Social assistance policy was developed to address the issue of poverty; however, the way in which social assistance policy is developed stems from certain assumptions about the needs of people living in poverty and how those needs should be handled. In pursuing a critical analysis of social assistance policy in Ontario Canada, the What’s the Problem Represented to Be? Approach was completed. The policy of income exception was examined. Analysis showed that although income exemption provides incentives, important aspects are ignored in this policy. Sen’s Capability Approach was further applied as an evaluative framework for social welfare.