI was not exempt from family income calculation and she is not eligible for disability assistance.

Conclusion The panel finds that the Ministry’s decision that the appellant is not eligible for income assistance because her net income is more than the rate of assistance for her family unit size is reasonably supported by the evidence and a reasonable application of the EAPWDR in the circumstances of the appellant. The ministry’s decision is confirmed and the appellant is not successful in her appeal.

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Appeal Number 2022-0113

Employment and Assistance for Persons with Disabilities Regulation Definitions 1 (1)In this regulation: "unearned income" means any income that is not earned income, and includes, without limitation, money or value received from any of the following:

(a)money, annuities, stocks, bonds, shares, and interest bearing accounts or properties; (b)cooperative associations; (c)war disability pensions, military pensions and war veterans' allowances; (d)insurance benefits, except insurance paid as compensation for a destroyed asset; (e)superannuation benefits; (f)any type or class of Canada Pension Plan benefits; (g)employment insurance; (h)union or lodge benefits; (i)financial assistance provided under the Employment and Assistance Act or provided by another province or jurisdiction; (j)workers' compensation benefits and disability payments or pensions; (k)surviving spouses' or orphans' allowances; (l)a trust or inheritance; (m)rental of tools, vehicles or equipment; (n)rental of land, self-contained suites or other property except the place of residence of an applicant or recipient; (o)interest earned on a mortgage or agreement for sale; (p)maintenance under a court order, a separation agreement or other agreement; (q)education or training allowances, grants, loans, bursaries or scholarships; (r)a lottery or a game of chance; (s)awards of compensation under the Criminal Injury Compensation Act or awards of benefits under the Crime Victim Assistance Act, other than an award paid for repair or replacement of damaged or destroyed property; (t)any other financial awards or compensation; (u)Federal Old Age Security and Guaranteed Income Supplement payments; (v)financial contributions made by a sponsor pursuant to an undertaking given for the purposes of the Immigration and Refugee Protection Act (Canada) or the Immigration Act (Canada); (w)tax refunds; (x)gifts of money, annuities, stocks, bonds, shares, and interest bearing accounts or properties; (y)gifts in the form of payment by another person of a debt or obligation. (2)Subsection (2.1) applies to a child if (a)the child relies on both parents for the necessities of life, and (b)the child resides (i)with each parent for 50% of each month in circumstances where the parents live in different residences, or (ii)with both parents in circumstances where the parents live in the same residence but are not spouses. (2.1)For the purposes of the Act and this regulation, a child described in subsection (2) (a)is a dependent child of the parent who is an applicant or recipient, provided only

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Appeal Number 2022-0113 one of the parents is an applicant or recipient, or (b)if both parents are applicants or recipients, is a dependent child only of the parent who is designated in writing by both parents. (3)For the purposes of the definition of "special care facility", the minister may approve as a specialized adult residential care setting a place that provides accommodation and care for adults and for which a licence under the Community Care and Assisted Living Act is not required.

Modifications in relation to COVID-19 emergency — certain payments 2.01 (1)This section applies in relation to the provision of assistance for a calendar month after April, 2020 to or for (a)a family unit that (i)was eligible on April 2, 2020, or includes a person who was in a family unit that was eligible on April 2, 2020, for disability assistance or hardship assistance, or (ii)includes a person with disabilities who was a person with disabilities on April 2, 2020, or (b)a family unit that is described in section 2.1 (1) (a) of the Employment and Assistance Regulation. … (3)Section 1 (a) of Schedule B is to be read as though it also provided that the following are exempt from income when calculating the net income of a family unit for the purposes of section 24 (b) of this regulation: (a)an income support payment under the Canada Emergency Response Benefit Act; (a.1)a benefit under the Canada Recovery Benefits Act; (a.2)a benefit under the Canada Worker Lockdown Benefit Act; (b)employment insurance for a period ending before November 21, 2021; (c)pandemic pay…

Limits on income 9 (2)A family unit is not eligible for disability assistance if the net income of the family unit determined under Schedule B equals or exceeds the amount of disability assistance determined under Schedule A for a family unit matching that family unit.

Amount of disability assistance 24 Disability 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.

Reporting requirement 29 For the purposes of section 11 (1) (a) [reporting obligations] of the Act, (a)the report must be submitted by the 5th day of the calendar month following the calendar month in which one or more of the following occur: (i)a change that is listed in paragraph (b) (i) to (v); (ii)a family unit receives earned income as set out in paragraph (b) (vi); (iii)a family unit receives unearned income that is compensation paid under section 191 [temporary total disability] or 192 [temporary partial disability] of the Workers Compensation Act as set out in paragraph (b) (vii), and (b)the information required is all of the following, as requested in the monthly report form specified by the minister:

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Appeal Number 2022-0113 (i)change in the family unit's assets; (ii)change in income received by the family unit and the source of that income; (iii)change in the employment and educational circumstances of recipients in the family unit; (iv)change in family unit membership or the marital status of a recipient; (v)any warrants as described in section 14.2 (1) of the Act; (vi)the amount of earned income received by the family unit in the calendar month and the source of that income; (vii)the amount of unearned income that is compensation paid under section 191 [temporary total disability] or 192 [temporary partial disability] of the Workers Compensation Act received by the family unit in the calendar month.

Schedule A Disability Assistance Rates

Maximum amount of disability assistance before deduction of net income 1 (1)Subject to this section and sections 3 and 6 to 9 of this Schedule, the amount of disability assistance referred to in section 24 (a) [amount of disability assistance] of this regulation is the sum of (a)the monthly support allowance under section 2 of this Schedule for a family unit matching the family unit of the applicant or recipient, plus (b)the shelter allowance calculated under sections 4 and 5 of this Schedule.

Monthly support allowance 2 (1)A monthly support allowance for the purpose of section 1 (a) is the sum of (a)the amount set out in Column 3 of the following table for a family unit described in Column 1 of an applicant or a recipient described in Column 2, plus (b)the amount calculated in accordance with subsections (2) to (4) for each dependent child in the family unit.

Item

3

Column 1 Family unit composition

Column 2 Age or status of applicant or recipient

Column 3 Amount ($)

Two applicants / recipients and One applicant / recipient is a person with disabilities, the other $1 378.50 no dependent children is not a person with disabilities and is under 65 years of age

Monthly shelter allowance 4 (2)The monthly shelter allowance for a family unit to which section 14.2 of the Act does not apply is the smaller of (a)the family unit's actual shelter costs, and (b)the maximum set out in the following table for the applicable family size:

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Item

2

Column 1 Column 2 Family Unit Size Maximum Monthly Shelter

2 persons

$570

Appeal Number 2022-0113

Schedule B Net Income Calculation

Deduction and exemption rules 1 When calculating the net income of a family unit for the purposes of section 24 (b) [amount of disability assistance] of this regulation, (a)the following are exempt from income: (i)any income earned by a dependent child attending school on a full-time basis; (ii)Repealed. [B.C. Reg. 96/2017, App. 2, s. 2 (a).] (iii)Repealed. [B.C. Reg. 48/2010, Sch. 1, s. 2 (c).] (iv)a family bonus, except the portion treated as unearned income under section 10 (1) of this Schedule; (iv.1)the Canada child benefit, except the portion treated as unearned income under section 10 (1) of this Schedule; (v)the basic child tax benefit; (vi)a goods and services tax credit under the Income Tax Act (Canada); (vii)a tax credit under section 8 [refundable sales tax credit], 8.1 [climate action tax credit] or 8.2 [BC harmonized sales tax credit] of the Income Tax Act (British Columbia); (viii)individual redress payments granted by the government of Canada to a person of Japanese ancestry; (ix)individual payments granted by the government of Canada under the Extraordinary Assistance Plan to a person infected by the human immunodeficiency virus; (x)individual payments granted by the government of British Columbia to a person infected by the human immunodeficiency virus or to the surviving spouse or dependent children of that person; (xi)individual payments granted by the government of Canada under the Extraordinary Assistance Plan to thalidomide victims; (xii)money that is (A)paid or payable to a person if the money is awarded to the person by an adjudicative panel in respect of claims of abuse at Jericho Hill School for the Deaf and drawn from a lump sum settlement paid by the government of British Columbia, or (B)paid or payable to or for a person if the payment is in accordance with the settlement agreement approved by the Supreme Court in Action No. C980463, Vancouver Registry; (xii.1)money that is paid or payable to or for a person if the payment is in accordance with the settlement under the Final Settlement Agreement and Supplementary Agreement approved by the Federal Court June 22, 2018 in Court File No. T-370-17, Todd Edward Ross et al. v. Her Majesty the Queen; (xii.2)money that is paid or payable to or for a person if the payment is in accordance with the settlement under the Final Settlement Agreement approved by the Federal Court January 30, 2019 in Court File No. T-1068-14, Raymond Michael Toth v. Her Majesty the Queen; (xiii)the BC earned income benefit; (xiv)money paid or payable under the 1986-1990 Hepatitis C Settlement Agreement made June 15, 1999, except money paid or payable under section 4.02 or 6.01 of Schedule A or of Schedule B of that agreement;

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Appeal Number 2022-0113 (xv)a rent subsidy provided by the provincial government, or by a council, board, society or governmental agency that administers rent subsidies from the provincial government; (xvi)Repealed. [B.C. Reg. 197/2012, Sch. 2, s. 11 (a).] (xvii)money paid or payable to a person in settlement of a claim of abuse at an Indian residential school, except money paid or payable as income replacement in the settlement; (xvii.1)money that is paid or payable to or for a person if the payment is in accordance with (A)the Sixties Scoop Settlement made November 30, 2017, or (B)the Federal Indian Day Schools Settlement made March 12, 2019, as amended May 13, 2019; (xviii)financial assistance payments provided under Part 6 of the Adoption Regulation, B.C. Reg. 291/96; (xix)a rebate of energy or fuel tax provided by the government of Canada, the government of British Columbia, or an agency of either government; (xx)money paid by the government of British Columbia, under a written agreement, to a person with disabilities or to a trustee for the benefit of a person with disabilities to enable the person with disabilities to live in the community instead of in an institution; (xxi)Repealed. [B.C. Reg. 85/2012, Sch. 2, s. 7.] (xxii)payments granted by the government of British Columbia under section 8 [agreement with child's kin and others] of the Child, Family and Community Service Act; (xxiii)payments granted by the government of British Columbia under the Ministry of Children and Family Development's At Home Program; (xxiv)Repealed. [B.C. Reg. 85/2012, Sch. 2, s. 7.] (xxv)payments granted by the government of British Columbia under an agreement referred to in section 93 (1) (g) (ii) of the Child, Family and Community Service Act, for contributions to the support of a child; (xxvi)a loan that is (A)not greater than the amount contemplated by the recipient's business plan, accepted by the minister under section 70.1 of this regulation, and (B)received and used for the purposes set out in the business plan; (xxvii)payments granted by the government of British Columbia under the Ministry of Children and Family Development's (A)Autism Funding: Under Age 6 Program, or (B)Autism Funding: Ages 6 — 18 Program; (xxviii)Repealed. [B.C. Reg. 148/2015, App. 2, s. 1 (a).] (xxix)payments made by a health authority or a contractor of a health authority to a recipient, who is a "person with a mental disorder" as defined in section 1 of the Mental Health Act, for the purpose of supporting the recipient in participating in a volunteer program or in a mental health or addictions rehabilitation program; (xxx)a refund provided under Plan I as established under the Drug Plans Regulation; (xxxi)payments provided by Community Living BC to assist with travel expenses for a recipient in the family unit to attend a self-help skills program, or a supported work placement program, approved by Community Living BC;