Section C: Social Security

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T. Russell Robinson, Health and Welfare Canada

Federal Income Security Programs (Series C1-195)
Federal and Provincial Income Insurance Programs (Series C196-286)
Federal-Provincial Cost-Shared Income Security Programs (Series C287-442)
Federal and Provincial Cost-Shared Social and Related Services Programs (Series C443-507)
Provincial-Municipal Income Security Programs (Series C508-559)
Government Expenditure on Social Security by Broad Program Areas (Series C560-599)

The statistics in this section are in six main divisions: federal income security programs (series Cl-195); federal and provincial income insurance programs (series C196-286); cost-shared federal-provincial income security programs (series C287-442); federal and provincial social service programs (series C443-507); provincial-municipal income security programs (series C508-559); government expenditures on social security by broad program areas (series C560-599).

The conceptual framework for the above arrangement is described first, followed by a brief historical review of the development of various programs and concluding with detailed statistical source references.

The Conceptual Framework

The growth of government activity, particularly in the sphere of social policy, has come to be identified with the concept of the welfare state. It is important, therefore, to attempt to describe in some detail the changes in the size of social security (or social welfare) expenditures in Canada. The first step is to define what is meant by social security expenditures¹. Unfortunately, there is no common definition and those advanced by different public or private agencies vary greatly in the scope of public expenditures which they include. There is, then, an element of arbitrariness in what shall be defined as expenditures on social security programs and activities. Even with a precise definition, it may not be possible to obtain data on all the expenditures which fall within the purview of the conceptual framework indicated by the definition.

For purposes of this section a broad concept of social security expenditures has been adopted. It has been defined as the sum of the publicly financed and publicly or privately administered² programs of three general types: income maintenance (which includes both income insurance and income security programs); social welfare services; and health care services (see Section B). The purposes of such programs and expenditures are: to maintain the income of individuals or families in the face of involuntary loss of earnings due to a wide variety of contingencies of life; to provide a variety of income assistance to those unable to earn an adequate income; to provide a variety of supportive and developmental personal services which may amount to income support in kind, or be ancillary to income transfers; and to finance and/or provide curative or preventive medical care.

Unlike the very broad definition offered in Income Security and Social Services, the present definition does not include "...urban redevelopment and the development of depressed regions and other programmes"³, except where the expenditures on such activities are effectively a substitute for direct income maintenance programs and related services. The definition adopted, however, is similar to that utilized by the International Labour Organization and the International Social Security Association.

This definition does not include private (or voluntary) expenditures on social security. In fact, the term social security is sometimes taken to imply that such expenditures and activities are collective in nature and involuntarily financed through the tax system or via earmarked contributions to public plans. Private expenditures (on individual pension plans or for drugs and other forms of health care not covered in public programs) do contribute to social security objectives, but they are largely individual in nature or involve much smaller groups⁴ of contributors and beneficiaries than those programs operated by one or more of the various levels of government.

Income maintenance expenditures take the form of cash payments made by governments (or related agencies) directly to individuals or families, and may be grouped into two main categories, income insurance and income security. Income insurance programs are publicly administered and are financed largely from contributions required of employers and employees⁵. The current programs are designed to protect individuals and families against a loss of income due to involuntary unemployment (Unemployment Insurance), work-related accidents (Workmen's Compensation) and retirement (Canada and Quebec Pension Plans⁶). They are insurance programs in the sense that benefit levels are at least partially a function of the level of contributions and/or previous earnings. Also, the risks are widely shared among potential beneficiaries.

Income security expenditures are incorporated in a large number of cost-shared programs and also those programs financed and delivered by individual levels of government. Some take the form of payments to eligible persons which are unchanged with respect to income level or demonstrated need. The most important examples are family and youth allowances, and Old Age Security (OAS) pensions. Other income security expenditures depend upon the indicated need of the recipient as assessed by income, needs or means tests. The Canada Assistance Plan is by far the largest program of this type in which the federal and provincial governments share the cost of providing social assistance payments, as well as services, to persons in need.

The second major component of public social security expenditures, social welfare services, involves expenditures on programs which provide tangible and intangible services, or transfers in kind, rather than direct cash payments. Tangible services would include, for example, child welfare expenditures which go to provide the child with food, shelter, clothing, school supplies and other basic needs in lieu of a cash payment. Intangible services would include, for example, the counselling services of social workers, vocational rehabilitation programs and adoption services.

The third major component, health care services, includes programs providing hospital and medical care as well as public health clinics and other preventative health measures. Conceptually, public expenditures for the provision of health care services can be included in a comprehensive definition of social security expenditures. As already mentioned, this is in conformity with the practice of several international organizations. Data on health care services, other than total public expenditures given below, can be found in Section B.

In most cases, expenditures and caseload, beneficiary or recipient data are provided on a provincial basis. With respect to federal-provincial cost-shared programs, the federal portion of expenditure figures given for Quebec is the amount of revenue received by the province of Quebec in lieu of direct contributions under the relevant cost-sharing arrangement⁷.

Historical Development

In the early days of settlement in Canada, it was common practice for settlers to receive assistance, in the form of land grants, basic food requirements, clothing and working equipment, from both public and private sources, within Canada and abroad, in order to establish themselves in their new homeland. Care for the sick and the needy was essentially a local responsibility. During periods characterized by large flows of immigration, many people were held at immigration centres because of sickness and contagious disease. Initial legislation to provide welfare aid by the provincial governments was directed toward support for families left destitute due to illness, death or desertion. The British North America Act indicated that welfare was primarily the responsibility of provincial and local governments except for the indigenous and immigrant populations for whom the federal government assumed primary responsibility.

One of the earliest forms of income security provided to workers and their families by provincial governments was financial aid as authorized under workmen's compensation legislation, and took the form of pensions and payments during periods of disability. Financing was based on contributions from employers. The earliest provincial workmen's compensation legislation was introduced in 1908 by Quebec and Ontario and was progressively implemented by all provinces. Provincial legislation to provide allowances to mothers in single parent families was initially introduced during World War I and was also extended to all provinces. In 1927, the federal government introduced legislation providing for old age pensions paid on a cost-shared basis by the provincial governments. Extensive legislation to cover services and basic financial support was also developed in all provinces in the field of child welfare.

Due to the major economic depression which Canada shared with other nations during the 1930s, the federal government was thrown into a major role as a provider of basic financial support to many families who were left destitute. These circumstances also made apparent the need for federal involvement in the development of income maintenance and welfare service programs across the nation.

In 1940, the federal government secured agreement of the provinces to amend the British North America Act to permit it to introduce a nation-wide program of unemployment insurance, funded through employer and employee contributions. The program became fully operational in 1942. The federal government passed legislation in 1944 to introduce family allowances, for each child up to 16 years of age, funded from general revenue and in 1948, it introduced several federal grants under orders-in-council to support the development of provincial health services. In 1952, the federal government introduced old age security, a program of universal pensions paid by the federal government to all qualified residents 70 years of age and over. This program replaced former provincial cost-sharing of old age pension programs. Provincial old age assistance was also introduced in 1952 to provide financial support for people aged 65 to 69 on a cost-sharing basis with the federal government. Two years later, in 1954, legislation was passed to permit the federal government to finance allowances for totally disabled adults of working age on a cost-sharing basis with the provinces.

Unemployment assistance was introduced by the federal government in 1956. This provincially administered, cost-shared program provided for basic financial support for unemployed persons and their dependents and also for persons considered unemployable. Support of public health services was significantly extended through the introduction of a universal hospital insurance program proclaimed in 1959. By 1961, agreements had been signed between the federal government and all provincial governments. A schooling allowance for children 16 and 17 years of age was introduced by Quebec in 1961 and was extended to all other provinces by the federal Youth Allowances Act of 1964.

In 1966, the federal government introduced much new legislation to extend the role of government in the field of social security. The Canada and Quebec Pension Plans provided for contributory pensions for working persons aged 65 and over on retirement, based on their accumulated annual contributions. In addition, in the event of death prior to retirement, the plans provided for survivors' benefits to wives and orphan children and, in the event of disability that removed the worker from the labour force, a disability pension which likewise covered wives and dependent children. Complementary legislation, the Canada Assistance Plan, was passed to permit cost-sharing by the federal government of provincial programs of social assistance, social services and work activity and agreements were signed with each of the provinces over the subsequent two years. To maintain the income of elderly persons, including those who could not benefit from the Canada Pension Plan, the federal government also introduced a Guaranteed Income Supplement to the Old Age Security Program for pensioners with little or no other income.

The federal government, in 1968, introduced full-time manpower training allowances to workers needing additional skills to obtain employment, and direct income support to refugee immigrants unable to obtain immediate employment. In 1972, a new Unemployment Insurance Act was introduced with virtually universal coverage and substantially increased benefits which were extended to include coverage of maternity and sickness.

These pieces of legislation have been revised periodically to increase both contributions and benefits. Automatic indexation of income security benefits, to adjust for inflation has been provided for in recent federal legislation and regulations. The principle of supplementing the incomes of persons who are employed, but whose incomes are low in relation to their family responsibilities, has in some cases taken the form of adjustments to existing programs to permit the retention of part of their earnings without full corresponding loss of benefits. In other cases, new programs such as tax credits have been introduced in several provinces.

In 1974, the new federal Family Allowance Act was introduced in all provinces to provide for a significantly increased benefit per child but to be included in income subject to taxation. Special provincial adjustments to the federal Family Allowance Program have been developed by Quebec and Alberta, while both Quebec and Prince Edward Island have their own child allowances, which supplement the federal payments.

The extent and variety of changes in the social security system in Canada since the early 1960s have made presentation of relevant historical statistics necessarily complex. Considerable care should be exercised in the use of such data.

Statistical Sources

The references for Social Security (series Cl-599) are from two main sources: the published documents of the Government of Canada, the Gouvernement du Qu‚bec and several private sources; and the unpublished reports of the governments of Canada and Quebec. The sources are listed numerically and the source references for each table are shown by the pertinent numerical reference.

Published source documents

1. Annual Report of the Department of Citizenship and Immigration, Queen's Printer, Ottawa.

2. Economic Review, prepared by the Department of Finance, (Catalogue F1-21), Department of Supply and Services, Ottawa.

3. Annual Report of the Department of Indian Affairs and Northern Development, Department of Supply and Services, Ottawa.

4. Labour Gazette, published monthly by the Department of Labour.

5. Annual Report of the Department of Manpower and Immigration, (Catalogue MP-1), Department of Supply and Services, Ottawa.

6. Annual Report of the Department of National Health and Welfare, (Catalogue H1-3), Department of Supply and Services, Ottawa.

7. Annual Report of the Administration of the Canada Pension Plan, published by the Department of National Health and Welfare.

8. Annual Report of the Administration of the Canada Assistance Plan, published by the Department of National Health and Welfare.

9. Chronology of Social Welfare and Related Legislation, fiscal years 1908-1976, published by the Department of National Health and Welfare.

10. Canada Year Book, (Catalogue 11-202), Statistics Canada.

11. Local Government Finance, (Catalogue 68-203), Statistics Canada.

12. System of National Accounts - National Income and Expenditure Accounts, (Catalogue 13-201), Statistics Canada.

13. Provincial Government Finance, (Catalogue 68-206), Statistics Canada.

14. Social Security, National Programs, 1946-1975, (Catalogue 86-201), Statistics Canada.

15. Statistical Report on the Operation of the Unemployment Insurance Act, (Catalogue 73-001); and Benefit Periods Established and Terminated Under the Unemployment Insurance Act, (Catalogue 73-201), Statistics Canada.

16. Estimates - Government of Canada, Department of Supply and Services, (Catalogue BT-21).

17. Public Accounts of Canada, Department of Supply and Services, (Catalogue P51-1).

18. Annuaire du Québec, Bureau de la statistique du Québec, Québec.

19. Rapport Statistique Annuelle, R&#233gie des Rentes du Québec, Bureau de la statistique du Québec, Québec.

20. The National Finances, Canadian Tax Foundation, Toronto.

21. Financing Education, Health and Welfare, Twenty-first colloquium, 1968, Canadian Tax Foundation, Toronto.

Unpublished source documents⁸

1. "Monthly Program Statistics, Income Maintenance Branch," Department of National Health and Welfare, 1946-1976.

2. "Annual Report of Family Allowances," prepared annually, 1946-1976, Department of National Health and Welfare.

3. "Report on the Administration of the Youth Allowances Act," prepared annually from 1964 to 1974, Department of National Health and Welfare.

4. Contributions to Quebec provided by the Department of Finance under the Federal-Provincial Fiscal Revision Act, 1964, and the Established Programs (Interim Arrangements Act) in lieu of cost-sharing arrangements. Information passed to National Health and Welfare annually by the Federal Department of Finance.

5. "Annual Report of Old Age Security," prepared annually since 1952, Department of National Health and Welfare.

6. Department of Manpower and Immigration, Manpower Training Allowances Rate Structure, special statistical tables made available to National Health and Welfare.

7. War Veterans Allowances Statistics, special statistical tabulations prepared by the Department of Veterans Affairs, 1977.

8. Veterans, Disability and Dependent Pensions Statistics, special statistics tabulations prepared by the Department of Veterans Affairs, 1977.

9. "Canada Pension Plan Statistical Bulletin," published quarterly, 1969-1976, Department of National Health and Welfare.

10. "Quebec Pension Board Statistical Bulletin," published quarterly, 1967-1976, Quebec.

11. Unemployment Insurance, Net Payments by Province, special tabulations prepared by province, 1941-1976, Statistics Canada, 1977.

12. Workmen's Compensation, Provincial and National Statistics, compiled annually by the Accident Compensation Division, Federal Department of Labour, 1915-1976.

13. "Canada's Health and Welfare", published 1955-1971, by the Research and Statistics Directorate, Department of National Health and Welfare.

14. "Annual Report on the Administration of Allowances for Blind Persons in Canada," published annually, 1952-1975, Department of National Health and Welfare.

15. "Annual Report on the Administration of Allowances for Disabled Persons in Canada," published annually, 1955-1975, Department of National Health and Welfare.

16. "Annual Financial Reports," 1927-1948, federal Department of Finance.

17. "Annual Report of the Vocational Rehabilitation of Disabled Persons," published annually by the Department of Labour, 1962-1966; the Department of Manpower and Immigration, 1967-1973; and the Department of National Health and Welfare, 1973-1976.

18. Provincial annual, quarterly and monthly reports of welfare, various titles, appropriate provincial governments.

19. "Historical Review of Financial Statistics of Governments in Canada," 1952-1962, Statistics Canada.

Notes to tables

This section provides a summary introduction to describe the programs represented in the accompanying tables. Because rate structures of benefits changed frequently, it has not been possible to incorporate tables of changes in rate structures. However, such tables are referred to in the sources, which are presented (by number) immediately following each set of table headings. The full table headings are not repeated since they are all for Canada and provinces, and contain information about beneficiaries and amounts received, in adjacent tables.

The tables are available as comma separated value files (csv). They may be viewed using a variety of software. You may have to create an association between your software application and the csv files. The pdf files should be used to verify table formats. For example, footnotes appear in a column to the right of the cell they reference in the csv files; while in the pdf files footnotes appear as superscript numbers.

Federal Income Security Programs (Series C1-195)

C1-65. Family and youth allowances

Source: 16, 17, 22, 23, 24, 25, 34.

The Family Allowance Act, proclaimed in 1945, provided for direct payments to families with established residence providing support of children under 16 years of age. In 1961, the Family Assistance Act extended coverage to children of first year immigrants and the Schooling Allowances Act of Quebec extended coverage to children 16 and 17 years of age attending school. Similar benefits were extended to this age group in 1964 by the federal government for all other provinces under the Youth Allowances Act. In 1973 the Family Allowance Act was revised to cover all resident children up to 18 years of age living at home and monthly benefits were increased to $20.00 per child as of 1 January 1974. Family assistance payments for Canada are found in series C562. For information on the historical rate structure see source 14, pp. 209-217.

C66-117. Old Age Security and Guaranteed Income Supplement

Source: 16, 17, 23, 26, 34.

In 1952 the Old Age Security Act was introduced to replace the Old Age Pension Act, a cost-shared federal-provincial program. Old Age Security provided a basic monthly income of $40.00 to all persons 70 years of age and over who qualified on the basis of residence in Canada. In 1966 the program was modified to reduce the age of eligibility annually by one year down to the age of 65 in 1970. In 1966, provision was also made for adding an income-tested Guaranteed Income Supplement (GIS) for all OAS beneficiaries with little or no taxable income. In October 1975 the Spouses Allowance Act was introduced; this program provides OAS/GIS level benefits to spouses aged 60 to 64 years who qualify on an income-tested basis. For information on the historical rate structure, see source 14, pp. 254-261.

C118-143. Manpower Training

Source: 5, 12, 16, 17, 27.

In 1967, the federal government introduced the Canada Manpower Training Program. Manpower training allowances were intended to provide a basic income to unemployed persons during their period of institutional training to acquire skills to permit them to re-enter the labour force. For the historical rate structure of allowances, see source 27. The program also provides direct payments to firms providing on-the-job training in industry. Expenditures for Canada for the Canada Manpower Industrial Training Program are found in series C560-571.

Since 1957 the federal government has also provided financial aid to refugee immigrants during their initial period of adjustment to living in Canada. National expenditure figures are reported in series C567.

C144-156. Social Assistance Payments to Registered Indians

Source: 10, 14 (pp. 695-698), 16, 17.

Since 1948, the federal government has undertaken to provide direct financial aid to registered or status Indians in need to maintain themselves. These payments are currently provided through the Department of Indian Affairs and Northern Development and are administered by Indian band councils, by officials of the Department of Indian Affairs and Northern Development and by provincial welfare departments.

C157-195. War Veterans Allowances and Veterans Disability Pensions

Source: 16, 17, 28, 29.

After World War I, under the War Veterans Pension Act of 1919, the federal government undertook to provide pensions to persons previously in the armed services and who suffered from demonstrated residual disability resulting from any war-related activity. In 1930, the federal government introduced the program of War Veterans Allowances for veterans who were unable to maintain themselves on an independent basis. For information on the historical rate structure, see sources 9, 10, 34.

In all the above programs the value of benefits has been improved over time either through amendments to the legislation or more recently for the family allowances, old age security and guaranteed income supplement programs, through indexing of benefits in accordance with the Consumer Price Index. See sources 1, 3, 5, 6, 9, 10, 14, 34.

Federal and Provincial Income Insurance Programs (Series C196-286)

C196-247. Canada and Quebec Pension Plans

Source: 7, 9, 10, 14, 16, 17, 18, 19, 30, 31, 34.

The Canada and Quebec Pension Plans were introduced in 1966 to provide income protection to contributors in accordance with years of contributions and level of contributory earnings. Benefits include retirement pensions after age 65, survivors and death benefits to families of contributors who die before age 65 and disability benefits to contributors who become unable to work because of disability. The programs have been funded by contributions of 1.8 per cent of earnings from employers and 1.8 per cent from employees, up to the level of maximum pensionable earnings. In order to obtain total payments under the Canada and Quebec Pension Plans it is necessary to add the figures in series C209-221 and C235-247. For historical rates of payments under these programs see source 14, pp. 149-156.

C248-273. Unemployment Insurance

Source: 9, 10, 14, 15, 16, 17, 20, 32, 34.

The Unemployment Insurance Act, through an amendment to the BNA Act, was proclaimed by the federal government in 1941. The act provided unemployment benefits to persons employed in industry but excluded certain groups such as teachers and the public service. In 1972, the revised act extended coverage to almost all employees in the labour force; benefits were extended to provide income protection against sickness and temporary disability, for maternity leave, for fishermen and for retiring employees during an initial period of retirement. The program is funded by contributions from employers and employees with supplementary contributions from federal general revenues to cover periods of continuing high unemployment on a regional basis. In order to obtain total payments under the Unemployment Insurance program it is necessary to add the figures in series C248-260 and C261-273. For information on the historical rate structure see source 14, pp. 98-106.

C274-286. Workmen's Compensation

Source: 4, 9, 13, 33, 34, 407.

Workmen's compensation programs, funded by contributions from employers, have operated under provincial legislation since World War I. The programs provide for medical benefits as well as disability benefits and pensions to injured workmen or their survivors. Included here are the income maintenance aspects, that is, cash payments to direct beneficiaries. The cost of services, or goods in kind, are not included here but are included under expenditures for health care services. For information on the historical rates structure, see sources 4, 9, 10.

Under all three programs above, coverage of benefits has been extended and benefits have increased through the years. In recent years, the Canada and Quebec Pension Plans have indexed benefits in accordance with increases in the Consumer Price Index, while all these plans have increased the maximum levels of earnings that are 'insured'. See sources 4, 7, 9, 10, 14, 34.

Federal-Provincial Cost-Shared Income Security Programs (Series C287-442)

C287-312. Old Age Pensions

Source: 6, 9, 10, 12, 13, 14, 17, 39, 40.

The Old Age Pension Act of 1927 represented the first time that the federal and provincial governments undertook to share the costs of a national program of income security. In 1928 there was 50 per cent sharing in the monthly payment of a pension of $20.00 to needy persons, 70 years of age and over. In 1933, the federal share was increased to 75 per cent. Payments continued under the program until 1951 at which time the program was replaced by the Old Age Security program which is federally administered and financed. For information on the historical rate structure, see sources 6, 9, 10, 14 (pp. 290-293), 39.

C313-338. Old Age Assistance

Source: 6, 8, 9, 10, 13, 14, 16, 17, 18, 34, 39, 40.

In 1952 the Old Age Assistance Act was introduced. This program provided monthly payments to persons 65 to 69 years of age who were in need, and the benefits were cost-shared equally by the federal and provincial governments. The program was withdrawn in 1970 when eligibility for OAS was reduced to the age of 65. For information on the historical rate structure see source 14, pp. 290-293.

C339-364. Blind Persons Allowances

Source: 6, 8, 9, 10, 13, 14, 16, 17, 18, 25, 34, 35, 39, 40.

Cost-shared pensions for the blind were introduced under the Blind Pensions Act in 1937 with rates parallel to the old age pension. Payments under this program continued up until 1951 at which time the Blind Persons Allowances Act was introduced with higher rates of benefits, with an equal sharing of costs by the federal and provincial governments. For information on the historical rate structure, see source 14, pp. 295-297.

C365-390. Disabled Persons Allowances

Source: 6, 8, 9, 10, 13, 14, 16, 17, 18, 25, 34, 36, 40.

In 1954, the Disabled Persons Allowance Act was introduced, providing a monthly benefit of $65.00 to persons 18 to 64 years of age who were unable to work because of disability. This program was cost-shared equally by the federal and provincial governments. For information on the historical rate structure, see source 14, pp. 298-301.

C391-416. Unemployment Assistance

Source: 6, 8, 9, 10, 14, 16, 17, 18, 25, 34, 39, 40.

In 1955, the Unemployment Assistance Act was introduced, providing benefits to families and single individuals in need. The act was administered by the provinces with 50 per cent cost-sharing of payments by the federal government. While directed primarily to the employables, the Unemployment Assistance Program was empowered to provide financial assistance to unemployables cared for in public institutions and to provide supplementary assistance on the basis of need to persons under the three programs above, namely Old Age Assistance, Blind Persons Allowances and Disabled Persons Allowances. For information on the historical rate structure, see sources 6, 9, 10, 34, 39.

C417-442. Canada Assistance Plan

Source: 6, 9, 10, 12, 13, 14, 16, 17, 18, 25, 34, 39.

The integration of federal-provincial cost-sharing activities was undertaken in 1966 through the introduction of the Canada Assistance Plan. Under this legislation, financial assistance to families and individuals was calculated on the basis of need in essentially the same manner as for the Unemployment Assistance Program. The act also provided for cost-sharing the delivery of social services and work activity projects with the provinces. Cost-sharing continued on an equal basis as with unemployment assistance.

Since the introduction of the Canada Assistance Plan, it has been general policy of provincial governments to discontinue categorical programs (Old Age Assistance, Blind Persons Allowances and Disabled Persons Allowances) in favour of the general social assistance program under the Canada Assistance Plan. There has also been a similar phasing out of the financial assistance provided under the Unemployment Assistance Program. Social assistance rates are adjusted in various provinces, from time to time, either to compensate for inflation or to improve the benefit structure generally. Eligibility rules, benefit structures, and administrative aspects of programs often vary from province to province. For information on the historical rate structure, see sources 6, 8, 10, 14, 18, 34, 39.

Federal and Provincial Cost-Shared Social and Related Services Programs (Series C443-507)

C443-481. Canada Assistance Plan, Homes for Special Care, Child Welfare and Other Welfare

Source: 8, 9, 12, 25.

Under the Canada Assistance Plan, the federal government shares with the provinces the cost of maintaining persons in institutions, such as homes for the aged, homes for unmarried mothers, youth hostels, etc. They also share in administering child welfare services such as protective services, adoption and child care, and provision of a wide range of social welfare services in the community, such as counselling, rehabilitation and work activity projects. The Canada Assistance Plan also cost-shares in the provision of non-insured health services. The costs of these latter services are included under health care services in Section B of this publication.

C482-494. Vocational Rehabilitation of Disabled Persons

Source: 1, 5, 6, 8, 9, 10, 14, 38.

Under the Vocational Rehabilitation of Disabled Persons Act, the federal government cost-shares with the provinces in the expenses of providing an integrated program of social, vocational and medical services, to aid the disabled individual to become re-employable and re-established in a job.

C495-507. Social Services for Registered Indians

Source: 1, 3, 10, 16, 17, 34.

Under the Indian Act the federal government provides a wide range of social welfare services to registered or status Indians. These include child welfare, institutional care for the aged and disabled, rehabilitation services for the disabled and work opportunity programs.

Also included are expenditures for the Canada Manpower Trainee Travel Program which provides special services to workers by paying transportation charges to bring trainees to the manpower training centres and by providing counselling to workers with special difficulties in obtaining suitable employment opportunities. National expenditures for this service are reported in series C587. See source 5.

Provincial-Municipal Income Security Programs (Series C508-559)

C508-533. Mothers Allowances, 1926 to 1966

Source: 6, 9, 10, 34, 39.

Commencing during World War I, some provinces introduced mothers allowances legislation to provide income support to single-parent mothers with dependent children. The programs, which were funded by the province and the municipalities, were eventually available in all provinces. Some provinces discontinued funding these programs after the introduction of the Unemployment Assistance Act in 1955. Others later transferred their caseloads to the Canada Assistance Plan. For information on historical rate structures, see sources 6, 9, 10, 34, 39.

C534-559. Other Provincial-Municipal Income Security Expenditures not Federally Shared

Source: 2, 6, 7, 8, 9, 10, 11, 12, 13, 34, 39.

This area of expenditures has not been well defined historically on a statistical basis. It has therefore been necessary to restrict our presentation to combined figures for all other programs. These were derived by subtracting the total cost-shareable expenditures of federal-provincial welfare programs from the total provincial welfare expenditures (excluding Workmen's Compensation 1971-1976) as compiled by Statistics Canada in Provincial Government Finance, (Catalogue 68-206). The residual represents provincial and municipal welfare expenditures which were not federally shareable, thus they exclude expenditures for mothers allowances (series C534-546). The lower part of the table, series C547-559, includes mothers allowances from 1951 to 1966, that is, prior to the inception of the Canada Assistance Plan.

There are four main components to these provincial-municipal expenditures which need to be identified. Provincial welfare payments (mothers allowances) and provincial administration expenses represent the broadest categories. Under federal-provincial cost-sharing arrangements, the federal government has not shared fully in all costs. Thus the federal government has not fully shared in all welfare administration expenditures of the provincial governments; and capital expenditures on development of welfare facilities have also been traditionally excluded from federal cost-sharing except for a small part of capital and maintenance expenditures allowed for under the Canada Assistance Plan and under federal-provincial arrangements for sharing in the costs of construction of day care services.

Child welfare services, for example, represent an area of provincial welfare in which there was no federal sharing during the period prior to the introduction of the Canada Assistance Plan in 1966. At present, there is no federal sharing in the provincial tax rebates and credits allowed to tax filers on rent and other housing costs and to farmers on their capital costs. It is not possible to allocate these expenditures precisely on an historical basis but their relative importance has increased substantially (to over one-half billion dollars) in recent years.

Government Expenditure on Social Security by Broad Program Areas (Series C560-599)

This section summarizes the statistical information given in the first five sections of this chapter in order to estimate the total amount of public expenditures at all levels of government on social security programs, broadly defined.

C560-571. Federal Income Security Program Expenditures

This table is composed of the national totals drawn from Federal Income Security Program Expenditures, with the addition of three programs: Family Assistance, Canada Manpower Industrial Training Program and Aid to Refugee Immigrants. These are federal programs for which a provincial breakdown of expenditures was not available.

C572-576. Federal and Provincial Income Insurance Expenditures

This table summarizes total federal and total provincial transfer payments under the Income Insurance programs.

C577-582. Federal-Provincial Shareable Expenditures of Direct Financial Assistance to Persons

Federal and provincial total shared expenditures on cost-shared programs which provide direct financial assistance to persons, that is, the income maintenance aspect of programs, are summarized in this table.

C583-590. Social Services Expenditures under Federal and Federal-provincial Shareable Welfare Services Programs.

This table provides an estimate of total expenditures for social service programs paid for by the federal government or by federal and provincial governments jointly. It includes the three main service areas funded under the Canada Assistance Plan; Vocational Rehabilitation of Disabled Persons Act (also federal-provincially cost-shared); federal services to registered Indians; Canada manpower mobility grants to assist the unemployed to relocate where employment can be found; and a subtotal for other expenditures made by the federal government in the field of social security, for example, National Welfare Grants Program (for research and demonstration projects), New Horizons and family planning.

C591-599. Summary of all Government Expenditures on Social Security by Broad Program Areas.

This table provides estimates of total annual expenditures by all levels of government on social security, broadly defined. The components for the first part of this table are found in the preceding summary tables⁹. Included in the grand total of social security expenditures are administrative expenditures for welfare programs as well as total expenditures on health care services. Health care expenditures are given in detail in Section B of this volume.

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Notes

1. For most of the programs for which information has been obtained, both expenditure data and caseload, beneficiary, or recipient counts have been provided.
2. For example, in a number of provinces child welfare programs are administered by private, non-profit agencies such as Children's Aid Societies.
3. Income Security and Social Services, Ottawa, Privy Council Office, 1969, p. 8.
4. Examples of such private collective activities are group life insurance, dental, and pension plans.
5. Public service employee pension plans are not included in this category. They would be included in 'Private Expenditures on Social Security' as they are analogous to employee/employer financed plans in private industry.
6. The Canada and Quebec Pension Plans also provide for disability, survivor's and death benefits while the Unemployment Insurance Program provides some sickness and maternity benefits.
7. See the Established Programs (Interim Arrangements) Act and, for a brief explanation, "General Payments to Other Governments", Chapter 10, The National Finances (Toronto, The Canadian Tax Foundation, 1977), pp. 134-147.
8. For further information concerning the National Health and Welfare documentation on unpublished sources, inquiries should be directed to the Welfare Information Systems Branch, Department of National Health and Welfare, Brooke Claxton Building, Tunney's Pasture, Ottawa, Ontario. K1A 0K9.
9. Provincial and municipal expenditures on income maintenance and welfare services programs not cost-shareable with the federal government were reported in C534-559. Those totals are also carried forward to the above table.

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