A recent study from the University of Calgary reveals that social assistance rates across Canada are not only inadequate for preventing poverty, but are also failing to keep individuals from slipping into homelessness. The report introduces the Homelessness Income Cut-Off (HICO), which outlines the minimum income necessary for maintaining housing stability, even when all discretionary spending is eliminated. With many urban and rural areas seeing social assistance rates fall below these critical thresholds, experts are sounding the alarm about a looming crisis.
The Homelessness Income Cut-Off Explained
The HICO serves as a crucial benchmark, calculated to reflect the least amount of financial support required for individuals to secure housing. Ronald Kneebone, the principal author of the report, describes the situation as dire. “These individuals are doing everything in their power to stay housed, from utilising food banks to seeking help from charities. Yet, despite these efforts, the social assistance they receive remains insufficient,” he stated.
This research highlights a growing concern across various Canadian communities, where homelessness rates are surging amid a national housing affordability crisis. In Ontario alone, over 30,000 people on social assistance were recorded as homeless as of July 2025, marking a staggering 72 per cent increase since July 2019. Particularly alarming is the 136 per cent rise in homelessness among those dependent on Ontario Works for more than a year. In Toronto, the HICO for a single adult sharing a two-bedroom apartment stands at £18,186 annually, yet a single adult receives less than half that amount through Ontario Works.
The Ineffectiveness of Current Measures
Kneebone argues that conventional metrics for assessing poverty, such as the Market Basket Measure, fail to account for the unique circumstances surrounding homelessness. The poverty line assumes that individuals have secure housing and access to a nutritious diet without reliance on external aid. However, those living at the HICO threshold are precariously balanced, with no financial flexibility.
“There has always been a lack of specific metrics for policymakers to evaluate the success of their homelessness strategies,” Kneebone noted. “If we are genuinely committed to addressing homelessness, we must ensure that social assistance provides at least this minimum income.”
Impact Across Diverse Communities
The report expands its analysis to 50 diverse communities, ranging from small towns with populations of 9,000 to major urban centres of five million. Interestingly, it was found that the HICO in smaller towns can often mirror that of larger cities due to limited local support systems. For instance, the report reveals that for single-parent families in some small communities, the HICO can constitute nearly 60 per cent of the median income, leaving many families vulnerable.
“There are countless individuals teetering on the brink,” Kneebone remarked. “We need to acknowledge that this predicament is increasingly prevalent. It is essential to provide people with an adequate income to ensure they can support themselves and maintain their housing.”
Alexi White, director of systems change at the anti-poverty think tank Maytree, echoed these concerns, describing the HICO as a vital indicator of the inadequacies in social assistance policies. He remarked that the connection between income security and homelessness is often overlooked. While the federal government has prioritised building affordable housing through initiatives like the Build Canada Homes project, White cautioned that this approach is a long-term solution that may take decades to yield results. “Income is what keeps most people in their homes,” he stressed.
Local Solutions for Localised Problems
The research emphasises the distinct challenges faced by communities across Canada, highlighting the need for tailored solutions. Kneebone noted, “Homelessness is a highly localized issue. The factors contributing to homelessness in Calgary differ significantly from those in Montreal or Halifax. Therefore, adopting a one-size-fits-all policy approach is misguided.”
By empowering local governments and organisations to understand and address their specific homelessness challenges, more effective strategies can be developed.
Why it Matters
The findings from the University of Calgary’s report underscore an urgent need for reform in Canada’s social assistance programmes. As rising homelessness rates indicate a failing safety net, policymakers must reevaluate their strategies and prioritise income security as a fundamental element of housing stability. With the HICO as a guiding measure, there is an opportunity to foster a more nuanced and effective approach to combatting homelessness, which is critical for the well-being of all Canadians.
