Residual Period

The residual period of Canadian social policy and welfare begins prior to European contact to the period from New France until shortly after confederation in 1867. Prior to European colonization of what is known today as Canada, Aboriginal people engaged in practices of reciprocity to meet the needs of the aging, the sick, and the vulnerable. Tribal, clan-based, and family-kinship relationships were the dominant forms of social organization and were relied upon to meet the social welfare needs of individuals. As Finkel (2006) points out in the pre-European contact years, civilization in North America managed to maintain principles of egalitarianism through trade relations between tribes and clans as well as indiscriminant practices of medical attention for the sick and injured, and the elderly and vulnerable were taken care of to the best of the Aboriginal groups’ ability. However, following French settlement, practices of social organization from French society and other European cultural groups were introduced to the new colonial territories that would have a lasting impact on methods of social welfare intervention.

During the residual era of social welfare in Canada, emphasis was placed on the role of immediate family members in taking care of the needs of individuals whose labor market attachment was interrupted. This included the needs of the unemployed, the elderly, and the sick. Only after these resources were exhausted would individuals (or their families) turn to extended family members, local community members, or religious organizations for assistance (Graham et al., 2012). The Elizabethan Poor Law traditions of England were particularly influential in the development of Canadian social welfare policy beginning with the cessation of New France to the British in the mid-1700s. Prior to the English poor laws in England, three dominant institutional forms of social welfare provision emerged. These included the merchant guilds, private foundations, and the Roman Catholic Church. The merchant guilds were composed of merchant and artisan classes and created mutual aid societies to meet the needs of its members. Private foundations were developed by wealthy benefactors and were predominantly focused on building hospitals and almshouses. Finally, the Church provided assistance to individuals in local communities through various monastic orders (Graham et al., 2012). However, in 1601, when the Elizabethan Poor Laws were passed, authority was given to the local parish governments throughout England to address the plight of the poor and to provide punishment to those individuals who refused to participate in general labor. This earlier transition from local community responses to address issues of poverty and vulnerability to a nationally focused system of social welfare with local control is the foundation for social welfare in Canada (Graham et al., 2012).

One other aspect of the Elizabethan Poor Laws that had a significant impact on the development of social welfare in Canada during the residual period and beyond was the delineation between the deserving and undeserving poor. Individuals requiring social support were labeled as impotent, able-bodied, or unregenerate idlers. The first were assigned to the almshouses, the second to the workhouses, and the latter to prisons (Graham et al., 2012). During more contemporary times, income-security programs in Canada have relied on distinguishing among individuals’ capabilities to work. These distinctions have defined the eligibility criteria for provincially based social assistance programs, employment insurance, and disability benefits. In England, these eligibility criteria became more clearly defined and resulted in the Poor Law Reform of 1834. With this reform, more stringent eligibility criteria were introduced to reduce the rising number of individuals receiving relief. Along with the eligibility reform there was a distinction made between individuals who received “indoor” or “outdoor” relief. Indoor relief referred to those able-bodied men who were considered employable. Individuals receiving indoor relief were required to work in workhouses to receive support. However, individuals receiving outdoor relief were the elderly, the sick, or the orphaned, all of whom were generally perceived as unable to work (Graham et al., 2012). Remnants of this divisive system of social welfare are apparent throughout the history of Canadian social policy and social welfare. For instance, income-security programs have been tied to eligibility criteria, and the types of income support received are based on an individual’s ability to participate fully in the labor market.

The system of social welfare outlined by the Elizabethan Poor Laws was applied haphazardly throughout Canada prior to confederation in 1867. Because of the large geographic terrain, the low population density in many areas of the country, and the unique cultural traditions of the increasingly diverse population base, it was difficult to institute a nationally orientated program of social welfare. Instead, during this residual period of social welfare there were distinctive practices in each of the provinces/territories of that time. For instance, Nova Scotia and New Brunswick utilized the Elizabethan Poor Law framework with local overseers of the poor. However, Quebec relied heavily on the Roman Catholic Church to oversee the needs of the poor in local communities. And in Ontario, local community-based efforts by concerned citizens and municipal governments were the dominant actors engaged in addressing the social conditions of vulnerable citizens (Boychuk, 1998; Graham, 1995; Graham et al., 2012; Splane, 1965). Even with these distinctions, what is apparent from this residual period of social welfare provision in Canada are the direct influences from the emerging European system of social welfare. The tenants of the Elizabethan Poor Laws would have a long-lasting impact on the development of social welfare in Canada, with particular emphasis placed on labor market attachment and a distinct division of what would be understood as the deserving and undeserving poor in Canadian popular culture.

Emerging Institutional Period

The emerging institutional period of social policy and social welfare in Canada began postconfederation (around 1867) to World War II (around 1943). In 1867 the colonies of British North America converged to form Canada. In the years leading up to confederation, Canada began to develop into an industrialized nation, transforming from a small, resource-based economy. With increased industrialization came increased urbanization and population growth. As a result, increased pressures were placed on the government to adapt its provisions of social welfare. Of particular importance during this era was the institutionalization of a vibrant voluntary sector. Charity-based organizations began to proliferate. These included city missions, orphanages, refuges for the elderly, and philanthropic foundations. For instance, the Young Men’s Christian Association was established in Montreal in 1851 and provided support in response to the negative social conditions that were a direct result of industrialization. The Young Women’s Christian Association was established in 1873 in New Brunswick. The Haven, a local Toronto-based charity, was established in 1878 and provided services to individuals experiencing mental illness. The first Boys Club was established in New Brunswick in 1900 and aimed to provide recreational activities to young boys. The present John Howard Society of Canada began in 1867 as a small group of reformers who sought to provide spiritual guidance to incarcerated people. In 1874, the group became known as the Prisoners Aid Association of Toronto. The Salvation Army began to undertake its work in 1882 in Canada by providing meals to hungry people. Other organizations during this time included the Toronto Children’s Aid Society in 1891, the Red Cross in 1896, the Victorian Order of Nurses in 1897, the Toronto Family Service Agency in 1914, the Canadian Mental Health Association in 1918, the Canadian Institute for the Blind in 1918, the Canadian Council of Social Development in 1920, and the Canadian Association of Social Workers in 1926.

There were many more organizations than are listed here. During this era, social welfare became more institutionalized within Canada. Individuals and organizations were actively pursuing the betterment of the social conditions in which people lived. Of importance were issues related to poverty, working conditions, and religious and moral order. The development of these organizations was simultaneously happening with larger social movements among concerned citizens. Previously mentioned was the labor movement, which sought to address the negative working conditions and insufficient rates of pay for Canadian workers. At the same time, other groups were concerned with living conditions in Canada’s cities along with the persistent challenges of poverty. For instance, the settlement house movement—which was unique to North America—began in the late 1800s and continued through to the early 1920s. The focus of the settlement movement was on community development and providing programs to recent immigrants. Similarly, the Social Reform Movement began in the mid-1800s and sought to address issues of urban poverty. The work of many locally based social service organizations such as the Young Men’s Christian Association, local relief missions, and the Salvation Army was part of this larger movement in Canadian society.

Characteristics of this emerging institutional period had long-lasting implications for the future development of social welfare and social policy in Canada. This tradition of local community-based activism and organizations was instrumental in the independent-living movement (or the deinstitutionalization of psychiatric facilities) in the 1970s. Also in the 1970s, institutional frameworks of social welfare provision were developed for women experiencing domestic violence and individuals needing addictions treatment and intervention (also known as the Recovery House Movement), all of which were initially the result of active citizen engagement to address emerging (or long-lasting) challenges in the social strata of Canadian society. Similar movements were seen also in the 1980s by HIV/AIDS activist organizations seeking adequate government support for individuals affected by HIV/AIDS.

During the emerging institutional period of social welfare, through the efforts of community-based organizations and citizen engagement, the plight of those living in negative social conditions was brought to the forefront (see, for example, Emery & Emery, 1999; Graham, 1992, 1996). However, until the 1930s the local municipalities were primarily responsible for providing for the social welfare needs of the residents. The staggeringly high level of unemployment that resulted from the Great Depression made it impossible for local community governments to provide sufficient relief to residents, and as a result, the provincial governments had to take on more responsibility.

Furthermore, another significant advancement during this era was the emergence of the profession of social work. As a result, a professional ethos began to be applied to the social conditions of industrialization. In 1914, the first School of Social Work was established at the University of Toronto, followed by programs at McGill University in 1918 and the University of British Columbia in 1928.

Key social policies that emerged during this era were workers’ compensation benefits, which were passed in Ontario in 1914 and subsequently adopted by the other provinces. Workers’ compensation provided benefits to workers who were temporarily unable to work because of injury. Also, following World War I, veterans who were returning from war were provided with retirement annuity insurance assistance in 1920; later, in 1927, they were granted settlement assistance, and then in 1930 allowances were granted to the widows and orphans of veterans who did not have sufficient financial means to take care of themselves. In 1916 the province of Manitoba created a Mothers’ Allowance program to support single mothers who were widowed, divorced, or deserted. This program was similarly followed in other provinces shortly thereafter. Following this, in 1927 the federal government created a cost-sharing program with the provinces through the Old Age Pensions Act. The program was also selective. And in 1940 Unemployment Insurance was introduced after a several-year delay, caused by the reluctance of the federal government to amend the Canadian constitution giving them jurisdiction in this area of social welfare (Graham et al., 2012).

Institutional Period (Traditional Welfare State Era)

The institutional period of Canadian social policy and social welfare begins during World War II through the mid-1970s. A general time frame is 1943 through 1975. This particular era has also been described as the traditional welfare state era. Characteristic of this particular era is the presence of a centralizing tendency within Canadian social policy and programming in efforts to address the social welfare needs of the country’s citizenry on a wider scale. This period reinforced societal constructions of race, sexual orientation, and gender and has been critiqued for its patriarchal emphasis on income-security programs attached to an ethos of the breadwinner male (Ursel, 1992).

In 1943, the Report on Social Security for Canada (also known as the Marsh Report because it was written by the economist Leonard Marsh) was released. The report, much like the Beveridge Report in Britain, acted as a blueprint for the establishment of a universal system of social welfare in Canada. Contrary to previous eras of social welfare development, characteristic of the Marsh Report was its positive perspective on the role of modern industrialized societies in addressing the social welfare needs of its citizenry (Graham et al., 2012). During this era, a sense of entitlement to welfare state benefits prevailed over the stigmatizing notions of means-tested programs that were commonplace previously (Graham, 2008).

Following the introduction of Unemployment Insurance in 1940, in 1944 the Family Allowance program was established. This universal program provided income supplements to all mothers in the country who had children under the age of 16 years. In 1951, the previously established pension program under the Old Age Pensions Act (1927) became a universal program known as Old Age Security. As of 1951, all seniors over the age of 70 would receive a pension no matter what their level of income (Graham et al., 2012). In 1945 the province of Saskatchewan (under the leadership of the premier Tommy Douglas) introduced a social assistance medical care plan for old-age or blind pensioners, recipients of the Mothers’ Allowance, and wards of the state. This selective program was amended in 1947 with the creation of a universal, provincially administered hospital insurance program and was later replaced by universal, province-wide medical insurance in 1959. Health care was also being considered at the federal government level. In 1956 the Hospital Insurance and Diagnostic Act was passed, a cost-sharing initiative between the federal government and the provinces in the provision of basic in-patient hospital services. Then, following the lead of the province of Saskatchewan, the federal government created a national system of health care in 1966 with the passing of the Medical Care Act. Every province had adopted the new health-care framework by 1972.

Also in 1966 the federal government introduced the Canada Pension Plan, a national program (with the exception of Quebec, which has an equivalent program, the Quebec Pension Plan) providing retirement and disability benefits to workers along with survivor’s benefits. The benefit is tied to workplace earnings and is portable if individuals leave their province and take up work or residence elsewhere. Also in 1966 the Guaranteed Income Supplement was created as a supplementary program to the Canada Pension Plan and Old Age Security for those individuals below a certain income threshold. In 1976 the Spouse’s Allowance benefit was created by the federal government. This was established to provide income to the spouse of an Old Age Pensioner or to a widow or widower who is under the qualifying age to receive Old Age Security benefits. This means-tested program is based on an individual’s income level.

Along with these federal programs of income security, the Canadian provinces instituted social assistance programs (more commonly known as “welfare” or “public assistance”). These programs cover individuals who do not qualify for other income-security programs. They generally include families with dependent children, disabled individuals with long-term need, and individuals or families with short-term need. In recent years, the qualifying characteristics have become increasingly restrictive for recipients of these benefits. For instance, fixed and liquid assets are being assessed, along with employability and income level.

Beyond these income-security programs, during this era there were concerted efforts by community-based organizations and other community groups to address the service delivery needs of Canadians. Governments funded the development of affordable housing units, the creation of immigrant resettlement programs, community-based organizations working with developmentally delayed adults, and services aimed at child protection. Although the general focus of government social policies during this era was income redistribution through the enactment of income-security programs, community-based organizations continued to proliferate and the nonprofit sector emerged as a dominant institutional form in Canadian society (Jackson & Sanger, 2003).

Postinstitutional or Market State Period

The present era of Canadian social policy and social welfare in the early 21st century is the postinstitutional or market state period (Graham et al., 2012). This period has spanned the past several decades, beginning in 1975. This period has been characterized as a decentralizing social policy era, where social welfare–related challenges are less addressed through centralized social policy initiatives and more addressed within local communities by the nonprofit and voluntary sector.

Total social spending in Canada, beginning in the mid-1970s, when adjusted for inflation, has remained relatively stagnant to the early 21st century. However, as a proportion of Canada’s total gross domestic product, social spending has decreased by several percentage points since the beginning of the 1990s (Graham et al., 2012). One factor contributing to this decreased level of social spending was changes to the amount of the transfer payments from the federal government to the provinces. By 1992 the amount of federal transfers through the Canada Assistance Plan was down by over 25% in three of Canada’s largest provinces. Then, in 1996, the Canada Assistance Plan was replaced by the Canada Health and Social Transfer. In the first two years following the creation of the Canada Health and Social Transfer, federal government contributions to provincial health, education, and social-service programs decreased by another 15% (Graham, 2008).

Canada has also seen economic changes in recent years that have resulted in the amount of social assistance provided to people. In the early 1980s political leaders in Canada began favoring the theoretical notions of supply-side economics. This approach to capitalism hypothesizes that if benefits are given to the economic leaders of a country (such as corporations and other businesses and the wealthiest members of society) then there will be a trickledown effect throughout the economy, essentially by creating more investment and therefore more employment opportunities. One consequence for the traditional welfare state, as a result of this way of economic thinking, has been the emergence of a fundamental shift in public perception toward individual entitlements to income-security programs. Driving this change in public perception has been a move away from universal programs to selective income-tested programs by the federal and provincial governments. As an example, in 1989 the federal government established new regulations for the entitlement of Old Age Security. It is no longer a universal program. Instead, a clawback on benefits was introduced to Canadians whose income was above the established threshold. Similarly, in 1990 the federal government of Canada increased the number of weeks a person had to work before he or she qualified for the benefits of the Unemployment Insurance program. Also, the number of weeks an individual could collect had been decreased and the number of weeks an individual had to be unemployed prior to receiving any benefits was increased (Finkel, 2006). Finally, in 1996 the Unemployment Insurance program was ceased and replaced with the Employment Insurance program. The new program is now based on the number of days worked, rather than the number of weeks. Although this is somewhat more fair than the previous program, it still remains highly restrictive. In fact, it is estimated that approximately 42% of actively employed Canadians do not qualify for the employment insurance benefits they pay into (Graham et al., 2012). The number of hours an individual must work before he or she qualifies for the benefits is dependent on the rate of unemployment in the area in which the person resides in Canada and whether he or she was absent from the labor market previously for more than two years. New labor market entrants must demonstrate the highest number of previously worked hours among all qualifying groups, no matter where they live in Canada. This is a significant challenge for younger Canadians, who are already experiencing significantly higher rates of unemployment compared with Canadians in other age categories.

Similar cuts and adjustments were seen across all major income-security programs in Canada (at both the federal and the provincial levels of government) throughout the 1980s and 1990s. However, two new federal programs were created in the late 1990s and one was created in 2006. The first is the Resettlement Assistance Program created in 1998. The program provides financial assistance to refugees seeking resettlement in Canada. Second, and also in 1998, the federal government created the Canada Child Tax Benefit, which acted to replace the Family Allowance program (which ended in 1992) and programs of refundable and nonrefundable tax credits for families with dependent children. The social assistance provided is tax free and is directed to all families with children under the age of 18 years. The amount of benefits differs according to family income. Also, in 2006 the federal government created the Universal Child Care Benefit, a monthly cash payment benefit to families with children under the age of 6 years. Families receive $100 per child each month to aid in the payment of child care so parents can maintain employment.

Even with these significant decreases in federal and provincial income-security payments, social rights have continued to be important to Canadians. During the institutional period, Canada’s population continued to grow, and with increasing rates of immigration, the ethnoracial demography of the country continued to diversify. The federal government introduced an official policy of multiculturalism in 1971. The Charter of Rights and Freedoms—which guarantees the rights and freedoms of all Canadian citizens—was enacted in 1982, and then in 1987 the Canadian Multiculturalism Act was passed. Language rights issues also emerged as a significant social and political issue during this era. In 1988 the government of Canada passed the Official Languages Act, a revised act from the 1969 version that aimed to specifically aid in the development of minority language communities throughout Canada, not just in the predominantly French-speaking province of Quebec. Other important social rights have emerged during this era, including the allowance of same-sex marriages. In 2005 the federal government introduced and passed the Equal Marriage Law (Bill C-38), which extended equal marriage rights for same-sex couples across Canada.

With government cutbacks to income-security programs, there has emerged an increasing reliance (by both governments and citizens) on the nonprofit and voluntary sector to meet the social welfare needs of Canadians. Canada has approximately 165,000 nonprofit organizations, or 1 organization for every 210 people (Imagine Canada, 2013). The voluntary sector in Canada provides employment to 11.1% of the actively employed population and represents 7.1% of the country’s gross domestic product (Imagine Canada, 2013). Recent data from 2010 show that Canadians donated over $10 billion in that year and that over 80% of Canadians donated money (a number relatively unchanged over the past decade) (Imagine Canada, 2013). Similarly unchanged over the past decade is the number of hours Canadians volunteer. The most recent data from the 2010 Canada Survey of Giving, Volunteering, and Participating indicate that approximately 47% of Canadians had engaged in volunteer activities during that year. The number of volunteer hours equated to nearly 2.1 billion hours. In relation to full-time work, this number of hours represents the equivalent of the time to participate in 1.1 million full-time jobs (Imagine Canada, 2013).

In Canada, nonprofit organizations and other aspects of the voluntary sector have become instrumental actors in the provision of contemporary social welfare (Banting, 2000; Brock & Banting, 2003). For instance, Kobayashi (2000) investigated minority ethnocultural associations and found that these organizations played a fundamental role in affecting public policy. Other studies have looked at the specific characteristics of different sectors of service delivery and found that the dynamic relationship between organizations and government funders can have an overall impact on types of local service delivery responses to emerging challenges and service user need (Brown, Troutt, & Boame, 2000). Handy and Cnaan (2000) have investigated the role of religious nonprofit organizations with local and community involvement. One finding from their study that is especially important was that local congregations were instrumental in defining social welfare programs—disconnected from social welfare policies and government mandates. They found that external organizations (such as government, businesses, interest groups, and other nonprofit organizations) had little influence in defining new programs—instead, internal participants determined what new social programs would be followed. They found that of the 190 programs studied, 18% were started as a result of a change at the community level (that is, demographic or socioeconomic change). These congregations also did not perceive that they were addressing social issues as a result of government cutbacks or market deficiencies; instead they were responding to social needs emerging in their direct localities. What these and other studies show is that community-based organizations in Canada have been taking on an increasing role in responding to the localized (Karabanow, 2003) and national (Lacroix & Shragge, 2004; Mulvale, 2001) needs of marginalized populations. These organizations have become responsible for providing responses to emerging social problems (Bellefeuille & Hemingway, 2005) and local development needs (Shragge & Toye, 2006).