Welfare Fraud: The Constitution of Social ... - York University

Delivery agents may exercise their discretion when determining whether or not
gifts or casual payments are chargeable as income. There are occasions where
an applicant or participant may be faced with an immediate financial crisis. Help
may be obtained from family, friends, or another third party. When making a
determination, the delivery agent must consider the source, amount and
frequency of the gift or casual payment and the opportunity to resolve the crisis.
Exercising discretion should be in favour of applicants or participants to assist
them to manage their financial circumstances…
Examples of casual gifts and payments of small value may include items such as
clothing, meals at family members' homes and the occasional purchase of items
such as food. Gifts tied to a special occasion are generally exempt. Casual
payments are considered infrequent payments. Continuous payments of small
value are non-chargeable up to six months. After six months they are no longer
considered casual and therefore are considered income to be charged at 100
percent. 125
The discretionary and complex nature of the rules makes it exceedingly difficult for
anyone in receipt of welfare to know if and when gifts or casual payments will be
deducted. If reported, and discretion is not exercised in your favour, your benefits will be
reduced dollar for dollar. On the other hand, if you fail to disclose, you risk being cut off
and charged with fraud, and the reality is, sometimes even in situations where if you had
disclosed, the ‘income’ would not have been deducted. These are the kinds of situations
that create difficult moral binds for recipients. Take, for example, $100 given to you by
your boyfriend to help you get by. Even with this $100 you don't have enough to
adequately feed and clothe your children. If you disclose the $100 it may or may not be
deducted dollar for dollar from your welfare cheque; if it is, you're obviously no further
ahead. If you don't disclose and it is later discovered (perhaps because he, in fact,
reports it to welfare) what will follow Section 14 indicates that you shall be found to be
ineligible for financial assistance, as you have failed to disclose income. You may well
be cut off and while you can re-apply, there will likely be a period of time when you are
without assistance. You will probably be assessed with an over-payment of $100.00, and
there is always the possibility of being charged with fraud.
Of course, another common situation is that one simply doesn't know anything at all
about the rules regarding casual gifts or payments of small value. One respondent
described a client, struggling to survive, who undertakes odd jobs in exchange for meals
or a small supply of groceries. This respondent questioned whether it would ever cross
125 Income, Policy Directive #16, supra note 121.
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