Ministry of Social Development and Poverty Reduction

Part C – Decision Under Appeal

Appeal Number 2022-0206

The decision under appeal is the Ministry of Social Development and Poverty Reduction (ministry) reconsideration decision dated August 11, 2022, which determined the appellant was not eligible for disability assistance for August 2022 as per the Employment and Assistance for Persons with Disabilities Regulation, sections 1, 6, 9, 24 and 29 and Schedules A and B.

Specifically, the ministry determined the appellant was not eligible for August 2022 disability assistance as the family has reached its Annual Earnings Exemption limit for 2022 and the net income of the family in June 2022, which affects August disability assistance, exceeded the rate of disability assistance.

Part D – Relevant Legislation

Employment and Assistance for Persons with Disabilities Regulation (EAPWDR) sections 1, 6, 9, 24 and 29, Schedule A, sections 1, 2 and 4 and Schedule B, sections 1, 2, and 3

EAAT003 (17/08/17) 2

Part E – Summary of Facts

Appeal Number 2022-0206

Relevant Evidence Before the Minister at Reconsideration

Ministry Records show:  The appellant has Persons with Disabilities (PWD) designation and receives assistance as a single parent with one dependent child. His file was reopened in October 2014. In June 2022 the appellant confirmed his wife has a work visa but not Permanent Residence nor Canadian Citizenship status. The ministry determined that as she does not have immigration status in Canada she does not receive ministry assistance.  The appellant receives $1,755.50 per month for disability assistance ($1,133.50 support allowance, $570.00 shelter allowance, and $52.00 transportation supplement).  On July 20, 2022 the ministry reviewed paystubs from the appellant’s spouse’s employment. The ministry advised the appellant that his file was being switched to Medical Services Only, as his Annual Earnings Exemption (AEE) had been exhausted for 2022.

Request for Reconsideration (August 18, 2022) The appellant states he is unhappy with the decision to stop his disability assistance as he is old and has no source of income. There are four members in their house (appellant, his spouse and two children). His spouse’s income is nearly $2,200.00 – $2,500.00/month and his children do not have any income as they are students. Their house rent is $1400/month, and with the rest ($1,100.00), they buy groceries and other household items. The appellant states they are not able to adjust this.

Appellant’s Spouse’s Pay Slip (pay date May 13, 2022) Net pay - year to date - $14,600.73

Appellant’s Spouse’s Pay Slip (pay date June 1, 2022) Net pay - $1,391.91

Appellant’s Spouse’s Pay Slip (pay date June 15, 2022) Net pay - $1,388.78, year to date - $17,381.46

Appellant’s Spouse’s Pay Slip (pay date June 30, 2022) Net pay - $1,119.70,

Monthly Report (July 5, 2022) Under the section “Declare all income…” the appellant stated, Net Employment Income - $2,508.48 Child Support - $481.00 Income Tax Refund - $200.00 The report was signed by both the appellant and his spouse.

EAAT003 (17/08/17) 3

Appeal Number 2022-0206

Immigration, Refugees and Citizenship Canada Work Permit Date Issued September 30, 2019 Expiry Date – September 30, 2021

Letter to Appellant’s Spouse from Service Canada (October 2019) Social insurance number expires September 2021

Annual Earnings Exemption Calculation (2021 onward) AEE Income Qualifying Benefit available at month income Month start of amount month $15,000.00 January $2,616.01 March $12,383.99 February $2.813.56 April $9,570.43 March $2,597.17 May $6,973.26 April $5,175.19 June $1,798.07 May $1,398.80 July $399.27 June $3,900.39 August $0.00 July $0.00 September $0.00 August $0.00 October $0.00 September $0.00 November $0.00 October $0.00 December $0.00 November $0.00 January $0.00 December $0.00 February

Exempt income amount

$2,616.01 $2,813.56 $2,597.17 $5,175.19 $1,398.80 $399.27 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Non- exempt income amount $0.00 $0.00 $0.00 $0.00 $0.00 $3,501.12 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

AEE remaining at end of month $12,383.99 $9,570.43 $6,973.26 $1,798.07 $399.27 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Additional Information

Appellant Notice of Appeal (August 31, 2022) The appellant states he is appealing because the ministry denied his appeal previously and he is not satisfied with the decision.

Letter from Appellant (August 31, 2022) The appellant states he is not able to work because of his age and disability. There are three members in their house. Their son does not earn any income as he is a student and their daughter lives in another country. His spouse earns $2,200.00 – $2,500.00 per month and they pay $1,400.00 rent per month. With the rest of their income ($1,100.00), they manage groceries and household items. The appellant states $1,100.00 is a very little amount for the family. As well, their daughter is dependent on them; they give her $500.00 every month.

At the hearing, the appellant stated he had been in a truck accident and was seriously hurt. As a result, he has been on disability for seven or eight years. Even before his accident he had many health issues.

EAAT003 (17/08/17) 4

Appeal Number 2022-0206

In 2019 he was married. His wife continued working and they have provided the ministry with the paystubs from his wife’s employment. The appellant stated that after their expenses are paid they are left with $500.00, which goes toward the phone bill, groceries etc. They have two children and their daughter is in another country. It’s very hard to survive.

When asked if the appellant believes the ministry has made a mistake in calculating his spouse’s earnings and the AEE, the appellant stated he doesn’t know.

In response to clarification of the appellant’s spouse’s present work status (re: expired work permit and social insurance number), the appellant’s spouse, on behalf of the appellant stated she has an open work permit and doesn’t believe a social insurance number has an expiry date. The appellant added he is a Canadian citizen and they are waiting for permanent residency status for his wife.

The panel determined all the additional information is reasonably required for a full and fair disclosure of all matters related to the decision under appeal and therefore is admissible under section 22(4) of the Employment and Assistance Act.

Part F – Reasons for Panel Decision

EAAT003 (17/08/17) 5

Appeal Number 2022-0206

The ministry did not attend the hearing. After confirming that the ministry was notified, the hearing proceeded under section 86(b) of the Employment and Assistance Regulation.

The issue on appeal is whether the ministry’s reconsideration decision that determined the appellant was not eligible for disability assistance for August 2022 as per the EAPWDR, was reasonably supported by the evidence or was a reasonable application of the legislation in the circumstances of the appellant.

Specifically, did the ministry reasonably determine that the appellant was not eligible for August 2022 disability assistance as the family had reached its AEE limit for 2022 and the family’s June 2022 net income exceeded the disability assistance rate?

Relevant sections of the legislation can be found in the Schedule of Legislation at the end of this decision.

Appellant Argument The appellant argues he is not able to work because of his age and disability and has no source of income. There are four members in their house (appellant, his spouse and two children – one of which is out of the country).

His spouse’s income is nearly $2,200.00 – $2,500.00/month, and his children do not have an income as they are students. Their rent is $1400/month, and with the rest, $1,100.00, they buy groceries and other household items. The appellant argues they are not able to make adjustments and is requesting that his disability assistance be continued.

Ministry Argument The ministry argues that although the appellant has a spouse who is not on disability assistance, in accordance with section 6(3) of the EAPWDR, the appellant must declare the spouse’s income.

The ministry also argues that the money the appellant’s spouse receives from employment is earned income because it is money received in exchange for work or the provision of a service.

Upon review of the appellant’s file, the ministry notes that as of May 13, 2022 the appellant’s spouse’s year-to-date net earnings from employment were $14,600.73. The ministry is satisfied they were not paid later in May. The ministry argues that this means the appellant had $399.27 remaining for their AEE limit for 2022.

The appellant’s spouse’s June paystubs indicate that they earned $3,900.39 net employment income in June. The first $399.27 of this income is exempt under Section 3 of schedule B (EAPWDR). This means the appellant’s June net income under schedule B is: $3900.39 - $399.27 = $3501.12.

The ministry argues further that as the appellant reached the AEE limit for 2022, $3,501.12 was not exempt and must be included in the net income calculation. Therefore, in accordance with Section 9(2)

EAAT003 (17/08/17) 6

Appeal Number 2022-0206

of the EAPWDR, the appellant is not eligible for August assistance as the income of $3,501.12 is more than the rate of assistance for the appellant’s family unit size. The appellant’s spouse’s employment income in 2022 is no longer exempt and must be deducted from the appellant’s rate of disability assistance.

The ministry adds that if the appellant’s spouse’s employment income changes in the future, he may be eligible for disability assistance.

Panel Analysis Sections 1, 6, 9 and 24 EAPWDR – earned income definition, citizenship requirements and limits Section 1 of the EAPWDR states earned income means any money received in exchange for work. The panel finds the paystubs submitted demonstrate earned income in exchange for work.

Subsection 6(1) states for a family unit to be eligible for disability assistance at least one applicant or recipient in the family unit must be a Canadian citizen. The appellant states he is a Canadian citizen. This is not in dispute. Subsection 6(2) then states disability assistance may be provided to the family for each person who meets certain citizenship criteria. The panel finds the appellant’s spouse does not meet any of the criteria under subsection 6(2). Subsection 6(3) states if a family includes a person who is not described in subsection (2), the person's income must be included in the income of the family unit for the purposes of determining whether the family is eligible for assistance. Therefore, the panel finds the ministry reasonably determined that the appellant’s spouse’s earnings should be included in the AEE calculation to determine the amount of his disability assistance.

Section 9 of the EAPWDR states a family is not eligible for disability assistance if the net income of the family determined under Schedule B equals or exceeds the amount of disability assistance determined under Schedule A. And, section 24 states disability assistance may be provided to a family, for a calendar month, in an amount that is not more than the amount determined under Schedule A, minus the family unit's net income determined under Schedule B.

The appellant’s spouse’s pay stubs show net pay for June 2022 total $3,901.39.

Section 29 EAPWDR – reporting requirement Section 29 states the report must be submitted by the 5th day of the calendar month following the calendar month in which a family unit receives earned income (the amount of earned income received by the family in the calendar month and the source of that income). The AEE calculation chart shows the appellant and his spouse have been reporting the income. The ministry does not dispute this.

Schedule A, EAPWDR, sections 1, 2 and 4 – maximum disability assistance, support and shelter allowance Section 1 states the amount of disability assistance is the sum of the monthly support allowance plus the shelter allowance. The monthly support allowance for a sole applicant/recipient and one or more dependent children is determined as $1,133.50 (section 2) and the monthly maximum shelter allowance

EAAT003 (17/08/17) 7

Appeal Number 2022-0206

for 2 persons is determined as $570.00 (section 4). Ministry records show the monthly disability assistance includes a $52.00 transportation supplement. $1,333.50 + $570.00 + $52.00 (transportation supplement) = $1,755.50.

Schedule B, EAPWDR, sections 1 and 2 - deduction and exemption rules Section 1 provides a listing of monies that are exempt from income when calculating the family net income. The only deductions permitted from earned income are an amount deducted at source for income tax, employment insurance, medical insurance, Canada Pension Plan, superannuation, company pension plan, and union dues (section 2). The panel finds that the ministry was reasonable to rely on the net pay amounts on the spouse's June 2022 pay stubs to determine that the net income of the family unit for June 2022 was $3,900.39.

Schedule B, EAPWDR, section 3 – annual exemption Section 3 of the EAPWDR states, base amount means $1,250.00, in the case of a family unit that includes only one recipient. The panel notes, ministry records show the appellant has PWD designation and receives assistance as a single parent with one dependent child. Therefore, the panel finds the ministry reasonably determined the AEE is $15,000.00/year ($1,250 x 12 months = $15,000.00)

The panel finds that the pay stubs for January through June 2022 support the ministry's conclusion that as of June 2022 the spouse's net income was $14,600.73 and that only $399.27 remained of the AEE.

As $3,900.39 (June net income) - $399.27 (remaining AEE) = $3,501.12, which is greater than $1,755.50 (disability assistance), the panel finds the ministry reasonably determined that in accordance with sections 9 and 24 of the EAPWDR, the appellant was not entitled to disability assistance for August 2022 (benefit month).

Conclusion In conclusion, the panel finds the ministry decision which determined the appellant was not eligible for disability assistance for August 2022 as per the EAPWDR, as the family had reached its AEE limit for 2022 and had net income in excess of the disability assistance rate, was reasonably supported by the evidence.

The appellant is not successful on appeal.

EAAT003 (17/08/17) 8

Appeal Number 2022-0206

Schedule of Legislation

Employment and Assistance for Persons with Disabilities Regulation

Definitions 1 (1)In this regulation:

"earned income" means (a)any money or value received in exchange for work or the provision of a service…

Citizenship requirements 6 (1)For a family unit to be eligible for disability assistance at least one applicant or recipient in the family unit must be (a)a Canadian citizen…

(2)If a family unit satisfies the requirement under subsection (1), disability assistance and supplements may be provided to or for the family unit on account of each person in the family unit who is (a)a Canadian citizen, (b)authorized under an enactment of Canada to take up permanent residence in Canada, (c)determined under the Immigration and Refugee Protection Act (Canada) or the Immigration Act (Canada) to be a Convention refugee, (d)in Canada under a temporary resident permit issued under the Immigration and Refugee Protection Act (Canada) or on a minister's permit issued under the Immigration Act (Canada), (e)in the process of having a claim for refugee protection, or application for protection, determined or decided under the Immigration and Refugee Protection Act (Canada), (f)subject to a removal order under the Immigration and Refugee Protection Act (Canada) that cannot be executed, or (g)a dependent child.

(3)If a family unit includes a person who is not described in subsection (2), (a)the person's income and assets must be included in the income and assets of the family unit for the purposes of determining whether the family unit is eligible for assistance, except as otherwise provided in this regulation…

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.

EAAT003 (17/08/17) 9

Appeal Number 2022-0206

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); … (b)the information required is all of the following, as requested in the monthly report form specified by the minister: (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; … (vi)the amount of earned income received by the family unit in the calendar month and the source of that income; …

Schedule A

Disability Assistance Rates (section 24 (a) )

Maximum amount of disability assistance before deduction of net income 1 (1)Subject to this section and sections 3 and 6 to 8 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 (0.1)For the purposes of this section:

"deemed dependent children", in relation to a family unit, means the persons in the family unit who are deemed to be dependent children under subsection (5);

… (1)A monthly support allowance for the purpose of section 1 (a) is the sum of

EAAT003 (17/08/17) 10

Item

2

Appeal Number 2022-0206 (a)the amount set out in Column 3 of the follow ing 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. Column 1 Column 2 Family unit composition Age or status of applicant or recipient

Sole applicant / recipient and one or more dependent children

Applicant / recipient is a person with disabilities

Column 3 Amount ($)

$1 133.50

Monthly shelter allowance 4 (1)For the purposes of this section:

"family unit" includes a child who is not a dependent child and who relies on the parent for the necessities of life and resides in the parent's place of residence for not less than 40% of each month…

(2)The monthly shelter allowance for a family unit other than a family unit described in section 14.2 (1) of the Act is the greater of (a)the minimum set out in the following table for the family unit, and (b)the lesser of (i)the family unit's actual shelter costs, and (ii)the maximum set out in the following table for the family unit. Item Column 1 Column 2 Column 3 Family Unit Size Minimum Maximum

Schedule B

2

2 persons

$150

Net Income Calculation (section 24 (b) )

$570

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);

EAAT003 (17/08/17) 11

Appeal Number 2022-0206 (vii)a tax credit under section 8 [refundable sal es 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; (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.]

EAAT003 (17/08/17) 12