The provincial government is facing a $200-million class-action lawsuit over early cancellation of a basic income pilot project in three Ontario cities. On March 4, the Ontario Superior Court of Justice approved the lawsuit filed by Cavalluzzo LLP on behalf of 4,000 proposed class members. The plaintiffs in the lawsuit argue that canceling the program amounts to a breach of contract.
The Ontario government launched a three-year Basic Income pilot program in 2017 for low-income people in Hamilton, Lindsay and Thunder Bay. Its purpose was to explore whether the government could introduce fixed income.
Four thousand people who signed up to the experimental program completed regular surveys and provided their personal information to the researchers. In return, one participant received less than $17,000 a year. In case of a couple, the amount is more than 24 thousand dollars.
A year later, the program was abruptly canceled by the province when there was a change of power after the election. The final date of payment was March 25, 2019. At the same time, the government claimed that the program did not help people contribute to the economy. And the program has discouraged them from going in the right direction.
In court documents filed in 2019, the cancellation of the pilot program was disastrous for the applicants. As a result, their future is at risk. Their health has suffered.
57-year-old Dana Bauman has been going through physical disabilities for a long time. She planned to upgrade her education to pursue a career in social service. It was not financially feasible with the Ontario Disability Support Program.
Durham College student Grace Hillion, 20, planned to continue her college education by paying tuition fees. Due to the financial crisis it has come under threat.
The Ontario government has not commented on the class action suit as it is still on appeal. They also feel that it would not be reasonable to comment at this time.
