The 2010 Provincial Budget announced on March 25, 2010, included changes that will affect both Ontario Works and the Ontario Disability Support Program:

• The elimination of the Special Diet Allowance
• The creation of a new nutritional supplement program, administered by the Ministry of Health and Long-Term Care, for individuals on social assistance with severe medical needs, and
• A 1% social assistance rate increase.

Elimination of the Special Diet Allowance and the creation of the Nutritional Supplement Program

The government has announced that the Special Diet Allowance will be eliminated and a medically based nutritional supplement program for individuals on social assistance with severe medical needs will be created. The new program will be administered by the Ministry of Health and Long-Term Care.

The government noted in the Budget that the allowance is not sustainable and is not achieving its intended results.

Last fall, the Auditor General of Ontario reported that many applications for the Special Diet Allowance were associated with questionable circumstances and recommended that the government review the allowance so as to limit its possible abuse.

There will be a transition period for the implementation of the nutritional supplement program and the elimination of the Special Diet Allowance.

The Special Diet Allowance will continue to be provided until further notice.

Further details on the elimination of the Special Diet Allowance and the implementation of the nutritional supplement program will be announced in the coming months.

One per cent Social Assistance Rate Increase

The proposed rate increase would be reflected in November 2010 ODSP payments and December 2010 Ontario Works payments.

The province would pay 100% of the cost of the one percent increase for 2010. Municipalities would not share the cost of the increase until 2011. Since ODSP costs will be fully uploaded to the province as of January 2011, municipalities would only share the cost of the Ontario Works increase based on the cost-sharing arrangements as of January 2011 (i.e. 81.2% provincial/18.8% municipal).