Interpreting the data: Key takeaways from Welfare in Canada, 2022
Of the 2.8 million people who lived below the poverty line in Canada in 2021, a significant proportion were receiving social assistance. By our estimate, the proportion was as high as 60 per cent. Addressing the poverty experienced by people receiving social assistance is therefore critical to reducing and eliminating poverty in Canada. It would also ensure the right of everyone in Canada to an adequate standard of living.
Maytree’s Welfare in Canada report provides a clear picture of the nature and persistence of that poverty. In this policy brief, we look at the most recent report and provide an analysis of the data.
The four main findings are:
- Total welfare incomes were deeply inadequate across Canada.
- Increases in the amount of income from basic social assistance benefits were mostly modest or non-existent.
- Despite very high inflation in 2022, cost-of-living supports to households receiving social assistance were limited in number and amount.
- Federal income supports for unattached single households in all jurisdictions were very limited.
We identify four possible policy actions that the provincial, territorial, and federal governments could take to improve income support benefit programs and reduce poverty. By taking these actions, governments would show that they prioritize the dignity of all members of our society.
The policy actions are:
- Provinces and territories must invest in higher social assistance benefits and tax-delivered income supports.
- Governments at all levels need to index all social assistance benefits and tax-delivered benefits or credits to inflation where they don’t already do so.
- The federal government needs to invest in targeted income supports for people living in poverty across Canada.
- Governments at all levels need to invest in basic supports and services that would reduce the cost of living.