3.0 Relevance/Reach

3.1 Continued Need

There is a continued need for the VEF, now and in the future, as Veterans are looking to VAC for assistance during times of financial crisis. The fund meets Veteran’s immediate needs, including during the Covid-19 pandemic, but longer term needs can require additional supports.

The evaluation finds that there is a continued need for the VEF as uptake has been strong with minimal promotion of the program. Demand for the VEF has exceeded the funding level of $1,000,000 in each of its first two years of operation and is on pace to exceed the limit in year three. In support of assessing the ongoing need for the VEF, the evaluation team analysed operational and published program data, reviewed recipient files, and obtained direct feedback via interviews and a survey of frontline staff who work directly with Veterans.

3.1.1 Program Uptake

To further assess the ongoing need for the VEF, the evaluation team analysed operational data and obtained direct feedback from frontline staff who work directly with Veterans. Due to the nature of the program, forecasting the future demand is extremely challenging because emergencies cannot be predicted. In addition, as the program is only in its third year of operation, a consistent pattern of growth cannot yet be established. However, year-over-year analyses of VEF applications does indicate that uptake has increased by approximately 23.4% from year one to year two. Month-by-month program utilization is shown in Table 3.

Analysis shows that approval rates remained consistent over the first two full years of the program at 73.2% for fiscal year 2018-19 and 74.3% in 2019-20. Approval rates are trending slightly lower to date in 2020-21 at 71.4% (as of August 19, 2020).

A survey of frontline decision makers who work directly with Veterans and interviews with field staff revealed that Veterans generally know about the VEF, though they may not know the eligibility criteria. Thus, Veterans sometimes apply to the fund with needs that are not considered an emergency (and are subsequently declined or voluntarily withdraw their application). Staff indicated that other federal, provincial, and municipal aid agencies are aware of the program and often refer Veterans in need to VAC. The review team observed instances during a file review where Veterans were referred to VAC by other agencies. Likewise, VAC staff referred Veterans to other community supports when applicable (see Appendix C for a list of referral supports identified in the survey of frontline decision makers).

3.1.2 Immediate Needs vs. Long Term Needs

During field work, the evaluation team heard from many decision makers that the VEF was indeed helping Veterans in crisis. The follow-up survey of decision makers shows a majority of decision makers (60%) agree that the VEF is helping to address Veteran’s immediate needs (see Figure 1).

Figure 1 – Response to Survey Question: “The VEF is effective at addressing the immediate needs of Veterans and their families in crisis”

Figure 1 – Response to Survey Question: “The VEF is effective at addressing the immediate needs of Veterans and their families in crisis”

Strongly Agree	15.8%
Somewhat Agree	43.4%
Neither Agree nor Disagree	15.4%
Somewhat Disagree	15.4%
Strongly Disagree	9.9%

Survey respondents pointed to the VEF’s ability to issue payments to Veterans quickly through the use of direct deposits and acquisition cards to fill Veteran’s immediate needs like food and shelter.

The file review revealed that VEF is often accessed by Veterans with complex needs including chronic low income, homelessness, underlying addictions and/or mental health issues (762 of approximately 1283 VEF recipients for which data is available [59%] are currently receiving VAC disability benefits for mental health conditions)^{Footnote 5}. For this segment of the Veteran population, long term results may be more difficult to determine. Survey results show that many decision makers feel the VEF is not orientated to produce long term results (see Figure 2).

Figure 2 – Response to Survey Question: “The VEF is leading to positive long term outcomes for applicants/recipients.”

Figure 2 – Response to Survey Question: “The VEF is leading to positive long term outcomes for applicants/recipients.”

Strongly Agree	3.7%
Somewhat Agree	19.5%
Neither Agree nor Disagree	32.7%
Somewhat Disagree	27.6%
Strongly Disagree	16.5%

Drilling down further into the comments associated with the responses to this question, many staff indicated that the VEF is not designed to solve the root cause of most recipient’s problems; it can only provide funds to address the immediate emergency. Other supports are required to address ongoing needs, such as counselling, treatment, or permanent housing that will lead to successful longer term outcomes. To paraphrase one frontline staff member:

“I can use the VEF to provide a Veteran a hotel room on a night where it is -40 and all the shelters are full…I could literally save their life. But the next day, the shelters are still full and there are no affordable housing options in my area.”

Since program inception, 1601^{Footnote 6} unique clients have been approved for VEF funding. Of these 1601 clients, approximately 350 have returned to VAC seeking additional emergency support and have been approved for VEF benefits on multiple occasions (see distribution in Table 4).

Frontline staff indicated during interviews and through the survey of decision makers that VEF support has the potential to lead Veterans to look repeatedly to VAC as their first line of support rather than dealing with the issues leading to their emergency situation. The decision maker survey confirmed that 84% of respondents had worked through a VEF application where a Veteran had not attempted to solve the issue on their own nor explored other options.

The evaluation team heard from frontline staff through interviews that financial literacy is often the root cause of Veteran’s financial emergencies. The survey of decision makers revealed that 83% of respondents feel financial literacy/financial management contributes to Veterans’ financial crisis (see Figure 3).

Figure 3 – Survey Response: “Financial literacy or financial management/finance related decision making is often a contributing factor to a client’s financial crisis”

Figure 3 – Survey Response: “Financial literacy or financial management/finance related decision making is often a contributing factor to a client’s financial crisis”

Strongly Agree	50%
Somewhat Agree	33.1%
Neither Agree nor Disagree	14%
Somewhat Disagree	1.5%
Strongly Disagree	1.5%

Though financial literacy is undoubtedly a factor leading to a need for VEF, as stated earlier, Veterans often experience additional factors, such as addictions, homelessness, and mental health conditions that can lead to emergency situations and poor outcomes. When asked during the survey of decision makers, respondents indicated that mental health conditions are a contributing factor to Veterans’ financial crisis (see Figure 4).

Figure 4 – Survey Response: “An underlying mental health condition is often a contributing factor to a client’s financial crisis”

Figure 4 – Survey Response: “An underlying mental health condition is often a contributing factor to a client’s financial crisis”

Strongly Agree	24.3%
Somewhat Agree	40.8%
Neither Agree nor Disagree	27.6%
Somewhat Disagree	5.9%
Strongly Disagree	1.5%

As previously mentioned, 59% of VEF recipients for which there is data are currently in receipt of disability benefits for a mental health condition (46% of applicants with multiple approvals for VEF are currently receiving benefits for a mental health condition).

The evaluation finds that many VEF recipients exhibit risks for well-being that add to the complexity of their situation (see Section 3.2.1 for more information on well-being risk factors).

The evaluation team observed evidence in client notes that indicates VAC staff are attempting to connect Veterans to additional VAC and/or community supports when necessary to address long term needs, help achieve positive long-term outcomes, and reduce dependence on the VEF. The relative immaturity of the VEF program limits the ability to evaluate long-term outcomes further. However, research is currently being conducted by VAC’s Business Intelligence Unit to explore the types of, and factors underlying, the financial emergencies of VEF recipients which will help determine if long-term needs are being met.

3.1.3 Need During the Covid-19 Pandemic

The evaluation explored the need for VEF funding during the current Covid-19 pandemic. The evaluation identified a spike in demand for the program in April 2020, approximately one month into federal and provincial restrictions implemented to curb the threat of Covid-19 (see Figure 5).

Figure 5 – Total VEF Applications received per month

Figure 5 – Total VEF Applications received per month

Year	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec	Jan	Feb	Mar
2018-19	64	95	82	80	102	93	119	120	98	105	95	100
2019-20	130	143	110	143	106	97	114	118	129	120	101	112
2020-21	162	81	79	86	84

A file review revealed that 47% of approved applications during the month of April (55 applications out of 118) were related to the pandemic and subsequent lockdown of businesses and services. Sudden job loss due to the pandemic and loss/closure of community services, including food banks, precipitated most VEF applications.

VAC received more VEF applications in April 2020 than any other month since program inception. While assistance with housing is traditionally the most requested need, access to food in April was the most prevalent request for the 55 applicants whose emergency resulted from the pandemic (owing to the closure of some foodbanks, smaller community stores, and in some instances travel restrictions/quarantine). A breakdown of approved assistance requests follows in Table 5.

For comparison, the distribution of request types approved over the first two fiscal years is provided in Figure 6.

Figure 6 – Approved Requests by Type (Fiscal Years 2018-19 to 2019-20 ^{Footnote 7})

Figure 6 – Approved Requests by Type (Fiscal Years 2018-19 to 2019-20)

Request Type	2018-19	2019-20
Clothing	1%	2%
Food	20%	22%
Housing	37%	34%
Medical	10%	11%
Other	31%	30%

Not surprisingly, VEF expenditures in April 2020 during the first full month of pandemic containment measures were considerably higher than any previous month at approximately $222,000 (see Figure 7).

Figure 7 – Monthly VEF Expenditures April 2018 to August 2020

Figure 7 – Monthly VEF Expenditures April 2018 to August 2020

Year	April	May	June	July	Aug.	Sept.	Oct.	Nov.	Dec.	Jan.	Feb.	March
2018-19	$49,802	$103,553	$83,007	$85,080	$108,683	$96,020	$120,724	$122,207	$111,455	$115,872	$111,924	$146,819
2019-20	$124,553	$149,593	$117,633	$175,440	$131,076	$106,432	$123,543	$118,774	$162,105	$127,458	$113,561	$103,917
2020-21	$222,054	$139,524	$88,596	$101,490	$101,927

The expenditure spike in April 2020 coincides with the higher demand for the program. Additionally, changes implemented through an interim VEF business process in response to the Covid-19 pandemic resulted in larger payment amounts. These changes included:

• higher approval limits for frontline decision makers;
• higher yearly limits for Veterans; and
• payments for up to three months of requested expenses.

See Section 4.1.2 for further discussion on the interim business process.

While only 47% of approved applications for April were related to emergencies attributed to the pandemic, these approved applications represented 84% of funding for the month.

Covid-19 related requests leveled out in May and June 2020, but still made up 31% and 30% of VEF requests respectively (with sudden loss of income the main cause of financial emergency). Expenditures for pandemic related issues during May accounted for 36% of monthly fund expenditures, decreasing to 25% in June (expenditures were roughly proportionate to the percentage of claims for the month related to the pandemic, unlike April). Housing was a more prevalent request in May and June for those requesting assistance due to the pandemic, typical of the pre-pandemic pattern (see Table 6).

The decrease in applications in May and June related to the pandemic and return to proportionate expenditures may be attributed to proactive interventions in April (provision of three months requested expenses), but also to increased federal and provincial social supports coming online such as the Canadian Emergency Relief Benefit (CERB) which began accepting applications on April 6, 2020. Client notes reviewed for applicants applying for the VEF in April 2020 revealed that many recipients were in the process of applying for the CERB and/or for Employment Insurance, however they needed funds to bridge the gap until these supports were in place. The evaluation finds that the VEF was responsive to Veterans needs and provided support for Veterans in a time of national crisis before funding from other emergency assistance programs became available.

3.1.4 Family Member Need

Limitations in the way data is collected in CSDN prevented the evaluation team from analysing data related to family use of the VEF. The evaluation team was able to identify the files of 105 survivors that have benefited from the program. In addition, client notes revealed that the program has been accessed by spouses and children of Veterans, but to what extent is not known without conducting a full file review of each VEF decision. More analysis is required to determine to what extent family members needs are being met by the program.

3.2 Demographic Information, GBA+ Analysis, and Factors of Well-being

The use of CSDN “decision dockets” limited the evaluation team’s ability to obtain accurate information about VEF clients. However, the program appears to be utilized by a segment of the Veteran population who are at greatest risk for well-being.

The VEF program is currently administered using VAC’s Client Services Delivery Network (CSDN), which limits the ability to collect and analyze data. Indicators on race, ethnicity, sexual orientation, indigenous status, and gender have not been built into this older system. This limits the program’s capacity to evaluate the well-being of these sub populations in comparison to the broader population of VAC clients.

The use of CSDN “decision dockets” limited the evaluation team’s ability to obtain accurate information about VEF clients. All family members are linked to a Veteran’s file through the decision docket, meaning demographic information retrieved from the system is for the Veteran, not necessarily whomever applied for the fund. Where identified, the evaluation team removed data from analysis that was inaccurate (displaying Veteran data rather than actual applicant data), or data that was incomplete.

To the extent possible, full demographic data (subject to the limitations above) is known for 1283 out of 1601 unique VEF recipients. The data includes information on 170 female Veterans^{Footnote 8} who received assistance through the VEF.

3.2.1 Well-being Risk Factors

Research conducted by VAC’s Research Directorate through the Life After Service Survey (LASS) indicates that several groups of Veterans are more susceptible or at risk of low income. These groups include Veterans that:

• are aged less than 49 years;
• have less than 20 years of military service;
• are single; and
• are non VAC clients.^{Footnote 9}

The LASS studies found that these factors are predictors of low-income, persistent low-income, and other poor well-being outcomes. The evaluation team reviewed the data on 1283 VEF recipients to determine demographic characteristics and to determine if there is a correlation between VEF recipients and these risk factors for well-being.

Analysis of VEF recipient age and marital data shows that single males access the VEF more than any other demographic, representing approximately 55% of all recipients for which there is data. Single males account for 63% of all male recipients while single females make up 78% of all female recipients. See Table 7 and Table 8 for marital status and age breakdown of VEF recipients.

The majority of VEF clients (77%) are between the ages of 30-59 years old. However, more than 56% (725) are between the ages of 20 and 49 years old, the age group most associated with being at risk for low income and well-being according to VAC research.

Age data and marital status by sex are overlaid in Tables 9 and 10. The data reveals that 509 VEF recipients (421 male and 88 female) are single and in the age range of 20-49 years old.

Due to data limitations and time constraints, the evaluation team was unable to determine VEF recipients’ length of service or how many had previous contact with the department prior to accessing the VEF. However, research by VAC’s Business Intelligence Unit using data collected during the first year of the program (2018-19) indicates that approximately 17% of VEF applicants were not VAC clients at the time of application. It should also be noted that BIU analysis of year one data revealed that approximately 20% of all VEF applicants had one or more period of homelessness.^{Footnote 10}

The VEF is the only VAC program where field office staff contact the applicant before a decision is rendered. The evaluation found evidence that this interaction provides a benefit to Veterans as it allows staff the opportunity to conduct a client screening to identify Veteran’s needs and, when applicable, start the process to put other community and VAC supports in place.

The evaluation team looked at 59^{Footnote 11} instances where a Veteran’s first contact with the Department was when they were in an emergency situation and a VEF application was submitted. The evaluation team confirmed that, per the VEF Business Process, each applicant received a client screening prior to a decision being made. The screening helps determine a Veteran’s emergency need and their needs for referral to other VAC and/or community programs and services. Approximately 42% of the 59 Veterans reviewed (25) went on to apply for other VAC benefits such as rehab or disability benefits, or they received VAC services such as case management. This indicates that the VEF is providing an opportunity for VAC, in some instances, to connect with Veterans who were previously unknown to the Department. Further review is required to determine what percentage of the entire VEF population is being referred to additional VAC and/or community supports.

3.3 Alignment with Government priorities and federal roles and responsibilities

The VEF aligns with Government of Canada priorities as well as federal roles and responsibilities.

VAC’s mandate to deliver the VEF is derived from s. 4 (a) (1) of the Department of Veterans Affairs Act which assigns the Minister of Veterans Affairs the powers, duties, and functions to provide for:

“…the care, treatment or re-establishment in civil life of any person who served in the Canadian Forces or merchant navy or in the naval, army or air forces or merchant navies of Her Majesty, of any person who has otherwise engaged in pursuits relating to war, and of any other person designated by the Governor in Council…”

An Order in Council provided authority for the Minister of Veterans Affairs to create the VEF and to enter into funding agreements and make transfer payments for the purposes of this program.

The VEF was announced as part of Budget 2017 and implemented on April 1, 2018. As part of Budget 2018, the Government of Canada reaffirmed it is, “…committed to supporting Canada's veterans and their families. Canada owes an enormous debt of gratitude to the women and men who have served in uniform and it is our responsibility to make sure that they are taken care of.” In addition, Budget 2019, states that, “It is our responsibility [Government of Canada] to ensure that all veterans and their families receive the support and services they need, when they need it.” Eligibility for the VEF includes families, thereby supporting this priority.

The December 2019 mandate letter to the Minister of Veterans Affairs and Associate Minster of National Defence stated that the Minister must, “…continue to ensure that the Government lives up to its sacred obligation to our Veterans and their families. You will continue to ensure that Veterans receive the respect, support, care and economic opportunities that they deserve.” The evaluation finds that economic support benefits like the VEF support Veteran well-being and help fulfill the Minister’s mandate.

The 2019 Speech from the Throne commits the government to “…improving mental health care supports, and helping ensure that every homeless veteran has a place to call home.” The VEF helps address this priority by providing assistance to homeless Veterans.

The 2020 Speech From the Throne focused primarily on the Federal Government’s response to the Covid-19 pandemic. The speech states that:

“the second foundation of the Government’s approach [to fight the Covid-19 pandemic] is supporting Canadians through this crisis…Canadians should not have to choose between health and their job, just like Canadians should not have to take on debt that their government can better shoulder ... No one should be without a place to stay during a pandemic, or for that matter, a Canadian winter.”

The evaluation finds that the VEF program aligns with Government of Canada goals as it is assisting Veterans who are struggling to pay for necessities (both before and during the pandemic), including those that are homeless/temporarily homeless.