Toronto is moving to replace the paper welfare cheque with a debit card — a benefit for both social assistance recipients and the city.
Some 22,000 recipients — about one in four — can’t opt for direct bank deposit because they don’t have bank accounts. Instead, they rely on expensive cheque-cashing services.
The city estimates a single client receiving $599 a month could save at least $250 a year by eliminating cheque-cashing fees.
The city itself expects to net savings of at least $2.5 million annually — after paying the card supplier — by eliminating the high cost of issuing cheques.
“It’s a win-win,” Councillor Paul Ainslie said Wednesday during a news conference at the city’s welfare office in the Golden Mile plaza on Eglinton Ave. E.
“We’re not going to be printing cheques,” Ainslie said. “They’re not going to be spending money for cheque cashing.”
Toronto launched the new card at five of its 15 social assistance offices and expects to add the rest soon.
The card is equipped with PIN and chip security technology. After it’s loaded with the monthly amount, recipients can use the card to access the cash through ATMs and purchase items at retailers.
The card doesn’t identify the holder as a welfare recipient.
“For me, it’s a dignity card, that’s how I see it,” said Councillor Michael Thompson. “Where welfare cheques stigmatize people, this card will enable recipients to live like other Torontonians.
“We want to eliminate the stigma that people feel.”
Many recipients without bank accounts cash their cheque and carry the money, increasing their risk of being robbed. The card does away with that risk.
“Instead of getting a cheque, the money goes on the card; they can go to any debit machine and shop with it like any debit card,” Ainslie said.
While some U.S. politicians want to prevent people who carry welfare cards from using them at casinos, liquor stores or tattoo parlours, no restrictions are contemplated in Toronto.
The city notes that people who receive social assistance funds via direct bank deposit aren’t told how or where to spend the money.
“Clients who are issued a City Services Benefit Card will not be treated any differently than clients who receive their payments via other methods,” the city said.
Toronto is the first municipality in Ontario to introduce such a card, and other jurisdictions are monitoring the launch, Ainslie said.
“It may be extended to other municipalities,” he said. “We’re being closely watched, so we want to make sure we do it right.”
Original Article
Source: the star
Author: Paul Moloney
Some 22,000 recipients — about one in four — can’t opt for direct bank deposit because they don’t have bank accounts. Instead, they rely on expensive cheque-cashing services.
The city estimates a single client receiving $599 a month could save at least $250 a year by eliminating cheque-cashing fees.
The city itself expects to net savings of at least $2.5 million annually — after paying the card supplier — by eliminating the high cost of issuing cheques.
“It’s a win-win,” Councillor Paul Ainslie said Wednesday during a news conference at the city’s welfare office in the Golden Mile plaza on Eglinton Ave. E.
“We’re not going to be printing cheques,” Ainslie said. “They’re not going to be spending money for cheque cashing.”
Toronto launched the new card at five of its 15 social assistance offices and expects to add the rest soon.
The card is equipped with PIN and chip security technology. After it’s loaded with the monthly amount, recipients can use the card to access the cash through ATMs and purchase items at retailers.
The card doesn’t identify the holder as a welfare recipient.
“For me, it’s a dignity card, that’s how I see it,” said Councillor Michael Thompson. “Where welfare cheques stigmatize people, this card will enable recipients to live like other Torontonians.
“We want to eliminate the stigma that people feel.”
Many recipients without bank accounts cash their cheque and carry the money, increasing their risk of being robbed. The card does away with that risk.
“Instead of getting a cheque, the money goes on the card; they can go to any debit machine and shop with it like any debit card,” Ainslie said.
While some U.S. politicians want to prevent people who carry welfare cards from using them at casinos, liquor stores or tattoo parlours, no restrictions are contemplated in Toronto.
The city notes that people who receive social assistance funds via direct bank deposit aren’t told how or where to spend the money.
“Clients who are issued a City Services Benefit Card will not be treated any differently than clients who receive their payments via other methods,” the city said.
Toronto is the first municipality in Ontario to introduce such a card, and other jurisdictions are monitoring the launch, Ainslie said.
“It may be extended to other municipalities,” he said. “We’re being closely watched, so we want to make sure we do it right.”
Source: the star
Author: Paul Moloney
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