Ministry of Social Development and Poverty Reduction

Part C – Decision Under Appeal

2024-0202

The decision under appeal is the Ministry of Social Development and Poverty Reduction (the “Ministry”) Reconsideration Decision of May 23, 2024. The Ministry determined that the Appellant was not eligible for income assistance due to his spouse having had income in the months of February 2024 and March 2024 that exceeded the amount of income to which the Appellant’s family unit would otherwise have been entitled to receive.

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2024-0202 Part D – Relevant Legislation Employment and Assistance Regulation (the “Regulation”)- sections 1, 10, Schedule A- sections 1, 2, and 4, and Schedule B- sections 1, 2, and 3

A full text of the above-noted legislation is reproduced at the end of Part F of this decision.

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Part E – Summary of Facts

2024-0202

The hearing proceeded by teleconference on June 28, 2024 with the Appellant and his advocate and a representative of the Ministry in attendance by teleconference.

The Appellant is an applicant for income assistance with a family unit consisting of himself, his spouse, and a dependant child.

The information before the Ministry at the time of the Reconsideration Decision included the following:

• a bank statement from an account in the name of the Appellant’s spouse, dated March 28, 2024, showing two deposits from the employer of the Appellant’s spouse on each of March 8, 2024 and March 22, 2024, in the amounts of $2,472.97 and $2,748.40, respectively; • a bank statement from an account in the name of the Appellant’s spouse, dated March 21, 2024, showing two deposits from the employer of the Appellant’s spouse on each of February 23, 2024 and March 8, 2024, in the amounts of $748.80 and $824.32, respectively; • the Appellant’s Application for Assistance, dated May 13, 2024 (the “Application”); • the Appellant’s Application for designation as a Person with Disabilities, dated May 8, 2024; • the Appellant’s Request for Reconsideration, dated May 8, 2024, in which he wrote that: o he was applying for a designation as a Person with Disabilities; o his spouse needed his help financially because of her son and the need to work shifts; o he did not like to have to ask his spouse for assistance; and o having money of his own would lessen the burden on his spouse.

The panel notes that some of the payments to the Appellant’s spouse, referenced in the Reconsideration Decision are not confirmed by copies of statements in the Appeal Record. In particular, the Ministry referred to a bank statement for February which indicated income received by the Appellant’s spouse on February 9, 2024 and February 23, 2024 in the amounts of $2,374.71 and $2,246.41, respectively. That statement, for reasons that are not clear, was not in the Appeal Record. Nevertheless, the amounts were not contested by the Appellant and are consistent with the income received by the Appellant’s spouse in March 2024.

In his Notice of Appeal, filed May 24, 2024, the Appellant included a typed letter in which he wrote that he had been assessed as having a disability by the federal government and that his spouse was penalized for his disability. He noted that he received $758.09 monthly from a

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2024-0202 Canada Pension Plan disability pension and noted that his application should not really be assessed as a couple as he was not really contributing financially to the family.

The Appellant also indicated that he felt the Ministry needed to reassess the eligibility requirements for the Person with Disabilities (“PWD”) designations, particularly in situations where a person has already been designated as disabled by the federal government. The Appellant also noted that he had a right to a top up of his disability pension, presumably to the amount of income assistance for which he would otherwise be eligible.

Information Received Prior to the Hearing

The Ministry filed a submission on June 24, 2024 (the “Submission”). The Submission consisted of a letter, dated June 24, 2024, noting that the Appellant and his spouse had exceeded the amount of assistance for which the family was eligible and, as a new applicant, the Appellant’s family unit was not eligible for any earnings exemption. The letter also confirmed that the Appellant’ PWD application had been approved in late June.

The Appellant did not object to the admissibility of the letter. Likewise, the Ministry did not object to the typed letter attached to the Appellant’s Notice of Appeal.

The panel admits both documents as evidence under section 22(4) of the Employment and Assistance Act. In the case of the Appellant’s letter, the panel finds that it is evidence that is reasonably required for a full and fair hearing on the matter that is the subject of this appeal. In the case of the Submission, it is effectively argument only and does not contain any new evidence, per se.

The Hearing

The Appellant

At the hearing, the Appellant described the process for applying for PWD as very confusing. The Appellant noted that he had been deemed disabled by the federal government (i.e. was receiving a CPP disability pension) and felt that his income assistance should be topped up from what his CPP disability pension was.

The Appellant confirmed that he is living in a marriage-like relationship with his partner who has a disabled son. The Appellant’s spouse is the only person working in the household and that she often has to work extra shifts to cover all of the expenses. The Appellant felt that his partner was being penalized in a way. The Appellant and the advocate argued that eligibility for assistance should be assessed on an individual basis with the Ministry looking at an applicant’s individual

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2024-0202 circumstances. The Appellant did not understand why the family’s income was being taken into account for his application for income assistance when he wasn’t contributing anything to the family. The Appellant confirmed that his spouse’s income remained at or near $4,500.00 to $5,000.00 per month.

During the hearing, the Appellant clarified that the reference to him being “separated” on the Application was in respect of his first wife from whom he is separated but not yet divorced. The Appellant confirmed that he remains in a spousal relationship with his current partner.

The Ministry

The Ministry reiterated that the Appellant’s rate of income assistance for a family unit such as his was $1,845.00 per month. As the Appellant’s spouse’s income exceeded that amount in March 2024 and there was no indication that it had declined, the Appellant’s family unit was ineligible for income assistance in the month of May.

The Ministry further advised that the Appellant would be eligible for $1,483.50 in disability assistance as a single person, if he wished to apply as a single person.

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Part F – Reasons for Panel Decision

2024-0202

Issue on Appeal

The issue in this appeal is whether the Ministry was reasonable in its determination that the Appellant’s family unit was not eligible for income assistance as a result of the Appellant’s spouse’s income exceeding the rate of disability assistance for which the family unit was eligible.

Analysis

Section 1 of Schedule A to the Regulation sets out the maximum monthly amounts of support and shelter allowance to which recipients of income assistance are entitled. In the case of the Appellant, whose family unit consists of himself, his spouse, and a dependent child, that amount is $1,845.00 per month, comprised of a support allowance ($1,055) and shelter allowance ($790.00).

Section 10 to the Regulation sets out that a family unit is not entitled to income assistance if the family unit’s net income is more than the amount of income assistance determined by Schedule A. Section 24 further sets out that the amount of disability assistance payable to a family unit is the amount determined by Schedule A less the family unit’s net income determined by Schedule B.

Schedule B to the Regulation sets out how a family’s net income is calculated. The term net income is not a defined term in the Regulation. However, “earned income”, which is a component of net income is defined in Section 1 of the Regulation and the definition includes “any money or value received in exchange for work or the provision of a service.” The Appellant’s spouse’s income from employment clearly meets that definition.

Schedule B to the Regulation also sets out a number of items that are deductible or exempt from being included in the calculation of the Appellant’s family unit’s net income. Section 1(a) of Schedule B, in particular lists various different items that are exempt. Employment income is not among them and Section 1(c) of the Regulation specifically sets out that all earned income must be included unless it falls within the deductions and exemptions permitted under Sections 2, 3, and 4 of Schedule B to the Regulation. As such, the panel finds that the Ministry reasonably determined that the Appellant’s spouse’s employment income must be included in the calculation of net income unless otherwise deductible or exempt under Sections 2, 3, or 4 of Schedule B to the Regulation.

Sections 2 of Schedule B to the Regulation specifically describes various items that are deductible from earned income.

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2024-0202

Under Section 2(a), the deductions include the usual amounts withheld from an employees pay, including income tax, Canada Pension Plan premiums, employment assistance premiums, medical insurance, union dues, and pension plan deductions. As the amounts received by the Appellant’s spouse reflect the Appellant’s net pay, these amounts have already been deducted from the Appellant’s spouse’s income.

Section 3 of Schedule B to the Regulation sets out the rules for the earned income exemption. However, Section 3(2) of Schedule B to the Regulation sets out that a family unit may not claim an exemption under Section 3 “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 of income assistance in at least one of the 6 calendar months immediately preceding that first calendar month.”

The Appellant’s family unit was not eligible for income assistance until at least May 2024 and there is no indication that any member of the family unit had received income or disability assistance in the six preceding months. For these reasons, the panel finds that the Ministry reasonably determined that the earned income exemption also did not apply to the Appellant’s spouse’s income.

Finally, Section 4 of Schedule B to the Regulation sets out that there is a small business exemption available as well. However, the Appellant’s spouse’s income is not from a small business but from employment therefore Section 4 is not applicable.

The panel finds that the Ministry was reasonable in its determination that, even after applying the deductions available in Section 2 of Schedule B, the Appellant’s spouse’s income, which is included in net income, was in excess of the rate of income assistance to which the Appellant’s family unit was entitled and that the exemptions available under Sections 3 and 4 were not applicable to the Appellant’s circumstances.

Conclusion

In view of the above, the panel finds that that the Ministry reasonably determined that the Appellant’s family unit was not eligible for income assistance in May 2024 as the Appellant’s spouse’s income in March exceeded the rate of assistance for which the family unit was eligible. The Reconsideration Decision is confirmed and Appellant is not successful in this appeal.

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Relevant Legislation

Employment and Assistance Regulation

Definitions 1 (1) In this regulation:

2024-0202

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

Limits on income 10 (1) 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.

Employment and Assistance Regulation, Schedule A

Maximum amount of income assistance before deduction of net income 1 (1) Subject to this section and sections 3 and 6 to 10 of this Schedule, the amount of income assistance referred to in section 28 (a) [amount of income 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.

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2024-0202 (2) Despite subsection (1) but subject t o subsection (3), income assistance may not be provided in respect of a dependent child if support for that child is provided under section 8 (2) or 93 (1) (g) (ii) of the Child, Family and Community Service Act. (3) If (a) an application is made by a parenting dependent child under section 5 (4) [application by parent who is dependent youth]of this regulation, (b) the family unit is found eligible for income assistance, and (c) support is provided for the parenting dependent child or that individual's dependent child, or for both, under section 8 (2) or 93 (1) (g) (ii) of the Child, Family and Community Service Act,

the restriction in subsection (2) does not apply, but the amount of income assistance that may otherwise be provided to the family unit is to be reduced by the amount of that support.

Monthly support allowance 2 (0.1) For the purposes of this section:

Item

12

"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);

"warrant" has the meaning of a warrant in section 15.2 [consequences in relation to outstanding arrest warrants] of the Act.

(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. Column 1 Column 2 Column 3 Family unit composition Age or status of applicant or Amount of Support recipient

Two applicants/recipients and one or more dependent children

Both applicants/recipients are under 65 years of age

$1 055.00

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2024-0202 (2) If the family unit includes one or m ore dependent children or deemed dependent children, the support allowance under subsection (1) for a calendar month is increased by an amount equal to (a) the total BC child adjustment amount for all dependent children and all deemed dependent children in the family unit, minus (b) the sum of (i) the family bonus, if any, paid to the family unit for the preceding month, (ii) the Canada child benefit, if any, paid to the family unit for the preceding month in respect of dependent children in the family unit, up to a maximum of the BC child adjustment amount in respect of those dependent children, and (iii) the total amount of the supplements, if any, provided to or for the family unit under section 61 [supplement for delayed, suspended or cancelled family bonus] or 61.1 [supplement for delayed, suspended or cancelled Canada child benefit] of this regulation for the current calendar month. (2.1) If the amount calculated under subsection (2) is less than zero, it is deemed to be zero for the purposes of this section. (3) In calculating the adjustment under subsection (2), an amount that, under the Income Tax Act (British Columbia) or the Income Tax Act (Canada), is deducted or set off from the family bonus or the Canada child benefit must be treated as if it were paid to a person in the family unit. (4) The support allowance under subsection (1) for a calendar month is not increased under subsection (2) if a person in the family unit refuses to (a) apply for the family bonus or the Canada child benefit for the preceding calendar month, or (b) accept the family bonus or the Canada child benefit for the preceding calendar month

in respect of a dependent child in the family unit who is, or may be, a qualified dependant within the meaning of the Income Tax Act (Canada). (5) If a family unit includes a person who (a) immediately before reaching 19 years of age was a dependent child in the family unit, and (b) reached that age while attending secondary school,

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2024-0202

the person is deemed to be a dependent child, for the purposes of this section, until the earlier of (c) the end of the school year in which the person reaches the age of 19 years, and (d) the date the person stops attending secondary school. (6) For the purposes of this section, if the family unit includes a deemed dependent child, the BC child adjustment amount applies in respect of the deemed dependent child as if the deemed dependent child was a dependent child.

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;

"warrant" has the meaning of a warrant in section 15.2 [consequences in relation to outstanding arrest warrants] of the Act.

(2) The monthly shelter allowance for a family unit other than a family unit described in section 15.2 (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

3

3 persons

$200

$790

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, (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. 1, s. 2 (a).]

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2024-0202 (iii) Repealed. [B.C. Reg. 48/2010, Sch. 1, s. 1 (b).] (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], 8.2 [BC harmonized sales tax credit] or 8.3 [renter's 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; (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;

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2024-0202 (xvi) Repealed. [B.C. Reg. 197/2012, Sch. 1, s. 22 (a).] (xvii) and (xvii.1) Repealed. [B.C. Reg. 99/2023, App. 1, s. 3 (a).] (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) Repealed. [B.C. Reg. 85/2012, Sch. 1, s. 5.] (xxi) 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; (xxii) payments granted by the government of British Columbia under the Ministry of Children and Family Development's At Home Program; (xxiii) Repealed. [B.C. Reg. 85/2012, Sch. 1, s. 5.] (xxiv) 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; (xxv) a loan that is (A)not greater than the amount contemplated by the recipient's business plan, accepted by the minister under section 77.2 of this regulation, and (B)received and used for the purposes set out in the business plan; (xxvi) 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; (xxvii) Repealed. [B.C. Reg. 148/2015, App. 1, s. 1 (a).] (xxviii) 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; (xxix) a refund provided under Plan I as established under the Drug Plans Regulation;