Despite the Canadian government’s ambitious poverty-reduction strategy launched in 2018, recent data indicates a worrying trend: poverty levels are on the rise. With millions of Canadians affected, the need for immediate and effective intervention has never been more critical.
A Historical Context of Poverty Reduction
In 2018, the Canadian federal government unveiled its first comprehensive poverty-reduction strategy, dubbed “Opportunity for All”. This initiative established a national poverty line, reflecting the essential costs of living for individuals and families. The strategy set bold targets: a 20 per cent reduction in the poverty rate by 2020 and a 50 per cent decrease by 2030, aiming to lower the proportion of Canadians living in poverty from 12 per cent in 2015 to 10 per cent, and ultimately to 6 per cent.
However, as the nation faces unprecedented challenges stemming from the COVID-19 pandemic and a subsequent surge in inflation, these targets appear increasingly distant. Although inflation rates have eased since their peak in 2022, the battle against poverty remains far from won.
Recent Developments and Challenges
In response to escalating affordability issues, the government led by Premier Carney has augmented the GST credit and introduced other measures aimed at alleviating financial strain on Canadians. Notably, opposition parties have commendably put aside partisan differences to expedite these legislative changes.
Nevertheless, the economic landscape continues to shift, with high unemployment rates, particularly among young people, compounding the complexity of the issue. According to the National Advisory Council on Poverty’s 2025 report, poverty has consistently risen since 2021, with 10.2 per cent of Canadians—approximately four million individuals—living below the poverty line in 2023. This persistent increase puts Canada at significant risk of failing to meet its 2030 poverty reduction goal.
Economic Implications of Rising Poverty
The implications of rising poverty extend beyond the humanitarian crisis. The council’s report underscores the economic toll of poverty, estimating that it costs Canada tens of billions annually through increased healthcare and social service expenditures. For taxpayers, this reality translates into a pressing fiscal concern, as the financial burden of poverty is felt across the entire economy.
A recent analysis from the Royal Bank of Canada (RBC) highlights that while prices overall have risen by about 20 per cent since January 2020, essential costs such as food and housing have surged by approximately 30 per cent. This discrepancy is particularly detrimental to lower-income households, who dedicate a larger portion of their income to basic necessities. Although some Canadians have benefited from rising equity markets, those living in poverty have largely been left behind, exacerbating the divide.
The Need for Political Will and Accurate Data
Addressing the challenges of poverty requires not only political will but also reliable data to guide policy decisions. Alarmingly, the government’s official dashboard for tracking poverty indicators has not been updated since 2023, leaving critical gaps in understanding the current socio-economic landscape. The National Advisory Council on Poverty has rightly pointed out that the existing social safety net was not designed to cope with the current economic pressures, urging for swift action to protect vulnerable Canadians from falling deeper into poverty.
Why it Matters
The rising tide of poverty in Canada poses a significant threat to the social fabric and economic stability of the country. As more individuals and families experience hunger, homelessness, and despair, it becomes imperative for policymakers to act decisively. The long-term consequences of inaction are stark; not only do they undermine human dignity, but they also impose substantial costs on the economy. Ensuring that all Canadians can meet their basic needs is not merely a moral imperative but an economic necessity that warrants immediate attention.
