Ontario government is sued for $200m after scrapping a program that provided crucial income support to 4,000 people
After a five-year battle with the Ontario government over the cancellation of a guaranteed basic income pilot project, a law firm has received $320,000 for spearheading a class-action lawsuit.
Last month, Ontario Superior Court Justice S.T. Bale certified the lawsuit, which was initially filed in 2019 and seeks $200m in general damages on behalf of 4,000 participants.
Lead counsel Stephen Moreau is set to appear at Queen’s Park on Monday to push the government to expedite the legal process. “Stop fighting, stop delaying and get down to the business of doing justice and fairness by these people,” Mr. Moreau told The Globe and Mail.
The basic income pilot, initiated in April 2017 under former Premier Kathleen Wynne, allocated $150 million for a three-year program. It offered individual participants $16,989 annually ($24,027 for couples), reducing payments by 50 cents for each dollar earned through work.
Eligibility required an annual income below $34,000 ($48,000 for couples) and residency in Lindsay, Thunder Bay, or Hamilton.
Jessie Golem, a Hamilton resident, joined the pilot hoping it would provide the financial stability to start her own videography business.
Despite working four jobs, including giving piano lessons, the precariousness of her income made basic living a constant struggle. The pilot payments, which began arriving in 2018, provided about $700 monthly, just covering her rent.
The financial relief was transformative for Golem, enabling her to focus on her business. “It was this huge weight off my shoulder, one I didn’t even realize was there,” she recalled. She began securing more photography projects and planning expansion within two years.
A survey by the Basic Income Canada Network of 424 participants found significant benefits: one-third could afford schooling, and nearly three-quarters reported improved diets and better housing. Over half experienced reduced stress, anxiety, and depression.
However, the Ford government terminated the program in July 2018, a year into its intended three-year duration, with the last payments disbursed in March 2019.
The plaintiffs argue this abrupt end constituted a breach of contract, as participants had made life-changing decisions based on the expected three-year income. The termination led to severe psychological distress among participants, including panic attacks and suicidal ideation.
The Ministry of Children, Community and Social Services, responsible for the program, has not commented on the matter. For Golem, the end of the payments meant shelving her business aspirations and returning to teaching piano, dependent on the longevity of her aging car.
“It’s demoralizing and discouraging,” she expressed. “It’s not that I failed, it’s that I was never given a chance to succeed.”
