| Economic Security vs. Disincentive to Work
The notion of "less eligibility" was debated with the rise of
Income Security in Canada. The English poor laws and early
Canadian laws, in Nova Scotia and New Brunswick followed this
concept. The notion of less eligibility was based on the principle
that amount of assistance had to be less than the lowest paying job.
While this concept was never given formal recognition in Canada, the
amounts given were meagre subsistence level amounts.
The idea at the time was that giving more than the barest
minimum would be too generous and people would choose relief
over work. The concern for the work incentive was paramount in
the 1940 UI act, where benefits were set at 50% of previous wage
rates, to ensure that workers re-entered the labour market at the
first opportunity. This proved to be a hazard to health of
individuals and families who were in long-term need.
In the previous class we discussed the work test, indoor
relief and outdoor relief.
Until WW1 the only public assistance available was
provided on an emergency basis by private charities
and local municipalities. Most of it was in kind, i.e.
food, clothes. Cash was rarely given as poverty was seen
as temporary and the result of a personal failure.
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