Blueprint for Transformation: the 2023 Report of the National Advisory Council on Poverty

Canada's First Poverty Reduction Strategy and the creation of the National Advisory Council on Poverty

In 2018, the Government of Canada released Opportunity for All – Canada's First Poverty Reduction Strategy ("the PRS"). The PRS set a vision and foundation for future government investments in poverty reduction. This foundation included:

• establishing an official measure of poverty, Canada's Official Poverty Line, based on the Market Basket Measure
• setting concrete poverty reduction targets to reduce poverty by 20% by 2020 and 50% by 2030, relative to 2015 levels. In 2015, the poverty rate was 14.5%, representing over 5 million Canadians living in poverty
• creating a National Advisory Council on Poverty (established in 2019) to:
  • advise the Government on poverty reduction
  • report publicly on the progress made toward meeting the targets every year
  • foster a national dialogue on poverty reduction
• passing the Poverty Reduction Act, which entrenches the targets, Canada's Official Poverty Line, and the Council in law

Building relationships

Over the years, the Council has cultivated a strong network of persons with lived expertise of poverty, community leaders, experts, academics and practitioners working to end poverty in Canada. The pandemic shortened the Council's in-person engagement in 2020, but we adapted by adopting first a virtual, then a hybrid approach. Since then, we have spoken to more than 1000 people on poverty-related issues that matter to them most. We are grateful for their time and willingness to share their knowledge, experiences, and advice. We strive to honour what we heard in our reports and recommendations.

Investments in poverty reduction since 2018

Since the release of the PRS in 2018, the Government of Canada has made significant investments with expected impacts on poverty reduction. We recognize that these are important investments and encourage the Government to continue with their prompt implementation. These include investments for Canada-wide:

• affordable, accessible and quality early learning and child care
• dental care for low-income Canadians
• enhanced targeted benefits such as the Guaranteed Income Supplement, Old Age Security, Canada Child Benefit and Canada Workers Benefit
• targets for reducing housing need and homelessness in the National Housing Strategy
• Disaggregated Data Action Plan for more representative data collection and enhanced statistics on diverse populations

The Government of Canada likewise announced several commitments in Budget 2023 that we hope will positively impact poverty. These include commitments to:

• increase funding to implement the National Action Plan to End the Tragedy of Missing and Murdered Indigenous Women and Girls
• expand the Canadian Dental Care Plan and establish an Oral Health Access Fund to address health gaps among vulnerable populations and reduce barriers to access
• increase funding to develop the Canada Disability Benefit and investments in building the capacity of disability organizations
• increase the eligibility for automatic tax filing through the File My Return program and pilot a new automatic tax filing service for vulnerable Canadians

A more complete list of Government of Canada commitments and investments is available in Appendix B.

Intersectionality

Poverty is multi-faceted, and it affects some groups more than others. Intersectionality refers to the complex and cumulative ways in which the effects of these multiple forms of discrimination combine, overlap or intersect, especially in the experiences of groups made most marginal.

Individuals simultaneously have multiple social identities which all contribute to their unique experiences in society. These identities are formed through experiences of living and existing in different and sometimes overlapping groups based on:

• race
• ability
• class
• gender
• sexuality
• age
• other marginalizing characteristics

For any person, certain social identities may be marginalized due to discrimination, while others are not. The greater number of marginalized identities a person has, the greater their risk of poverty.

Building an equitable and resilient social safety net and system means including everyone in poverty reduction efforts. Equity needs to be a priority when developing policies and programs aimed at reducing poverty. Otherwise, we will continue to leave those made most marginal behind.

Taking stock of progress in poverty reduction

The last 4 years saw significant progress in poverty reduction as well as vast societal disruption. The COVID-19 pandemic revealed serious gaps in our social safety net. Groups made most marginal were more likely to face severe health, social and economic outcomes. Some individuals and families who were not vulnerable to poverty before required help to get by.

Early in the pandemic, the Government of Canada provided unprecedented income support to individuals and families. These supports intended to replace income due to the employment disruptions caused by pandemic responses. However, they also had an impact on poverty reduction. We reported on this in the 2020 report.

However, the emergency response measures did not help everyone equitably. Certain groups made most marginal were not entitled to these benefits at all. For example, new labour market entrants or lower income earners may not have met the minimum earned income threshold to qualify for the Canada Emergency Response Benefit (CERB). Some people faced benefit clawbacks because their incomes temporarily increased. Others must now pay back benefits for which they belatedly learned they did not qualify. Minimum wage earners, among other groups, may have fewer assets and savings to repay any benefits they received. At the same time, they continue to pay for necessities during a cost-of-living crisis.

Despite these shortcomings, emergency benefits significantly lowered poverty rates, which were already on a steady decline since 2015. These response measures have since ended. Rising inflation and cost of living are causing renewed precarity across Canada. We see this through poverty rates that increased for the first time since the PRS was introduced.

Further, we as a council have consistently stressed that progress in poverty reduction has not been equitable. Groups made most marginal continue to face:

• structural and systemic barriers in our society
• violence
• discrimination
• racism
• homophobia
• transphobia
• sexism
• ableism
• colonialism

Many of these groups are underrepresented in or absent from our poverty data. Many are also underserved or unserved by government benefits and supports. Reasons for this include barriers to access or stringent eligibility criteria. For example, the tax system is used to determine income-tested benefits. However, we know that the tax filing rate for racialized people is lower. Reaching Canada's poverty reduction targets is not enough if those furthest behind do not benefit equitably from our progress.

Our previous reports and recommendations

In our past 3 reports, the Council made recommendations on how to reduce poverty in Canada. These recommendations are based on what the Council heard during engagement with persons with lived expertise of poverty, stakeholders, community organizations and experts in the field, and qualitative and quantitative data. The recommendations align along 5 broad themes. In short, the Council recommended that the Government of Canada:

1. take urgent and immediate action to reduce poverty among First Nations, Inuit and Métis people, including through co-development of Indigenous indicators of poverty
2. address income inadequacy by establishing an income floor above Canada's Official Poverty Line, whether it be through employment income, income supports, new or existing targeted supports, or a combination of the 3
3. develop targeted policies and programs that create greater equity, including a commitment to reduce poverty by at least 50% by 2030 for groups made most marginal, and collect and use disaggregated data on these groups to ensure programs reach those who need them most
4. increase awareness of, access to and availability of government benefits and supports; ensure persons with lived expertise of poverty are at the centre of design, implementation and evaluation of these policies
5. strengthen efforts in early intervention and prevention of poverty with a focus on groups made most marginal, especially children and youth; provide sustainable support for organizations working on the frontlines in this field

The Council reaffirms our past recommendations and continues to call for their urgent implementation. The full list of recommendations is in Appendix A.

What we heard

"There's no hope. The cost of living is too high, rent is too high. Inflation is making everything worse."

In fiscal year 2022 to 2023, the Council held in-person engagement sessions. These took place in Abbotsford, Huntington, Montreal, Ottawa, Regina, Surrey, Toronto, Salaberry de Valleyfield, and Vancouver. The Council also held virtual small-group sessions with participants from across the country. We spoke with diverse groups of people. This included persons with lived expertise of poverty, community organizations and practitioners, academics and other stakeholders. For the first time, we also met with youth in person. We spoke about their thoughts on and experiences of poverty.

This year we noted a growing sense of hopelessness and desperation. Persons with lived expertise of poverty and service providers alike told us that things seem worse now than they were before and during the first years of the pandemic. We heard that people are worried about the rising cost of living and inflation. More people are in crisis, and these crises are more visible in our communities. Many communities lack stable employment opportunities, decent and affordable housing, food, child care, transportation, health care, and other necessary infrastructure for individuals to thrive. We heard that community organizations and their staff are overworked and demoralized. They lack the resources to help everyone who needs it.

In our past engagements, stakeholders expressed optimism around the influx of more inclusive and generous pandemic benefits. Many expressed hope that the lesson of the pandemic would be that we can and must work together to do things in a different way. This year, we heard that instead of coming together as a society, people are pulling away. We heard that those experiencing poverty are feeling more othered.

We heard that chronic issues are becoming more acute. These include inadequate income, unmet housing needs and houselessness, food insecurity and worsening physical and mental health, among others. We heard that groups made most marginal continue to have disproportionately high rates of poverty. We also heard that systemic violence and discrimination, racism, colonialism, homophobia, transphobia, ableism, sexism and structural barriers remain serious issues. The lasting impacts of the pandemic and the worsening economic situation are putting added pressures on everyone. This is especially true for those in deep poverty and those at risk of falling into poverty.

What the data says

The Council's first 3 reports noted that between 2015 and 2020, poverty rates in Canada were decreasing. Last year, we reported that according to Canada's Official Poverty Line, the poverty rate fell from 14.5% in 2015 to 6.4% in 2020. As a result, Canada reached its goal of reducing poverty by 50% by 2030, 10 years ahead of time.

However, as we emphasized in our last report, 2020 was an outlier. Temporary pandemic response measures played an outsized role in rapidly declining poverty rates. Existing and new pressures, including record high inflation and a cost-of-living crisis, mean that our poverty rate is increasing. We also know that poverty reduction has not been equitable. Certain groups made most marginal continue to face disproportionately high rates of poverty.

Data from the 2021 Canadian Income Survey (CIS) show an increase in the poverty rate compared to 2020. This is the first time since the PRS was implemented that poverty increased. In 2021, there were about 405,000 more people living in poverty than in 2020. Canada's overall poverty rate rose by 1.0 percentage point to 7.4%, up from 6.4% in 2020. This is equal to a 15.6% increase in the poverty rate between 2020 and 2021. Although this number is up from 2020, there were 2.3 million fewer people living in poverty compared to 2015. This represents a decrease of 49.0% in the poverty rate compared to 2015 (14.5%).

Upcoming challenges

"We will work towards the reduction of poverty, but we support the 100% elimination of poverty in this country."

Since it started, the Council has endeavored to focus on the chronic causes and consequences of poverty in Canada. However, we could not fully explore some issues with increasing challenges in our reports thus far. We encourage the next iteration of the Council to pursue these issues deeply. We also encourage them to identify how poverty is embedded into certain social structures and explore effective solutions. Some, but not all, of these issues are listed below.

How poverty is measured

The Poverty Reduction Act (2019) established an Official Poverty Line for Canada based on the Market Basket Measure (MBM). According to the MBM, poverty thresholds are based on the cost of a basket of food, clothing, shelter, transportation and other items representing a modest, basic standard of living. The current MBM establishes thresholds for 53 different geographic regions in the provinces, which can be adjusted to families of different sizes. When a person's or family's disposable income is below the threshold for the size of their family in a particular region, they are considered to be living in poverty.

The Northern Market Basket Measure (MBM-N) for the Yukon and Northwest Territories uses similar methodology to the MBM. However, it accounts for adjustments needed to reflect life in these territories. Statistics Canada officialised the MBM-N for the Yukon and Northwest Territories in 2022 (Devin, Gustajtis, & McDermott, 2022). The creation of the MBM-N starts to fill a major gap in our poverty statistics.

Poverty statistics are not produced for people living in Nunavut at this time. However, work is ongoing to develop an MBM-N for Nunavut.

Missing data for certain populations

Canadian Income Survey (CIS)

Poverty rates based on Canada's Official Poverty Line are estimated using annual results from the CIS. The CIS data has an approximate 15-month lag between a specific reference year and when the results become available. The most current poverty statistics come from the 2021 CIS. Data for Canada's provinces was released on May 2, 2023.

Indicators of poverty

Income is often used to measure poverty. But income alone fails to capture the full experience of living in poverty. The PRS established a dashboard of several indicators related to poverty. The dashboard is not comprehensive but allows progress to be tracked across several dimensions of poverty.

Tables 7 to 10 in Appendix D summarize the progress made on each of the poverty indicators since 2015. We have highlighted several indicators that align with the themes we heard in our engagement sessions throughout the chapter.

Data limitations make it difficult to track trends across all indicators of poverty for groups made most marginal. We have outlined this disparity in our past reports and made recommendations to remediate data gaps for these groups.

Comparing 'What we heard' and the data

The poverty landscape in Canada is not constant. It can change rapidly. We rely on both quantitative data from the CIS and qualitative data from engagement. This helps us understand all aspects of poverty in Canada. Of note, our engagement sessions for this report took place in fall 2022 and winter 2023. This means that there may be differences between what we heard and what the 2021 data supports. We believe that data from the 2022 and 2023 CIS will better align with what we heard this year. In the interim, we have used relevant 2022 data from alternate sources to help us better understand and more accurately reflect the themes discussed during our engagement.

Poverty in Canada in 2020

As we cautioned in our last report, the large decrease in the overall poverty rate in 2020 was an anomaly. It was influenced by the unprecedented temporary increase in government transfers that year. In 2020, the median government transfers received by families and unattached individuals increased to $17,000 (Statistics Canada, 2023h). This is up significantly from $8,500 in 2019. The temporary income supports available during the pandemic more than offset income losses caused by COVID-19 emergency closures. As a result, median after-tax income of families and unattached individuals living in Canada increased from $64,500 in 2019 to $69,000 in 2020 (a 7% increase). Also, average disposable income per household in the bottom income quintile was estimated to have risen from $25,633 in 2019 to $33,024 in 2020, a 29% increase (Heisz & Gustajtis, 2023). This growth in income protected vulnerable individuals and families from falling into poverty. It also helped bring many people above the Official Poverty Line. It is important to keep this context in mind when considering 2020 data and making comparisons to 2021 data.

Official Poverty Rate for 2021 and provisional poverty rate for 2022

Despite maintaining the overall downward trend in poverty since 2015, the phasing out of the COVID-19 income supports alongside higher inflation and increasing cost of living mean that the large reduction in poverty in 2020 was not sustained in 2021. It is anticipated that the poverty rates for 2022 will increase even further.

In 2021, close to 2.8 million people living in Canada were below Canada's Official Poverty Line (Statistics Canada, 2023h). There were about 405,000 more people living in poverty in 2021 than in 2020. Between 2020 and 2021, Canada's overall poverty rate rose by 1.0 percentage point to 7.4%. This is equal to a 15.6% increase in the poverty rate between 2020 and 2021. Compared to 2015, there were close to 2.3 million fewer people living in poverty in Canada in 2021. This is a decrease of 49.0% in the overall poverty rate compared to 2015 (14.5%). Notably, the 2021 poverty rate is still below the pre-pandemic poverty rate (10.3% in 2019).

The year 2021 is the first time since the PRS was implemented that the poverty rate increased compared to the previous year. Modelling conducted by Statistics Canada suggests that the poverty rate will increase again in 2022. It is anticipated that it will increase to a level approaching the pre-pandemic rate of 10.3% in 2019 (Heisz & Gustajtis, 2023). The 2022 provisional poverty rate was estimated to be 9.8%. This would still represent a decrease of 32.4% compared to 2015 (14.5%). This provisional poverty rate is a prediction. It is based on annual data from the Consumer Price Index and average household disposable income (bottom quintile) for only part of 2022. Official poverty rates estimated using 2022 CIS data will be released in 2024.

Regional poverty trends for 2021

Between 2020 and 2021, the poverty rate increased across all provinces except for New Brunswick (-11.8%) and Prince Edward Island (-2.6%). On the other hand, the poverty rate increased the most for Alberta (+41.8%) and Saskatchewan (+35.8%). Compared to 2015, poverty has decreased the most for Quebec (-61.5%) and the least for Alberta (-17.0%). The table below summarizes the changes in poverty rates by province and territory between 2020 and 2021 and 2015 and 2021.

• Source: Statistics Canada, Canadian Income Survey.
• Notes:
• *The percentage of persons living in poverty in Canada does not include the territories.
• **The percentage of persons living in poverty was estimated using the Northern Market Basket Measure (MBM-N) for the Yukon and Northwest Territories. The estimates for the provinces and Canada use the MBM. No estimate of poverty is available for Nunavut at this time.

Poverty trends in Canada by demographic group

Between 2020 and 2021, poverty rates increased for most demographic groups. However, poverty decreased for non-senior singles under age 65 and some racialized groups including persons identified as South Asian, Filipino, Latin American, and Southeast Asian. Notably, the poverty rate for non-senior singles remains among the highest of any demographic group at 26.2% in 2021. On the other hand, poverty rates increased the most for:

• seniors (aged 65 and older) (+80.6%)
• those identified in the "other racialized persons" group (+80.0%)
• persons in male-led lone parent families (+61.1%)
• people identified as Black (+53.3%)

According to Statistics Canada, the increase in the poverty rate for seniors is largely attributable to the decrease in COVID-19 benefits after 2020 (Statistics Canada, 2023h).

Compared to 2015, poverty has decreased for all demographic groups for which 2015 data is available. Despite this, the decrease has not been equal across groups. Relative to 2015 levels, poverty rates have decreased the least for:

• seniors (-21.1%)
• non-senior singles (-32.6%)
• persons in male-led lone parent families (-38.6%)

Importantly, the poverty rate for seniors has been among the lowest of all demographics groups throughout 2015 to 2021. Over the same time, the poverty rate among persons living in male-led lone parent families has been much lower than the poverty rate among persons living in female-led lone parent families. The table below compares the change in poverty rates between 2020 and 2021 and between 2015 and 2021 for specific demographic groups. Table 10 in Appendix D shows the number of people in poverty by demographic group for 2015, 2020 and 2021.

• Source: Statistics Canada, Canadian Income Survey, Table 11-10-0090-01 Poverty and low-income statistics by disability status; Table 11-10-0093-01 Poverty and low-income statistics by selected demographic characteristics; Table 11-10-0136-01 Low income statistics by economic family type.
• Notes:
• ᶧThe estimated poverty rates in this table only include data from Canada's provinces.
• ᶧᶧReferred to by Statistics Canada as people who are, or have been, landed immigrants in Canada. Canadian citizens by birth and non-permanent residents (persons from another country who live in Canada and have a work or study permit, or are claiming refugee status, as well as family members living here with them) are not considered landed immigrants.
• ᶧᶧᶧReferred to by Statistics Canada as persons designated as visible minorities.
• *Statistics Canada indicates that these data should be used with caution.
• **Other racialized persons includes racialized groups not included elsewhere and persons who identified as more than one racialized group.

Incomes in 2021

The median market income of families and unattached persons rose from $57,500 in 2020 to $61,700 in 2021. This represented an increase of 7.3% in 2021, which erased the decrease observed between 2019 and 2020. On the other hand, the total COVID-19 benefits received by people living in Canada decreased by 68% in 2021. This decreased the median government transfer for families and unattached individuals from a historical high of $17,000 in 2020 to $13,300 in 2021. The 2021 median transfer was still higher than in 2019 ($8,500). This reflected the continued presence of the Canada Recovery Benefit, Canada Recovery Sickness Benefit, and Canada Recovery Caregiving Benefit. These benefits continued to give support to many Canadians into the 2021 calendar year.

Text description of Graph 2

Year	Median market income	Median government transfers	Median after-tax income
2015	$58,200	$7,100	$62,400
2016	$57,300	$8,000	$62,400
2017	$58,200	$8,300	$63,900
2018	$59,500	$7,700	$64,100
2019	$59,600	$8,500	$64,500
2020	$57,500	$17,000	$69,000
2021	$61,700	$13,300	$68,400

• Source: Canadian Income Survey, Statistics Canada, Table 11-10-0190-01 Market income, government transfers, total income, income tax and after-tax income by economic family type.
• Notes: Market income is the sum of earnings (from employment and self-employment), net investment income, private retirement income and items under other income. After-tax income refers to income from all sources including government transfers minus income tax.

Cost of living

In April 2022, about 75% of people living in Canada reported that rising costs were affecting their ability to meet day-to-day expenses (Statistics Canada, 2022c). Urban residents reported being most affected by rising food prices, but rural residents reported being most affected by transportation. Of respondents, 27% reported having to borrow money from friends or relatives, take on additional debt or use credit to meet day-to-day expenses in the 6 months before the survey. Of the respondents, some groups were more likely to report needing to borrow money to meet day-to-day expenses. These included:

• those in the bottom 2 household income quintiles
• individuals aged 15 to 39
• households with at least 1 child under 18
• persons with a disability
• persons belonging to racialized groups

By December 2022, 26% of households said they would be unable to cover an unexpected expense of $500 (Statistics Canada, 2023c).

Income inadequacy and rising cost of living

Promoting dignity, equity, and inclusion

As we heard in our engagement sessions, discrimination and racism continue to create and perpetuate poverty. Without explicitly addressing equity issues when developing policies and programs, interventions will continue to create or reinforce inequity. Some stakeholders noted that the Government needs to be more intentional about equity and inclusion, or they will accomplish neither. They also expressed that discriminatory ideologies continue to plague policy development and implementation.

We heard that the government needs to change its focus, refocusing on making sure everyone gets the benefits they need instead of protecting the system from abuse by individuals. Basic income is an important idea because everyone needs income. But if we do only that and we don't tackle the structures of exclusion, we won't solve the inequity.

In marginalized communities, a great history of building structures of support and mutual aid exists. These groups have a lot of strength and knowledge about how to solve issues within the community. Governments already have tools that communities can access to move forward on fostering inclusion and help themselves.

Populations disproportionally experiencing poverty and houselessness

Throughout the sessions, we heard about the specific challenges faced by many of the populations made most marginal. While there were many commonalities, each population also faces unique challenges. We also heard about a lack of targeted and specific supports for specific groups made marginal. These are populations that are disproportionally experiencing poverty and houselessness.

Challenges accessing benefits and supports

As in past years, we continued to hear about the difficulties people experience trying to access benefits and services. This was especially true for people with multiple intersecting marginalized identities. We heard that we need to increase benefits and reduce the administrative burden of access. Some of the issues participants spoke of:

• accessing government services, including social assistance, is a long, complicated process
• people face persistent problems with government systems (for example, the Canada Revenue Agency does not understand and adapt to the issues that Canadians face)
• there is too much oversight involved with receiving support. People need to have a fixed address to access many services and supports. Since housing is unaffordable, many people do not have a fixed address

"This is my pet peeve of the century. Forms are inaccessible, too long, they're not in plain language. It would be nice if we had one application. If my dad hadn't helped me fill out my provincial and federal applications for disability, I would probably never get it."

Many participants felt that access to a lot of programs and services was improved during the COVID-19 pandemic. This had a real material impact on communities. Greater access to information on available supports and neighbourhood-level community services are necessary. Supports need to be provided where people are living. Wraparound supports are essential, especially if they are all localized in the same physical space. Co-locating federal/provincial services and non-government organizations to achieve wrap-around services is very effective. For example, in Toronto the Yonge Street Mission hosts a Children's Aid Society worker at their site to help families in need. Discussions have also occurred about hosting Children's Aid Society family visitations at the Yonge Street Mission. This would help improve the environment around family reunion.

Urgent action to decrease Indigenous poverty

For the Council, it is egregious and shocking that colonial practices, racist policies and programs, and discrimination have created and perpetuated poverty in Indigenous communities. The Government of Canada has made recent investments towards reconciliation. However, they must continue to work to earn the trust of First Nations, Inuit and Métis people to make much needed progress in reducing poverty. Extensive research and recommendations abound. It is imperative to carry out the calls to action from the Truth and Reconciliation Commission as well as the calls for justice from Reclaiming Power: The Final Report of the National Inquiry into Missing and Murdered Indigenous Women and Girls. To this end, the Government of Canada should continue the following actions:

• work with First Nations, Inuit and Métis people to improve data collection to allow for the evaluation of poverty reduction investments and supports for Indigenous people. This can help to provide a baseline to evaluate new measures, including Bill C-92, An Act respecting First Nations, Inuit and Métis children, youth and families
• support Indigenous leaders to reduce poverty in their communities and to ensure they have all the resources available to support their own people in their own way. This includes the co-development of:
  • Indigenous indicators of poverty, as committed to in the Poverty Reduction Strategy
  • a range of Indigenous poverty reduction strategies such as distinctions-based housing strategies, as committed to in the National Housing Strategy, and commitments made through the Indigenous early learning and childcare agreements

Dignity, equity and inclusion

We know that there are groups who have been made most marginal through racism and discrimination.

The Government of Canada must continue to support equity-enabling efforts such as:

• the Canada Disability Benefit
• the Black Entrepreneurship Program
• initiatives under the Indigenous Early Learning and Child Care Framework

They must also continue to challenge any and all discriminatory ideologies that impede equity in policy development and programming. Without explicitly dealing with equity when developing policy and programs, interventions will create or reinforce existing inequity. Equity must come before equality.

Groups made most marginal experience deeper poverty and face more barriers to full inclusion in society. We have not seen an adequate response to this issue. Despite recent improvements to disaggregate data, we need more data and information about specific groups to inform targeted strategies. We also need robust gender-based analysis plus (GBA+) to remove systemic barriers in program and policy design. Exploring the benefits and challenges of linking datasets across jurisdictions and topics may give further insights. These changes combined will help to develop targeted initiatives and to better measure progress towards greater equity in poverty reduction. To ensure that Canada's poverty reduction efforts work as well for those at highest risk, and to meet the unique needs of people made most marginal, the Government of Canada should:

• commit to develop and resource a plan to reduce current inequities in poverty that sets explicit targets to reduce poverty by at least 50% by 2030 for all populations made most marginal
• prioritize and improve the collection, analysis, application of and access to disaggregated data for all populations made most marginal, to support evidence-based decision making and reporting of disparities:
  • all Statistics Canada and federal population-based surveys should ask inclusive questions and provide inclusive response options on Indigenous heritage, immigration/refugee status, race/ethnicity, disability, prior or current institutionalization, and sexual orientation and gender identity
• incorporate an equity lens into its GBA+ when developing and implementing strategies, policies, and programs

Income adequacy

We have heard consistently over the past 4 years that existing government benefits and minimum wage are insufficient for people to meet their needs. High inflation rates and increases in the cost of living have made this much worse. To prevent people from falling into or further into poverty, the Government of Canada should take the following actions:

• work with the provinces and territories to establish, by 2030, an income floor above Canada's Official Poverty Line, whether it be through employment income, income supports (including social assistance), new or enhanced existing targeted supports or a combination of the 3
  • this includes accelerating work underway on targeted benefits and supports for populations with disproportionately high rates of poverty, as well as undertaking a gap analysis, informed by an equity lens and GBA+, to identify what is missing
• lead by example, by establishing a living wage in all federally regulated workplaces by 2030. Introduce worker protections through the Canada Labour Code to curb the social and economic disadvantages of precarious work, by expanding access to employment benefits for self-employed workers, workers in the gig economy and part-time workers
• take a leadership role in both providing and incentivizing better employment opportunities for marginalized groups, including Indigenous people, racialized individuals, immigrants, refugees, youth, persons leaving institutions and persons with a disability

Increasing access to benefits and services

Poverty is intersectional. As such, people often rely on many benefits, supports and services, provided by different levels of government and the non-profit sector. No single, streamlined point of access exists. Each benefit, support and service has its own application process and eligibility criteria, even when intended for the same group. We continue to hear that people are often unaware of benefits, supports and services. Even if they are aware, the application forms and processes are confusing and complicated. Finally, receiving income-tested supports is dependent on filing taxes, which many people living in (deep) poverty do not do. In short, our current social safety net is complex, difficult to access, inefficient, outdated and inadequate. Navigating this fragmented and complicated maze can be traumatizing for people who have already been made most marginal in society. Some people may give up and miss out on much-needed benefits to which they are entitled. As government benefits and supports are essential tools in poverty reduction, we urge the Government of Canada to take the following actions:

• prioritize and accelerate commitments made to implement automatic tax filing for those with low income. This will ensure eligible individuals are receiving the benefits to which they are entitled (for example, the GST/HST credit, the Canada Child Benefit, the Canada Workers Benefit and the new Canada Dental Benefit). This is a necessary first step in the design and implementation of automatic enrolment in other income-tested benefits and programs
  • this is consistent with the 2022 Auditor General of Canada's report on access to benefits for hard-to-reach populations (Office of the Auditor General of Canada, 2022). The report finds that estimates of benefits take-up are overstated, as estimates do not always account for people who have not filed tax returns
• ensure that services are streamlined to make them low-barrier and easier to access (also in line with the Auditor General's report)

Prevention and protection

Poverty reduction efforts often focus on lifting people out of poverty. However, we stress the need to invest in keeping people from falling into poverty in the first place. Upstream investments require supporting people during challenging transition periods, such as when ageing out of care or exiting institutions. For example, providing supports to families to keep their children with them, rather than removing them and then paying for their foster care, contributes to better outcomes. It is also simply the right thing to do. Too often, we heard that poverty is mislabelled as neglect. This also means providing sufficient and sustainable government supports to service providers and not-for-profit organizations that are a crucial part of community-level efforts to prevent poverty. It also includes addressing the social determinants of health. Experiences of discrimination, racism and historical trauma are important social determinants of health for certain groups, such as:

• Indigenous people
• 2SLGBTQ+ people
• people who identify as Black

Since the release of our first report, the Government of Canada has made significant investments that will assist people living in poverty (see Annex B for a detailed list). However, we reiterate that more needs to be done to keep people out of poverty. To this end, the Government of Canada should take the following actions:

• build on recent investments in non-profit and community-based organizations that support people living in Canada with low incomes, with a focus on sustained core funding. Organizations need capacity to do what they do best for the populations who trust them. This should include funding for systems navigators for individuals and families trying to access government benefits and supports, until such time as access barriers are removed
• develop (or rebuild) robust systems and structures focussed on early interventions and prevention
  • this entails swift implementation of announced supports, including expansion of the Canadian Dental Care Plan and increased funding for development of the Canada Disability Benefit
• establish an independent National Commissioner for Children and Youth, whose role would be to focus on children and youth who are made most marginal, to complement and bolster the Council's effort to amplify their voices, to ensure their needs are met

This call to action underscores continued implementation of the Poverty Reduction Strategy, in a way that ensures dignity and equity for all. The Government of Canada must continue to strategically invest in important social programs and benefits that allow people to meet their basic needs and stay out of poverty. This includes ongoing investments in:

• housing
• transportation
• health
• mental health
• food security
• educational attainment
• skills development
• family supports
• emergency preparedness

These investments should also support social cohesion and reduce racism and discrimination. At the same time, the Government should prioritize (re)building resilient, adaptable systems to support people through both individual transitions and broader system shocks. Let us learn from the good, the bad and the ugly of the pandemic, show people living in poverty that we are listening and put people at the centre of the program and policy design.

Poverty reduction with First Nations, Inuit and Métis people

• The Government of Canada urgently implement the calls to action from the Truth and Reconciliation and the calls for justice from Reclaiming Power: The Final Report of the National Inquiry into Missing and Murdered Indigenous Women and Girls
• The Government of Canada re-commit to co-development of any new and existing poverty reduction measures
• The Government of Canada continue to work with First Nations, Inuit and Métis people to improve data collection to allow for the evaluation of poverty reduction investments and supports for Indigenous people. In particular, this can help to provide a baseline to evaluate new measures, including Bill C-92, An Act respecting First Nations, Inuit and Métis children, youth and families

Establishing an income floor above Canada's Official Poverty Line

• The Government of Canada lead by example by working to establish a living wage in all federally regulated workplaces by 2030
• The Government of Canada introduce worker protections through the Canada Labour Code to address precarious work
• The Government of Canada accelerate and expand existing work on targeted benefits and supports for populations with disproportionately high rates of poverty. For example, the Government of Canada should accelerate work on the Canada Disability Benefit and ensure it provides income and employment supports that prevent people with disabilities from falling below the Official Poverty Line. The Government of Canada should also consider targeted supports for other high-risk and underserved populations, for example, youth from care
• The Government of Canada strengthen existing and new benefits and supports that assist with and improve housing, food security, physical and mental health, employment and skills training, and other indicators of poverty beyond income. Both income and non-income supports have an essential role to play in sustainable poverty reduction and improved quality of life

Reducing poverty by at least 50% by 2030 for populations made most marginal

• The Government of Canada commit to reducing poverty by at least 50% relative to 2015 levels by 2030 for all populations made most marginal
• The Government of Canada commit to developing and resourcing a plan to reduce current inequalities in poverty
• The Government of Canada accelerate the collection, analysis, application of and access to disaggregated data for all groups made most marginal to support evidence-based decision making and reporting of disparities. For example, Statistics Canada should accelerate work to introduce inclusive gender and sex questions and response options to key data sources on socioeconomic conditions, such as the Labour Force Survey and the Canadian Income Survey

Early intervention and prevention of child and youth poverty

• The Government of Canada identify children and youth most at risk of the intergenerational impacts of poverty and address these impacts through benefits and programs focused on early intervention and prevention
• The Government of Canada establish an independent national commissioner for children and youth. The role of the commissioner would be to focus on children and youth who are made most marginal. Their role could include:
  • identifying which children and youth are most at risk of poverty and why they are at risk
  • bringing the voices of those with lived expertise in poverty to the design and development of supports and services for children and youth
  • ensuring that the rights of children and youth are considered and protected in all federal policies, services, laws and practices
  • examining some of the structures that are placing children and youth at high risk, in order to keep them from falling through the cracks

Increasing awareness of, access to and availability of government benefits and supports

• The Government of Canada increase awareness of, access to and availability of government benefits and supports as an essential tool in poverty reduction. The Government of Canada should also increase investments in sustained, core funding for non-profit and community-based organizations that support Canadians living with low incomes, including those that (could) serve as systems navigators for individuals and families trying to access government benefits and supports
• The Government of Canada increase the incidence of tax filing through automatic tax filing for Canadians with low incomes, followed by implementation of automatic enrolment in other benefits and programs, particularly those that are income-tested
• The Government of Canada put people with lived expertise of poverty at the centre of design, implementation and evaluation of its policies, programs and services. Populations made most marginal should be included in the development, design and review of supports that meet their specific challenges and needs

Indigenous prosperity through truth, reconciliation and renewed relationships

• All signatories of the Indian Residential Schools Settlement agreement immediately implement the recommendations from the Truth and Reconciliation Commission of Canada
• The Government of Canada implement the recommendations from Reclaiming Power and Place: The Final Report of the National Inquiry into Missing and Murdered Indigenous Women and Girls

Building equity through programs, supports and benefits

• All Statistics Canada and federal population-based surveys should ask inclusive questions and provide inclusive response options on women and gender equity, Indigenous heritage, immigration/refugee status, race/ethnicity, disability, prior or current institutionalization, and sexual orientation and gender identity, to allow for routine disaggregation of data to support better decision making and reporting of disparities
• While working towards its overall poverty reduction goals, the Government of Canada should endeavor to reach those furthest behind first. To this end, the Government of Canada should commit to reducing poverty by 50% in 2030 for populations made most marginal, including Black populations, 2SLGBTQ people, Indigenous people, and persons with a disability. The Government of Canada should also specifically name and focus on Black populations, 2SLGBTQ people, Indigenous people, and persons with a disability within existing and new Government of Canada strategies, initiatives, and supports

Dignity through enhanced access and improved service design and provision

• Governments work to simplify the delivery of programs and supports for all people through enhanced coordination, improved low barrier access, and better coverage based on need. Specifically, we recommend that governments implement community feedback mechanisms that involve people with lived expertise in poverty in the development, implementation, evaluation and on-going evolution of policy, programs and services. Governments should collect disaggregated program data to demonstrate and improve equitable access and uptake programs and services
• That the Government of Canada implement automatic enrollment for federal benefits to ensure that people are accessing the supports and services that could keep them out of poverty. Automatic tax-filing is one mechanism that can help with this

Develop robust systems and structures focused on early intervention and poverty prevention

• The Government of Canada move to quickly implement all announced supports and benefits that have been publicly committed to. These significant investments (Canada-Wide Early Learning and Child Care System, Canada Disability Benefit, Canada Workers Benefit and the National Housing Strategy including Reaching Home) will both lift people out of poverty, and help prevent future generations from falling into poverty
• The Government of Canada increase investments in the important social programs and benefits that allow people to meet their needs and keep them from falling into poverty. This includes investments in transportation, health, mental health, food security, educational attainment, skills development, support for families, and for people going through transition periods

Employment income and income support

• The Government of Canada should collaborate with provinces and territories to build on its COVID-19 response and strengthen existing strategies, programs and policies. This would ensure a coordinated and robust social safety net in Canada by collectively providing income support that is at least at the level of Canada's Official Poverty Line
• That the Government of Canada take a leadership role in both providing and incentivizing better employment opportunities for marginalized groups, including Indigenous people, racialized individuals, immigrants, refugees, youth, persons recently institutionalized and persons with a disability
• The Government should continue to lead by example by implementing its existing commitments and pursue providing a minimum wage that is above Canada's Official Poverty Line (for full-time work) while consistently pursuing equitable employment practices. It should also use its influence including contract, grants and contributions and employment supports to encourage all employers to implement equitable employment and wage policies
• That the Government of Canada should increase access to employment benefits (such as, employment insurance and paid sick leave) for self-employed workers, workers in the gig economy and part-time workers

Continued poverty reduction efforts and investments, as well as increased funding in 4 key areas (food insecurity, housing and homelessness, literacy and numeracy, and the poverty gap)

• The Government of Canada should continue with the implementation of the Poverty Reduction Strategy and with its current government-wide investments
• The Government of Canada should focus additional investments in 4 areas where progress is falling behind: food security, housing and homelessness, literacy and numeracy, and the poverty gap

Urgent action to tackle Indigenous poverty with more specific measures

• The Government of Canada should take urgent action to support Indigenous leaders to reduce poverty in their communities and to ensure that they have all the resources available to support their own people in their own way. We specifically recommend the co-development of Indigenous indicators of poverty and wellbeing, as committed to in the Poverty Reduction Strategy; the co-development of a range of Indigenous poverty reduction strategies such as distinctions-based housing strategies, as committed to in the National Housing Strategy; and commitments made through the Indigenous early learning and child care agreements
• The data necessary to be able to report on Indigenous people should be made available to report on by our next progress report in 2021

Increased data disaggregation to give better account for and give a voice to marginalized populations

• All Statistics Canada and federal population-based surveys should ask inclusive questions and provide inclusive response options on women and gender equity, Indigenous heritage, immigration/refugee status, race/ethnicity, disability, prior or current institutionalization, and sexual orientation and gender identity, to allow for routine disaggregation of data to support better decision-making and reporting of poverty disparities
• The Government of Canada should work with stakeholders and communities to ensure that any new survey questions and response options regarding race, gender identity and sexual orientation are inclusive and that the questions reach the populations that are currently not captured

Applying an equity lens in policy-making

• The Government of Canada should incorporate an equity lens when it reviews, develops and implements strategies, policies and programs. It should ensure that Canada's poverty reduction efforts work as well for those at the highest risk as for everyone else and meet the unique needs of marginalized populations, including immigrants, refugees, ethno-cultural and racialized groups, persons with disabilities, 2SLGBTQ individuals and people experiencing homelessness. The Government should also use available data to transparently report on the use of the equity lens and the outcomes

Streamlining and coordination of benefits and bringing a level of support that is at least at Canada's Official Poverty Line

• The Government of Canada should collaborate with provinces and territories to build on its COVID-19 response and strengthen existing strategies, programs and policies to ensure a coordinated robust social safety net in Canada by collectively providing income support that is at least at the level of Canada's Official Poverty Line
• We recommend that benefits be streamlined and simplified to make them low-barrier, easier to access and easy to tailor to individual needs

Supporting Indigenous governance and capacity

Budget 2023 proposes to provide $76.3 million in 2023 to 2024 to Indigenous Services Canada to continue to support the administrative capacity of First Nations governments and tribal councils delivering critical programs and services to their members.

Creating prosperity with Indigenous peoples

Budget 2023 proposes to provide $5 million in 2023 to 2024 to Indigenous Services Canada to support the co-development of an Economic Reconciliation Framework with Indigenous partners to increase economic opportunities for Indigenous peoples, communities, and businesses.

Supporting Indigenous health priorities

Budget 2023 proposes to provide $810.6 million over 5 years beginning in 2023 to 2024 to support medical travel and to maintain medically necessary services through the Non-Insured Health Benefits Program, including mental health services, dental and vision care, and medications.

Implementing the National Action Plan to End the Tragedy of Missing and Murdered Indigenous Women and Girls

Budget 2023 proposes to provide:

• $20 million over 4 years starting in 2022 to 2023 to support Indigenous-led projects for safer communities through the Pathways to Safe Indigenous Communities Initiative
• $95.8 million over 5 years starting in 2023 to 2024 and $20.4 million ongoing to help Indigenous families access information about their missing and murdered loved ones and to enhance victim services. This funding would renew existing programming and expand it to include support for families of 2SLGBTQI+ Indigenous victims who are men
• $2.6 million over 3 years starting in 2023 to 2024 to support the National Family and Survivors Circle in keeping families and survivors at the centre of the implementation of the National Action Plan and the Federal Pathway
• $2.2 million over 5 years starting in 2023 to 2024 to establish an oversight mechanism to monitor and report on the progress of implementation
• $1.6 million over 2 years starting in 2023 to 2024 to support the Ministerial Special Representative appointed to provide advice and recommendations on the creation of an Indigenous and Human Rights Ombudsperson
• $2.5 million over 5 years starting in 2023 to 2024 to facilitate and coordinate work on advancing the National Action Plan by establishing a standing Federal-Provincial-Territorial-Indigenous table on Missing and Murdered Indigenous Women, Girls and 2SLGBTQI+ People. This table will provide a specific forum to take action on areas of shared roles and responsibilities regarding Missing and Murdered Indigenous, Women, Girls, and 2SLGBTQI+ People, including prioritizing discussion on how to launch a "Red Dress Alert" to notify the public when an Indigenous woman or two-spirit person goes missing

Permanently eliminating interest on student loans

In November 2022, the Government of Canada announced that it would permanently eliminate interest on Canada Student Loans and Canada Apprentice Loans, and that nobody earning less than $40,000 per year needs to make payments on their federal student loans.

Protecting federally regulated gig workers

Budget 2023 proposes to amend the Canada Labour Code to improve job protections for federally regulated gig workers by strengthening prohibitions against employee misclassification.

Building more affordable housing

Budget 2023 announces the Government of Canada's intention to support the reallocation of funding from the National Housing Co-Investment Fund's repair stream to its new construction stream, as needed, to boost the construction of new affordable homes for the Canadians who need them most.

Investing in an Urban, Rural, and Northern Indigenous Housing Strategy

Budget 2023 proposes to commit an additional $4 billion over 7 years starting in 2024 to 2025 to implement a co-developed Urban, Rural, and Northern Indigenous Housing Strategy.

Expanding the Canadian Dental Care Plan

Budget 2023 proposes to provide $13.0 billion over 5 years starting in 2023 to 2024 and $4.4 billion ongoing to Health Canada to implement the Canadian Dental Care Plan. The plan will provide dental coverage for uninsured Canadians with annual family income of less than $90,000, with no co-pays for those with family incomes under $70,000. The plan would begin providing coverage by the end of 2023.

Expanding access to dental care

Budget 2023 proposes to provide $250 million over 3 years starting in 2025 to 2026 and $75 million ongoing to Health Canada to establish an Oral Health Access Fund. The fund will complement the Canadian Dental Care Plan by investing in targeted measures to address oral health gaps among vulnerable populations and reduce barriers to accessing care, including in rural and remote communities.

Investing in community-led efforts to address food insecurity

Budget 2023 proposes to provide $10 million in 2023 to 2024 to top up the Local Food Infrastructure Fund to strengthen food security in Northern, rural and Indigenous communities across Canada.

Targeted inflation relief for Canadians who need it most

Budget 2023 proposes to introduce a one-time Grocery Rebate, providing $2.5 billion in targeted inflation relief to the Canadians who need it most. The Grocery Rebate will be delivered through a one-time payment from the Canada Revenue Agency.

Advancing inclusion of Canadians with disabilities

Budget 2023 proposes to provide $21.5 million in 2023 to 2024 to Employment and Social Development Canada to continue work on the future delivery of the Canada Disability Benefit, including engagement with the disability community and provinces and territories on the regulatory process.

Doubling the Goods and Services Tax Credit for 6 months

In November 2022, the Government doubled the Goods and Services (GST) credit for 6 months for those who receive it, resulting in a one-time, lump-sum payment targeted to those who need it most.

Providing a one-time top-up to the Canada Housing Benefit

In September 2022, the Government announced a one-time top-up to the Canada Housing Benefit program consisting of a tax-free payment of $500 to provide direct support to low-income renters.

Building on Canada's Anti-Racism Strategy

Budget 2023 proposes to provide an additional $25.4 million over 5 years starting in 2023 to 2024 and $0.6 million ongoing to the Department of Canadian Heritage to continue to support Canada's Anti-Racism Strategy and fight all forms of racism, including but not limited to anti-Indigenous racism, anti-Black racism, anti-Asian racism, antisemitism, and Islamophobia.

Budget 2023 proposes to provide $1.5 million over 2 years starting in 2023 to 2024 to the Privy Council Office to create a new Anti-Racism, Equity and Inclusion Secretariat to ensure that considerations of anti-racism, equity and inclusion are applied in the development of federal government policies.

Supporting Black Canadian communities

Budget 2023 proposes to provide $25 million in 2024 to 2025 to Employment and Social Development Canada for the Supporting Black Canadian Communities Initiative, to continue empowering Black-led and Black-serving community organizations and the work they do to promote inclusiveness.

Advancing intersectional gender equality in Canada

Budget 2023 proposes to provide $160 million over 3 years starting in 2023 to 2024 for the Women's Program to provide funding to organizations in Canada that serve women. The government is committed to maintaining historic funding levels for Canadian women's organizations and equity-deserving groups, with a particular focus on Indigenous women, women with disabilities, members of the 2SLGBTQI+ communities, and newcomer, Black, racialized, and migrant women.

Investing in a Canada-wide early learning and child care system

In 2021, the Government of Canada made a historic investment in a Canada-wide system of affordable early learning and child care. Since April 2023, 6 provinces and territories are providing regulated child care for an average of $10-a-day or less. All other provinces and territories are on track to achieve a $10-a-day child care by 2026. In Quebec, federal investments are continuing to make the existing child care system more accessible through the creation of new spaces.

Supporting First Nations children

Budget 2023 proposes to provide $171 million in 2022 to 2023 to Indigenous Services Canada to ensure First Nations children continue to receive the support they need through Jordan's Principle.

Budget 2023 proposes to provide $444.2 million over 3 years starting in 2022 to 2023 to support Peguis First Nation in Manitoba and Louis Bull Tribe First Nation in Alberta to exercise jurisdiction over their child welfare systems and make decisions about what is best for their children and families.

Automatic Tax Filing

Budget 2023 announces that the federal government will increase the number of eligible Canadians for File My Return to 2 million by 2025, and report on progress in 2024. File My Return is a Canada Revenue Agency service which allows Canadians with simple tax situations and lower or fixed income to auto-file their tax return over the phone.

Budget 2023 announces that starting in 2024, the Canada Revenue Agency will pilot a new automatic filing service that will help vulnerable Canadians who currently do not file their taxes receive the benefits to which they are entitled. Following consultations with stakeholders and community organizations, the CRA will present a plan in 2024.

Supporting Canada's disability organizations

Budget 2023 proposes to provide $10 million over 2 years beginning in 2023 to 2024 to Employment and Social Development Canada to help address the unique needs and ongoing barriers faced by persons with disabilities by investing in capacity building and the community-level work of Canada's disability organizations.