RAP Income Support Items for Joan S Session

Changes to IP-3 (Part II)

16.7 Clothing allowances (basic clothing and winter)

One-time clothing allowances are provided for both basic clothing needs and winter clothing. JAS clients and their dependants are eligible for the basic and winter clothing allowances once for every 12 months of RAP coverage.

The following table describes the allowance for basic and winter clothing:

Allowance / Allotment
Basic clothing allowance / $325 per adult
$250per dependent child 18 years of age and under; anyone 18 years of age and over should be allotted adult rate.
A winter clothing allowance is provided between October and April to GARs who are not provided with winter clothing upon arrival at the port of entry. If the officer if unsure whether or not the client received the clothing at the POE, the allowance should be provided.
When the client arrives between April and October, the winter clothing allowance is issued in the August cheque. / $175 per adult
$125 per dependent child 18 years of age and under; anyone 18 years of age and over should be allotted adult rate.

Note: Funds are not provided to purchase additional clothing in a larger size for growing children.

16.8 School Allowances (Start-Up and Monthly)

School Start-Up Allowance: Anallowance of $150 for school-age children and young adults attending provincial educational institutions (K-13), between the ages of 4-21 inclusive, will be provided to defray costs for:

school supplies;

activity fees;

gym clothing; etc.

The allowance is provided for each new academic year (school grade) since the RAP entitlement period normally overlaps two different school years. The start-up allowanceshould be included in the

initial income-support cheque, or

income-support cheque for the month of August.

Some families may require this amount twice, if the entitlement period spans two school years.

Note: This allowance will only apply for those attending provincial educational institutions and not LINC or ESL related classes.

MonthlySchool Allowance: A monthly school allowance of $20.00 for school-age children and young adults attending provincial educational institutions (K-13), between the ages of 4-21 inclusive, will be provided to defray recurring and ongoing expenses for education-related costs throughout the year such as school and gym supplies and registration fees. This allowance will be issued on a monthly basis for the full period of time that the client is receiving RAP income support.

Note: The monthly school allowance is to be provided during the summer months to assist with costs associated with summer school attendance or participation in other organized educational or recreational activities.

16.10 Staple allowance

A one-time staple allowance may be provided to set up a household. Maximum rates for a staple allowance are as follows:

$175 for a single person; and

$75 for each additional family member – there is no family maximum

Note: The above are simply suggested basic items. Subject to consultation with and approval from regional authority, the local CIC office manager will use discretion as to what items are required depending on need and type of accommodations. The purchase of rugs and luxury items such as dishwashers are not allowable items. Where required, used stoves and refrigerators should be purchased.

16.14 Maternity allowance

Upon receipt of a doctor’s letter confirming pregnancy; the following should be approved:

a one-time additional clothing allowance of $200;

a $75 monthly allowance to assist with special dietary needs;

This allowance can be issued for

a maximum of nine months with in the income support eligibility period or

until the birth of the baby, whichever comes first.

Note: This monthly allowance is to be issued from date and/or receipt of a medical note to the expected date of birth. It is not to be applied retroactively to the beginning of the pregnancy.

16.15 Newborn allowance

One month prior to the due birth date, the client should be approved $750 to purchase items for the baby, such as clothing and furniture.

This allowance can be issued if the due date is not more than 21 days after the last date of income support entitlement. Proof of due date must be provided in writing by a physician.

16.20 Housing Supplement

A housing supplement may be provided to GAR clients who require financial assistance with their rental and utility costs over and above the applicable provincial shelter allowance rate. The supplement serves as a substitute for the more comprehensive rental supplement and subsidized housing programs offered by provincial and municipal social assistance programs.

Determining Need for Housing Supplement: Officers must be satisfied that the housing supplement is needed before it can be issued. The officer will use discretion in determining need for the supplement and will take into consideration the actual cost of the client’s rent and utilities as well as all current sources of household income (RAP, employment, provincial social assistance). Two common scenarios where an individual or family may not require the supplement are as follows:

Single RAP client is boarding with a family, does not pay utilities and receives more in their monthly shelter allowance than they are charged for room and board.
Households where there is more than one RAP cheque (single and/or multiple person files) and total RAP shelter allowances exceed actual rental and utility costs.

Note: One Year Window RAP clients who are residing with family members on social assistance are entitled to the housing supplement if a need is demonstrated (i.e., housing costs exceed shelter allowance).

Issuing Housing Supplement: The housing supplement rates are below.

Single supplement (one single adult on one RAP file): $75 per month
Family supplement (more than one person on a RAP file): $100 per month

Note: Housing supplement should be pro-rated for partial months in the same fashion as the other monthly benefits are.

Multiple RAP Files Within Same Household: In situations where singles, couples or families share accommodation or where adult children have their own RAP file separately from their parents within the same household, the office must use their discretion to determine:

Does the household as a whole require the housing supplement?
If so, how many supplements should be issued?
Which file(s) should the supplement(s) be applied to?
Is this a circumstance where the supplement(s) should be divided among multiple files?

The same basic rule applies: a financial need for the supplement(s) based on a distinct variance between actual housing costs and total household shelter allowances must be demonstrated before the supplement can be given.

22. Change of status report: for non-family related reasons

Clients must submit a Resettlement Assistance Program Change of Status Form when changes not related to family configuration have occurred, including:

dietary needs (see Special dietary needs, section 22.1);
additional income coming from employment, training allowances or assets due to inheritance (see Additional Income, section 22.2); and
change concerning personal information (see Personal information change, section 22.4).

22.1 Special dietary needs

The family monthly food allowance may have to be re-evaluated and adjusted when a physician’s letter is provided indicating that a member of the family requires a special diet due to a health condition.

Adjustments are effective the month the physician’s letter is received.

(see Special Diet Allowance, section 16.16)

22.2 Additional Income

Family needs have to be re-evaluated and adjusted in the following circumstances:

When a member of the family… / Then…
Engages in full or part-time employment / Employment income is:

considered to be earned income; and
subject to the 50% rule after which earned income is deducted on a dollar per dollar basis.

Receives Employment Insurance and/or Workers’ Compensation benefits / EI or Workers’ Compensation income is:

considered to be earned income; and
subject to the 50% rule.

Receives a training allowance / Training allowances are:

considered to be earned income; and
subject to the 50% rule after which earned income is applied on a dollar per dollar basis.

Note: Any special allowance for tuition, books, supplies or tools is not considered earned income and shall be exempt from the 50% rule.
Participates in a Paid Work Experience Program / Salary is considered earned income, 50% rule applies. Allowance for supplies and tools exempt from 50% rule.
Participates in Enhanced Language Training (ELT) / GARs are eligible to attend ELT and remain on RAP. Associated training allowances are treated as earned income, 50% rule applies.
Receives a Student Loan / Repayable student loans (including living allowance portion) are not to be considered earned income. 50% rule does not apply.
Receives a Student Grant/Scholarship / May be considered taxable income - see program details. Only living allowance portion to be considered earned income, 50% rule applies. If grant documentation does not specify portion for living allowance, officer to assume grant is directed at tuition costs, 50% rule does not apply.
Receives a Student Bursary or Award / Not to be considered earned income where funds are credited against an existing Canada Student Loan / provincial loan or deposited directly with the academic institution of choice. 50% rule does not apply. If funds are provided directly to student, treat as grant/scholarship (50% rule only applies to funds clearly allocated for living expenses).
Inherits or otherwise receives other financial resources or assets / These must be reported within 30 days.
Adjustments are effective on the date of receipt of such assets and calculated up to the end of the income support entitlement period.

22.3 The 50% Rule and the Employment Incentive

RAP permits a clawback exemption on additional income that is equal to 50% of the total monthly RAP income support payment. This is to serve as a means of increasing the income that GARs are entitled to receive and retain but also a means for supporting the transition into the labour market. The 50% rule applies right away – there is no wait time for eligibility. Once an individual’s or family’s additional source(s) of income has surpassed 50% of their monthly RAP entitlement, all RAP funds over that threshold are deducted on a dollar for dollar basis. Adjustments to RAP are effective every month in which the additional income is earned or received.

What is Considered Monthly Income Support: The following monthly entitlements should be considered “monthly income support” for the purposes of calculating the 50% rule: shelter and basic living allowance amounts, monthly NCB reinvestments, the housing supplement, monthly school allowances, special dietary allowances and monthly maternity allowance. One-time allowances should not be included in the calculation.

Exemption for Student Earnings: Where the income is earned by a minor who is attending school on a full-time basis, the income is not to be included in the total of the family earnings. If the student is returning to full- time studies after the completion of holidays, the income earned by the student will not be included in the total of the family income used to calculate the 50% incentive allowance amount. If the student claims to be returning to school in the fall and does not do so, there would be an overpayment (see Situation 3: Income is greater than 50% of support, section 24.5).

Note on NCBS: For the purposes of calculating the 50% reduction rule, the monthly income support entitlement against which the 50% is applied is the full amount of RAP income support before it is adjusted downward as a result of the NCBS. In provinces where there is no adjustment for NCBS, the monthly income support entitlement is only the RAP portion and does not include the NCBS portion.

Note on Mandatory Payroll Deduction: For the purposes of calculating the 50% rule, the officer is to determine the net employment income which is the gross employment income minus all mandatory payroll deductions.

Note on Child Care Expenses:Recipients may claim a child care expense deduction against their net employment income of up to $600/month per child under the age of 12 (receipts required).

Calculating the 50% Rule for Additional Income

Step 1 – Determine the 50% Threshold: Divide the recipient’s monthly RAP income support amount in half to arrive at the 50% threshold amount. The monthly amount used should only include the taxable portions which are received on a monthly basis: basic living allowance, shelter allowance, transportation allowance, all monthly national entitlements and all monthly NCBS reinvestments and investments. All chargeable income received over this threshold will be deducted on a dollar-for-dollar basis from the monthly RAP amount.

Step 2 – Determine Additional Net Income: If source of additional income is paid employment, determine the recipient’s net employment income (i.e., total income from employment after mandatory payroll deductions are applied). For income sources other than paid employment (e.g., training allowance or student grant, etc.), only factor in the net amounts considered earned income and subject to 50% rule.

Step 3 – Determine Chargeable Additional Income: Where the income source is paid employment and where applicable, subtract the maximum allowable child care deduction from the total additional net income to arrive at the total chargeable income. Receipts for child care expenses must be supplied.

Step 4 – Determine Earnings Clawback: Determine if recipient earned income over the threshold amount by subtracting the threshold amount from the chargeable amount. If positive amount, a clawback will be calculated in Step 5. If negative amount, no clawback is charged.

Step 5 – Determine Adjusted RAP Payment Amount: To arrive at the adjusted RAP payment, subtract the clawback amount from the total monthly RAP income support amount.

Sample Calculation:

Ahmed and Alima are parents of 3 children under the age of 12. Their monthly RAP income support entitlement is $1750. Both Ahmed and Alima work part-time outside the home. Their combined gross monthly income from employment is $2200. Total payroll deductions amount to $450. Their neighbour provides child care 3 days a week when Ahmed and Alima’s shifts overlap for a total cost of $400/month. The calculation below shows that Ahmed and Alima have earned $475 above their 50% threshold limit, as a result their monthly RAP income support was adjusted downwards to $1275.

Step 1 – Determine 50% Threshold Amount:

Monthly RAP amount:$1750

50% of RAP amount: $875

Step 2 – Determine Additional Net Income:

Gross employment income:$2,200
Mandatory payroll deductions:-$450

Net income: $1750

Step 3 – Determine Chargeable Additional Income:

Net income:$1750

Child care deduction:-$400

Chargeable income:$1350

Step 4 – Determine Earnings Clawback:

Chargeable income:$1350

50% threshold amount:-$875

Clawback amount$475

(Note: This amount cannot be less than $0)

Step 5 – Determine Adjusted Monthly RAP Amount:

Monthly RAP amount:$1750

Clawback amount:-$475

Adjusted RAP amount:$1275

24. Refusal, discontinuation or reduction of income support

Newcomers must be informed that RAP is not an automatic benefit but is available to assist those who have been identified by the RAP counsellor as requiring temporary financial assistance.

Income support is not an automatic benefit but rather a privilege that carries with it an obligation on the part of the recipient to work towards self-sufficiency.

While on RAP, adult GARs are normally expected to be actively looking for work in order to become self-sufficient as soon as possible. However, they are also permitted to participate in language or job training programs or upgrade their education in a post-secondary institution while in receipt of income support. RAP officers are to be guided by the principle that GARs are expected to pursue the opportunities that are most beneficial to their settlement over the short, medium and long-term.

24.1 New assessment requirement

A new assessment of the needs and means of a client is necessary every time there is a change in the situation of the client. The assessment enables CIC to determine if income support: