Ontario Basic Income Pilot

Description

The Ontario Basic Income Pilot Project was a pilot project to provide basic income to 4,000 people in Ontario, Canada. The project followed recommendations made by Hugh Segal in consultation with the population, and would test whether "Basic Income [would] reduce poverty more effectively, encourage work, reduce stigmatization, and produce better health outcomes and better life chances for recipients".

The pilot project aimed to give a fixed income for three years to people with low or no incomes.

The communities served by the pilot project included Hamilton, Brantford, Thunder Bay and Lindsay. Participants of the project were randomly selected among residents of the regions aged 18–64. The financial threshold for inclusion was $34,000 per year for singles or $48,000 per year for couples. About 70% of participants were already employed when entering the program. Single participants received up to $16,989 a year while couples received up to $24,027. If participants also received a paid salary, the amount of basic income would be reduced by 50 cents for every dollar of earned income." Therefore a (single) participant with a salary of $10,000 per year would receive a basic income of $5,000 less ($11,989 per year).

Those participants receiving either Employment Insurance or Canada Pension Plan would have their Basic Income reduced on a dollar for dollar basis. Those with disabilities would also receive up to $500 per month on top, but they would withdraw from their participation in the Ontario Works or the Ontario Disability Support Program. Seniors (those 65 years and over) were not included and they could continue to claim existing benefits.

In addition to the 4,000 participants, a comparison group was selected, who would not receive the basic income. However, they would still be asked questions on various issues including their health, work situation and housing. This was to allow researchers to compare the effects of those receiving basic income with those not receiving it.

References

Wikipedia - Ontario Basic Income Pilot
Letter from Hugh Segal, Introduction of Basic Income Pilot by Gov't of Ontario, August 31, 2016