Nation-building must include social infrastructure

Written submission for the pre-budget consultations in advance of the fall 2025 federal budget

The situation

The human right to an adequate standard of living is increasingly out of reach

Despite Canada’s commitment under international law to progressively realize the right to an adequate standard of living, more and more people cannot afford the necessities of a dignified life.

The latest national data shows that poverty is rising among almost every demographic group and in nearly every province and territory across Canada. Rates of food insecurity, core housing need, and homelessness are similarly on the rise.

If these trends continue, the government will not meet its target to cut poverty in half by 2030 compared to 2015. Even worse, we are worryingly close to backtracking on the 2020 poverty reduction target to reduce poverty by 20 per cent. The government’s own National Advisory Council on Poverty has raised the alarm about this trend, and there is still no realistic policy prescription that would see Canada get back on course.

Economic growth is about investing in people as much as things

Fortunately, we know how to address poverty. Investments in a stronger income security system – whether through the Canada Child Benefit, Canada Emergency Response Benefit, or the Guaranteed Income Supplement – have proven to be effective every time at reducing the depth and breadth of poverty. New supports like the Canada Disability Benefit and the Canada Housing Benefit also have the potential to have this effect.

The income security system is an example of social infrastructure – the services and networks that support community development and well-being. Social infrastructure is just as important as physical infrastructure in building a stronger and more prosperous country. These evidence-based investments, not only in income support, but in health, education, community services, and more, have been shown to boost inclusive, long-term economic growth.

When these systems are weak, Canada’s most vulnerable end up falling even further behind. Maytree has shown repeatedly that the income supports provided to households with low incomes leave most living below the poverty line.

And it’s not just that these households are poor, it’s that they’re deeply poor. For instance, if you’re single and receiving social assistance in Canada, odds are you’re surviving on less than half the poverty line. To make matters worse, if this person is unhoused, they receive between 9 and 77 per cent less in social assistance benefits than someone who has housing.

These examples aren’t just gaps in the system, but policy choices.

Yet this government’s early emphasis on tax cuts that do not benefit those living in poverty, large infrastructure projects, and increased military spending – all funded through cuts to the “operating budget” – strongly suggest it intends to turn its back on this very social infrastructure that is key to growth.

If the government is indeed committed to thinking “big” and acting “bigger” by seeking out nation-building projects that boost Canada’s economy, it should set ambitious goals to build Canada from the bottom up. This means creating new strategies to strengthen income supports, address homelessness, and further implement Canada’s human rights commitments in its policies and programs.

It’s time to finally end poverty and its related challenges, and the recommendations set out in this submission will help us get there.

The way forward: Maytree’s recommended approach

Strengthen income supports

Recommendation 1: Set a credible path to achieving Canada’s 2030 poverty reduction target by making targeted income support investments.

Recommendation 2: Enhance and expand the Canada Housing Benefit.

Make housing more affordable

Recommendation 3: Recommit to advancing the right to adequate housing and properly embed this right across all housing policies.

Recommendation 4: Clarify the government’s patchwork of housing policies and strategies and expand programs focused on people with low incomes.

Prioritize human rights implementation

Recommendation 5: Further the domestic implementation of Canada’s international commitments to economic and social rights, working with other levels of government.