Question Period Note: PROGRAMS TO ASSIST SENIORS – OFFICE OF THE AUDITOR GENERAL REPORT

What is the Government’s response to the Office of the Auditor General’s Independent Auditor’s report titled Programs to Assist Seniors, which evaluates whether Employment and Social Development Canada (ESDC) has sufficiently supported older Canadians through federal programs, services, and initiatives?

• The Government of Canada is dedicated to building a stronger and more inclusive society to ensure that seniors can age with dignity and with choice.

• The Government of Canada is committed to supporting the needs of older Canadians and ensuring that programs and services are developed to respond to Canada’s aging population.

• The Government of Canada accepts the report of the Office of the Auditor General and the review of the government’s programs to assist older Canadians and is taking their findings seriously.

• The Government of Canada agrees that regular analysis of the needs of seniors and monitoring of programs is a vital part of ensuring that programs remain responsive to the evolving needs of seniors in Canada.

On December 2, 2024, the Office of the Auditor General (OAG) released their Independent Auditor’s report titled Programs to Assist Seniors, which evaluates whether Employment and Social Development Canada (ESDC) has sufficiently supported older Canadians through federal programs, services, and initiatives.
The OAG’s report found that ESDC needs to improve its reporting to better understand how the programs it delivers are meeting seniors’ needs as it could not determine whether that was the case. The audit provided recommendations to ESDC on how the department should collaborate with OGDs on what programs are in place and identifying the gaps in programs offered, measuring the impact of programs on the population, and allocating resources. The report also included recommendations on the quality of the information collected on small grants projects under the New Horizons for Seniors Program and how it is used to assess results.
Recommendation on information gathering and collaboration and measurement
Recognizing the horizontal and diverse nature of seniors needs, ESDC acts as a focal point for federal seniors-related policies. In doing so, it works collaboratively with other departments to raise the profile of seniors needs, in all their diversity, and advance the development of policies and programs that respond to those needs across government.
ESDC also serves as a coordinating mechanism across provinces and territories to share information, discuss new and emerging issues related to seniors, and work collaboratively on key projects. In its role as federal focal point, the department shares information gathered from the Forum of Federal, Provincial and Territorial Ministers Responsible for Seniors with other federal departments to help inform their programs and services.
ESDC also supports the National Seniors Council, an advisory body that advises the Government of Canada on matters related to the health, well-being and quality of life of older Canadians, which contributes to a better understanding of seniors needs within the government.
Old Age Security (OAS) Program
The OAS program is considered the first pillar of Canada’s Retirement Income System, and plays a significant role in providing income security to Canadians in their senior years. The benefits under the OAS program include the basic OAS pension, which is paid to all persons aged 65 or over who meet the residence requirements, the Guaranteed Income Supplement (GIS) for low-income seniors, and the Allowances for low-income Canadians aged 60 to 64 who are the spouses or common-law partners of GIS recipients, or who are widows or widowers.

The program is designed to be a safety net for low and modest income seniors, and provides a base on which seniors can supplement their income from other sources, including the Canada Pension Plan, employer-sponsored pension plans and other savings. Although the OAS program is not designed to meet all the retirement needs of a senior, the program has played a major role in reducing the incidence of low income among seniors.

ESDC is committing to periodically assess how the OAS program is performing in the context of the different pillars of the Canadian retirement income system in providing financial support to seniors. This entails continuing to analyze the financial security of seniors and strengthening how we measure and monitor program results, to ensure that the program remains responsive to the needs of seniors and government priorities.

To date, the Government has undertaken several measures to improve the financial security of seniors. Since 2015, the Government has:
o increased the maximum GIS benefit for single seniors by 10%, helping close to 900,000 seniors who rely almost exclusively on the OAS pension and the GIS, and providing up to almost $1,150 in additional benefits in 2023, indexed to inflation every quarter;
o restored the age of eligibility for the OAS pension and the GIS to 65 from 67, preventing about 100,000 future seniors from falling into poverty;
o increased the GIS Earnings Exemption from $3,500 to $5,000, extended the exemption to self-employment income, and introduced an additional 50% exemption on employment and self-employment income between $5,000 and $15,000, starting in July 2020. This measure enables working GIS recipients to earn up to $15,000 in employment and self-employment income before the GIS benefit reduction applies to their full income;
o introduced a permanent 10% increase to the OAS pension for seniors aged 75 and over, in July 2022, which provided over $800 more in benefits to full OAS pensioners in the first year.
New Horizons for Seniors Program (NHSP)

The Government of Canada is committed to creating opportunities for older Canadians to be more connected, supported and active members of their communities through the implementation of the New Horizons for Seniors Program (NHSP). The NHSP includes two streams: Community-Based and Pan-Canadian.

There were no findings in the report on the Pan-Canadian stream that funds major projects using contribution agreements that can last up to five years and have an average value of $2.5M. As the Government of Canada’s Policy on Transfer Payments requires that accountability measures align with the amount of funding, these projects are subject to significant reporting and monitoring requirements.

The findings in the report look at small grant projects, funded under the community-based stream of the NHSP of up to $25,000 and one-year in duration. Recognizing the importance of the investment in these projects, at least $50M a year, ESDC’s requirements for reporting and monitoring exceed what is expected under the Policy on Transfer Payments. Specifically, to monitor and measure the impact of each project, the Department conducts a touch base call with recipients during their project and requires them to submit a final report once their project is done, that provides information on benefits to seniors.

ESDC is committing to working to improve the quality of information collected on small local projects funded under the NHSP. This entails: continuing to update the Performance Information Profile that guides information collection; reviewing what information organizations are required to report after they complete their projects; enhancing outreach to recipients to increase the submission rate for these final reports on their projects; and strengthening internal file management.

NHSP Community-Based Projects

The NHSP’s community-based stream supports local projects led by and for seniors – playing a crucial role in supporting older people, improving their quality of life, and fostering vibrant communities.

Since its inception in 2004, the NHSP has funded around 40,000 local projects and broader-reaching collaborative initiatives in hundreds of communities across Canada, with a total Government of Canada investment of more than $850 million.

In 2023-2024, a total of 3,451 Community-based projects were funded under the Government of Canada’s NHSP Community-based Call for Proposals.

The NHSP funds projects that support social inclusion, well-being and quality of life of seniors such as projects on sharing knowledge, skills and experiences; promoting awareness of elder abuse; financial literacy training; fraud prevention training; and the purchase of equipment to support staying informed, connected, engaged, and much more.

NHSP Pan-Canadian Projects

The NHSP’s pan-Canadian stream supports projects that create a significant impact in communities and invest in larger initiatives. Projects use collaborative and innovative approaches to build community capacity and increase social inclusion among seniors.

For example, the pan-Canadian stream has funded projects that: increase social inclusion of seniors with dementia and their caregivers; mobilize volunteers to find seniors who are isolated or at risk of isolation and connect them to community supports; and deliver services to seniors in some of Canada’s most ethnically diverse communities.

Selected organizations are eligible to receive project funding of up to $5 million over four to five years. The 22 New Horizons for Seniors Program’s Pan-Canadian collective impact plans funded from 2019-2020 to 2024-2025 have received more than $57 million.

To date, New Horizons for Seniors Program’s pan-Canadian projects have engaged and connected over 100,000 seniors to supports and services in their communities to reduce social isolation. Projects have also provided over 15,500 professionals and volunteers with training to identify, support and respond to the needs of seniors in communities across Canada. 

If Pressed on the response to the recommendations

• In collaboration with other departments and agencies, Employment and Social Development Canada will work to enhance existing tools to ensure a more detailed and broader understanding of seniors’ needs in Canada to advance the development of policies and programs across government.

• Regarding the findings and recommendations related to the Old Age Security program, Employment and Social Development Canada regularly conducts policy analysis of the program to ensure that it remains responsive to the needs of seniors and government priorities. ESDC agrees that additional analysis should be conducted on how the OAS program interacts with other pillars of the retirement income system to meet the financial needs of seniors.

• As recommended by the Office of the Auditor General, Employment and Social Development Canada will also improve the quality of the information on the small grant projects under the New Horizons for Seniors Program to monitor and measure the impact that these projects are having on older Canadians.

• In-depth policy analysis has always been and will remain a core practice of Employment and Social Development Canada.