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HUMA committee briefing binder: Appearance of Minister of Families, Children and Social Development – February 14, 2023

From: Employment and Social Development Canada

Official title: Minister of Families, Children and Social Development appearance – Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA) – Study: Supplementary Estimates (B) 2022 to 2023, February 14, 2023, 3:30 pm to 4:30 pm TBC.

On this page

  1. Opening remarks
  2. Hot issues – Service delivery
  3. Hot issues – ELCC
  4. Backgrounders – ELCC
  5. Hot issues – Social and Economic Improvement
  6. Backgrounders – Social and Economic Improvement
  7. Supplementary Estimates B
  8. Mandate letter tracker
  9. Parliamentary environment

1. Opening remarks

Speaking notes for the Minister of Families, Children and Social Development, Karina Gould – Appearance before the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA) – Supplementary Estimates B – House of Commons, February 14, 2023.

Check against delivery

Mr. Chair and Committee members, thank you for inviting me today. I would like to acknowledge the land on which we are gathered is the traditional unceded territory of the Algonquin Anishinaabeg People.

Now I will speak to the Supplementary Estimates B for 2022 to 2023 that pertain to my portfolio as Minister of Families, Children and Social Development Canada.

Employment and Social Development Canada (ESDC) is the largest federal service delivery organization in Canada.

As demonstrated during the COVID-19 pandemic, the programs and services ESDC delivers are essential and make a difference in the lives of Canadians.

The requests today aim to strengthen protections and continue building a stronger, more inclusive country.

Old Age Security

The Old Age Security (OAS) program paid over $60 billion in benefits to 7 million beneficiaries last year.

Since 2004, the number of clients has grown by 67% and is expected to reach over 10 million by the year 2035. Approximately 62,000 new applications are being received weekly.

ESDC is requesting $46.4 million to:

Benefits Delivery Modernization

Supporting seniors requires the effective delivery of our Old Age Security (OAS) program.

The request for $13.5 million more in operating expenditures will modernize the IT system and enhance the delivery of OAS.

It will help create a new contact centre model, equipped with a well-trained, integrated workforce, to deliver service excellence.

ESDC Aging IT

ESDC’s information technology systems are in danger of failure.

The $16.3 million requested will stabilize IT systems to improve network performance and mitigate risk.

Mr. Chair, let me quickly mention other initiatives for which we seek funding.

The Black-led Philanthropic Endowment Fund is a Budget 2021 initiative under the Minister of Housing and Diversity and Inclusion. It seeks to create a sustainable source of funding for Black-led, Black-focused and Black-serving non-profit organizations and registered charities.

Minister Qualtrough also spoke about this initiative the last time she was before this committee. With approximately $200 million, ESDC will support the implementation and provide one national recipient organization with the means to establish and operate the Endowment Fund beginning in the 2022 to 2023 fiscal year.

The investment will work to reduce anti-Black racism and improve the social and economic outcomes in Black communities.

Second, the Investment Readiness Program is a $50 million initiative to advance social innovation and social finance.

Approximately $4.4 million will help social purpose organizations build their capacity and skills to find innovative ways that tackle social inequality, reduce poverty and fight climate change.

Third, the federal government has signed historic Early Learning and Child Care agreements with all provinces and territories to reduce fees for regulated child care, build high-quality, flexible and inclusive child care spaces and provides supports for early childhood educators.

$4.4 million will assist the ELCC Innovation Program and other data and research projects on ELCC, which explore, test and develop ways to help families access child care in addition to addressing gaps and improving the knowledge required for building a Canada-wide system.

The extra financial provision will address gaps and improve knowledge required for building a Canada-wide system.

Fourth is Indigenous Early Learning and Child Care.

We know that culturally appropriate early learning and child care, designed by and with Indigenous partners, gives Indigenous children the best start in life.

The $1.9 million requested will serve to advance commitments outlined in the co-developed Indigenous Early Learning and Child Care Framework and support strategies developed by First Nation, Inuit and Métis Governments and organizations.

Finally Mr. Chair, is the need for Public Health Measures at Service Canada centres. Since Service Canada centres re-opened in 2020, in-person client interactions has doubled. ESDC is seeking $5.9 million to address public health requirements to protect both clients and staff.

There is no doubt the financial resources requested will improve the standard of living and quality of life for all Canadians.

Thank you. I am happy to take questions now.

2. Hot issues – Service delivery

2.a. Benefits Delivery Modernization

Issue

Why Employment and Social Development Canada (ESDC) requires additional funds to continue to implement critical work to modernize how it delivers Canada’s social programs for Fiscal Year 2022 to 2023.

Background

The Benefits Delivery Modernization programme (BDM) is transforming how the Government of Canada delivers benefits, ensuring Canadians are at the core of our services.

The BDM programme, through a series of projects over time, will deliver a world-class service experience through modernizing the way that Government serves Canadians, from the elderly to the young, from people looking for work to those living with a disability.

In addition, the BDM programme will upgrade technology to a new common benefits delivery platform, minimizing the risk of cyber and security threats and lowering fraud, mistakes and delays.

The Old Age Security (OAS) program will be the first benefit to begin to use the common benefits delivery platform.

Key facts

ESDC is the largest federal service delivery organization in Canada, providing $135 billion in direct benefits to Canadians in 2019 to 2020 through the Old Age Security (OAS), Employment Insurance (EI), Canada Pension Plan (CPP) programs. These essential benefits maintain a safety net for economically vulnerable Canadians. 

The Programme has established the Common Benefit Delivery Platform and has begun to onboard OAS as the first benefit.

ESDC is seeking to reprofile funding in 2022 to 2023 through a Supplementary Estimates (B) request to continue this work.

The Department is committed to continue the complex task of modernizing the OAS system onto new technology, and eliminating technical debt as well as ensuring seniors continue to receive their benefits in a timely fashion with no interruptions.

Key messages

The Government of Canada (GC) continues to invest in the modernization of service delivery systems.

In Budget 2021, the Government of Canada (GC) committed to accelerating the replacement of OAS Solution to minimize the risk of this 60-year-old system failing and impacting seniors’ benefits.

Additional funds will allow for the continued advancement of the BDM Programme’s efforts to modernize how it delivers Canada’s social programs. As an IT-enabled business transformation, once fully implemented, BDM will provide Canadians with a modern client experience, reduced wait times, streamlined applications, and faster payment of benefits

Limiting the funding would prevent the Department from successfully completing the OAS transformation project. The GC will continue to incur significant costs to maintain the current system until such time as the new one is fully implemented.

ESDC remains committed to advancing the mandate of the Minister of Families, Children, and Social Development to deliver a modern, resilient, secure, and reliable future-state-client service experience.

2.b. Impact of Benefits Delivery Modernization and Old Age Security benefits

Issue

Addition of a potential anticipated question:

As the Old Age Security (OAS) benefits are moving to the new Common Benefits Delivery (CBD) platform, what is the Benefits Delivery Modernization (BDM) programme doing to ensure that there is no disruption to payments and services for seniors when the new IT solution goes live?

Background

The Benefits Delivery Modernization programme (BDM) is transforming how the Government of Canada delivers benefits, ensuring Canadians are at the core of our services.

The BDM programme will deliver a world-class service experience through modernizing the way that Government serves Canadians, from the elderly to the young, from people looking for work to those living with a disability.

The Old Age Security (OAS) program will be the first benefit to begin to use the new common benefits delivery platform.

Key facts

The migration of the OAS benefits to the new platform will be completed through a number of system releases over the next 2 fiscal years.

The phased migration plan includes significant testing and assurance activities and remains on track for completion in December 2024, followed by 9 months of close monitoring.

There will be 3 releases:

Key messages

Continuity in payments and service to clients remains the key priority for the project through all of its activities.

Rigorous and comprehensive testing will address a multitude of client changes, including elements that have an impact on eligibility and entitlement, such as marital status, age, address, etc.

In addition, pilot activities scheduled prior to go live will provide further assurance that:

The system will not go live until it can be fully proven to pay seniors without interruption.

In addition, should a significant fault be uncovered in the first days after go-live we will have the ability to roll-back to the legacy systems.

2.c. Integrity and fraud prevention

Issue

In recent years, the department’s programs have increasingly become the target of fraud. Both the nature and volume of fraud have expanded, including cyber-based fraud. The schemes are more sophisticated and organized.

Background

Globally, public sector institutions are dealing with increasingly sophisticated and complex cyber attacks. Fraudsters are leveraging stolen personal information to access social benefits.

Service Canada takes the integrity of its programs very seriously and remains committed to the financial stewardship of its programs.

Service Canada must balance the protection of public funds against the need to put clients into pay as quickly and seamlessly as possible.

Integrity activities at ESDC focus primarily on detection, with the most significant of these activities being directed towards investigations. The department uses a variety of tools and processes to help identify and address instances of error, abuse, and fraud. In 2021 to 2022, ESDC conducted close to 160,000 investigations relating to the EI, CPP/OAS and SIN programs.

Key facts

The Department leverages data analytics and intelligence capabilities to identify fraud vectors/patterns and proactively take action to prevent payments from being issued to fraudsters.

Other tools have been identified and will be developed in the areas of online fraud detection and vulnerability management to enhance the department security posture in an effort to mitigate ongoing threats. These include:

Since April 1, 2022, there have been a total of 11,303 stop-pays imposed. These stop-pays have detected $40.5M in overpayments and prevented an estimated $128.1M in payments from being issued to fraudsters. Service Canada has implemented a series of measures aimed at detecting and combating fraud as a result of new tools for online fraud detection. The number of stop payments created on a monthly basis went from approximately 3,400 in April 2022 down to approximately 200 in December 2022.

In Volume III of the Public Accounts of Canada 2021 to 2022, ESDC reported an amount of $53.3 million ($15.7 million in 2020 to 2021) in losses of public money due to an offence, illegal act or accident. The majority of this amount ($43.5 million) is related to fraudulent claims for Employment Insurance.

As of Fall 2020, payments were stopped for more than 30,000 potentially EI ERB fraudulent applications. This represented approximately $42 million in payments.

Key messages

Service Canada takes the integrity of its programs very seriously. We know that in time of crisis, the risk of fraud is heightened.

The department leverages data analytics and intelligence capabilities to disrupt, detect and prevent fraud.

From the outset of the pandemic, fraudsters using stolen identities to submit fraudulent EI claims have impacted Canadians. These fraudsters have disproportionately impacted Quebec residents.

New IT solutions have been implemented to identify fraud patterns earlier in the application process and prevent fraudulent applications from being submitted online.

Allegations of fraud or illegal acts are fully investigated and could be referred to law enforcement agencies as appropriate. Debts are established and penalties imposed when allegations are founded.

Measures are in place to support clients impacted by identity theft/fraud on a priority basis.

Service Canada also works closely with the Canadian Anti-Fraud Centre, the Canadian Centre for Cyber Security, other government departments, law enforcement and financial institutions to help defeat these fraudsters.

2.d. Repayment of CERB

Issue

What is Service Canada doing regarding Canada Emergency Response Benefit (CERB) notifications and overpayments?

Background

Many clients who applied for the CERB through Service Canada before June 14, 2020, received a $2,000 advance payment covering 4 weeks, which was issued to get money in pockets as quickly as possible.

This approach was adopted because Service Canada’s CERB payments leveraged the EI systems, which normally make payments in arrears. Contrary to the Canada Revenue Agency (CRA) model, which was designed to pay in advance, clients would have experienced delays in receiving their first payment. CERB applicants with claims processed on or after June 14, 2020, did not receive an advance payment of $2,000.

To reconcile this advance payment for Canadians who remained eligible for CERB, in the summer of 2020, the Department applied this advance against other payment periods in June, July and August (for weeks 13 and 14 as well as for weeks 18 and 19 of their claim), where recipients saw an interruption in payments in order to apply the money paid to weeks of eligibility. The advance payments to 1M clients were fully reconciled.

If recipients were not entitled to and/or did not receive CERB payments for at least 20 weeks, some or all of the advance payment remained as an outstanding balance owing.

As of September 2, 2022, 1.8M clients with an outstanding overpayment as a result of the advance CERB payment received a Notice of Debt containing the outstanding balance with repayment instructions and an outline of their appeal rights.

Key facts

When Canadians first applied for the CERB with Service Canada, they received an advance payment of $2,000. This was an advance of 4 weeks of the CERB, which was issued in order to get money into the pockets of Canadians as quickly as possible.

To reconcile this advance payment for Canadians who remained eligible for the CERB, Service Canada took the appropriate steps to fully reconcile the payments for more than 1M clients.

In November 2021, Service Canada began reaching out directly to those individuals who went off the CERB after returning to work and prior to that payment being reconciled.

As of February 3, 2023, 881,757 clients have fully repaid their debt for a total of $1.48B and 330,654 clients have partially repaid for a total of $256M; in total $1.73B repayments made. A balance of $1.36B is outstanding.

The CRA is responsible for collecting these debts owed to ESDC, and has designed expanded payment terms to provide clients with more flexibility for repayment and to prevent undue hardship.

Key messages

2.e. Single point of access for seniors seeking programs and services

Issue

What is the Department doing to ensure that seniors receive effective and timely access to centralized information on a wide range of programs and services?

Background

The aging Canadian population is growing and so is the demand for more centralized and timely services for seniors, especially as their needs become more complex and diverse..

The Minister of Seniors and the Minister of Families, Children and Social Development share a Mandate Letter commitment to implement a single point of access for seniors to a wide range of government services and benefits

While points of access for seniors to many government services already exist by telephone and in-person, the Department is exploring different avenues to centralize information for seniors across various levels of government.

Key facts

As an organization, Service Canada is already the leader in providing Canadians with a single point of access to a wide range of government services and benefits. It achieves this through 317 Service Canada centres; 247 scheduled outreach sites (158 reactivated as of January 16, 2023); 15 service delivery partner sites; and, 21 passport service sites.

Service Canada also provides a common web platform for 83 departments; with 869.4M visits in 2021 to 2022 and 603.2M visits this fiscal year to date, Canada.ca is the principal Government website.

Seniors currently have multiple points of access to some, government programs (that is, Old Age Security, Canada Pension Plan) by telephone through the Pensions Call Centre and 1 800 O-Canada, in-person through Service Canada centres, through outreach activities, and through eServiceCanada.

Through the Community and Outreach Liaison Service, Service Canada offers alternative service delivery options (including access to the Outreach Support Centre toll-free line) to vulnerable clients, including seniors, by working directly with community organizations to reach seniors who may not otherwise be able to access regular channels.

Improvements continue to be made to provide seniors with a more centralized access to government services.

Key messages

The Department is exploring different avenues to meet the commitments outlined in Ministers Khera and Gould's Mandate Letters.

Measures continue to be implemented to ensure that seniors have timely access to the information and support they require, all while having a positive client experience.

For instance, in recent years, initiatives such as the integrated Old Age Security/Guaranteed Income Supplement (OAS/GIS) application and the OAS/GIS Automatic Enrolment eliminated the need for approximately 50% of seniors to apply for OAS/GIS.

The Pensions Call Centre also enhanced its client experience by migrating to a new telephone platform, which allows virtually 100% of clients to choose to wait to speak to an agent, resulting in an increased queue capacity and number of callers that can wait for an agent.

The Pensions Call Centre also implemented various improvements to the Interactive Voice Response system, including streamlined messaging and increased self-serve abilities for seniors.

Seniors, now more than ever, rely on Service Canada to deliver its core services in an efficient, accessible, and timely manner, meeting service standards and the evolving needs of Canadian seniors.

2.f. Making Service Canada centres safe and secure

Issue

Why is ESDC requesting $5.9 million to make Service Canada centres safe and secure in the Supplementary Estimates (B) for fiscal year ending March 31, 2023?

Background

On March 27, 2020, the Department temporarily closed in-person client access to its SCCs, due to the pandemic. A gradual phased approach to reopening began with $13 million accessed through the 2020 Fall Economic Statement (FES).

The Department received $25.6 million in funding in Budget 2021 that enabled 316 SCCs to be open during 2021 to 2022. Funding was used for enhanced cleaning, modifying physical spaces and hiring commissionaires/security guards to control entry to the SCCs.

Budget 2022 provided $29.8 million to fund the continued use of commissionaires to control entry and manage client flow in SCCs. The increase in funding reflected the need for multiple commissionaires in some larger offices for the full year. Last year’s planning assumption was that commissionaires would not be required at all offices for the entire year, which was not the case.

The request for $5.9 million is the portion of the $29.8 million that is funded from the Consolidated Revenue Fund (CRF). The remaining portion of $20.2 million is funded from the Employment Insurance Operating Account and $3.6 million from the Canada Pension Plan which are not included in the Estimates.

All persons entering the SCCs are required to wear a mask. Differences between provincial and federal masking requirements creates points of friction with the public. Combined with the return to full occupancy and particularly high volumes of clients, the situation necessitates a continued commissionaire presence at SCCs.

Commissionaires for Passport Offices are not included in this request. Passport employees and costs associated with Passport operations are funded through the Passport Program Revolving Fund.

Key facts

The cumulative client volume of the in-person channel has essentially doubled from 2021 to 2022, to 2022 to 2023.

We have hired approximately 1,500 employees in passport operations since July 2022 to address the demand for passports and all offices have implemented line management strategies to minimize lineups.

Key messages

2.g. EI Claims service standards

Issue

What are the current service standards for Employment Insurance (EI) claims?

Background

Employment and Social Development Canada (ESDC) is the largest federal service delivery organization in Canada, delivering benefits and services to support Canadians at all stages of their lives. Since the beginning of the pandemic, ESDC has worked tirelessly to manage efficiently the processing of EI applications and call volumes and issued more than $36.4 billion in EI benefits in 2021 to 2022.

Service Canada’s key client service performance indicator for timeliness of EI claims processing is Speed of Payment (SOP). The target is to issue a payment, or notification of non-payment, to claimants within 28 days of filing their application for benefits, 80% of the time.

For 2022 to 2023 (as of February 4, 2023), Service Canada has received a total of 2.62 million new EI applications. This volume is within 1.6% of the forecast (3.05 million) for 2022 to 2023. Service Canada has processed 2.56 million claims and currently has 176,016 initial or renewal claims pending. Of these, 74,637 (42.4 %) are 29 days or older.

For 2022 to 2023 (as of February 3, 2023), the EI Call Centre answered over 5.1 million calls. Service Canada forecast between 6.0 million and 6.5 million calls will be answered by EI Call Centre officers by the end of 2022 to 2023.

Key facts

Service Canada makes every effort to meet EI’s service standard of issuing a payment, or notification of non-payment, within 28 days of filing a new application, 80% of the time. However, there are situations that prevent the Department from meeting this objective, particularly during the annual summer and winter peak periods, or because of missing documents or incorrect information.

In 2021 to 2022, Service Canada issued 85.4% of EI payments, or notifications of non-payment, within the 28-day timeframe. This is the second highest result in the last 15 years.

So far, in 2022 to 2023, as of January 31, 2023, 78.1% of EI payments, or notifications of non-payment, were made within 28 days. The average number of days it took for a client to receive their first EI benefit payment was 23 days. For this same period, 2.19 million EI Initial and Renewal applications were processed, of which 1.81 million (82.8%) were processed within 35 days.

In 2021 to 2022, EI Call Centre officers answered 7.2 million calls, compared to 5.6 million calls in 2020 to 2021. The average wait time was 20 minutes, a significant reduction compared to the previous fiscal year, when it averaged more than an hour.

In 2022 to 2023, the year-to-date result as of February 3, 2023 is 38% of calls answered within 10 minutes and the average wait time is 19 minutes. The EI Call Centre has improved its accessibility to be near 100% for callers accessing the queue to speak to an agent, compared to 50% in 2020 to 2021.

On November 3, 2022, the Fall Economic Statement announced $1.02B for Service Canada to process EI and Old Age Security claims faster, while reducing the EI claim inventory. In addition, $574M was announced to reduce the EI and Pensions Call Centre wait times.

Key messages

If pressed

2.h. OAG report on the performance audit of specific COVID-19 Benefits

Issue

On December 6, 2022, the Auditor General of Canada tabled her report in the House of Commons on the performance audit of Specific COVID-19 Benefits.

Background

On December 17, 2021, An Act to provide further support in response to COVID-19, also known as Bill C-2, received Royal Assent. This Act serves to extend or create specific benefits and programs related to COVID-19.

The Act also requires that the Auditor General (AG) of Canada complete a performance audit of certain COVID-19 benefits and programs. The benefits and programs included in this audit are:

The AG has now completed this audit examining whether Employment and Social Development Canada (ESDC) and the Canada Revenue Agency (CRA) delivered COVID-19 benefit/subsidy payments that were both efficient and effective, and on December 6, 2022, released its report.

Verification and validations controls were studied as part of the performance audit, as well as the CRA’s capacity to recover ineligible payments.

Key facts

The December 6, 2022 AG report found that:

As part of the 2020 Fall Economic Statement, the Government announced $260.4 million over 4 years for ESDC and the CRA to increase their respective capacities to detect, investigate and address cases of error, misrepresentation/abuse and fraud related to the CERB.

From this, ESDC received $114.3 million to enhance integrity measures to continue to detect, investigate and address high-risk cases of error, misrepresentation/abuse and fraud in the EI-ERB and committed to completing 157K post-payment verifications over 4 years.

ESDC efforts and recovery activities to date include:

Key messages

2.i. Termination of ESDC/Service Canada employees who claimed COVID-19 Emergency Benefits

Issue

ESDC/Service Canada terminated the employment of departmental employees upon finding that they had misrepresented their circumstances in order to obtain COVID-19 Emergency Benefits to which they were not eligible.

Background

As part of its mandate to develop and implement a modern, resilient, secure and reliable service and benefit delivery system for Canadians, ESDC/Service Canada continues to strengthen and enhance its controls mechanisms to prevent, detect and address fraud, error and abuse. To preserve the integrity of the program and maintain the trust of Canadians, ESDC/Service Canada promotes early detection and resolution.

ESDC/Service Canada remains committed to the protection of its information holdings, its assets and people, including from insider risks and in times of crisis that entail higher risk.

Due to the urgency in getting money in the hands of eligible Canadians as quickly as possible, the rollout of COVID-19 Emergency Benefits programs provided for post payment rather than pre payment eligibility verification, thus increasing the potential for fraud, error and abuse. However, the questions were in plain language, with “Yes/No” answers, requiring the applicant answer “Yes” to all to be eligible and certify to the truthfulness of their answers.

The Minister of Employment and Social Development is responsible for COVID-19 Emergency Benefit Programs, as per the applicable Acts. Departmental employees are expected to support ministers in their responsibilities.

Every day, ESDC/Service Canada provides numerous services and benefits to Canadians in accordance with the provisions of various Acts governing those services and benefits. In general, departmental employees have better knowledge and a greater understanding of eligibility requirements than the ordinary applicants.

Key facts

While conducting internal investigations pertaining to other allegations, ESDC/Service Canada discovered that some departmental employees were in receipt of COVID-19 Emergency Benefits while continuing to receive their full pay from employment with the department.

Pursuant to the Departement of Employment and Social Development Act, ESDC/Service Canada compared data from its human resources and pay systems with COVID-19 Emergency Benefits program data to identify employees who received benefit payments as well as pay from employment with the department for the same periods.

ESDC/Service Canada conducted internal investigations and, in accordance with the Treasury Board Secretariat’s Standard on Security Screening, reviewed the reliability status of employees who misrepresented their circumstances in order to obtain COVID-19 Emergency Benefits to which they were not eligible.

As of January 12, 2023, 49 employees have been terminated following the administrative investigations of their Security status where the employees in question were receiving their pay from employment with the Department and claimed emergency benefits. As of January 12, 2023, 8 other administrative investigations are still ongoing. Neither managers nor executives were found to have misrepresented themselves.

Recoveries of ineligible payments occur following the completion of the investigative process. Employees that misrepresented themselves have been terminated. Whomever is deemed ineligible will have to pay back the benefits.

Key messages

Protecting the integrity of its programs and departmental information holdings, its assets and people is of the utmost importance and requires that ESDC/Service Canada maintains rigorous security practices, including taking proactive measures against the risks posed by departmental employees.

ESDC/Service Canada actively promotes a strong ethical culture by providing all employees with resources, tools, training, communications, and support on values and ethics. They are required to complete a training curriculum within the first year of their employment that includes courses on the Value and Ethics Code for the Public Sector as well as the ESDC Code of Conduct. This also includes a cyclical requirement to recertify specific training, such as the Stewardship of Information and Workplace Behaviours training.

In addition to active monitoring programs, such as access monitoring of Program databases, ESDC has in place a robust system to report security breaches as well as alleged wrongdoing. This includes internal communications portal, education and outreach products, as well as reporting tools.

Potential breaches of the ESDC Code of Conduct, particularly those that present a possible security risk, are investigated by the Internal Integrity and Security Directorate. In addition to an administrative investigation, a review for cause of the employee’s security status may be conducted.

In all 49 cases, ESDC/Service Canada’s Chief Security Officer found that the employee misrepresented their circumstances in order to obtain COVID-19 Emergency Benefits they were not eligible to receive. In doing so, they lost the employers trust and were terminated as they no longer met their terms of employment by their security status being revoked.

2.j. Subject: Protecting the integrity of ESDC programs

Issue

What is ESDC doing to ensure the proactively monitor and detect unusual or suspicious activity of departmental systems and ensure the integrity of benefit programs and services delivered to Canadians?

Key facts

As part of the Department's internal integrity measures, it was determined that 49 ESDC employees had claimed the CERB payment.

As a result, those employees had their security status revoked and their employment terminated.

Response

If pressed (Subject)

Background

Throughout the COVID-19 pandemic, the Government of Canada remained committed to ensuring that Canadians be provided with the financial supports and services they needed as quickly as possible to get through this difficult time.

We know that in times of crisis, the risk of fraud is heightened. ESDC has robust data analytics capabilities that have been actively monitoring and identifying cases of potential fraud in our systems since the launch of the CERB.

ESDC implemented several initiatives and measures to review the situation and identify irregularities.

As a result, it was ascertained that certain employees received the CERB that were not eligible.

All employees who took advantage of CERB were terminated because they broke the employer's trust in them and no longer meet their terms of employment.

Key quotes

NIL

  • Prepared by: Kimberly Arp, Senior Advisor
  • Key contact: Robert Bonnefoy, Chief Security Officer
  • Approved by: Mary Crescenzi, Assistant-Deputy Minister, Integrity Services Branch
  • Date: February 3, 2023

2.k. Procurement of consulting services at ESDC

Issue

In recent year weeks, national media attention on federal government procurement of consulting services has increased with a particular focus on the government’s use of McKinsey & Company (McKinsey) consulting services since 2015.

Background

As one of the government of Canada’s largest departments, ESDC awards hundreds of contracts every year. The procurement of goods and services allows the department to support the delivery of programs and services to Canadians, while ensuring best value to the Crown.

ESDC is undertaking a wide variety of business improvements, modernization and transformation initiatives designed to meet client needs and expectations. ESDC’s transformation work is organized around 4 goals that represent the future of the organization: seamless digital experience; service accessibility; empowering ways of working; and aligning policy and service design to maximize results.

Key facts on McKinsey

A total of 4 contracts were awarded to McKinsey for benchmarking services which consist of functional tools, databases, and expert support to measure their performance against similar Canadian and international organizations, in order to identify deficiencies and opportunities for improvement, as well as high-level advisory services on transformation design and implementation strategies.

Contracts were awarded to McKinsey without soliciting bids as the company holds exclusive proprietary rights to data and research used to fulfill the requirements. (Government Contracts Regulations, section 6).

PSPC’s National Master Standing Offer was used to contract the services of McKinsey for proprietary benchmarking methodologies. These services consist of functional tools, databases, and expert support to measure their performance against similar Canadian and international organizations in order to identify deficiencies and opportunities for improvement.

Contract details
Contract 1 - High-level advisory services to de-risk transformation as the organization continues to change, and increase the likelihood of programme success, August 3, 2020 to March 31, 2021, $40,000 CDN with taxes. Overview of services

McKinsey provided on-demand access to expert advice related to the governance of large-scale, multi-year transformation programmes, and business development of the organization’s service delivery model to drive Service Canada as a service. McKinsey provided support of ESDC initiatives, projects and business cases in relation to transformation.

Contract 2: Benchmarking services, March 25, 2021, to April 28, 2021, $339,894.84 CDN with taxes. Overview of services

To advance ESDC’s transformation efforts, Service Canada sought industry expertise and advice on benchmarking related to the governance of large-scale, multi-year transformation programmes, and business development of the organizations service delivery model.

Contract 3: Advisory services, October 26, 2021, to January 4, 2022, $517,387.50 CDN with taxes. Overview of services

McKinsey provided strategic advisory services and leadership counseling to support senior management’s work to advance the department’s transformation efforts.

Contract 4 – current contract: Benchmarking services, August 16, 2022, to May 31, 2023, $5,742,857.53 CDN with taxes. Overview of services

McKinsey is providing benchmarking services to support the department’s transformation through a customer experience benchmark and the architecting, design and testing of citizen experience journey to improve client and user experience and service delivery. Deliverables include the assessment and development of a set of experience-based personas; the implementation and delivery of a Journey Lab with a focus on improving the way services are accessed and delivered; guidance on performance metrics and outcomes; and identifying the roles and responsibilities of a Chief Client Experience Officer role.

Key messages

ESDC is prioritizing transformation efforts to continue to enhance the services that Canadians have come to expect.

Procurement

ESDC follows the Government Contract Regulations and the Directive on the Management of Procurement; all procurement is fair and open

ESDC leverages PSPC contracting vehicles for the vast majority of our consulting contracts over $40,000 such as:

Supply Arrangements

There are limited reasons to justify a sole source contract such as:

ESDC’s McKinsey contracts
If pressed on transparency of process

3. Hot issues – ELCC

3.a. ELCC: State of legislation

Issue

Status update on the commitment to introduce Early Learning and Child Care (ELCC) legislation.

Background

To support a lasting federal commitment, Budget 2021 committed to introducing ELCC legislation following engagement with provinces, territories, Indigenous peoples, and stakeholders.

This commitment was reaffirmed in the December 2021 mandate letter of the Minister of Families, Children and Social Development, as well as in the Supply and Confidence Agreement with the New Democratic Party, which committed to introducing an ELCC Act by the end of 2022.

Pre-tabling engagement on the legislation took place between January and March 2022. Thirty‑three written submissions were received and a roundtable held with expert stakeholders. A “What we Heard” Report was released on November 25, 2022. The feedback, summarized below, helped to inform the design and development of the Bill.

Key facts

On December 8, 2022, the Government introduced the proposed Canada Early Learning and Child Care Act. Second reading debate took place on January 30-31, 2023. On February 1, 2023 Bill C-35 was adopted with unanimous consent at 2nd reading and referred to the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA). The timing of the study is yet to be determined.

The proposed Act would entrench the federal principles of access, affordability, inclusivity, and high‑quality into law, as well as a commitment to ongoing collaboration and long‑term funding for provinces, territories and Indigenous peoples.

The proposed legislation respects provincial and territorial jurisdiction, while recognizing that the federal government has a role to play in setting federal guiding principles.

The proposed Act would respect and uphold Indigenous rights, including the right to self‑determination, and support the Government of Canada’s commitment to advancing Reconciliation.

It does not impose any conditions on provinces, territories or Indigenous peoples.

The proposed legislation would complement, not replace or supersede, the Multilateral Early Learning and Child Care Framework that was developed with provinces and territories, and the Indigenous Early Learning and Child Care Framework that was co-developed with Indigenous peoples. It also aligns with the Canada-wide agreements.

The proposed legislation would enhance transparency and accountability, requiring the Minister to report annually to the public on federal investments and progress made to establish and maintain the Canada‑wide system

It would also enshrine in law the National Advisory Council on Early Learning and Child Care

Key messages

Fulfilling its commitment to introduce ELCC legislation, on December 8, 2022 the Government introduced the proposed Canada Early Learning and Child Care Act. On February 1, 2023 the Bill was referred to HUMA for study.

If passed, the Canada Early Learning and Child Care Act would strengthen the foundation of the Canada-wide ELCC system by enshrining into law:

Further, under the proposed legislation, the National Advisory Council on ELCC, which was announced on November 24, 2022, would be converted to a statutory advisory body. This would help ensure that expert advice would inform the creation and maintenance of a Canada‑wide system, for the long-term

The proposed legislation:

The proposed legislation also supports the Government’s commitment to advance Reconciliation. It would help ensure that ELCC for Indigenous families will be led by Indigenous peoples, and continue to be guided by the Indigenous ELCC Framework

Along with the substantial investments the Government is making, the commitments enshrined in the proposed Canada Early Learning and Child Care Act would grow the economy, allowing more parents – especially women – to enter the workforce, and give children in Canada the best start in life

3.b. Spaces created for Indigenous children

Issue

Creation of 3,300 new child care spaces for Indigenous children under the Canada-wide Indigenous Early Learning and Child Care (ELCC) system.

Background

As a part of Budget 2021, the Government of Canada made a transformative investment of over $27 billion over 5 years to establish a Canada-wide early learning and child care system.

Budget 2021 also provided new investments of $2.5 billion over 5 years to support Indigenous ELCC, including $420 million over 3 years, starting in 2023 to 2024 and $21 million ongoing to build and maintain new IELCC centres in additional communities.

This complements provincial-territorial investments and forms an integral part of a Canada-wide ELCC system to increase the availability of high-quality, culturally appropriate and accessible programs and services to Indigenous peoples.

Guided by the Indigenous ELCC Framework, these investments:

The Minister of Families, Children and Social Development’s 2021 Mandate Letter includes a commitment to work with Indigenous partners to ensure that Indigenous children have access to high quality and culturally-appropriate Indigenous ELCC services in the communities in which they live and create 3,300 new child care spaces for Indigenous children across Canada.

Key facts

Through strong partnerships with Indigenous governments and organizations, federal funding to Indigenous ELCC is strengthening the quality of community-based culturally appropriate programming, with investments reaching over 35,000 children in:

Engagement with First Nations, Inuit and Métis governments and organisations is underway for major infrastructure funding to determine priorities for IELCC Infrastructure investments and a strategy to deliver them.

These investments will help facilitate greater access to high quality, culturally appropriate ELCC programming for Indigenous children and families, and demonstrate progress against mandate commitments to create 3,300 new Indigenous ELCC spaces.

In addition to space creation, important priorities identified by Indigenous partners include:

Given the early stages of Budget 2021 implementation, comprehensive data on space creation is not available at this time. The Government of Canada has committed to work with First Nations, Inuit and the Métis Nation to co-develop results reporting approaches by March 2025, in order to demonstrate and assess progress towards the vision and goals of the Indigenous ELCC Framework.

While this co-development work is underway, Indigenous funding recipients are reporting annually on progress through contribution agreements.

Key messages

Indigenous governments are important partners in building a Canada-wide ELCC system in collaboration with provinces and territories.

Federal funding for culturally-appropriate Indigenous Early Learning and Childcare programming supports healthy development, and reaches over 35,000 Indigenous children in communities across Canada.

Expanding access to culturally-appropriate ELCC programming, which includes creating new child care spaces and offering more flexible hours within existing services, is an important priority shared with First Nations, Inuit, and Métis Nation partners. The Government is working with Indigenous governments and organizations to identify infrastructure priorities to support a growing Indigenous ELCC sector.

Work is also underway to co-develop approaches to measure progress toward this goal.

3.c. Spaces Created under ELCC

Issue

Creation of child care spaces for children aged 0 to 5 years old under the Canada-wide Early Learning and Child Care (ELCC) system.

Background

The Government of Canada is making a transformative investment to build a Canada-wide Early Learning and Child Care System in partnership with provincial, territorial and Indigenous partners. Budget 2021 provided new investments of up to $30 billion over 5 years, including up to $27.2 billion specifically for provinces and territories to build access to a high-quality, affordable, and inclusive early learning and child care system across Canada.

The Minister of Families, Children and Social Development’s 2021 Mandate Letter provided direction to conclude negotiations with provinces and territories and to implement agreements in order to:

The Governments of Canada and Quebec have entered into asymmetrical ELCC agreements, given that the province already has an affordable and well-established system. As such, Quebec is not subject to the same accountability and reporting requirements, and does not have annual action plans.

Demand for child care is expected to increase as parent fees decline. The lesson learned from the Quebec experience is that a measured, incremental transition to a low-cost child care system is essential to ensuring quality. As provinces and territories implement the Canada-wide system, optimal coverage rates will vary along regional and jurisdictional lines. The federal government will continue to work with provincial and territorial governments to increase the supply of high quality spaces, train and recruit the early childhood educators, build infrastructure, and properly regulate and monitor the transition.

Alberta’s cost control framework

Under the terms of the Canada-Alberta CWELCC Agreement, a Canada-Alberta Implementation Committee has been working to develop a For-Profit Expansion Plan and cost control framework to support the growth of additional regulated spaces by for profit licensed providers.

On January 31, 2023, Canada and Alberta announced a Cost Control Framework and For-Profit Expansion Plan for the province. The Cost Control Framework will apply to both not-for-profit and for-profit operators to ensure the sound and reasonable use of public funds under the Canada-Alberta Canada-wide Early Learning and Child Care Agreement. This announcement allows for 22,500 for-profit spaces to be created in addition to the 3,700 for profit and 42,500 not-for-profit spaces previously committed to in the Alberta-Canada Canada-wide Agreement. This means that Alberta has committed to creating a total of 68,700 spaces (42,500 not-for-profit and 26,200 for-profit) in the province by March 2026.

Key facts

The Government of Canada has signed agreements with every province and territory (PT) to deliver a Canada-wide ELCC system.

All provinces and territories have committed to achieve 5-year space creation targets that will amount to just over 250,000 spaces across Canada by March 2026. Ontario and British Columbia have space creation targets beyond 2025 to 2026.

All PTs, except Quebec, have committed to develop and fund a plan to ensure diverse and/or vulnerable children and families have equitable access to spaces based on population proportion or assessed need.

Key messages

In their Canada-wide agreements, provinces and territories committed to creating a combined total of over 275,000 child care spaces by March 31, 2026.

To date, the creation of over 50,000 new spaces has been announced.

Provinces and territories, except Quebec, have also made commitments and plans to ensure that vulnerable children and families will have greater access to spaces.

Each agreement’s Action Plan has a 2-year space creation target, as well as a 5-year space creation commitment. This approach balances the Canada-Wide objectives with the flexibility provinces and territories need to create spaces in line with their child care priorities, and community needs.

The new child care spaces will be predominantly among licensed not-for-profit, public, and family-based child care providers.

PTs will submit annual reports to the Federal Secretariat on ELCC to track the commitments set out in each agreement, including the number of new child care spaces.Footnote 1

If pressed on Alberta’s cost control framework

The CWELCC agreements predominantly support not-for-profit, public, and family based child care providers, but given the unique ELCC landscape across the country, including in Alberta, Canada recognizes that licensed, for-profit child care will also play a role.

The Cost Control Framework and For-Profit Expansion Plan will ensure the sound and reasonable use of public funds in Alberta’s child care sector. With respect to for-profit operators, the plan builds on existing successful approaches to working with the private sector to increase spaces and quality, without creating unnecessary barriers to growth, innovation, and creativity in creating spaces.

The Cost Control Framework will guide how federal funds can be used to support the development of up to an additional 22,500 new child care spaces among Alberta’s licensed for-profit child care providers over the duration of the Canada-Alberta Canada-wide Early Learning and Child Care Agreement. These spaces are in addition to Alberta’s previous commitment to create 3,700 for-profit and 42,500 not-for-profit spaces in Alberta.

Table 1: Space creation targets by province and territory in the Canada-wide ELCC Agreements
Province/ Territory Initial planned space creation by end of 2022 to 2023 Space creation commitment by end of 2025 to 2026 Space commitments beyond 2025 to 2026 Estimated child care spaces announced to date
Newfoundland and Labrador 1,645 5,895 0 600
Prince Edward Footnote 2 452 452 0 230
Nova Scotia 4,000 9,500 0 1,100
New Brunswick 500 3,400 0 0
QuebecFootnote 3 N/A 30,000 0 Asymmetrical agreement
Ontario 42,000 76,700 86,000 by end of 2026 calendar year 33,000Footnote 4
Manitoba 3,425 23,000 0 2,319
Saskatchewan 12,100 28,000 0 4,000
AlbertaFootnote 5 10,000 68,700 0 5,500
British Columbia 5,850 30,000 40,000 by 2027 to 2028 3,587
Yukon 50 110 0 200
Northwest Territories 75 300 0 67
Nunavut 30 238 0 30
Total 80,127 new spaces 276,295 new spaces 295,595 new spaces 50,633 spaces

3.d. Early Childhood Education workforce

Issue

Qualifications and shortages of early childhood educators

Background

The Government of Canada made a transformative investment of over $27 billion over 5 years as part of Budget 2021 to build a Canada-wide early learning and child care (ELCC) system with provinces and territories (PTs).

In addition, the Government of Canada provided $420 million in 2021 to 2022 for PTs to support the recruitment and retention of early childhood educators, in recognition of the workforce’s central role in providing high-quality early learning and child care.

Rather than including provisions on hiring a specific number of early childhood educators, the Canada-Wide ELCC Agreements signed with all jurisdictions, with the exception of Quebec, prioritize quality through the requirements of:

This approach provides more flexibility to PTs to adapt their recruitment and retention efforts to their unique early learning and child care sector in their jurisdiction and meet their needs.

Many PTs have already announced new supports for the early childhood educators in areas such as hiring, retention, training and wages.

Key facts

The ELCC workforce falls under PT jurisdiction. PTs regulate the specific educational and training requirements to become a certified/registered early childhood educator.

As of December 2022, Canada’s Labour Force Survey estimates that the employment level among Early Childhood Educators (ECEs) and Assistants in Canada is 11% below pre-pandemic levels, with approximately 28,500 fewer people, mostly women, working in this occupation compared to early 2020. At the same time, Canada’s overall employment levels surpassed pre-pandemic levels (+3.3%), suggesting many of these workers may have moved to different occupations over this period.Footnote 6

Low pay in the sector is one of the most critical factors contributing to workforce shortages. In 2021, the median hourly wage for staff working in licensed child care was $20.Footnote 7 Other challenges to recruiting and retaining a qualified workforce include lack of benefits, poor working conditions and lack of recognition and respect for the profession.Footnote 8

The Canada-Wide ELCC Agreements all contain commitments to support a highly qualified ECE workforce, such as wage grids for ECEs and increasing the percentage of certified ECEs.

A University of Toronto report estimates that 32,000 additional educators are required to meet the goal of the Canada-wide ELCC system of serving 59% of preschool-aged children over the next 5 years.Footnote 7

Budget 2022’s estimates for early childhood educator jobs to be created show that the government’s target in the Mandate Letter for the Minister of Families, Children and Social Development of hiring 40,000 more early childhood educators by the end of fiscal year 2025 to 2026 is likely to be met by the conclusion of agreements.

Key messages

The Government of Canada recognizes the importance of a highly trained, qualified early learning and child care workforce to ensure the availability of high-quality child care.

That is why we are providing provinces and territories with over $27 billion over 5 years through bilateral funding agreements to support the establishment of a Canada-wide early learning child care system.

Bilateral agreements with provinces and territories all contain commitments to support a qualified early childhood educator workforce, such as wage grids for educators and initiatives to increase the percentage of certified early childhood educators.

We also provided dedicated workforce funding of $420 million in 2021 to 2022 to provinces and territories for initiatives to attract and retain early childhood educators.

Some provinces and territories have already started to announce early childhood educator workforce strategies and measures to recruit and retain these workers in the sector.

For example, throughout 2022 several provinces and territories, including New Brunswick, Nova Scotia, Saskatchewan, Alberta, British Columbia and Northwest Territories announced wage increases, while Manitoba has announced the creation of a wage grid.

3.e. Impact of inflation and the Canada-wide ELCC system

Issue

Impact of Inflation on the Canada-Wide ELCC system

Background

Budget 2021 announced new investments totaling up to $30 billion over 5 years, including up to $27.2 billion over 5 years for transfers to provinces and territories (PT) to reduce parent fees to an average of $10-a-day per child and create 250,000 new spaces by 2025 to 2026.

Over the next 5 years, annual PT transfers will increase steadily as fees are reduced and spaces are created. Beginning in 2026 to 2027, PT transfers will reach an ongoing steady state of $8.35B annually including Budget 2017 (made permanent in the 2020 Fall Economic Statement) and Budget 2021 investments.

The 2021 Mandate Letter for the Minister of Families, Children and Social Development provided direction to continue advancing the creation and sustainability of a Canada-wide ELCC system.

In response to requests from PTs, and to support the implementation of a Canada-wide ELCC system, Budget 2022 provided $625 million over 4 years, beginning in 2023 to 2024, to Employment and Social Development Canada for an ELCC Infrastructure Fund. This funding will enable PTs to make additional child care investments. In Quebec, funding will be delivered via an asymmetrical agreement that will allow the province to further enhance its child care system.

Key facts

Due to direct and indirect economic impacts of the pandemic and the ongoing conflict in Ukraine, the global economy has experienced higher than expected inflation, including here in Canada. On an annual average basis, inflation in Canada rose by 6.8% in 2022, the largest increase since 1982.

Additionally, costs for construction and key raw materials have increased at rates that far outpace inflation, creating additional cost pressures on capital infrastructure projects PTs planned as a part of the Canada-wide ELCC system.

Funding for the Canada-Wide ELCC system is increasing every year from 2021 to 2022, to 2025 to 2026, providing some flexibility to respond to inflation over the life of the current agreements with PTs.

It is expected that the cost of maintaining a Canada-Wide ELCC system will, at a minimum, increase at the rate of inflation each year.

Key messages

Funding for the Canada-Wide ELCC system is increasing every year until 2025 to 2026, and provinces and territories have made firm commitments to achieve our shared objectives and agreed upon targets.

As we worked with provinces and territories on the implementation of agreements, many raised that infrastructure funding was a challenge for non-profit and public providers where real estate costs were too high or building materials too expensive.

That is why Budget 2022 proposed $625 million over 4 years, beginning in 2023 to 2024, for an Early Learning and Child Care Infrastructure Fund.

This funding will support provinces and territories in making additional child care investments.

We are working closely and collaboratively with provinces and territories, speaking to stakeholders, and listening to parents and families as we continue the ongoing work to build a more resilient Canada-Wide ELCC system.

As that process unfolds, we will encounter challenges, but our intention to move from a patchwork child care model to a Canada-Wide system was initiated in part to safeguard this essential service from future shocks like the pandemic and the global economic disruption.

3.f. National Advisory Council on Early Learning and Child Care

Issue

The establishment of the National Advisory Council on Early Learning and Child Care.

Background

Budget 2021 committed to establishing a National Advisory Council on Early Learning and Child Care (the Council). This commitment was reaffirmed in the Minister of Families, Children and Social Development’s December 2021 Mandate Letter.

In support of this commitment, an 8-week call for applications was launched on August 4, 2021, and attracted 140 applicants from across Canada’s early learning and child care sector.

Following an open, transparent and merit-based selection process, on November 24, 2022, the Minister of Families, Children and Social Development announced the 16 highly diverse and qualified individuals that reflects Canada’s geographic, cultural, and linguistic diversity.

The Council will serve as a forum for consultation on issues and challenges facing the sector, and provide third-party expert advice to the Government of Canada. As its first priority, the Council has been directed to provide expert advice and to engage on the issues and challenges related to the early childhood educator workforce in Canada. The outcome of their work will inform and help advance the federal government’s work towards an Early Childhood Educator Workforce Strategy.

The inaugural in-person meeting of the National Advisory Council on Early Learning and Child Care took place on January 30 and 31, 2023, in Gatineau. The focus of this first meeting was for members to collectively discuss the Council’s vision and how it will function to advance work on early childhood educator workforce issues.

Key facts

The Council, established using Ministerial Authorities under the Department of Employment and Social Development Act, will provide third-party expert advice, and serve as a forum for consultation on issues and challenges facing the early learning and child care sector.

The Council brings together a committed and diverse group of experts, including academics and advocates, practitioners and caregivers, including an ex-officio member and full-time chairperson, who will serve 3-year mandated with the opportunity to renew. The chairperson, Don Giesbrecht, has previously served as both President of the Board of Directors and CEO of the Canadian Child Care Federation.

Membership on the Council is non-affiliated, meaning that members will not serve as representatives of the organizations with which they may work or the jurisdictions in which they may live, but rather from the perspective of their own unique experiences in the early learning and child care sector. A non-affiliated membership of diverse stakeholders will help ensure that the Department of Employment and Social Development has access to the impartial advice needed for informed, evidence-based decision-making.

The Council complements, and does not replace, existing mechanisms for engagement on early learning and child care. Provincial, territorial, and Indigenous partners will continue to work with the Federal government bilaterally.

On December 8, 2022, proposed federal early learning and child care legislation was introduced in the House of Commons. Bill C-35 proposes to establish in law the existing Council with the purpose to provide greater stability and independence of this Council and demonstrate the Government of Canada’s long term commitment to building a sustainable and enduring Canada-wide early learning and child care system.

Key messages

The National Advisory Council supports the Government of Canada’s commitment to build a Canada-wide early learning and child care system.

The Council will serve as a forum for consultation on issues and challenges facing the sector, and provide third-party expert advice to the Government of Canada.

The Council brings together a diverse group of 16 members, including academics, advocates, practitioners and caregivers from across the early learning and child care sector.

The proposed legislation would convert that same Council into a statutory body, much like what was done with the National Advisory Council on Poverty and the National Housing Council.

3.g. Grants and Contributions for the ELCC Innovation Program, Data and Research

Issue

Re-profiling of $14.9 million, including 4.4 million to fiscal year 2022 to 2023, for the Early Learning and Child Care Program in the Supplementary Estimates (B).

Background

Budgets 2016 and 2017 committed $7.5 billion over 11 years for ELCC, starting in 2017 to 2018, including $195 million, over 10 years, for investments in child care innovation and data and research.

ELCC Innovation Program

The ELCC Innovation Program supports the exploration, testing and development of innovative approaches to support children and families’ access to high-quality, affordable, flexible and inclusive early learning and child care programs and services across the country. The scope of the projects are either local, regional or national and target the needs of children under 6 years of age and their families.

The 2020 ELCC Innovation Program Call for Proposals ran from October 30, 2020 to January 7, 2021 and resulted in a significantly higher number of applications than anticipated, which prolonged the assessment period.

While projects were ultimately approved in late 2021, funding did not flow to recipients until 2022 to 2023. Therefore, the $14.5 million in contributions planned in 2021 to 2022 was sought for re-profile to the next 3 years (2022 to 2023, to 2024 to 2025), including a re-profile of $4.2M in contributions into fiscal year 2022 to 2023.

ELCC Data and Research

ELCC Data and Research funding addresses key information gaps and seeks to improve internal knowledge capacity required for building the Canada-wide system. It supports reporting, informs policy development, and improves measurement and understanding of the impact of ELCC investments on children and families. The funding also facilitates the exchange and dissemination of research supporting evidence‑based policy development and effective decision-making.

In 2021 to 2022, $850,000 of ELCC Data and Research Operating and Maintenance funding was converted into grants and contributions to diversify federal data and research investments that currently rely primarily on projects with Statistics Canada. A grants and contributions program facilitates opportunities for the use of different perspectives and methodologies, and diversifies approaches for knowledge exchange, for example, with ELCC advocates and organizations, academia and the general public.

Overall, $472.5K from the 2021 to 2022 budget was requested to be re-profiled for the next 3 fiscal years (2022 to 2023, to 2024 to 2025) including $152,500 in 2022 to 2023.

Key facts

Funding to be re-profiled to 2022 to 2023 consists of $152,500 to support ELCC Data and Research, and $4,270,357 dedicated to ELCC Innovation Projects (Table 2).

ELCC Innovation Program

The 2020 ELCC Innovation Program Call for Proposals ran from October 30, 2020 to January 7, 2021 and resulted in a significantly higher number of applications than anticipated, which prolonged the assessment period. While projects were ultimately approved in late 2021, funding did not flow to recipients until 2022 to 2023.

Re-profiling $4.27 million in contributions of ELCC Innovation Program funding will help to ensure continued outcomes at the national, regional, and local levels.

ELCC Data and Research

ELCC Data and Research funding facilitates the involvement of the broader expert community and organizations (academia, stakeholders, other non-government organizations) in the development of new projects to address long-standing data and research gaps.

The re-profiling of grants funding is requested due to delays in working with Indigenous partners, changes in the organizational mechanism to launch calls for proposals for data and research projects, and changes in organizational capacity during the year.

Table 2: Existing Funding, Supplementary Estimates B and Total Funding, 2022 to 2023
Funding ($) Existing funding 2022 to 2023 Supplementary Estimates B 2022 to 2023 Total funding 2022 to 2023
Grants 1 250 000 152 500 1 402 500
Contributions 11 702 668 4 270 357 15 973 025
Total Vote 5 12 952 668 4 422 857 17 375 525

Key messages

Re-profiled funds for the ELCC Innovation Program will support multi-year projects starting in 2022 to 2023, ensuring the continued positive impact of the ELCC Innovation Program on the childcare sector.

Re-profiled funds for ELCC Data and Research in 2022 to 2023 will support the involvement of the broader expert community in the development of new projects to address key data and research gaps.

3.h. Recent media reports on child care

Issue

Recent media coverage of the Canada-wide Early Learning and Child Care (ELCC) system.

Background

The CWELCC system has received a significant amount of media coverage and stakeholder commentary over the past year. From January 1 to January 31, 2023, ELCC in Canada was mentioned in approximately 1,080 articles (including reprints), remaining fairly consistent when compared to the volume of the previous 6 months.

While at the beginning of January several media outlets expressed concern over staffing, there was a peak in more positive coverage towards the end of the month, primarily due to the announcement of more facilities entering under the Canada-wide system in B.C., Ontario, Alberta and Saskatchewan.

Most child care advocates and stakeholders were enthusiastic about all provinces and territories (PTs) having signed agreements with the federal government, calling the accomplishment “historic.”

However, many remained skeptical of implementation. Media outlets continued to report on the low supply of child care spaces and workers, contrasted with the high demand for $10-a-day spots across the country.

Child care advocates, social policy think tanks and academics welcomed investments to expand child care, help train more early childhood educators (ECEs) and improve ECE wages. They also stressed that there is “more work to do” to further reduce fees, improve child care quality, address poor working conditions, increase the number of child care spaces and recruit more ECEs to meet demand.

Child care advocates also raised concerns about the easing of some restrictions on the use of for-profit daycares and reducing “accountability for federal funds” in Ontario and Alberta. They warned that relying too heavily on for-profit providers will “merely maintain the failed child care market Canada has always known.”

Child care stakeholders and labour unions have welcomed fee reductions and progress on implementation in a number of provinces, including Nova Scotia, New Brunswick, Prince Edward Island, British Columbia and Saskatchewan, while noting challenges remain.

In other jurisdictions, like Ontario, child care advocates and providers have expressed confusion and concern about a “troubling lack of transparency” surrounding the subsidy rollout and an implementation timeline which was “never realistic.”

Public opinion research continues to show high levels of support for ELCC, with a study from Leger (April 2022) finding 69% of Canadians support the introduction of $10-a-day child care. However, the poll did warn that support drops to 36% if, hypothetically, ELCC had to be paid for by increasing the GST.

A small number of media outlets, including CTV NewsFootnote 9, reported on the introduction of the proposed Canada Early Learning and Child Care Act in the House of Commons by Minister Gould on December 8, 2022. Coverage focused on the certainty the Act would provide to parents if passed and the assurance that the CWELCC system would not be easily dissolved by a future federal government.

Key facts

CWELCC has received significant media coverage during the past year, most of which has been positive. However, much of this coverage was generated by recently signed agreements with PTs.

Scepticism regarding the successful implementation of CWELCC among stakeholders and advocates is widespread, and media coverage reflects this. Implementation challenges in certain jurisdictions have amplified this scepticism government.

Key messages

The federal government will continue to work with the provinces and territories to implement the Canada-wide system.

3.i. Status of ELCC fee reductions

Issue

Status of the reduction in fees for regulated child care under the Canada-wide early learning and child care system.

Background

The Government of Canada is making a transformative investment to build a Canada-wide Early Learning and Child Care System in partnership with provincial, territorial and Indigenous partners. Budget 2021 provided new investments of up to $30 billion over 5 years, including up to $27.2 billion specifically for provinces and territories to build access to a high-quality, affordable, and inclusive early learning and child care system across Canada.

The Minister of Families, Children and Social Development’s 2021 Mandate Letter provided direction to conclude negotiations with provinces and territories and to implement agreements in order to:

The Governments of Canada and Quebec have entered into asymmetric ELCC agreements, given that the province already has an affordable and well-established system. As such, Quebec is not subject to the same accountability and reporting requirements, and does not have annual action plans.

The Government of Canada has signed agreements with every province and territory (PT) to deliver a Canada-wide ELCC system.

All provinces and territories have announced reductions in fees for regulated child care (see Table 3).

Key messages

Under the Canada-wide early learning and child care system, the federal government is working with provincial and territorial governments to reduce fees for regulated child care to an average of $10-a-day.

Prior to establishing the Canada-wide early learning and child care system, Quebec and Yukon were providing child care in their jurisdictions for $10-a-day or less.

Under the Canada-wide early learning and child care system, Nunavut and Newfoundland and Labrador have reduced fees for regulated child care in their jurisdictions to $10-a-day (note: this has not yet been announced). Nunavut’s reductions took effect December 1, 2022 and Newfoundland and Labrador’s reductions took effect January 1, 2023.

All other jurisdictions have reduced fees by 30-70%.

If pressed on Manitoba

The federal government is working with the Government of Manitoba to confirm whether it has met the 50% fee reduction target.

Table 3: Status of fee reductions by jurisdiction
Jurisdiction Status of fee reduction
Newfoundland and Labrador $10-a-day effective January 1, 2023 (not yet announced)
Nova Scotia 50% average reduction; Awaiting data to assess new average daily fees
Prince Edward Island 50% average reduction; Awaiting data to assess new average daily fees
New Brunswick 50% average reduction; $12.82-a-day on average for preschool care
Quebec Less than $10-a-day prior to Canada-wide
Ontario 50% average reduction; $23-a-day on average
Manitoba 30% average reduction; Awaiting data to assess new average daily fees
Saskatchewan 70% average reduction; Awaiting data to assess new average daily fees
Alberta 50% average reduction; Awaiting data to assess new average daily fees
British Columbia 50% average reduction; $21-a-day on average
Yukon $10-a-day prior to Canada-wide
Northwest Territories 50% average reduction; Awaiting data to assess new average daily fees.
Nunavut $10-a-day effective December 1, 2022

4. Backgrounders – ELCC

4.a. Social indicators

Context

Budget 2021 announced new investments totaling up to $30 billion over the next 5 years, including up to $27.2 billion over 5 years for transfers to provinces and territories (P/T), to reduce parent fees for early learning and child care (ELCC) to an average of $10-a-day per child and create 250,000 new spaces by 2025 to 2026. Bilateral agreements with all provinces and territories have been signed and implementation of the Canada-wide ELCC system is underway.

The new Canada-wide ELCC system will provide greater access to primarily not-for-profit child care, enabling greater opportunities for parents (predominantly mothers) to enter or re-enter the workforce. An increase in women’s labour force participation provides economic and social benefits to all Canadians.

The pandemic has made access to early learning and child care a universal issue that is resonating across sectors, regions, and income brackets.

Demographics

According to Statistics Canada, in 2022, there are approximately 2.28 million 0-5 year olds in Canada. In recent years, the number of children aged 0-5 has steadily declined. As a result, young children now represent less than 6% of the population compared to 6.7% in 2002, reflecting an aging demographic. The COVID-19 pandemic particularly accelerated Canada’s aging population, with 2020 resulting in the lowest number of births and greatest year-over-year decrease in births since 2006.

The most recent Census estimates that more than 1.64 million families had one or more children aged 0-5 years old, slightly declining from 2016 Census results.

Women’s labour force participation and child care

A previous studyFootnote 10 estimated that within nearly a decade of Quebec introducing its child care program, approximately 70,000 more mothers were employed, resulting in nearly $5.1 billion of economic expansion that can be attributed to the province’s low-fee child care program.

As of 2022, Labour Force Survey estimates reflected that mothers in Quebec with youngest child under the age of 6 had a labour market participation rate of more than 82.5%, which is higher than the 77.4% participation rate of mothers with young children in the rest of Canada. Since 1997—the year Quebec launched its low-fee child care program—the participation rate of women with children under 6 years of age increased by almost 16 percentagepoints in Quebec as of 2022, while it increased by nearly 8 percentage points in the rest of Canada.Footnote 11

As mentioned in Budget 2021, if women in the rest of Canada participated at the same level as Quebec, where low-fee child care has been available since 1997, it would add approximately 240,000 workers to the labour force in today's terms.Footnote 12

Early Childhood Educator workforce

As of December 2022, Canada’s Labour Force Survey estimates that the employment level among ECEs and Assistants in Canada is 11% below pre-pandemic levels, with approximately 28,500 fewer people, mostly women, working in this occupation compared to early 2020. At the same time, Canada’s overall employment levels surpassed pre-pandemic levels (+3.3%), suggesting many of these workers may have moved to different occupations in the last 2 years.Footnote 13

The majority of early childhood educators are women (approximately 96%).Footnote 14 In addition, approximately 26% of those working in the child care sector are immigrant women.Footnote 15 Evidence suggests that female-led industries, such as the ELCC sector, are devalued based on assumptions about “women’s work” and the perception that it is inherently less valuable than work done in male-dominated industries.Footnote 16 This could factor in to the challenges being faced by those in the industry, including the historical reluctance to raise wages and improve working conditions for ECEs.Footnote 16 Further, the workforce continues to struggle following the COVID-19 pandemic as the labour shortage in the sector persists.Footnote 16

Economic impacts

Boost to the economy: More workers in the labour force would drive an increase in real per capita GDP in the long run of as much as 1.2%.

Return on investment: TD Economics has pointed to a range of studies that have shown that for every dollar spent on early childhood education, the broader economy receives between $1.50 and $2.80 in return.

Increased usage of regulated child care: One academic studyFootnote 17 points to substantial increases in child care use, particularly in the use of regulated care in Quebec compared to other provinces (from 10% prior to program compared to 30% by 2002). The use of unregulated care did not demonstrate a significant increase in Quebec as compared to the other provinces (1994 to 2002).

4.b. Fact Sheet: State of Play of Agreements

Yukon

Funding

2021 to 2026 Canada-wide Agreement signed July 23, 2021. Total funding announced: $41.7M.

2021- 2025 Extension Agreement signed August 12, 2021. Total funding announced: $10.2M and an additional $2.5M in one-time workforce funding in 2021 to 2022.

Affordability

Prior to the signing of the Canada-wide Agreement, Yukon had already implemented a $10-a-day child care system in April 2021.

Access

Through the Canada-wide Agreement, Yukon has created an additional 200 spaces in 2021 to 2022 – exceeding their Canada-wide target of 110 spaces.

Quality

Key Elements in the Agreements related to Early Childhood Educators:

Wages and benefits

Education and training

Recruitment and marketing

Raising awareness on the value of the ECE profession through a local awareness campaign and early childhood educator awards

Implementation

The Yukon Canada-wide Implementation Committee has met twice, in July and November to discuss implementation actions to date and challenges with partners and stakeholders.

Northwest Territories

Funding

2021 to 2026 Canada-wide Agreement signed December 15, 2021. Total funding announced: $51.1M.

2021 to 2025 Extension Agreement signed August 9, 2021. Total funding announced: $10.3M and $2.6M in one-time workforce funding in 2021 to 2022.

Affordability

In March 2022, Northwest Territories announced an average 50% reduction in child care fees, retroactive to January 1, 2022 ahead of the December 2022 target.

Northwest Territories is re-evaluating how subsidies work in the territory following some outcry from operators displeased with the subsidy cap imposed on operators wishing to receive Canada-wide funding.

Access

Through the Canada-wide Agreement, Northwest Territories has announced the creation of 67 new child care spaces as part of target of 300 space commitment by end 2025 to 2026.

Quality

In October 2022, the Government of the Northwest Territories and the Government of Canada announced a $4.6 million investment in wage enhancements for early childhood educators between 2022 to 2023 and 2023 to 2024 to support recruitment and retention of educators. The 2-year transitional funding is intended to enhance wages for educators until the implementation of a wage grid in 2024 to 2025.

Key Elements in the Agreements related to Early Childhood Educators:

Wages and benefits

Establishing an ECE wage grid that would be implemented in 2024 to 2025.

Education and training

Implementation

In December 2022, the Northwest Territories held the first bilateral Implementation Committee. The second Implementation Committee with Stakeholders and Indigenous partners is currently being organized.

Nunavut

Funding

2021 to 2026 Canada-wide Agreement signed January 23, 2022. Total funding announced: $66.1M.

2021 to 2025 Extension Agreement signed August 13, 2021. Total funding $10M and $2.8M in one-time workforce funding in 2021 to 2022.

Affordability

On November 17, the Government of Nunavut and Canada announced that preschool-aged children at licensed child care centres and licensed home day cares will be able to access child care for $10-a-day as of December 1, 2022.

Access

Through the Canada-wide Agreement, Nunavut has announced the creation of 30 new child care spaces as part of target of 238 space commitment by end 2025 to 2026.

Quality

Key Elements in the Agreements related to Early Childhood Educators:

Wages and benefits

Completing analysis of wage scales, developing a plan for introducing the wage scale and supporting operational expenses related to wages that would benefit 301 educators

Education and training

Implementation

The first Implementation Committee meeting (bilateral session) took place on May 16 and a second meeting with partners and stakeholders, namely Nunavut Tunngavik Inc., occurred on June 15, 2022. Another session with partners and stakeholders took place on December 6, 2022 and a subsequent bilateral session on December 15, 2022.

British Columbia

Funding

2021 to 2026 Canada-wide Agreement signed July 8, 2021. Total funding announced: $3.2B.

2021 to 2025 Extension Agreement signed August 12, 2021. Total funding announced: $272.3M and an additional $48.8M in one-time workforce funding in 2021 to 2022.

Affordability

On December 2, 2022, British Columbia announced that through a combination of child care fee reductions and the conversion of 10,500 spaces into $10 a Day spaces (increasing to 12,500 by early 2023), fees in the province were reduced by 50% on average

On January 31, 2023, British Columbia announced that an additional 725 child care spaces are joining the $10 a Day ChildCareBC program in February 2023, bringing the number of spaces to more than 12,700 and helping families across the province save thousands of dollars per year.

Access

The Government of Canada and British Columbia announced on May 2, 2022, that the province has created an additional 30,500 new regulated child care spaces funded since the launch of ChildCareBC in 2018. This space creation does not include the 30,000 spaces that BC has committed to create through the Canada-wide Agreement by March 2026. By March 2028, BC will have increased the number of Canada-wide funded spaces to a total of 40,000.

Quality

In February 2022, British Columbia announced Early Childhood Educator (ECE) recruitment and retention initiatives, including bursaries, peer mentorship programs, inclusion support, etc.

In April 2022, BC announced the expansion of the provincially-funded $4/hour wage enhancement to include all ECEs employed in ELCC facilities, including those in administrative roles / not directly working with children.

Key elements from the ELCC Agreements related to Early Childhood Educators:

Wages and benefits

Education and training

Supporting the distribution of 11,400 bursaries, providing additional dual credit programs in 10 new school districts, supporting work integrated learning for 140 ECEs and, offering peer mentoring programs in 17 communities for 200 ECEs, including training.

Recruitment and marketing

ECE recruitment and retention initiatives, including bursaries, peer mentorship programs, and inclusion support (February 2022). Providing support for the translation of francophone or international ECE documents for 250 Francophone or internationally trained educators.

Implementation

Two Implementation Committee Meetings have been held which included robust discussion with partners and stakeholders.

Alberta

Funding

2021 to 2026 Canada-wide Agreement signed November 14, 2021. Total funding announced: $3.8B.

2021 to 2025 Extension Agreement signed July 23, 2021. Total funding announced: $235M and $56M in one-time workforce funding in 2021 to 2022.

Affordability

In November 2021, Alberta announced that, beginning in January 2022, parents will see fees reduced by half, on average, with families earning under $180,000 benefiting from additional subsidy.

Access

Through the Canada-wide Agreement, Alberta has announced the creation of 5,500 new child care spaces (1,800 NFP and 3,700 FP) as part of its target of 68,700 space commitment (42,500 NFP and 26,200 for-profit spaces) by end of 2025 to 2026.

 Quality

Key Elements in the Agreements related to Early Childhood Educators:

Wages and benefits

Education and training

Implementation

The first Implementation Committee meeting with Alberta and stakeholders took place on June 27, 2022.

The second Implementation Committee meeting with Alberta and stakeholders took place on December 9, 2022.

On January 31, 2023, Canada and Alberta announced a Cost Control Framework and For-Profit Expansion Plan. The Cost Control Framework will apply to both not-for-profit and for-profit operators to ensure the sound and reasonable use of public funds under the Canada-Alberta Canada-wide Early Learning and Child Care Agreement. This allows for a total of 22,500 for-profit spaces to be created in addition to the 3,700 for-profit and 42,500 not-for-profit spaces previously committed to in the Canada-Alberta Canada-wide Agreement. This means Alberta has committed to creating 68,700 new child care spaces by March 2026.

Saskatchewan

Funding

2021 to 2026 Canada-wide Agreement signed August 13, 2021. Total funding announced: $1.1B.

2021 to 2025 Extension Agreement signed August 13, 2021. Total funding announced: $68.5M and $17.2M in one-time workforce funding in 2021 to 2022.

Affordability

Reduction of out-of-pocket parent fees by about 70% as of September 1, 2022.

Access

Through the Canada-wide Agreement, Saskatchewan has announced the creation of 4,000 new child care spaces as part of its commitment to increase the net number of regulated child care spaces by at least 28,000 by end of fiscal year 2025 to 2026.

Quality

One-time grant to regulated and operational child care centres to assist them in recruiting and retaining qualified ECEs (March 2022); wage increase for ECE of $1- $5/hour (November 2021 and September 2022); creation of 3 new Early Years Family Resource Centres in the communities of Lloydminster, Swift Current and Weyburn (March 2022); and free training and tuition supports for the ELCC workforce through partnerships with Collège Mathieu, Saskatchewan Indian Institute of Technologies (SIIT) and Saskatchewan Polytechnic (Sask Polytech) (August 2022).

Inclusion

Grants to benefit families with vulnerable children and children experiencing disability (March 2022), additional inclusion grants to 3 Saskatchewan programs aimed at improving inclusion initiatives in child care (skills training specific to caring for children with medically complex needs under the age of 6, 2 developmental consultant roles, and 5 child care facilitator positions in Early Years Family Resource Centres across the province) (May 2022); and specific supports for children who require intensive support to attend ELCC programs, supporting support an additional 150 preschool-aged children for the 2022 to 2023 school year (November 2022).

Implementation

The Canada-wide Implementation Committee has held 2 Implementation Committee meetings (June 13 and October 25, 2022). Both featured over 25 stakeholders and feedback captured was very positive, particularly on the issues of affordability and increased wages for ECEs, but included concerns related to the ELCC workforce and the plans for rapid space expansion.

Manitoba

Funding

2021 to 2026 Canada-wide Agreement signed August 9, 2021. Total funding announced: $1.2B.

2021 to 2025 Extension Agreement signed February 22, 2022. Total funding announced: $78.8M, and $19.2M in one-time workforce funding in 2021 to 2022.

Affordability

In February 2022, Manitoba expanded eligibility to its Child Care Subsidy Program, which will result in nearly half of regulated spaces being subsidized. The expansion will reduce out-of-pocket parent fees for families with children in regulated child care by 30%on average. Manitoba had among the lowest parent fees (at $20.70/day) prior to signing their Canada-wide agreement and is committed to achieving an average of $10 a day child care by March 2023 for children age 6 and under, 3 years ahead of the broader Canada-wide objective across Canada.

Access

Through the Canada-wide Agreement, Manitoba has announced the creation of 2,319 new child care spaces as part of its commitment to create 23,000 spaces by end 2025 to 2026. Of the 2,319 spaces created 2,129 were through Canada-wide funding and 190 were through provincial funding.

Quality

Manitoba introduced a wage grid for educators based on level of training and experience retroactive to July 1, 2022. The province also announced tuition reimbursement for ECEs on October 27, 2022.

Implementation

The first Canada-wide Implementation Committee meeting took place November 25, 2022, and included feedback from 2 members of Manitoba’s Minister’s Consultation Table and 2 representatives from the Manitoba Child Care Association. Topics of discussion included: affordability, workforce, space creation and inclusion. Manitoba officials touched briefly on progress to date under each topic, but focused primarily on work underway and next steps.

A second implementation committee meeting is expected to take place in Q4 2022 to 2023.

Ontario

Funding

2021 to 2026 Canada-wide Agreement signed March 27, 2022. Total funding announced: $10.2B.

2021 to 2025 Extension Agreement signed August 13, 2021. Total funding announced: $764.5M and $150M in one-time workforce funding in 2021 to 2022. Note: These agreements have not been formally announced nor published online.

Affordability

On March 28, 2022 Ontario announced that child care fees in participating licensed child care centres would be reduced by up to 25 %, to a minimum of $12-a-day, retroactive to April 1, 2022.

As of December 31, 2022, child care fees at licensed child care operators that have enrolled in the Canada-wide system have been reduced by an average of 50%(compared to 2020 levels).

Access

On December 19, 2022, Ontario released its plan to allocate 53,000 new child care spaces across the province by December 2026, bringing the province’s total to 86,000 new spaces since 2019, and thus confirming that 33,000 spaces have been created since 2019.

Quality

Ontario introduced a wage floor on April 1, 2022, that raises wages to $18/hour for Registered ECEs and to $20/hour for Registered ECE Supervisors employed by licensed providers participating in the Canada-wide ELCC System.

Confirmed through Ontario’s 2023 funding guidelines, wage increases will be provided to eligible staff on top of the wage floor that was provided in 2022. Funding will support a top up of up to $1 per hour, to a maximum of $25 per hour, as well as an increase to the Registered Early Childhood Educator wage floor ($19/hour for Registered ECEs and $21/hour for Registered ECEs Supervisors) in 2023.

Implementation

The bilateral portion of the Implementation Committee with Ontario took place on October 28, 2022, and provided officials with the opportunity to discuss enrollment to the Canada-wide ELCC system, funding guidelines, space creation and inclusion. The stakeholder portion of the Implementation Committee will be planned once Terms of Reference have been agreed to Ontario is undertaking consultation sessions with the child care sector on access and inclusion priorities, the early years and child care workforce, and on Ontario’s pedagogy for the early years

Quebec

Funding

2021 to 2026 Canada-wide Agreement signed August 5, 2021. Total funding announced: $6B.

2021 to 2025 Extension Agreement signed September 20, 2022. Total funding per the agreement: $448M and $90M in one-time workforce funding in 2021 to 2022. Note that these agreements have not been announced nor published online.

Implementation

Quebec has asymmetrical agreements on ELCC given the province already has an affordable and well-established system. As such, it is not required to have a federal-provincial action plan nor an implementation committee.

New Brunswick

Funding

2021 to 2026 Canada-wide ELCC Agreement signed December 12, 2021. Total funding announced: $492M.

2021 to 2025 Extension Agreement signed August 13, 2021. Total funding announced: $48.1M and $9.3M in one-time workforce funding in 2021 to 2022.

Affordability

New Brunswick achieved a 50% average fee reduction on June 1, 2022, 6 months ahead of schedule, and implemented a Standardized Parent Fee Grid that sets the fees operators can charge parents. The Parent Subsidy program has also been adapted to reflect the new low-fee model and will continue to support low- and middle-income families by further reducing out-of-pocket costs.

Access

On November 1, 2022, a new space creation policy for designated facilities came into effect to prioritize not-for-profit facilities and infant spaces, including home child care, and a needs-based process to support responsible growth of the sector. This is part of New Brunswick’s new Space Creation Strategy.

New Brunswick also announced an expansion to the parent Subsidy Program to include newcomers.

On March 23, 2022, New Brunswick announced updates to its online Parent Portal, which now allows parents to enroll their children in child care online.

On January 31, 2023, New Brunswick launched a Call for Proposals to create more child care spaces, with a focus on access to infant spaces. All proposals will be considered, however, not-for-profit and family-based facilities will be prioritized. A space allocation grid has been created to identify regions with the greatest needs. Successful applicants will be eligible for 3 new types of funding to support the creation of the new child care spaces.

Quality

On November 1, 2022, New Brunswick implemented an ECE wage grid which operates as a wage floor; operators may choose to pay educators more than the amounts laid out in the grid. The maximum wage for a Level 1 educator aligns with the previously announced wage increase for trained educators ($23.47/hr), while the maximum wage for an Entry Level educator is the same as the previously announced wage increase for untrained educators ($16.90/hr).

On June 29, 2022, New Brunswick announced that inclusion support workers will receive an increase in hourly wages, matching their compensation with ECEs.

Implementation

The first Canada-New Brunswick Canada-wide ELCC Implementation Committee meeting took place on May 6, 2022. The second Implementation Committee took place on December 9, 2022. Discussions focused on progress towards achieving the objectives of the Canada-wide Early Learning and Child Care Agreement, including: affordability, access, quality, the Early Childhood Educator workforce, and inclusion initiatives.

Nova Scotia

Funding

2021 to 2026 Canada-wide ELCC Agreement signed July 13, 2021. Total funding announced: $605M.

2021 to 2025 Extension Agreement signed July 9, 2021. Total funding announced: $58M and $10.9M in one-time workforce funding in 2021 to 2022.

Affordability

In January 2022 (and again in March 2022), Nova Scotia announced a 25 %, on average, reduction in child care fees as of April 1, 2022, retroactive to January 1, 2022. They announced a further 25% reduction to reach the shared goal of a 50% reduction in child care fees on November 28, 2022, which was implemented on December 31, 2022.

Access

On November 28, 2022, the province announced that they would create 1,100 new spaces by the end of the year under its Canada-wide agreement, as part of its target of 9,500 spaces commitment by the end of 2025 to 2026.

Quality

On October 11, 2022, a new wage scale for ECEs was announced, which included a wage increase in the range of 30% for most of the 2,600 ECEs, retroactive to July 4, 2022. On February 18, 2022, Nova Scotia announced additional funding for operators to offset the 25% parent fee reduction and a one-time grant to support rising operational costs.

On May 20, 2022, Nova Scotia launched the Minister’s ELCC Engagement Table, to provide direct input and guidance on next steps in the province’s plan to transform child care.

Implementation

The first Canada-wide Implementation Committee meeting took place on June 14, 2022, and the second took place on November 30, 2022. Discussions focused on progress towards achieving the objectives of the Canada-wide Early Learning and Child Care Agreement, including: affordability, access, quality, the Early Childhood Educator workforce, and inclusion initiatives.

Not-For-Profit Transition: Nova Scotia intended to transform its entire ELCC sector to publicly delivered child care as part of the Canada-wide Action Plan. This transition was met with concerns from for-profit providers, who currently make up approximately 56%of providers. Nova Scotia has postponed the transition, committed to an engagement process, and offered all child care operators funding agreements for 2022 to 2023, as in past years.

Prince Edward Island

Funding

2021 to 2026 Canada-wide ELCC Agreement signed July 27, 2021. Total funding announced: $117.7M and $3.6M in one-time workforce funding in 2021 to 2022.

2021- 2025 Extension Agreement signed August 12, 2021. Total funding announced: $16M.

Affordability

On December 16, 2022 Prince Edward Island announced that they reached the shared goal of a 50%reduction in child care fees by implementing $20-a-day parent fees, combined with provincial subsidies to eligible families and the expansion of the publicly-funded pre-kindergarten program.

On December 21, 2021, Prince Edward Island announced that parents and guardians with children in designated and licensed Early Years Centres across the province would see child care fees reduced to $25-a-day on January 1, 2022.

Access

On February 4, 2022 and again on November 8, 2022, Prince Edward Island announced new financial support available for people who provide child care in their home and want to be licensed to operate as a family home centre.

On April 27, 2022, Prince Edward Island announced that more than 230 affordable child care spaces were being added across the province, with 5 additional early childhood centres receiving an official Early Years Centre designation from the province.

On December 16, 2022 Prince Edward Island announced that 7 additional early childhood centres received an official Early Years Centre designation from the province.

Quality

On February 18, 2022, Prince Edward Island launched a new one-time Return to the ECE Profession Grant of $5,000, to support the early childhood workforce to help recruit ECEs back to the sector.

On November 8, 2022, Prince Edward Island announced further support for licensed home child care centres in the form of grants and incentives to reduce parent fees, fund wages and professional development, and purchase supplies.

On December 16, 2022 Prince Edward Island announced wage increases for staff at Early Years Centres, including for ECEs.

Implementation

The first Canada-wide Implementation Committee meeting took place on August 30, 2022, and the second took place on November 29, 2022. Discussions focused on progress towards achieving the objectives of the Canada-wide Early Learning and Child Care Agreement, including: affordability, access, quality, the Early Childhood Educator workforce, and inclusion initiatives.

Newfoundland and Labrador

Funding

2021 to 2026 Canada-wide ELCC Agreement signed July 28, 2021. Total funding announced: $306M.

2021 to 2025 Extension Agreement signed July 28, 2021. Total funding announced: $35M and $6.5M in one-time workforce funding in 2021 to 2022.

Affordability

Newfoundland and Labrador implemented $10-a-day child care effective January 1, 2023 (official announcement forthcoming).

On March 9, 2022, Newfoundland and Labrador announced that it had achieved its target of implementing $15-a-day child care on January 1, 2022. This reduction exceeds the goal to reduce 2019 average fees by 50%by December 2022. The province also noted that an Early Learning and Child Care Minister’s Advisory Committee had been created.

On December 15, 2021, Newfoundland and Labrador announced changes to the Child Care Subsidy net income threshold and the elimination of parental contributions under that program to support lower-income families in accessing regulated child care at a reduced or no cost, one year ahead of schedule.

Access

Newfoundland and Labrador has launched a pilot pre-kindergarten program with the YMCA, which will create 600 spaces by March 31, 2023, as part of its space creation target of 5,895 spaces by March 31, 2026.

Quality

On July 12, 2022, Newfoundland and Labrador announced a new Early Childhood Education Needs-Based Incentive Grant to provide eligible students in approved programs with non-repayable grants of up to $10,000.

On November 25, 2021, Newfoundland and Labrador announced that, effective January 1, 2022, the base rate of pay for Early Childhood Educators (ECEs) working in regulated child care services under the Operating Grant Program will increase from $14 to $15 per hour.

Newfoundland and Labrador is expected to implement a wage grid for ECEs in 2023.

Implementation

The first Canada-wide Implementation Committee meeting took place on July 26, 2022, and the second took place on November 16, 2022. Discussions focused on progress towards achieving the objectives of the Canada-wide Early Learning and Child Care Agreement, including: affordability, access, quality, the Early Childhood Educator workforce, and inclusion initiatives.

5. Hot issues – Social and economic improvement

5.a. National school food policy

Issue

Commitment to develop a national school food policy.

Background

Budget 2022 reaffirmed the December 2021 mandate commitment for the Minister of Agriculture and Agri-Food and the Minister of Families, Children and Social Development to work with provinces, territories, municipalities, Indigenous partners and stakeholders over the next year to develop a national school food policy and to explore how more Canadian children can receive nutritious food at school. In fall 2022, the Government of Canada began consultations with provincial and territorial governments, municipalities, Indigenous partners and stakeholders on a national school food policy:

Employment and Social Development Canada (ESDC) and Agriculture and Agri-Food Canada (AAFC) are working together to deliver on this commitment. Current work involves policy analysis and development, working with federal partners, and ongoing engagement with provinces and territories, and Indigenous partners.

Key facts

School food programs have been found to contribute to the wellbeing of children, their families and communities in various ways, including increasing children’s consumption of healthy foods and positively influencing children’s eating patterns, thereby helping young people to establish lifelong healthy eating practices.

They have also been found to improve student behaviour and sense of belonging; increase school attendance, completion, and scholastic achievement; and support local farmers, economies, sustainable food systems and practices. School food programs are also social equalizers. As a complement to income security measures, school food programs can reduce pressures off family budgets and play a role in supporting the approximately 1.4 million (1 in 5) children and youth under 18 years living in food insecure households (Canadian Income Survey, 2020), who are disproportionately racialized, Indigenous or living in low income.

They can also help address inequities in access to healthy food as children living in food-insecure households are more likely to experience poorer nutrition and to consume ultra-processed foods than children living in food secure households. School meal programs exist in some form in all provinces and territories and in many Indigenous communities, with programming varying greatly in scope, coverage and quality. Current school meal programs only reach around 21% of school-age children.

In addition to funding from provincial and territorial governments, most programs heavily rely on volunteers, community groups, parents, charities and private sector donations. During engagement, stakeholders emphasized that a lack of funding for non-food related costs (for example, infrastructure, staffing) and an overreliance on volunteers means that current programming is unsustainable. School food programming, with the exception of First Nations on-reserve, falls under provincial/territorial jurisdiction, however the Government of Canada has provided some funding to support school food initiatives:

Informed by engagement with provincial and territorial governments, Indigenous partners and stakeholders, a national school food policy will seek to guide the expansion of school meal programming based on key principles and objectives, while ensuring a flexible approach that leaves room for local adaptation. It will also seek to establish a foundation for greater collaboration and investment, so that more children have access to nutritious food in school.

Key messages

Children deserve access to healthy, nutritious food to help them learn and reach their full potential. Yet, up to 1 in 5 young people report going to school or bed hungry at least sometimes because there is not enough food at home. The Minister of Agriculture and Agri-Food Canada (AAFC) and I have a shared commitment to work with provinces, territories, municipalities, Indigenous partners and stakeholders over the next year to develop a national school food policy and explore how more Canadian children can receive nutritious food at school.

Over the past months, we have been engaging with provinces, territories, Indigenous partners, municipalities, stakeholders and Canadians on a national school food policy.

Through this process, we have heard from over 200 stakeholders and received 5,200 responses from Canadians coast-to-coast-to-coast through our online questionnaire.

Going forward, we will continue to work with provinces, territories, Indigenous partners and key stakeholders, including children and youth, to deliver on this important commitment.

5.b. Supporting Black Canadian Communities Initiative

Issue

How will the $50M announced in Budget 2022 benefit Black communities in Canada?

Background

In 2018, the Prime Minister recognized the United Nations Decade for People of African Descent (UNDPAD) and committed the Government of Canada to:

As part of this commitment, Budget 2019 provided $25M over 5 years to establish the Supporting Black Canadian Communities Initiative (SBCCI). The SBCCI has a mandate to take targeted measures to address systemic anti-Black racism and to build capacity within Black communities in Canada.

Budget 2021 provided an additional $100M to the SBCCI. It also announced $200M to establish the Black-led Philanthropic Endowment Fund to empower and support Black-led charities and organizations serving youth and social projects.

Budget 2022 provided an additional $50M over 2 years, starting in 2022 to 2023, to continue to support Black-led and Black-serving community organizations and the work they do to promote inclusiveness. It also called for the Minister of Families, Children and Social Development to explore options to continue supporting Black-led and Black-serving community organizations in the long term.

Key facts

To address gaps for the Black community, Employment and Social Development Canada (ESDC) has developed several key initiatives that aim to empower Black communities and Black-led organizations across Canada.

For example, the Department established a National Funders Network of 4 Black-led organizations to support the capacity building of Black-led and Black-serving community organizations.

To date, the National Funders Network has awarded over $25.7M to 705 Black-led and Black-serving community organizations across Canada. This support has been helpful to strengthen these organizations and increase the scope and impact of their programming and services in Black communities.

The National Funders Network empowers Black-led and Black-serving organizations and the communities they serve through activities such as:

Through the SBCCI capital assistance stream, the Department has also invested over $82M in over 1,370 projects to assist Black-led and Black-serving community organizations with renovations and equipment purchases.

The Department launched the SBCCI External Reference Group (ERG) on November 7, 2022.

The ERG mandate is to support the Minister of Families, Children and Social Development and ESDC on the work of the SBCCI by providing advice on:

To support new priorities and projects that address specific needs in Black communities, ESDC provided $1.5M in funding to renovate and transform the Nova Scotia Home for Coloured Children into an accessible community hub for the African-Nova Scotian community.

The site reopened on October 23, 2022, as the Kinney Place, for a Black business incubator and community hub.

Key messages

ESDC has launched several key initiatives to support the capacity building of Black-led and Black-serving community-based organizations and improve their workspaces.

To date, the National Funders Network has awarded over $25.7M to 705 Black-led and Black-serving community organizations across Canada to support their activities. In addition, ESDC invested over $82M in over 1,370 Black-led and Black-serving organizations to renovate and purchase equipment to better serve their communities.

To continue to support Black-led and Black-serving community organizations the Department will provide a total of $31.4M in 2022 to 2023 to the National Funders Network to fund additional projects as well as support already funded organizations to help them become sustainable.

The Department will also provide funding to improve access to the National Funders’ platforms to make sure that no one is left behind, including Black persons with disabilities.

This support will further strengthen the foundational infrastructure within Black communities in Canada and improve the funded organizations’ ability to support the communities they serve.

The Department will continue to engage with Black communities to make sure that additional investments meet their needs and bring positive benefits to Black communities across Canada by removing systemic barriers and tackling anti-Black racism.

5.c. Poverty Reduction Strategy

Issue

Canada’s Poverty Reduction Strategy, Opportunity for All, sets a target of reducing poverty by 50% by 2030, relative to 2015 levels (enshrined via the Poverty Reduction Act (2019)).

Background

On December 16, 2021, the Prime Minister mandated the Minister of Families, Children and Social Development to continue leading implementation of the 2030 Agenda for Sustainable Development adopted by the United Nations through the delivery of Canada’s Poverty Reduction Strategy and other measures.

Following the release of Opportunity for All, the Poverty Reduction Act (2019) enshrined the following elements into law:

The Strategy brings together significant investments that the Government has made since 2015 to support the social and economic well-being of all Canadians. These investments include funding for key poverty reduction initiatives, such as the Canada Child Benefit, the increase to the Guaranteed Income Supplement top-up and the National Housing Strategy. The Canada Child Benefit alone represents an investment of more than $25 billion per year.

Key facts

Results from the 2020 Canadian Income Survey show that the overall poverty rate in Canada was 6.4% in 2020, down from 10.3% in 2019 and 14.5% in 2015. There were close to 2.7 million fewer people living in poverty in 2020 compared to 2015.

The significant decrease in poverty between 2019 and 2020 can be mostly attributed to temporary COVID-19 emergency income supports provided in 2020. Approximately 1.4 million fewer people were living in poverty in 2020 compared to 2019.

The risk of poverty remains unequal despite a lower overall poverty rate. Poverty rates for seniors and children were below Canada’s overall poverty rate in recent years. On the other hand, the poverty rate for persons with disabilities, recent immigrants, Indigenous persons, and single persons (not in an “economic family”) remained consistently higher than Canada’s overall rate.

Internal analysis from ESDC indicates that the 2020 poverty rate among the population aged 15 and older could have reached 12.5% in the absence of federal emergency benefits (notably CERB)*, compared to the actual 6.7% rate.

This analysis suggests that the end of emergency benefits could result in a significant increase in poverty after 2020, particularly among precariously employed persons whose incomes remained below pre-pandemic levels.

On January 17, 2023, Statistics Canada released a paper which provides predicted values of Canada’s overall poverty rate for 2021 and 2022 based on a regression model. Results from this modeling exercise indicate that Canada’s overall poverty rate could increase to 7% in 2021 and 9.8% in 2022. It is important to note, however, that these predicted values are based on a predictive model only and could differ significantly from official poverty rate data for these years once it is released. Statistics Canada is expected to release official poverty rates for 2021 in Spring 2023.

Key messages

Opportunity for All, Canada’s First Poverty Reduction Strategy, lays out a bold vision of a Canada without poverty and the Government of Canada’s poverty reduction efforts are showing positive effects. There are 2.7 million fewer people living in poverty in 2020 compared to 2015, including 782,000 children and 187,000 seniors.

Guided by the Strategy, the Government has made significant efforts since 2015 to support the social and economic well-being of all Canadians through several key investments. These include funding for key poverty reduction initiatives, such as:

In 2022, the Government also announced the Affordability Plan for Canadians, a suite of measures totaling $12.1 billion in support to help make life more affordable for millions of Canadians as the cost-of-living increases. This plan includes new investments in dental care for children under 12 years of age and housing affordability, as well as enhancements to existing benefits such as the Canada Workers Benefit and Goods and Services Tax Credit.

The Government will continue its efforts to meet the Strategy’s legislated target of reducing poverty by 50% by 2030, based on 2015 levels.

If pressed on the impact of inflation on poverty

The Government recognizes that Canadians are worried about the recent increases in the cost of living. As shown by the implementation of the Affordability Plan for Canadians in 2022, the Government shares this concern and is committed to support Canadians through this emerging challenge through concrete and effective actions to make life more affordable.

6. Backgrounders – Social and economic improvement

6.a. Key economic indicators

Poverty indicators

Data from the 2020 Canadian Income Survey, the first since the pandemic began, showed a significant decrease in Canada’s Official Poverty Rate with a rate of 6.4% (down from 10.3% in 2019). Decreases in poverty were widespread across nearly all population groups and family types.

The significant decrease in poverty between 2019 and 2020 can be attributed mostly to temporary COVID-19 emergency income supports provided in 2020.

Table 4: Poverty rates by specific population groups (Market Basket Measure, 2018 base), 2019 and 2020
Population group Poverty rate, 2019 Poverty rate, 2020
Canada, all ages 10.3% 6.4%
Children, under 18 years 9.4% 4.7%
Seniors, 65 years and over 5.7% 3.1%
Persons with a disability, 16 years and over 13.7% 8.5%
Recent immigrants (10 years or less), 16 years and over 17.2% 8.6%
Indigenous peoples off reserve, 16 years and over 18.6% 11.8%
Persons in lone-parent families, all ages 22.0% 13.5%
Persons not in an economic family, all ages 26.9% 20.9%
Persons not in an economic family, 18 to 64 years 33.6% 27.1%
Table 5: Poverty rates by visible minority status (Market Basket Measure, 2018 base), population aged 15 to 69 years, 2020
Population group Poverty rate
Not a visible minority 5.8%
Total - Visible minority 8.0%
South Asian 7.5%
Chinese 9.6%
Black 7.5%
Filipino 3.6%
Arab 10.0%
Other visible minority 8.8%

Labour market and economic indicators

Overall employment increased by 104,000 from the previous month in December 2022, and the unemployment rate declined by 0.1 percentagepoint to 5.0%, sitting just above its record low reached in June and July 2022 (4.9%).

Labour force participation rates for younger (15 to 24 years) and older (55 to 64 years) Canadians lagged that of core-aged Canadians (25 to 54 years), with the older age group participation rate slightly below its pre-pandemic level. The aging population has stalled overall labour force participation rate growth as more Canadians reach the age where they participate less in the labour force.

Visible minorities (15 years and over) were more likely to participate in the labour force than their non-visible minority counterparts.

The rapid economic recovery from the pandemic saw job vacancies grow as employers sought to hire in large numbers. After surpassing one million vacancies in spring 2022, the number of job vacancies has since fallen, yet it remained just above 900,000 in October 2022. The job vacancy rate, that is, the number of vacant positions as a proportion of total labour demand (the sum of filled and vacant positions), was 5.0% that month.

Global tensions, high inflation, and labour shortages are expected to slow economic growth.

Table 6: Labour market indicators in Canada, population aged 15 years and over, December 2022 and comparison with previous month and with pre-pandemic figures
Labour market indicator December 2022 Change from previous month (November 2022) Change from February 2020 Pandemic Growth Index (February 2020 = 100)
Population 32,007,000 +42,300 +1,057,700 103.4
Labour force 20,807,100 +91,200 +505,800 102.5
Employment 19,770,300 +104,000 +626,700 103.3
Employment full-time 16,198,500 +84,500 +645,600 104.2
Employment part-time 3,571,800 +19,500 -18,900 99.5
Unemployment 1,036,900 -12,700 -120,700 89.6
Long-term unemployment 174,000 +500 -6,100 96.6
Not in the labour force 11,199,900 -48,900 +551,900 105.2
Participation rate 65.0% +0.2 pp -0.6 pp N/A
Employment rate 61.8% +0.3 pp -0.1 pp N/A
Unemployment rate 5.0% -0.1 pp -0.7 pp N/A
Table 7: Labour market indicators, by age and gender, December 2022 and comparison with pre-pandemic figures
Population group Employment rate, December 2022 Employment rate, change from February 2020 Participation rate, December 2022 Participation rate, change from February 2020 Unemployment rate, December 2022 Unemployment rate, change from February 2020
15 to 64 years, both genders 75.6% +1.2 pp 79.6% +0.8 pp 5.0% -0.7 pp
15 to 24 years, both genders 58.5% +0.4 pp 65.1% +0.2 pp 10.1% -0.5 pp
25 to 54 years, both genders 84.6% +1.4 pp 88.2% +0.9 pp 4.1% -0.6 pp
55 to 64 years, both genders 63.6% +0.1 pp 66.6% -0.5 pp 4.5% -0.8 pp
15 to 64 years, men 78.4% +1.2 pp 82.6% +0.5 pp 5.1% -0.8 pp
15 to 64 years, women 72.7% +1.2 pp 76.5% +0.9 pp 4.9% -0.4 pp
Table 8: Employment, participation and unemployment rates, by population groups designated as visible minorities, population aged 15 years and over, December 2022
Population group Employment rate, December 2022 Employment rate, difference from “Not a visible minority” Participation rate, December 2022 Participation rate, difference from “Not a visible minority” Unemployment rate, December 2022 Unemployment rate, Difference from “Not a visible minority”
Not a visible minority 60.0% N/A 62.6% N/A 4.2% N/A
Total - Visible minority 65.8% +5.8 pp 69.7% +7.1 pp 5.5% +1.3 pp
South Asian 66.8% +6.8 pp 70.7% +8.1 pp 5.6% +1.4 pp
Chinese 57.6% -2.4 pp 60.8% -1.8 pp 5.2% +1.0 pp
Black 66.6% +6.6 pp 72.1% +9.5 pp 7.7% +3.5 pp
Filipino 73.9% +13.9 pp 76.7% +14.1 pp 3.7% -0.5 pp
Arab Not available Not available Not available Not available Not available Not available
Latin American Not available Not available Not available Not available Not available Not available
Southeast Asian 67.6% +7.6 pp 70.4% +7.8 pp 4.0% -0.2 pp
Table 9: Job vacancies and job vacancy rate by province, October 2022
Province Job vacancies Job vacancy rate
Canada 902,570 5.0%
Newfoundland and Labrador 8,500 3.9%
Prince Edward Island 2,990 4.0%
Nova Scotia 22,010 5.0%
New Brunswick 14,735 4.2%
Quebec 217,770 5.3%
Ontario 336,595 4.9%
Manitoba 28,035 4.4%
Saskatchewan 23,495 4.5%
Alberta 107,985 5.1%
British Columbia 135,450 5.3%
Table 10: Annual average change in the Consumer Price Index, Canada, 2010 to 2022
Year All items Goods Services
2010 +1.8% +1.5% +2.1%
2011 +2.9% +3.4% +2.4%
2012 +1.5% +1.0% +2.1%
2013 +0.9% +0.5% +1.3%
2014 +2.0% +1.7% +2.1%
2015 +1.1% +0.3% +2.0%
2016 +1.4% +0.9% +1.8%
2017 +1.6% +0.8% +2.2%
2018 +2.3% +1.9% +2.7%
2019 +1.9% +1.3% +2.3%
2020 +0.7% -0.2% +1.4%
2021 +3.4% +4.7% +2.3%
2022 +6.8% +8.7% +5.0%

Key concepts

Poverty indicators

Economic family refers to a group of 2 or more persons who live in the same dwelling and are related to each other by blood, marriage, common-law union, adoption or a foster relationship.

Market Basket Measure (MBM) is based on the cost of a specific basket of goods and services representing a modest, basic standard of living. It includes the costs of food, clothing, shelter, transportation, and other items for a reference family. These costs are compared to the disposable income of families to determine whether or not they fall below the poverty line.

Labour market and economic indicators

Population: The target population covered by the Labour Force Survey corresponds to all persons aged 15 years and over residing in the provinces of Canada, with the exception of the following: persons living on Indian reserves, full-time members of the regular Armed Forces, and persons living in institutions (for example, inmates of penal institutions and patients in hospitals or nursing homes who have resided in the institution for more than 6 months).

Labour force: Number of civilian, non-institutionalized persons 15 years of age and over who, during the reference week (that is, calendar week that includes the 15th of the month), were employed or unemployed. Persons living on reserve and full-time members of the Canadian Armed Forces are not included in the labour force.

Employment: Number of persons who, during the reference week, worked for pay or profit, or performed unpaid family work or had a job but were not at work due to own illness or disability, personal or family responsibilities, labour dispute, vacation, or other reason.

Full-time employment consists of persons who usually work 30 hours or more per week at their main or only job.

Part-time employment consists of persons who usually work less than 30 hours per week at their main or only job.

Unemployment: Number of persons who, during the reference week, were without work, had actively looked for work in the past 4 weeks, and were available for work. Those persons on layoff or who had a new job to start in 4 weeks or less are considered unemployed. It is important to note that full-time students that are looking for full-time work are not considered as unemployed.

Participation rate is the number of labour force participants expressed as a percentage of the population 15 years of age and over. The participation rate for a particular group (for example, age, gender, and education) is the number of labour force participants in that group expressed as a percentage of the population for that group.

Employment rate is the number of persons employed expressed as a percentage of the population 15 years of age and over. The employment rate for a particular group (for example, age, gender, and education) is the number of employed in that group expressed as a percentage of the population for that group.

Unemployment rate is the number of unemployed persons expressed as a percentage of the labour force (that is, employed and unemployed). The unemployment rate for a particular group (for example, age, gender, and education) is the number of unemployed in that group expressed as a percentage of the labour force for that group. It is important to note that because of methodological differences, the unemployment rate is not always the best indicator for international comparisons. The employment rate is generally a more reliable indicator.

Consumer Price Index (CPI): Represents changes in prices as experienced by Canadian consumers. It measures price changes by comparing, through time, the cost of a fixed basket of goods and services. The goods and services in the CPI basket are divided into 8 components: food; shelter; household operations, furnishing and equipment; clothing and footwear; transportation; health and personal care; recreation, education and reading; and alcoholic beverages, tobacco products and recreational cannabis.

Goods: Physical or tangible commodities usually classified according to their life span into non-durable goods, semi-durable goods, and durable goods. Non-durable goods are those goods that can be used up entirely in less than a year, assuming normal usage (for example, fresh food products, disposable cameras, and gasoline). Semi-durable goods are those goods that may last less than 12 months or greater than 12 months depending on the purpose to which they are put (for example, clothing, footwear, and household textiles). Durable goods are those goods which may be used repeatedly or continuously over more than a year, assuming normal usage (for example, cars, audio and video equipment, and furniture).

Services: In the Consumer Price Index (CPI), services are characterized by valuable work performed by an individual or organization on behalf of a consumer (for example, car tune-ups, haircuts, and city public transportation). Transactions classified as a service may include the cost of goods by their nature (for example, food in restaurant food services and materials in clothing repair services).

Gross Domestic Product (GDP): GDP at basic prices is a measure of the economic production which takes place within the geographical boundaries of Canada. The term "gross" in GDP means that capital consumption costs, that is, the costs associated with the depreciation of capital assets (for example, buildings, machinery and equipment), are included.

New information on population groups

Since July 2020, the Labour Force Survey (LFS) has collected information on membership in racialized groups, using the existing statistical standard on visible minorities.

Between July 2020 and December 2021, information was collected following the main LFS interview. Beginning in January 2022, the question seeking this information is included in the main LFS questionnaire and asked to all those 15 years and over. Due to this change, and associated adjustments to the weighting strategy, comparisons with data collected from July 2020 to December 2021 should be made with caution.

According to the Employment Equity Act, visible minorities are "persons, other than Aboriginal peoples, who are non-Caucasian in race or non-white in colour." The remaining category is described as "not a visible minority."

Job vacancies

Job vacancies: Under Statistics Canada’s Job Vacancy and Wage Survey, a job is vacant if it meets the following conditions:

Job vacancy rate is the number of job vacancies expressed as a percentage of labour demand (that is, all occupied and vacant jobs). A higher job vacancy rate means that there is a greater share of total jobs which are vacant. A higher job vacancy rate is often, but not always, associated with a tighter labour market.

6.b. Fact sheet on Programs helping to reduce poverty

Investments for children

Early Learning and Child Care

The Government of Canada made a transformative investment of over $27 billion over 5 years as part of Budget 2021 to build a Canada-wide Early Learning and Child Care system with provinces and territories. Combined with other investments, including in Indigenous Early Learning and Child Care, up to $30 billion over 5 years will be provided in support of early learning and childcare. The goal is that all Canadian families have access to regulated early learning and childcare for an average cost of $10-a-day by March 2026.

This is a plan to drive economic growth, to increase participation in the workforce–especially among mothers, and to offer each child in Canada the best possible start in life. A Canada-wide Early Learning and Child Care system would substantially improve the quality of life of thousands of low- and middle-income families across Canada currently struggling to find affordable, high-quality childcare.

This supports the Government of Canada’s 2022 Affordability Plan. Canada-wide Early Learning and Child Care Agreements have been reached with all 13 provinces and territories, including an asymmetrical agreement with Quebec. Fees for regulated child care have already been reduced in every jurisdiction across Canada, with a goal of a 50% on average reduction by the end of 2022. The Canada-wide system means savings for families across the country as the Government of Canada works with the provinces and territories to reduce the fees for regulated childcare to an average fee of just $10-a-day by 2025 to 2026. Nunavut became the first jurisdiction under the Canada-wide system to lower fees to $10-a-day, effective December 1, joining Quebec and the Yukon in providing regulated childcare for $10-a-day or less.

Canada Child Benefit

Because the CCB is tax-free and based on income, it provides more support to families who need help the most. The CCB provides support to over 3.5 million families in respect of over 6 million children, putting over $25 billion, tax-free, each year in the hands of Canadian families.

Dental Care for Canadians

The Government of Canada passed legislation that provides dental coverage for Canadians earning less than $90,000, starting with children under 12 in 2022, so that families can afford the cost of dental care. It is estimated that 500,000 Canadian children will benefit from this support.

Investments for working-age Individuals

Canada Workers Benefit

Budget 2021 expanded the Canada Workers Benefit to support about 1 million additional Canadians in low-wage jobs, helping them return to work and increasing benefits for Canada’s most vulnerable.

The Government of Canada’s 2022 Affordability Plan includes new support to enhance the Canada Workers Benefit at a cost of $1.7 billion in new support for workers in 2022. An estimated 3 million Canadians will receive more support, with a couple receiving up to $2,400 more this year and single workers receiving up to $1,200 more.

The 2022 Fall Economic Statement also proposes to automatically issue advance payments of the CWB to people who qualified for the benefit in the previous year.

Goods and Services Tax/Harmonized Sales Tax (GST/HST) Credit

The Goods and Services/Harmonized Sales tax (GST/HST) credit is a tax-free quarterly payment that helps individuals and families with low and modest incomes offset all or part of the GST/HST that they pay. There was no need to apply for this payment, and all individuals who were eligible received it. Annually, Canadians can receive up to $456 if they are single, $598 if they are married or living common-law, and $157 for each child under the age of 19.

This payment effectively doubled benefit amounts for the 2019 to 2020 benefit year and delivered additional support in one lump-sum payment. The average additional benefit was close to $400 for single individuals and close to $600 for couples.

As part of the Government’s 2022 Fall Economic Statement, an estimated 11 million low- and modest-income people and families will receive an additional GST Credit Payment. Single Canadians without children will receive up to an extra $234, and couples with 2 children will receive up to an extra $467. Seniors will receive an extra $225 on average. This payment, equivalent to doubling the GST Credit for 6 months, will provide $2.5 billion in additional targeted support. Current GST Credit recipients will receive this support automatically.

Flexible access to Employment Insurance benefits

Budget 2021 invested a total of $648 million on a cash basis to Employment and Social Development Canada and the Treasury Board Secretariat over the next 7 years, starting in 2021 to 2022, to continue implementing Benefit Delivery Modernization, to invest in Service Canada’s information technology systems and related activities, and to support service delivery to Canadians going forward.

Employment Insurance sickness benefits

Budget 2021 invested $3 billion over 5 years, starting in 2021 to 2022, and $966.9 million per year ongoing to enhance sickness benefits from 15 to 26 weeks, as previously committed to in the Minister of Employment, Workforce Development and Disability Inclusion’s mandate letter.

Modernizing Labour Market Transfer Agreements

Budget 2022 proposes to amend Part II of the Employment Insurance Act to ensure more workers are eligible for help before they become unemployed, and that employers can receive direct support to re-train their workers. Over the coming year, the government also intends to intensify work with provinces and territories to modernize these agreements, reflecting the changing needs and challenges of both the current and future Canadian labour market. This will include working together to support mid-career workers in transitioning to new sectors and help local economies adapt and prosper.

Investments for seniors

Old Age Security

As part of the Government’s 2022 Affordability Plan, starting in July 2022, the OAS pension for seniors 75 years and older increased by 10%. This will provide more than $800 in new support to full pensioners in the first year, and will increase the benefits received by more than 3 million seniors.

Guaranteed Income Supplement (GIS)

In 2016, to help seniors who are living in poverty or who are most at risk of living in poverty, the majority of whom are women, the Government of Canada increased the Guaranteed Income Supplement (GIS) for the lowest-income single seniors. Key investments and outcomes included an increase of up to $947 annually for the lowest-income single seniors.

Investments for persons with disabilities

Access to supports for students and borrowers with disabilities

The Government has announced in Budget 2021 its intention to extend disability supports under the Canada Student Loans Program to recipients whose disabilities are persistent or prolonged, but not necessarily permanent.

Disability Tax Credit

Budget 2021 will update the list of mental functions of everyday life that is used for assessment for the Disability Tax Credit. Using terms that are more clinically relevant will make assessment easier, reduce delays and improve access to benefits.

Budget 2021 also proposed to recognize more activities in determining time spent on life-sustaining therapy and to reduce the minimum required frequency of therapy to qualify for the Disability Tax Credit. To ensure that these changes enable applicants to have a fair and proper assessment of their eligibility for the Disability Tax Credit, the Government will undertake a review of these changes in 2023.

Toward a Disability Benefit

Budget 2021 invested $11.9 million over 3 years, starting in 2021 to 2022, to Employment and Social Development Canada to undertake consultations to reform the eligibility process for federal disability programs and benefits. This will help maximize the reach of these programs and improve the lives of Canadians living with disabilities. This work will feed directly into the design of a new disability benefit.

Opportunities Fund

Budget 2022 provides $272.6 million over 5 years to Employment and Social Development Canada to support the implementation of an employment strategy for persons with disabilities through the Opportunities Fund. This will help to address labour market shortages through increased participation by persons with disabilities and make workplaces more inclusive and accessible. Of this funding, $20 million will be allocated to the Ready, Willing and Able program to help persons with autism spectrum disorder or intellectual disabilities find employment. This measure will also form an important part of the government’s Disability Inclusion Action Plan, which will aim to improve the quality of life for persons with disabilities, and build on more than $1.1 billion in funding that the federal government has committed to advance the inclusion of persons with disabilities since 2015

Home Accessibility Tax Credit

Budget 2022 proposes to double the qualifying expense limit of the Home Accessibility Tax Credit to $20,000 for the 2022 and subsequent tax years. This will mean a tax credit of up to $3,000—an increase from the previous tax credit of up to $1,500—for important accessibility renovations or alterations. Doubling the credit’s annual limit will help make more significant alterations and renovations more affordable.

Investments in education, post-secondary education, and training

Youth Employment and Skills Strategy

Budget 2021 invested $109.3 million in 2022 to 2023 for the Youth Employment and Skills Strategy to better meet the needs of vulnerable youth facing multiple barriers to employment.

Canada Summer Jobs

Budget 2021 invested $371.8 million in new funding for Canada Summer Jobs in 2022 to 2023 to support approximately 75,000 new job placements in the summer of 2022.

Apprenticeship Service

Budget 2021 invested $470 million over 3 years, beginning in 2021 to 2022, to Employment and Social Development Canada to establish a new Apprenticeship Service.

Skills for Success

Budget 2021 invested $298 million over 3 years, beginning in 2021 to 2022, through Employment and Social Development Canada, in a new Skills for Success program that would help Canadians at all skills levels improve their foundational and transferable skills.

Canada Student Grants

The Government intends to extend the $1,600 adult learner top-up to the full-time Canada Student Grant for an additional 2 school years—until July 2023.The Government of Canada’s 2022 Affordability Plan includes doubling the Canada Student Grant to provide up to $6,000 per year until July 2023.

Eliminating interest on Federal Student and Apprentice Loans

The 2022 Fall Economic Statement proposes to make all Canada Student Loans and Canada Apprentice Loans permanently interest-free, including those currently being repaid, beginning on April 1, 2023. This change has an estimated cost of $2.7 billion over 5 years and $556.3 million ongoing.

Investments for the Indigenous community

Co-development of Indigenous indicators of poverty and well-being

The Government of Canada, through Opportunity for All, has committed to working with First Nations, Métis and Inuit to identify and co-develop indicators of poverty and well-being.

First Nations Data Governance Strategy

Budget 2021 invested $73.5 million over 3 years to continue working toward the development and implementation of a First Nations Data Governance Strategy.

Aboriginal Entrepreneurship Program

Budget 2021 invested $42 million over 3 years, starting in 2021 to 2022, to expand the Aboriginal Entrepreneurship Program.

First Nations Child and Family Services program

In Budget 2022, the federal government allocates $2 billion of the $20 billion provided for long-term reform of the First Nations Child and Family Services program to target the housing needs of First Nations children once a final settlement agreement is reached.

Northern Market Basket Measure

In the Fall of 2022, Statistics Canada finalized the methodology for the Northern Market Basket Measure (MBM-N) for the Northwest Territories and Yukon. As a result, it is now possible to estimate poverty rates for these 2 territories based on Canada’s Official Poverty Line. Employment and Social Development Canada (ESDC) and Statistics Canada continue to work collaboratively with Nunavut officials to finalize the MBM methodology for Nunavut.

Investing in housing for Indigenous communities

Budget 2022 provides a further $4 billion over 7 years, starting in 2022 to 2023, to Indigenous Services Canada and Crown-Indigenous Relations and Northern Affairs Canada to accelerate work in closing Indigenous housing gaps as follows:

Budget 2022 invests $300 million over 5 years, starting in 2022 to 2023, through the Canada Mortgage and Housing Corporation to co-develop and launch an Urban, Rural, and Northern Indigenous Housing Strategy.

Implementing the United Nations Declaration on the Rights of Indigenous Peoples Act

The coming into force of the United Nations Declaration on the Rights of Indigenous Peoples Act marked a historic milestone in Canada’s collective journey towards reconciliation—one rooted in the recognition of rights, respect, cooperation, and partnership. The federal government remains committed to the Act’s full and effective implementation, in partnership with Indigenous peoples.

To this end, Budget 2022 provides $65.8 million over 5 years, starting in 2022 to 2023, and $11 million ongoing, to Justice Canada and Natural Resources Canada to accelerate work to meet legislated requirements, including the co-development of an action plan with Indigenous partners. To complement this work, Budget 2022 invests $9.5 million over 5 years, starting in 2022 to 2023, to the Department of National Defence to align its operations and engagement with Indigenous peoples with the Act.

Supporting Indigenous businesses and community economic development

Budget 2022 recognizes the importance of supporting Indigenous community and economic development through:

These investments will help ensure that Indigenous owned businesses are positioned for long-term success.

Advancing tax jurisdiction for Indigenous governments

Since 1998, the federal government has entered into 61 tax jurisdiction agreements with Indigenous governments, generating important revenues that support community priorities and advance self-determination. The government confirms its commitment to negotiating agreements with interested Indigenous governments to enable the implementation of a First Nations Goods and Services Tax within their settlement lands or reserves. The government remains committed to working with interested self-governing Indigenous governments to enable them to implement personal income taxes within their settlement lands.

As committed in Budget 2021, the government will work with Indigenous groups and organizations on a potential fuel, alcohol, cannabis, and tobacco (FACT) sales tax framework as an additional option for Indigenous governments to exercise tax jurisdiction.

The government has a continued interest in facilitating taxation arrangements between interested provinces or territories and Indigenous governments.

Supporting First Nations children through Jordan’s Principle

Budget 2022 provides $4 billion over 6 years, starting in 2021 to 2022, to ensure First Nations children continue to receive the support they need through Jordan’s Principle. This funding will also support long term reforms to improve the implementation of Jordan’s Principle.

Improving health outcomes in Indigenous communities

Budget 2022 invests $268 million in 2022 to 2023 to continue to provide high-quality health care in remote and isolated First Nations communities on-reserve.

As Indigenous communities continue to face unique challenges in responding to COVID-19, Budget 2022 invests an additional $190.5 million in 2022 to 2023 to Indigenous Services Canada for the Indigenous Community Support Fund to help Indigenous communities and organizations mitigate the ongoing impacts of COVID-19.

Distinctions-based mental health and wellness

Budget 2022 provides $227.6 million over 2 years, starting in 2022 to 2023, to maintain trauma-informed, culturally appropriate, Indigenous led services to improve mental wellness, and to support efforts initiated through Budget 2021 to co-develop distinctions-based mental health and wellness strategies.

Elementary and secondary education

Budget 2022 invests an additional $310.6 million over 5 years to support better student outcomes through a Regional Education Agreement with the First Nations Education Council, which includes 22 member communities in Quebec.

Investments in community development

Social Innovation and Social Finance Strategy

Social purpose organizations (for example, non-profits, social enterprises, and cooperatives) play a key role in tackling the social-economic and environmental challenges faced by Canadian communities, such as poverty, food insecurity, and transition to a low-carbon economy. The Social Innovation and Social Finance Strategy seeks to help these organizations access flexible financing opportunities that enable them to grow and enhance their impacts. The Investment Readiness Program and the Social Finance Fund are foundational components of the Strategy. Budget 2021 invested $50 million to renew the Investment Readiness Program for 2 years, starting in 2021 to 2023, and announced acceleration of the Social Finance Fund by deploying $220 million of the program’s total $682.5 million in contribution funding in its first 2 years, starting in 2021 to 2022.

Support for workers experiencing miscarriage or stillbirth

Budget 2022 introduces legislative amendments to the Canada Labour Code in the coming year to provide additional support to federally regulated employees who experience a miscarriage or stillbirth.

Stronger partnerships in the charitable sector

Budget 2022 amended the Income Tax Act to allow a charity to provide its resources to organizations that are not qualified donees, provided that the charity meets certain requirements designed to ensure accountability. This is intended to implement the spirit of Bill S-216, the Effective and Accountable Charities Act, which is currently being considered by Parliament.

Boosting charitable spending in our communities

Following consultations with the charitable sector in 2021, Budget 2022 proposes to introduce a new graduated disbursement quota rate for charities. For investment assets exceeding $1 million, the rate of the disbursement quota will be increased from 3.5% to 5%.

Completing the Employment Equity Act Review

On July 14, 2021, the government launched an arm’s length Task Force to review the Employment Equity Act and advise on how to modernize the federal employment equity framework.

Budget 2022 provides $1.9 million in 2022 to 2023 in order to complete the Employment Equity Act Review. A final report will be publicized in fall 2022.

Supporting Black Canadian Communities

Budget 2022 provides $50 million over 2 years, starting in 2022 to 2023, 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. The Minister of Families, Children and Social Development will explore further options to continue supporting capacity building within Black-led and Black-serving community organizations in the long term.

Supporting mental well-being with the Wellness Together Canada portal

The federal government launched the Wellness Together Canada portal in April 2020 in response to the unprecedented rise in levels of stress, anxiety, and depression associated with the pandemic. More than 2 million people across Canada have accessed support through the portal. Children and young people make up almost 50% of users, and 42% of texting users have identified themselves as LGBTQ2.

Budget 2022 provides $140 million over 2 years, starting in 2022 to 2023, to Health Canada for the Wellness Together Canada portal so it can continue to provide Canadians with tools and services to support their mental health and well-being. The Wellness Together Canada portal complements Pocket Well, a free app launched in January 2022 that helps Canadians access free and confidential sessions with social workers, psychologists and other professionals, as well as other mental health and substance use prevention services from their phone.

Investments in housing

A Housing Affordability Payment

As part of its 2022 Affordability Plan, the government will provide a one-time $500 tax-free payment to nearly one million low-income Canadian renters struggling with the cost of housing.

Rapid Housing Initiative

Budget 2022 includes $1.5 billion over 2 years starting in 2022 to 2023 to the Canada Mortgage and Housing Corporation to extend the Rapid Housing Initiative, which was launched to address the urgent housing needs of vulnerable Canadians by providing them with adequate affordable housing in short order.

New Housing Accelerator Fund

The Canada Mortgage and Housing Corporation will launch a new Housing Accelerator Fund, designed to be flexible to the needs and realities of cities and communities, and its focus will be on increasing supply. The proposed $4 billion over 5 years will be targeted to increase the supply of affordable housing.

Speeding up housing construction and repairs for vulnerable canadians

Budget 2022 introduced $2.9 billion, on a cash basis, under the National Housing Co-Investment Fund, which supports the construction and repair of housing units for the most vulnerable Canadians, so all remaining funds will be spent by 2025-26.

Leveraging transit funding to build more homes

Budget 2022 introduced this, and it makes previously proposed funding to municipalities ($750M in 2021 to 2022) to address their public transit shortfalls conditional on PTs committing to match the federal contribution and to accelerate their work with municipalities to build more homes for Canadians.

Direct support for those in housing need

Budget 2022 introduced $475 million in 2022 to 2023 to provide a one-time $500 payment to those facing housing affordability challenges. The specifics of this initiative are forthcoming.

Affordable Housing Innovation Fund

Budget 2022 invests an additional $200M under the existing Affordable Housing Innovation Fund to help develop and scale up rent-2-own projects.

Housing Benefit for low-income women and children fleeing violence

Budget 2021 invested $315.4 million over 7 years, starting in 2021 to 2022, through the Canada Housing Benefit, to increase direct financial assistance for low-income women and children fleeing violence to help with their rent payments.

Federal Community Housing Initiative

Budget 2021 invested $118.2 million over 7 years, starting in 2021 to 2022, through the Federal Community Housing Initiative, to support community-housing providers that deliver long-term housing to many of our most vulnerable.

National Housing Co-Investment Fund

Budget 2022 advances $2.9 billion in funding, on a cash basis, under the National Housing Co-Investment Fund, so that all remaining funds will be spent by 2025-26. This will accelerate the creation of up to 4,300 new units and the repair of up to 17,800 units for the Canadians who need them most.

A new generation of co-operative housing development

Budget 2022 announced reallocation of $500 million on a cash basis from the National Housing Co-Investment Fund to launch a new Co-operative Housing Development Program aimed at expanding co-op housing; and, an additional $1 billion in loans to be reallocated from the Rental Construction Financing Initiative to support co-op housing projects.

Affordable housing in the North

Budget 2022 includes $150 million over 2 years starting in 2022 to 2023 to support affordable housing and related infrastructure in the North.

Multigenerational Home Renovation Tax Credit

Budget 2022 proposes to introduce the Multigenerational Home Renovation Tax Credit, which would provide up to $7500 in support for constructing a secondary suite for a senior or an adult with a disability.

Community responses to homelessness

Budget 2022 includes $18.1 million over 3 years starting in 2022 to 2023 to Infrastructure Canada to conduct research about what further measures could contribute to eliminating chronic homelessness.

A Tax-Free First Home Savings Account

Budget 2022 proposes to introduce the Tax-Free Home Savings Account that would give prospective first-time home buyers the ability to save up to $40,000.

The First Time Home Buyers Tax Credit

Budget 2022 proposes to double the First Time Home Buyers Tax Credit to $10,000 and explore options to make the program more flexible and responsive to the needs of first-time homebuyers.

Moving forward on a Home Buyers’ Bill of Rights

Budget 2022 proposes to engage with PTs to develop and implement the Home Buyers’ Bill of Rights and bring forward a national plan to end blind bidding. Budget 2022 includes $5 million over 2 years, starting in 2022 to 2023 to the Canada Mortgage and Housing Corporation to support these efforts.

Housing for Canadians, not for big corporations

Budget 2022 introduces federal review of housing as an asset class to better understand the role of large corporate players in the market and the impact on Canadians renters and homeowners.

Assisting homeowners affected by Pyrrhotite

Budget 2022 includes $26 million in 2022 to 2023 to support homeowners in Quebec whose homes require remediation from damages to foundations caused by the mineral pyrrhotite.

Investments in homelessness

Reaching Home: Canada’s Homelessness Strategy

Since the beginning of the pandemic, the Government of Canada has made additional investments through Reaching Home to support the homeless-serving sector’s response to COVID-19. This includes more than $400 million in additional emergency funding in 2020 to 2021 and $299.4 million in 2021 to 2022 to prevent the spread of COVID-19 and help prevent at-risk Canadians from becoming homeless.

Budget 2021 invested an additional $567 million over 2 years, beginning in 2022 to 2023, for Reaching Home to ensure that the homeless-serving sector is able to continue serving those experiencing homelessness safely and to help prevent at-risk Canadians from becoming homeless as we emerge from the pandemic.

Improving community responses to homelessness

Budget 2022 includes$18.1million over 3 years starting in 2022 to 2023 to Infrastructure Canada to conduct research about what further measures could contribute to eliminating chronic homelessness.

Veteran homelessness

Budget 2022 includes $62.2 million over 3 years, starting in 2024-25, to launch a new Veteran Homelessness Program.

Investments in food security

National School Food Policy

Budget 2022 announced the Minister of Agriculture and Agri-Food, and the Minister of Families, Children and Social Development will work with provinces, territories, municipalities, Indigenous partners, and stakeholders to develop a National School Food Policy and to explore how more Canadian children can receive nutritious food at school. A National School Food Policy would complement other investments for families and children that help to reduce food insecurity.

Emergency Food Security Fund and Local Food Infrastructure Fund

Budget 2021 invested $140 million in 2021 to 2022 to top up the Emergency Food Security Fund and Local Food Infrastructure Fund, which will prevent hunger, strengthen food security in our communities, and provide nutritious food to more Canadians.

Nutrition North Canada program

Budget 2021 invested $163.4 million over 3 years, starting in 2021 to 2022, to expand the Nutrition North Canada program and enable the Minister of Northern Affairs to work directly with Indigenous partners, including in Inuit Nunangat, to address food insecurity.

Investments in gender equity and inclusivity

Black-led Philanthropic Endowment Fund

Budget 2021 invested $200 million in 2021 to 2022 to Employment and Social Development Canada to establish a new Black-led Philanthropic Endowment Fund.

Canadian Race Relations Foundation

Budget 2021 invested $11 million over 2 years, starting in 2021 to 2022, to expand the impact of the Canadian Race Relations Foundation. This investment will allow the Canadian Race Relations Foundation to scale up efforts to empower racialized Canadians and help community groups combat racism in all its forms.

A Federal LGBQT2 Action Plan

Budget 2022 provides $100 million over 5 years, starting in 2022 to 2023, to support the implementation of the forthcoming Federal LGBTQ2 Action Plan, which will support a fairer and more equal Canada for LGBTQ2 Canadians.

Piloting a Menstrual Equity Fund for those in need

Budget 2022 proposes to provide $25 million over 2 years, starting in 2022 to 2023, for Women and Gender Equality Canada to establish a national pilot project for a Menstrual Equity Fund that will help make menstrual products available to Canadians in need.

7. Supplementary Estimates (B) for fiscal year ending March 31, 2023

7.a. Subject: Overview – Tabling of the Supplementary Estimates (B)

Issue

Why does Employment and Social Development (ESDC) require additional authorities in the Supplementary Estimates (B) for fiscal year ending March 31, 2023?

Key facts

Supplementary Estimates seek parliamentary approval for changes to departmental spending plans for the current fiscal year.

ESDC is requesting a total of $411.4 million in additional authorities through the Supplementary Estimates (B).

Response

ESDC is requesting adjustments for:

Table 11: Voted Appropriations (in dollars)
A. Voted Appropriations (in dollars) Operating Vote 1 Grants and Contributions Vote 5 Total
1. Funding for the Black-Led Philanthropic Endowment Fund 430,172 199,476,227 199,906,399
2. Funding to increase Old Age Security workload capacity 46,420,245 0 46,420,245
3. Funding for the Temporary Foreign Worker Program for rebasing Labour Market Impact Assessment processing (Budget 2022) 18,742,308 0 18,742,308
4. Funding to stabilize information technology to support program delivery 16,251,407 0 16,251,407
5. Funding to increase the reach of Temporary Foreign Worker Program inspections to the extent possible (horizontal item) 13,810,143 0 13,810,143
6. Funding to build a more inclusive and prosperous Canada under the Disability Inclusion Action Plan (Budget 2022) 6,033,995 7,576,525 13,610,520
7. Funding for the Benefits Delivery Modernization 13,531,250 0 13,531,250
8. Funding for the Canada Emergency Response Benefits integrity measures 13,449,235 0 13,449,235
9. Funding to improve the quality of the Temporary Foreign Worker Program inspections and begin rebuilding the Employer Compliance Regime (Budget 2022) 13,300,680 0 13,300,680
10. Funding to address labour demand and training the workforce of the future (Budget 2022) 3,628,628 9,633,486 13,262,114
11. Funding to enhance the New Horizons for Seniors Program (Budget 2022) 0 10,000,000 10,000,000
12. Funding for government advertising programs (horizontal item) 6,000,000 0 6,000,000
13. Funding to implement public health measures for in-person services at Service Canada centres (Budget 2022) 5,941,433 0 5,941,433
14. Funding for Early Learning and Child Care 0 4,422,857 4,422,857
15. Funding for the Investment Readiness Program 0 4,356,106 4,356,106
16. Funding to amend the Canada Labour Code to implement 10 days of paid medical leave 3,104,112 0 3,104,112
17. Funding for retroactive compensation 2,155,118 0 2,155,118
18. Funding for Indigenous Early Learning and Child Care 0 1,885,963 1,885,963
19. Funding for the Employment Equity Act review (Budget 2022) 1,722,859 0 1,722,859
20. Funding for the Employment Equity Act review 0 800,000 800,000
21. Funding for the resettlement of Afghan refugees (Budget 2022) (horizontal item) 169,135 0 169,135
Total Voted Appropriations 164,690,720 238,151,164 402,841,884
Table 12: Transfers (in dollars)
  B. Transfers (in dollars) Operating Vote 1 Grants and Contributions Vote 5 Total
22. From the Department of Indigenous Services to the Department of Employment and Social Development for the Indigenous Early Learning and Child Care Transformation Initiative 0 14,587,931 14,587,931
23. Internal reallocation of resources from Apprenticeship Grants ($115,000) to the Support for Labour Market Information in Canada grants 0 0 0
24. Internal reallocation of resources from Apprenticeship Grants ($42,204,322) and Grant for the Union Training and Innovation Program ($1,300,000) to Canadian Apprenticeship Strategy grants 0 0 0
25. From various organizations to the Treasury Board Secretariat to support the Capacity Accelerator Project -30,000 0 -30,000
26. From the Department of Employment and Social Development to the Department of Natural Resources in support of the 2 Billion Trees program activities -125,000 0 -125,000
27. From the Department of Employment and Social Development to the Department of Crown-Indigenous Relations and Northern Affairs to support Indigenous Skills and Employment Training and Indigenous Early Learning and Child Care 0 -27,087,752 -27,087,752
Total Transfers -155,000 -12,499,821 -12,654,821
Table 13: Budgetary Statutory Authorities (in dollars)
C. Budgetary Statutory Authorities (in dollars) Total
28. Contributions to employee benefit plans 21,202,344
Total Budgetary Statutory Authorities 21,202,344

Background

A. Voted appropriations
1. Funding for the Black-Led Philanthropic Endowment Fund – $199.9 million

Budget 2021 announced the investment of $200 million to create a new Black-Led Philanthropic Endowment Fund.

Led by Black Canadians for Black Canadians, the Endowment Fund will create a sustainable source of funding for Black-led, Black-focused and Black-serving charities and non-profits working to combat anti-Black racism and improve social and economic outcomes in Black communities.

The Government of Canada will provide $199.5 million (in up-front multi-year contributions) to a single national Black-led and Black-serving recipient organization, supported by one or more investment management firm(s) as well as an established public foundation that will provide it with support and guidance for a period of 3 years or more.

ESDC is requesting authority to include $430,172 in Vote 1 (Operating expenditures, excluding employee benefit plans (EBP) costs of $81,523) and $199,476,227 in Vote 5 (Contributions) for the Black-Led Philanthropic Endowment Fund as part of the Supplementary Estimates (B) 2022 to 2023.

2. Funding to increase Old Age Security workload capacity – $46.4 million

The Old Age Security (OAS) program is one of the largest programs of the Government of Canada. In 2021 to 2022, the program paid $60.8 billion in benefits to 6.9 million beneficiaries.

Through a deferred Budget 2022 decision, ESDC is requesting $46.4 million in funding for 2022 to 2023 to address the demographically-driven OAS workload increase, to slow growing inventory levels and to increase the Pensions Call Centre’s capacity to better respond to client enquiries and minimize impacts to wait times.

In the absence of these funds, the Pensions Call Centre forecasted wait times could increase to an estimated average of 60 minutes, and inventory levels to close to 3 million work items by the end of 2023 to 2024.

ESDC is requesting authority to include $46,420,245 in Vote 1 (Operating expenditures, excluding EBP costs of $7,882,045) to increase Old Age Security workload capacity as part of the Supplementary Estimates (B) 2022 to 2023.

3. Funding for the Temporary Foreign Worker Program for rebasing Labour Market Impact Assessment processing (Budget 2022) – $18.7 million

Budget 2022 announced access to $64.6 million over 3 years, beginning in 2022 to 2023, to improve the service delivery of the Temporary Foreign Worker Program (TFWP) by addressing increased volumes of Labour Market Impact Assessments (LMIAs) going forward.

This funding will allow Service Canada to allocate resources to address ongoing workload pressures and increased LMIA volume pressures expected to continue in future years. This will also help mitigate the risk of a growing inventory of pending LMIA applications and will ensure that employers receive timely decisions.

ESDC is requesting authority to include $18,742,308 in Vote 1 (Operating expenditures, excluding EBP costs of $3,792,404) for the Temporary Foreign Worker Program for rebasing Labour Market Impact Assessment processing as part of the Supplementary Estimates (B) 2022 to 2023.

4. Funding to stabilize information technology to support program delivery – $16.3 million

ESDC is the largest federal service delivery organization in Canada. However, decades of chronic underinvestment in information technology (IT) have put ESDC in an unprecedented situation where the systems could fail and affect the ongoing delivery of critical programs and services to Canadians.

Recognizing the need to stabilize and remediate ESDC’s IT systems, the Government of Canada approved an off-cycle funding request in May 2020 of $469 million over 6 years (2020 to 2021, to 2025 to 2026) to implement ESDC’s Technical Debt Remediation Initiative.

For 2022 to 2023, the operational funding required is $64.9 million to continue activities addressing the most pressing issues facing ESDC’s aging IT systems, such as improving network performance, stabilizing aging IT, and establishing disaster recovery solutions to improve the ability to meet ESDC’s business recovery objectives. This is comprised of $58.9 million of new funding from the approved 2020 off-cycle decision and a re-profile of $6.0 million from 2021–22 lapsed funds.

The $16.3 million represents the Consolidated Revenue Fund (CRF) portion of the funding required for fiscal year 2022 to 2023. In addition, $40.2 million is funded from the Employment Insurance (EI) Operating Account and $8.4 million from the Canada Pension Plan (CPP) which are not included in the Estimates.

ESDC is requesting authority to include $16,251,407 in Vote 1 (Operating expenditures, excluding EBP costs of $824,299) to stabilize information technology to support program delivery as part of the Supplementary Estimates (B) 2022 to 2023.

5. Funding to increase the reach of Temporary Foreign Worker Program inspections to the extent possible (horizontal item) – $13.8 million

Budget 2021 announced $54.9 million over 3 years, starting in 2021 to 2022, to ESDC ($52.7 million) and Immigration, Refugees and Citizenship Canada (IRCC) ($2.2 million) to increase the number of employer inspections under the employer compliance regime of the Temporary Foreign Worker Program (TFWP), and to ensure temporary foreign workers have appropriate working conditions and wages.

New policy direction provided in Budget 2022 grants authority to use the remaining Budget 2021 funding starting in 2022 to 2023 to continue to perform inspections, with the new objective of increasing the reach of inspections to the extent possible.

Resources from the combined Budget 2021 and Budget 2022 funding decisions will allow ESDC to build on efforts already underway to improve quality, timeliness and responsiveness of inspections, and embark on preliminary work to support the rebuild of the Employer Compliance Regime.

ESDC is requesting authority to include $13,810,143 in Vote 1 (Operating expenditures, excluding EBP costs of $2,949,556) to increase the reach of Temporary Foreign Worker Program inspections to the extent possible as part of the Supplementary Estimates (B) 2022 to 2023.

6. Funding to build a more inclusive and prosperous Canada under the Disability Inclusion Action Plan (Budget 2022) – $13.6 million

Budget 2022 proposes to provide $272.6 million over 5 years (2022 to 2023, to 2026 to 2027) to ESDC to support the implementation of an employment strategy for persons with disabilities through the Opportunities Fund. This will help to address labour market shortages through increased participation by persons with disabilities and make workplaces more inclusive and accessible.

Budget 2022 also proposes to provide $38 million over 7 years (2022 to 2023 to 2028 to 2029) to support the production and distribution of alternative format reading materials by the Centre for Equitable Library Access and the National Network for Equitable Library Service, to conduct research through a survey to better understand gaps in availability of accessible reading materials, and to launch a new Equitable Access to Reading Program to boost the production of accessible format reading materials through innovative partnerships.

Out of the $13.6 million requested through these Estimates, $11.4 million is for the Opportunities Fund ($5.8 million in Vote 1 and $5.6 million in Vote 5), and $2.2 million is for alternate format reading materials ($0.2 million in Vote 1 and $2.0 million in Vote 5).

ESDC is requesting authority to include $6,033,995 in Vote 1 (Operating expenditures, excluding EBP costs of $1,065,026) and $7,576,525 in Vote 5 (Grants and contributions) to build a more inclusive and prosperous Canada under the Disability Inclusion Action Plan as part of the Supplementary Estimates (B) 2022 to 2023.

7. Funding for the Benefits Delivery Modernization – $13.5 million

In Budget 2021, the Government of Canada committed to accelerating the replacement of the OAS solution to minimize the risk of this 60-year-old system failing and impacting seniors’ benefits.

The Benefits Delivery Modernization (BDM) Programme is implementing a Common Benefits Delivery (CBD) platform, which was chosen as the new, modern technology to deliver OAS and eventually other benefits. By replacing the legacy system, the CBD platform will mitigate the risk of IT failure and maintain the department’s ability to issue benefit payments to seniors.

ESDC requested 2 re-profiles of 2021 to 2022 funding to 2022 to 2023 for BDM, for a total of $64.5 million. The first one is for the onboarding of OAS on BDM for a total of $11.5 million of CRF funding. The second one is for the Tranche 1 Implementation: Foundation Phase for a total of $52.9 million out of which $2.0 million is funded from the CRF. The remaining portions of $47.7 million funded from the EI Operating Account and $3.2 million from the CPP are not included in the Estimates.

ESDC is requesting authority to include $13,531,250 in Vote 1 (Operating expenditures) for the Benefits Delivery Modernization as part of the Supplementary Estimates (B) 2022 to 2023.

8. Funding for the Canada Emergency Response Benefits integrity measures – $13.5 million

ESDC received $328.9 million in operating funding over 4 years in the 2020 Fall Economic Statement to ensure the Canada Revenue Agency (CRA) has continued capacity to advance compliance, verification and overpayment collections activities with respect to the Canada Emergency Response Benefit (CERB) and the Canada Emergency Student Benefit (CESB). Due to delays in CRA’s ability to complete these activities, $44.8 million of 2021 to 2022 fiscal year lapses are being re-profiled into future fiscal years, based on CRA’s updated forecasted spending. CRA’s activities in future years also include the collection of Employment Insurance Emergency Response Benefits (EI ERB) overpayments, on behalf of ESDC.

For fiscal year 2022 to 2023, ESDC is requesting to use $13.5 million of the 2021 to 2022 CERB and CESB lapses to fund CERB ($1.8 million) and EI ERB ($11.7 million) integrity and collection activities that CRA will do on behalf of the department.

ESDC is requesting authority to include $13,449,235 in Vote 1 (Operating expenditures) for the Canada Emergency Response Benefits Integrity Measure as part of the Supplementary Estimates (B) 2022 to 2023.

9. Funding to improve the quality of the Temporary Foreign Worker Program inspections and begin rebuilding the Employer Compliance Regime (Budget 2022) – $13.3 million

New policy direction provided in Budget 2022 grants authority to use the remaining Budget 2021 funding starting in 2022 to 2023 to continue to perform inspections, with the new objective of increasing the reach of inspections to the extent possible. (See also item #5 above – Funding to increase the reach of Temporary Foreign Worker Program inspections to the extent possible).

Resources from the combined Budget 2021 and Budget 2022 funding decisions will allow ESDC to build on efforts already underway to improve quality, timeliness, and responsiveness of inspections, and embark on preliminary work to support the rebuild of the Employer Compliance Regime.

ESDC is requesting authority to include $13,300,680 in Vote 1 (Operating expenditures, excluding EBP costs of $2,522,787) to improve the quality of the Temporary Foreign Worker Program inspections and begin rebuilding the Employer Compliance Regime as part of the Supplementary Estimates (B) 2022 to 2023.

10. Funding to address labour demand and training the workforce of the future (Budget 2022) – $13.3 million

The requested $13.3 million is part of the $115 million over 5 years announced in Budget 2022, with $30 million ongoing for the Foreign Credential Recognition Program (FCRP), and $84.2 million over 4 years (2022 to 2023, to 2025 to 2026) for the Union Training and Innovation Program (UTIP).

Canada is facing significant labour shortages across the country. For 2022 to 2023, $4.6 million ($1.8 million in Vote 1 and $2.8 million in Vote 5) of the funding requested through these Estimates for the FCRP will help support the labour market integration of skilled newcomers with an initial focus on internationally educated health professionals.

Also for 2022 to 2023, the funding of $8.7 million ($1.9 million in Vote 1 and $6.8 million in Vote 5) for the UTIP will be used to help women, persons with disabilities, Indigenous people, and racialized Canadians start careers in Red Seal trades, including through mentorship, career services and job matching.

ESDC is requesting authority to include $3,628,628 in Vote 1 (Operating expenditures, excluding EBP costs of $701,535) and $9,633,486 in Vote 5 (Grants and contributions) to address labour demand and training the workforce of the future as part of the Supplementary Estimates (B) 2022 to 2023.

11. Funding for New Horizons for Seniors Program (Budget 2022) – $10.0 million

Budget 2022 announced $20 million over 2 years, beginning with $10 million in 2022 to 2023, for an expanded New Horizons for Seniors Program to support more projects that improve the quality of life for seniors and help them continue to fully participate in their communities.

The additional funding will support projects that will improve the well-being of seniors and help communities benefit from the increased participation and contribution of seniors to community life.

ESDC is requesting authority to include $10,000,000 in Vote 5 (Grants) for New Horizons for Seniors Program as part of the Supplementary Estimates (B) 2022 to 2023.

12. Funding for government advertising programs (horizontal item) – $6.0 million

In line with Budget 2022, some of the Government of Canada’s goals consist of:

For the 2022 to 2023, ESDC requested $6.0 million for advertising campaigns, allocated as follow:

ESDC is requesting authority to include $6,000,000 in Vote 1 (Operating expenditures) for government advertising programs as part of the Supplementary Estimates (B) 2022 to 2023.

13. Funding to implement public health measures for in-person services at Service Canada centres (Budget 2022) – $5.9 million

ESDC received $29.8 million in funding in Budget 2022, out of which $5.9 million is funded from the CRF. The remaining portion of $20.3 million is funded from the EI Operating Account and $3.6 million from the CPP which are not included in the Estimates. This funding is being used to comply with public health requirements by maintaining commissionaire/security guard services to enforce health and safety measures and is necessary to maintain access to in-person services especially for at-risk groups that are more reliant on the in-person network.

This funding addresses public health requirements necessary to provide in-person services to the public, particularly Occupational Health and Safety requirements relevant to the Department’s obligations as an employer.

While active screening and tracking of employees and visitors on-site is no longer required, all persons entering Service Canada centres (SCC) are required to wear a medical mask or respirator. Differences between provincial and federal masking requirements create points of friction with the public. Combined with the return to full occupancy and particularly high volumes of clients, the situation necessitates a continued commissionaire presence at SCCs.

ESDC is requesting authority to include $5,941,433 in Vote 1 (Operating expenditures) to implement public health measures for in-person services at Service Canada centres as part of the Supplementary Estimates (B) 2022 to 2023.

14. Funding for Early Learning and Child Care – $4.4 million

Budget 2017 announced $100 million over 10 years for the Early Learning and Child Care (ELCC) Innovation Program and the 2020 Fall Economic Statement made that funding permanent with $15 million annually starting in 2028 to 2029.

ESDC is requesting to re-profile $4.4 million of the 2021 to 2022 ELCC lapses in grants and contributions to 2022 to 2023. Funding to be re-profiled consists of $0.2 million to support ELCC data and research, and $4.2 million to ELCC innovation projects.

The re-profiling of grants funding for ELCC Data and Research Program is requested due to delays in working with Indigenous partners, changes in the organizational mechanism to launch calls for proposals for data and research projects, and changes in organizational capacity during the year. Re-profiled funds will support the broader expert community in the development of new projects to address ELCC data and research gaps.

The 2020 ELCC Innovation Program call for proposals ran from October 30, 2020 to January 7, 2021 and resulted in a significantly higher number of applications than anticipated, which prolonged the assessment period. While projects were ultimately approved in late 2021, funding did not flow to recipients until 2022 to 2023. Re-profiled finds will support multi-year projects starting in 2022 to 2023, ensuring the continued positive impact of the ELCC Innovation Program.

ESDC is requesting authority to include $4,422,857 in Vote 5 (Grants and contributions) for Early Learning and Child Care as part of the Supplementary Estimates (B) 2022 to 2023.

15. Funding for the Investment Readiness Program – $4.4 million

Budget 2021 announced $50 million over 2 years ($25 million each fiscal year) for a renewed Investment Readiness Program (IRP) starting in 2021–22.

Of the $23 million grants and contribution funding available in 2021 to 2022, $15 million was committed into agreements, resulting in uncommitted funds of approximately $8 million. ESDC is requesting to re-profile these uncommitted funds across 2 fiscal years ($4.4 million in 2022 to 2023 and $3.3 million in 2023 to 2024).

Re-profiling these funds across 2 fiscal years will help mitigate the impact caused by the delays and give funding recipients the time they need to complete their project activities. The re-profile will also ensure that the program achieves the results and outcomes it has committed to.

ESDC is requesting authority to include $4,356,106 in Vote 5 (Contributions) for the Investment Readiness Program as part of the Supplementary Estimates (B) 2022 to 2023.

16. Funding to amend the Canada Labour Code to implement 10 days of paid medical leave – $3.1 million

Through a deferred Budget 2022 decision, ESDC received $9.3 million over 3 years starting in 2022 to 2023 to Implement 10 days of paid medical leave for federally-regulated employees.

The funds will be used to prepare regulatory amendments, develop educational materials, update information systems, inform inspectors of the changes, and respond to complaints and enforce the new legislative requirements to ensure employer compliance.

ESDC is requesting authority to include $3,104,112 in Vote 1 (Operating expenditures, excluding EBP costs of $608,593) to amend the Canada Labour Code to implement 10 days of paid medical leave as part of the Supplementary Estimates (B) 2022 to 2023.

17. Funding for retroactive compensation – $2.2 million

In 2019, ESDC worked collaboratively with managers, employees and the union to resolve a longstanding job description grievance concerning the Program Support Delivery Clerk.

Budget 2019 committed funds to the resolution of the reclassification. Subsequently, the ESDC obtained funding for fiscal years 2019 to 2020 and 2020 to 2021 to cover retroactive payments and salary adjustments for work performed since 2006.

In 2022, ESDC received permanent funding to offset costs from 2022 to 2023 onwards. This funding includes $2.2 million sourced from the CRF and $1.4 million sourced from the EI Operating Account (which is not included in the Estimates) to support the permanent incremental top-up costs.

ESDC is requesting $2,155,118 in Vote 1 (Operating expenditures, excluding EBP costs of $591,882) for retroactive compensation as part of the Supplementary Estimates (B) 2022 to 2023.

18. Funding for the Indigenous Early Learning and Child Care – $1.9 million

In 2022 to 2023, a selection of Indigenous governments partnering with the Government of Canada on the implementation of the Indigenous Early Learning and Child Care (IELCC) Transformation Initiative requested adjustments to their planned multi-year funding allocations. Adjustments were requested in order to respond to the impact of the pandemic on their communities, and to provide partners additional time to position, plan and expend the incremental IELCC investments.

To respond to these requests from Indigenous governments, ESDC is re-profiling $11.9 million in funding from 2021 to 22 into future years, including $1.9 million in 2022 to 2023. The funding being re-profiled originally comes from announcement made in Budget 2017, the 2020 Fall Economic Statement and in Budget 2021 for the IELCC.

The re-profile will provide Indigenous communities impacted by the pandemic more time to spend funding that was planned for 2021–22, advance commitments outlined in the co-developed IELCC Framework and support strategies and work plans developed by individual First Nation, Inuit and Métis communities.

ESDC is requesting authority to include $1,885,967 in Vote 5 (Contributions) the Indigenous Early Learning and Child Care as part of the Supplementary Estimates (B) 2022 to 2023.

19. Funding for the Employment Equity Act review (Budget 2022) – $1.7 million

As announced in the Budget 2022, the $1.7 million funding will support the completion of the Employment Equity Act review, which is being conducted by an independent task force.

This amount is comprised of operating funding to allow ESDC to secure the skills and resources required to support the task force with consultation management and planning, research, policy analysis, and communications. This amount takes into account the expanded scope of the review and the accelerated timelines for its completion.

After completing its review of the Act, the task force will make recommendations to the Minister of Labour on how best to adjust the Act to the new sociodemographic, economic and political realities of the Canadian society and its labour market. A final report is expected to be issued December 31, 2022. The Labour Program is expected to propose legislative, regulatory, policy and/or program changes emerging from the review.

ESDC is requesting authority to include $1,722,859 in Vote 1 (Operating expenditures, excluding EBP costs of $154,284) for the Employment Equity Act review as part of the Supplementary Estimates (B) 2022 to 2023.

20. Funding for the Employment Equity Act review (Reprofile) – $0.8 million

Of the funding granted in the Fall Economic Statement 2020, ESDC requested a re-profile of $0.8 million of lapsed funds under the Employment Equity Act review, related to enhanced community engagements that target more local and grassroots Indigenous and disability organizations.

This re-profile will assist organizations representing the equity-deserving communities to target more grassroots Indigenous and accessibility/disability communities and therefore, allow for an even wider range of views to be captured and shared with the task force.

ESDC is requesting authority to include $800,000 in Vote 5 (Grants and contributions) for the Employment Equity Act review as part of the Supplementary Estimates (B) 2022 to 2023.

21. Funding for the resettlement of Afghan refugees (Budget 2022) (horizontal item) – $0.2 million

Immigration, Refugees and Citizenship Canada (IRCC) led a multi-departmental Treasury Board submission seeking funding equal to the incremental increase in permanent resident admissions in addition to what has already been approved in the 2021 to 2023 Immigration Levels Plan. This plan includes increasing Canada’s resettlement commitment to up to 50,000 Afghan refugees.

With an increase in immigration levels due to the Afghan resettlement initiative, the Social Insurance Number (SIN) program anticipates a corresponding increase in the number of individuals accessing the program, including applications that require Tier II (complex cases) assistance.

ESDC is requesting $0.2 million to support incremental costs for the Social Insurance Number /Social Insurance Register (SIN/SIR) Tier II operations. This amount will enable SIN/SIR to support Citizen Service Officers (Tier I) operation of clinics including SIN services for resettled Afghan refugees in Canada.

ESDC is requesting authority to include $169,135 in Vote 1 (Operating expenditures, excluding EBP costs of $38,410) for the resettlement of Afghan refugees as part of the Supplementary Estimates (B) 2022 to 2023.

B. Transfers
22. From the Department of Indigenous Services to the Department of Employment and Social Development for the Indigenous Early Learning and Child Care Transformation Initiative – $14.6 million

This funding is being transferred to ESDC for the IELCC based on a recent decision taken by the First Nations of Quebec and Labrador Health and Social Services Commission (FNQLHSSC) to flow funding through ESDC which had previously been flowed through First Nations and Inuit Health agreements and was therefore allocated to Indigenous Services Canada 2022 to 2023 Main Estimates. The current Memorandum of Understanding, which sets out the terms and conditions for the transfer of funds for the IELCC, was amended and signed for additional funding for 2022 to 2023 of $14.6 million.

ESDC is requesting authority to include a transfer of $14,587,931 in Vote 5 (Contributions) from the Department of Indigenous Services for the Indigenous Early Learning and Child Care Transformation Initiative as part of the Supplementary Estimates (B) 2022 to 2023.

23. Internal reallocation of resources from Apprenticeship Grants ($115,000) to Support for Labour Market Information in Canada grants

The Labour Market Information Council (LMIC) is a non-profit organization that works to promote co-operation between federal, provincial and territorial (F/P/T) governments and other stakeholders, on Pan-Canadian and regional labour market information priorities.

The LMIC funding envelop is cost-shared between the Government of Canada ($1.1 million from ESDC, sourced from the Apprenticeship Grants) and the provinces and territories ($1.1 million, sourced from P/T on a per capita basis). ESDC and P/T governments’ contributions are managed via separate agreements, with the P/T portion flowing through the Forum of Labour Market Ministers (FLMM) Secretariat and ESDC porting through the Support for Labour Market Information in Canada grants.

The 2022 to 2023 payment to the LMIC increased by $0.1 million requiring a transfer from the Apprenticeship Grants to the Support for Labour Market Information in Canada grants.

ESDC is requesting authority to include an internal reallocation of resources from Apprenticeship Grants ($115,000) to Support for Labour Market Information in Canada grants as part of the Supplementary Estimates (B) 2022 to 2023. (Note: the internal reallocation does not increase the department’s Vote 5 funding).

24. Internal reallocation of resources from Apprenticeship Grants ($42,204,322) and Grant for the Union Training and Innovation Program ($1,300,000) to Canadian Apprenticeship Strategy grants

Budget 2019 announced the development of a new Canadian Apprenticeship Strategy to increase the impact of the Government’s current suite of apprenticeship supports and help address ongoing challenges across apprenticeship systems.

Implemented in 2022, the Canadian Apprenticeship Strategy provides a framework for federal apprenticeship initiatives that support a trades’ workforce that is skilled, inclusive, certified and productive. It builds on the success of apprenticeship measures such as the Union Training and Innovation Program, the Skilled Trades Awareness and Readiness Program, the Apprenticeship Grants, and the Apprenticeship Service, and supports pre-apprentices, apprentices, employers, unions and tradespeople to explore the skilled trades and participate in apprenticeship.

Going forward, the Apprenticeship Grants and the Grant for the Union Training and Innovation Program will be reported under the blended program title of Canadian Apprenticeship Strategy grants.

ESDC is requesting authority to include an internal reallocation of resources from Apprenticeship Grants ($42,204,322) and Grant for the Union Training and Innovation Program ($1,300,000) to Canadian Apprenticeship Strategy grants as part of the Supplementary Estimates (B) 2022 to 2023. (Note: the internal reallocation does not increase the department’s Vote 5 funding).

25. From various organizations to the Treasury Board Secretariat to support the Capacity Accelerator Project – $0.03 million

This funding contributes to the internal audit community services and initiatives delivered by the Office of the Controller General which aims to reinforce the internal audit function’s role as a credible and timely assurance provider that advises management in light of the organization’s strategy, objectives and tolerance for risk for the whole of Government of Canada.

ESDC is requesting authority to include a transfer of $30,000 in Vote 1 (Operating expenditures) to the Treasury Board Secretariat to support the Capacity Accelerator Project as part of the Supplementary Estimates (B) 2022 to 2023.

26. From the Department of Employment and Social Development to the Department of Natural Resources in support of the 2 Billion Trees program activities – $0.1 million

This transfer of $0.1 million from ESDC to Natural Resources Canada is to support the planting of 25,000 trees in Canada. This includes appropriate site preparation, planting, and monitoring activities to support a high survivability rate of the trees. These trees are to be over and above what the 2 Billion Trees program would otherwise be able to support and in support of sequestering carbon related to ESDC procurement efforts.

ESDC is requesting authority to include a transfer of $125,000 in Vote 1 (Operating expenditures) to the Department of Natural Resources in support of the 2 Billion Trees program activities as part of the Supplementary Estimates (B) 2022 to 2023.

27. From the Department of Employment and Social Development to the Department of Crown-Indigenous Relations and Northern Affairs to support Indigenous Skills and Employment Training and Indigenous Early Learning and Child Care – $27.1 million

Under the IELCC Initiative, Indigenous partners have the flexibility to request that some or all of their funding be advanced through existing funding agreements with a selection of federal departments that deliver IELCC programs, namely, ESDC, Indigenous Services Canada, Public Health Agency of Canada, and Crown-Indigenous Relations and Northern Affairs Canada.

This approach supports commitments outlined in the co-developed IELCC Framework relating to flexibility and streamlined service delivery for Indigenous partners.

In 2022, a number of Indigenous partners requested that their IELCC funding be advanced through agreements with CIRNAC, for a total of $27.1 million. These Indigenous partners are: the Kativik Regional Government in Quebec, Nunatsiavut Government in Newfoundland and Labrador and a selection of Metis Nation partners - Métis National Council, Métis Nation of Alberta, Métis Nation of Saskatchewan and the Manitoba Métis Federation.

ESDC is requesting authority to include a transfer of $27,087,752 in Vote 5 (Contributions) to the Department of Crown-Indigenous Relations and Northern Affairs to support Indigenous Skills and Employment Training and Indigenous Early Learning and Child Care as part of the Supplementary Estimates (B) 2022 to 2023.

C. Statutory budgetary authorities
28. Contributions to employee benefit plans – Increase of $21.2 million

Contributions to employee benefit plans (EBP) include costs to the government for the employer’s matching contributions and payments to the Public Service Superannuation Plan, the Canada and the Quebec Pension Plans, death benefits, and the Employment Insurance Operating Account.

The forecasted increase of $21,202,344 in Statutory Authorities is directly linked to the Vote 1 – Operating expenditures funding being requested through the Supplementary Estimates (B) for the Voted Appropriations items presented in Section A (Items 1, 2, 3, 4, 5, 6, 9, 10, 16, 17, 19 and 21) above.

Key quotes

NIL

  • Prepared by: Martine Rioux, Senior Director, Planning and Expenditure Management, CFOB
  • Key contact: Brian Leonard, Deputy Chief Financial Officer, [phone number redacted]
  • Approved by: Karen Robertson, Chief Financial Officer, [phone number redacted]
  • Date: October 31, 2022

7.b Placemat ESDC 2022 to 2023 Supplementary Estimates (B) overview

Alternate formats

ESDC 2022 to 2023 Supplementary Estimates (B) overview [PDF - 383 KB]

ESDC is requesting a total of $411.4 million in additional authorities through the Supplementary Estimates (B), which would bring the total planned spending to $174.8 billion.

Figure 1: ESDC Total Planned Spending and Estimates to Date
Chart of insert chart title: description follows
Figure 1: Text version

Figure on the left: ESDC total planned spending is $174.8 billion

  • EI Benefits planned spending is $24.8 billion or 14.2% of total planned spending
  • CPP Benefits planned spending is $57.2 billion or 32.7% of total planned spending
  • Other EI and CPP Recoveries and Workers Compensation planned spending is $2.5 billion or 1.4% of total planned spending
  • EI and CPP Operating Costs planned spending is $2.6 billion or 1.5% of total planned spending
  • Estimates to date (Main Estimates plus Supplementary Estimates A plus Supplementary Estimates B) represents $87.7 billion or 50.2% of total planned spending

Figure on the right: ESDC Estimates to date is $87.7 billion

  • Statutory planned spending is $75.7 billion or 86% of total Estimates to date
  • Vote 1 – Operating Expenditures planned spending is $1.4 billion or 2% of total Estimates to date
  • Vote 5 – Grants and Contributions planned spending is $10.6 billion or 12% of total Estimates to date

Of the $174.8 billion in planned spending, $87.7 billion is reported in the Estimates, out of which $86.3 billion are statutory and voted transfer payment programs. The following voted and statutory programs are included in ESDC’s planned spending:

Of the $411.4 million requested through Supplementary Estimates (B), the following items fall under the responsibility of the Minister of Families, Children and Social Development:

Figure 2: Canadians have access to ESDC services at 600 points of service
Figure 2: Canadians have access to ESDC services at 600 points of service: description follows
Figure 2: Text version
  • ESDC has 338 Service Canada centres (including Passport Offices out of which 15 are consolidated and 21 standalone)
  • ESDC provides services to 247 Scheduled Outreach sites (146 were reactivated as of November 21, 2022)
  • ESDC has access to 15 Service Delivery Partner sites

ESDC footprint has a total of 405 sites, which include the above Service Canada centres, general office spaces, passport print, processing and call centre locations.

As of January 1st, 2023, ESDC’s total number of FTEs (including Passport employees) is 37,234.

7.c. Black-led Philanthropic Endowment Fund

Issue

Why is Employment and Social Development Canada (ESDC) requesting $199.9 million for the Black-Led Philanthropic Endowment Fund in the Supplementary Estimates (B) for fiscal year ending March 31, 2023?

Key facts

Budget 2021 announced the investment of $200 million to create a new Black-Led Philanthropic Endowment Fund.

Led by Black Canadians for Black Canadians, the Endowment Fund will create a sustainable source of funding for Black-led, Black-focused and Black-serving charities and non-profits working to combat anti-Black racism and improve social and economic outcomes in Black communities.

On October 3, 2022, the Honourable Ahmed Hussen, Minister of Housing and Diversity and Inclusion, launched a call for proposals inviting Black-led and Black-serving not-for-profit organizations and charities to submit a proposal to administer the Endowment Fund. 

Response

The Government has taken action to reduce anti-Black racism and improve social and economic outcomes in Black communities. As one step toward these goals, a call for proposals to implement the Black-Led Philanthropic Endowment Fund has been launched.

The Black-Led Philanthropic Endowment Fund seeks to create a sustainable source of funding for Black-led, Black-focused and Black-serving non-profit organizations and registered charities. Through it, the Government of Canada will provide one national Black-led and Black-serving recipient organization with an endowment of $199,476,227.

ESDC is accepting applications from October 3, 2022 to November 25, 2022 at 12 pm (noon) Eastern daylight time. ESDC is requesting $199.9 million for fiscal year ending March 31, 2023 as it is expected a funding decision will be made in early 2023.

The endowment fund is intended to last for generations. Funding to the Black-led and Black-serving recipient will be made under the Minister of Finance Policy on Up-Front Payments. This payment is expected to occur late in the fiscal year ending March 31, 2023.

Background

Table 14: Funding for the Black-Led Philanthropic Endowment Fund
Funding ($) and FTE Existing funding (DP 2022 to 2023) Supplementary Estimates B Total funding
FTE 0 3 3
Salary 0 301,938 301,938
O and M 0 128,234 128,234
Total Operating (Vote 1) 0 430,172 430,172
G and C (Vote 5) 0 199,476,227 199,476,227
Sub-Total 0 199,906,399 199,906,399
EBP 0 81,523 81,523
Total 0 199,987,922 199,987,922

Key quotes

Diversity is a fact, but inclusion is a choice. Our government recognizes the systemic barriers that Black communities continue to face, and we are committed to ensuring that the Black-Led Philanthropic Endowment Fund provides direct supports to Black-led charities and non-profit organizations across the country. We will continue to build on our progress toward a more inclusive and more equitable Canada where no one is left behind.

Ahmed Hussen, Minister of Housing and Diversity and Inclusion
  • Prepared by: Jonathan Wells Manager
  • Key contact: Monika Bertrand, Director General, [phone number redacted]
  • Approved by: Karen Hall, Assistant Deputy Minister, [phone number redacted]
  • Date: October 31, 2022

7.d. Old Age Security workload

Issue

Why is Employment and Social Development Canada (ESDC) requesting $46.4 million to increase Old Age Security workload capacity in the Supplementary Estimates (B) for fiscal year ending March 31, 2023?

Key facts

Baseline financial authorities for the delivery of the Old Age Security (OAS) program have not been adjusted since they were established in 2004 to 2005.

An aging population and rising life expectancy have increased the OAS client base and resulted in an unprecedented growth in workload. For instance, the number of OAS beneficiaries has grown by 67% over the last 18 years, from 4.2 million in 2004 to 2005 to 6.9 million in 2021 to 2022. This is in addition to the increased complexity of the program, labour market changes and impacts of the COVID‑19 pandemic.

Since 2012 to 2013, the Department sought annual incremental funding for the delivery of the program as baseline financial authorities are not suitable to address current demand and corresponding workload needs.

In spring 2022, the Department received approval for OAS Workload in the amount of $282.7 million over 3 years (2022 to 2023, to 2024 to 2025). Of that, $46.4 million was approved for 2022 to 2023 for personnel and operating costs, excluding Employee Benefit Plans and Shared Services.

Response

The Old Age Security (OAS) program is one of the largest programs of the Government of Canada. In 2021 to 2022, the program paid $60.8 billion in benefits to 6.9 million beneficiaries.

Through a deferred Budget 2022 decision, ESDC is requesting $46.4 million in funding for 2022 to 2023 to address the demographically-driven OAS workload increase, to slow growing inventory levels and to increase the Pensions Call Centre’s capacity to better respond to client enquiries and minimize impacts to wait times.

In the absence of these funds, the Pensions Call Centre forecasts that wait times would increase to an estimated average of 60 minutes in 2023 to 2024, with some being over an hour and longer during periods of high call volume.

Without this funding, inventory levels are also expected to rise close to 3 million work items by the end of 2023 to 2024.

Background

Table 15: Funding for the Old Age Security workload
Funding ($) and FTE Existing funding (DP 2022 to 2023) Supplementary Estimates B Total funding
FTE 2,118 381 2,499
Salary 140,199,931 29,192,760 169,392,691
O&M 39,228,323 17,227,485 56,455,808
Total Operating (Vote 1) 179,428,254 46,420,245 225,848,499
G and C (Vote 5) 0 0 0
Sub- Total 179,428,254 46,420,245 225,848,499
EBP 37,853,981 7,882,045 45,736,026
Total 217,282,235 54,302,290 271,584,525

The Old Age Security (OAS) program is one of the largest programs of the Government of Canada. In 2021 to 2022, the program paid $60.8 billion in benefits to 6.9 million seniors. For a significant number of these seniors, the OAS benefits (in particular the Guaranteed Income Supplement [GIS] and other income‑tested benefits) represent their only source of income. Not receiving these core benefits on time can cause serious financial hardship.

The OAS workload refers to the processing of OAS applications, revisions to benefits and appeals, as well as the supporting elements that provide oversight, ensure timeliness and quality. An aging population and rising life expectancy has increased the OAS client base, and therefore the workload.

The number of OAS clients has grown by 67% since 2004 to 2005. According to the Office of the Superintendent of Financial Institutions (OSFI), the number will grow by 53% over the period 2020 to 2035, reaching 10.1 million by 2035. Approximately 62,000 new work items are received on a weekly basis. Any work items that are not completed within 30 working days become inventory.

ESDC has had to supplement its A-base funding on an annual basis to address evolving workload requirements and to offset workload pressures. Since 2012 to 2013, ESDC has received incremental funding on multiple occasions to offset workload pressures. This has represented on average 40% of the OAS processing budget since 2016 to 2017, going as high as 48% in 2020 to 2021.

Despite this supplement, current inventory levels are rising. At the end of Fiscal Year 2021 to 2022, there were close to 775,000 work items in the OAS inventory; however, the current inventory level for year-to-date (as of September 18, 2022) is approximately 1,215,256 work items. The current processing state shows that service standards can be achieved with an inventory level of 650,000 to 750,000. The Pensions Call Centre wait times are rising as well. In 2021 to 2022, the average wait time was 24 minutes. As of September 16, 2022, the year-to-date average wait time is 50.5 minutes.

This funding will equip ESDC to address workload pressures, slow the growth of inventory levels, and allow more seniors to speak to a Pensions call centre agent.

Key quotes

NIL

  • Prepared by: Maren Delion, Director, Strategic Directions Directorate, Benefits and Integrated Services Branch, [phone number redacted]
  • Benoit Julien, Executive Director, CPP and OAS Operations, Benefits and Integrated Services Branch, [phone number redacted]
  • Key contact: Barbara Curran, Director General, CPP and OAS Operations, Benefits and Integrated Services Branch, [phone number redacted]
  • Approved by: Tammy Bélanger, Senior Assistant Deputy Minister, Benefits and Integrated Services Branch, [phone number redacted]
  • Date: October 7, 2022

7.e. Stabilization of Information Technology (IT)

Issue

Why is Employment and Social Development Canada (ESDC) requesting $16.3 million to stabilize information technology to support program delivery in the Supplementary Estimates (B) for fiscal year ending March 31, 2023?

Key facts

ESDC provides billions of dollars in direct benefits to millions of Canadians every year.

ESDC information technology (IT) systems that enable the Department's service delivery are at risk of failure due to years of underinvestment.

Recognizing the need to stabilize and remediate ESDC's IT systems, the Government of Canada approved an off-cycle funding request in May 2020 of $469 million over 6 years (2020 to 2021, to 2025 to 2026) to implement ESDC’s Technical Debt Remediation Initiative.

This request is required to continue work to address pressing issues and stabilize ESDC’s aging IT systems.

Response

ESDC is the largest federal service delivery organization in Canada. However, decades of chronic underinvestment in information technology (IT) have put ESDC in an unprecedented situation where the systems could fail and affect the ongoing delivery of critical programs and services to Canadians.

In 2022 to 2023, additional operational funding of $64.9 million is required to continue activities addressing the most pressing issues facing ESDC’s aging IT systems, such as improving network performance, stabilizing aging IT, and establishing disaster recovery solutions to improve the ability to meet the Department’s business recovery objectives.

The $16.3 million represents the Consolidated Revenue Fund's portion of the additional funding required for the fiscal year 2022 to 2023 without Employee Benefits Plans (EBP) costs. In addition, $40.2 million is funded from the Employment Insurance (EI) Operating Account and $8.4 million from the Canada Pension Plan (CPP) which are not included in the Estimates.

Background

Table 16: Additional funding as presented in the Supplementary Estimates B (CRF only)
Vote 1 funding ($) and FTE Existing funding New funding Reprofile Supplementary Estimates B Total Vote 1 funding
FTE 0 28 0 28 28
Salary 0 3,052,958 0 3,052,958 3,052,958
O and M 2,348,500 11,786,292 1,412,157 13,198,449 15,546,949
Total Operating 2,348,500 14,839,250 1,412,157 16,251,407 18,599,907
EBP 0 824,299 0 824,299 824,299
Total (Vote 1) 2,348,500 15,663,549 1,412,157 17,075,706 19,424,206
Table 17: Total additional funding (including CRF, EI and CPP components)
Total (including EI and CPP) funding ($) and FTE Existing funding New funding Reprofile Additional funding Total funding
FTE 0 79 0 79 79
Salary 0 8,503,116 0 8,503,116 8,503,116
O and M 15,312,744 50,404,476 6,013,017 56,417,493 71,730,237
Total Operating 15,312,744 58,907,592 6,013,017 64,920,609 80,233,353
EBP 0 2,295,841 0 2,295,841 2,295,841
Grand Total 15,312,744 61,203,433 6,013,017 67,216,450 82,529,194

ESDC's IT systems are aging. For example, the IT systems that support the 3 major statutory programs (Employment Insurance, Canada Pension Plan and Old Age Security) are at the end of their lifecycles.

In May 2020, the Government of Canada approved off-cycle funding of $469 million over 6 years (2020 to 2021, to 2025 to 2026) to implement risk mitigation activities.

The operating cost in 2022 to 2023 for the Technical Debt Remediation Initiative is $80.2 million. This includes $15.3 million from the Department’s existing funding and additional funding of $64.9 million. The latter is composed of new funding of $58.9 million approved in June 2022 and $6.0 million of funding received by ESDC in 2021 to 2022 and reprofiled to 2022 to 2023. The reprofile was required as a result of revised timelines for projects and procurement activities led by Shared Services Canada.

Key quotes

NIL

  • Prepared by: Susan Donovan Brown, Director General, Business Operations Sustainability; Innovation, Information and Technology Branch, [phone number redacted]
  • Key contact: Susan Donovan Brown, Director General, Business Operations Sustainability; Innovation, Information and Technology Branch, [phone number redacted]
  • Approved by: Peter Littlefield, Chief Information Officer, [phone number redacted]
  • Date: October 13, 2022

7.f. Benefit Delivery Modernization

Issue

Why is Employment and Social Development Canada (ESDC) requesting a re-profile of $13.5 million for the Benefits Delivery Modernization in the Supplementary Estimates (B) for fiscal year ending March 31, 2023?

Key facts

In Budget 2021, the Government of Canada (GC) committed to accelerating the replacement of the Old Age Security (OAS) Solution to minimize the risk of this 60-year-old system failing and impacting seniors’ benefits.

The Benefits Delivery Modernization (BDM) Programme is implementing a Common Benefits Delivery (CBD) platform, which was chosen as the new, modern technology to deliver OAS and eventually other benefits. By replacing the legacy system, the CBD will mitigate the risk of information technology (IT) failure and maintain the GC’s ability to issue benefit payments to seniors.

It will also provide the OAS program the necessary infrastructure to continue to modernize business processes, as well as provide the technical flexibility to address any future legislative and policy changes more effectively.

Response

This re-profile will fund the continued enhancement of a Common Benefits Delivery platform and its capabilities to eventually onboard multiple benefits, beginning with the OAS program. This includes finalizing the acquisition, build and deployment of the tools which will enhance workforce, workload and knowledge management in addition to a new contact centre to enable well-trained, integrated workforce to deliver service excellence to Canadians.

In order to de-risk the full implementation of OAS-on-BDM, the Department is avoiding a big bang approach and has planned 3 incremental Releases that build on each other. The full implementation is anticipated to be complete in December 2024, plus 9 months of stabilization.

The Department continues to contribute towards the achievement of the Minister of Families, Children, and Social Development Mandate Letter commitment, as the Minister responsible for Service Canada, to lead the development and implementation of modern, resilient, secure, and reliable services and benefit delivery systems for Canadians.

Background

The Department of Employment and Social Development (ESD) has developed a plan to establish a Common Benefits Delivery (CBD) platform (including identity management capabilities) that will be ready to onboard benefits. The CBD platform is a key requirement for the Benefits Delivery Modernization (BDM) Programme, and completing its deployment will prepare for the onboarding of Old Age Security (OAS), Employment Insurance (EI), and Canada Pension Plan (CPP) benefit programs, as well as provide scalability for other benefit programs as decided by the Government of Canada (GC).

The Programme experienced delays in establishing the foundation of the CBD platform due to velocity and network access issues which, in turn, had an impact on the remaining foundations deliverables. As a result, the completion of the Foundations phase has been pushed out to autumn 2022, from the original April 2022 target.

In order to mitigate the risk to OAS implementation timelines, the schedule was revised to prioritize the foundations capabilities necessary for OAS onboarding. Additionally, the Programme is undertaking a re-organization of the projects to optimize project teams to deliver OAS in the near term, and other benefits in the medium term.

The transformative nature of the BDM Programme, including the modernization of business processes and technology supporting OAS, EI and CPP programs, makes this a high-risk endeavor that is likely to stay high-risk for its duration. The Programme has progressively implemented mitigations on risks related to planning, estimates, vendor management and system integration since its start in April 2021 thereby reducing the overall number of risks the Programme is managing. In its focus to deliver the CBD platform to support OAS as the first benefit, BDM will be advancing on de-risking data migration and striking a balance between planning and execution.

Table 18: Funding for the onboarding of the Old Age Security on the Benefits Delivery Modernization (OAS on BDM)
Funding ($) Existing funding Reprofile Total funding
Salary – Consolidated Revenue Funds 21,234,742 1,809,185 23,043,927
O and M – Consolidated Revenue Funds 143,208,396 9,720,150 152,928,546
Total OAS on BDM 164,443,138 11,529,335 175,972,473
Table 19: Funding for the Benefits Delivery Modernization – Foundations Phase (BDM Foundations)
Funding ($) Existing funding Reprofile Total funding
Salary – Consolidated Revenue Funds 4,266,376 0 4,266,376
O and M – Consolidated Revenue Funds 8,208,729 2,001,915 10,210,644
Salary – Employment Insurance 62,573,524 0 62,573,524
O and M - Employment Insurance 126,175,251 47,744,658 173,919,909
Salary – Canada Pension Plan 4,266,377 0 4,266,377
O and M – Canada Pension Plan 8,602,671 3,183,478 11,786,149
Total BDM Foundations 214,092,928 52,930,051 267,022,979
Table 20: Funding for the Total OAS on BDM and BDM Foundations
Total funding ($) Existing funding Reprofile Total funding
Consolidated Revenue Funds 176,918,243 13,531,250 190,449,493
Employment Insurance 188,748,775 47,744,658 236,493,433
Canada Pension Plan 12,869,048 3,183,478 16,052,526
Grand Total 378,536,066 64,459,386 442,995,452

Key quotes

NIL

  • Prepared by: Kari Beach, Executive Director, [phone number redacted]
  • Key contact: Kari Beach, Executive Director, [phone number redacted]
  • Approved by: Jacques Cormier, Assistant Deputy Minister
  • Date: October 12, 2022

7.g. Make Service Canada centres safe and secure

Issue

Why is Employment and Social Development Canada (ESDC) requesting $5.9 million to make Service Canada centres (SCCs) safe and secure in the Supplementary Estimates (B) for fiscal year ending March 31, 2023?

Key facts

The Department received $29.8 million in funding in Budget 2022, out of which $5.9 million is funded from the CRF. The remaining portion of $20.3 million is funded from the EI Operating Account and $3.6 million from the CPP which are not included in the Estimates. This funding enabled 317 SCCs to be open during 2022 to 2023and is being used to comply with public health requirements by maintaining commissionaire/security guard services to enforce health and safety measures.

Service requests completed at SCCs have been increasing significantly since reopening in summer 2020. The cumulative client volume of the in-person channel has increased from approximately 1.5 million in 2020 to 2021 to 3 million in 2021 to 2022.

The Service Canada Client Experience Survey 2020 to 2021 shows that 87% of clients who used the in‑person channel reported that they were provided service in a way that protected their health and safety during the COVID‑19 pandemic.

SCCs serve all segments of the Canadian population. However, certain groups tend to be more reliant on the in-person service channel. Based on the Service Canada Client Experience Survey 2020 to 2021, certain at risk clients are more likely to use the in-person channel, as outlined below:

Response

This funding addresses public health requirements necessary to provide in-person services to the public, particularly Occupational Health and Safety requirements relevant to the Department’s obligations as an employer.

While active screening and tracking of employees and visitors on-site is no longer required, all persons entering SCCs are required to wear a medical mask or respirator. Differences between provincial and federal masking requirements creates points of friction with the public. Combined with the return to full occupancy and particularly high volumes of clients, the situation necessitates a continued commissionaire presence at SCCs.

This funding is necessary to maintain access to in-person services through SCCs, especially for at‑risk groups that are more reliant on the in-person network.

Background

Table 21: Funding for making Service Canada centres (SCCs) safe and secure
Funding ($) Existing funding Supplementary Estimates B Total funding
O and M - Consolidated Revenue Fund 0 5,941,433 5,941,433
O and M – Employment Insurance 0 20,238,006 20,238,006
O and M – Canada Pension Plan 0 3,620,561 3,620,561
Total 0 29,800,000 29,800,000

Key quotes

NIL

  • Prepared by: Michel Poulin, Manager
  • Key contact: Peter Boyd, Executive Director, [phone number redacted]
  • Approved by: Karl Carisse, Director General, [phone number redacted]
  • Date: October 2, 2022

7.h. ELCC Reprofile

Issue

Why is Employment and Social Development Canada (ESDC) requesting a re-profile of $4.4 million for the Early Learning and Child Care Program in the Supplementary Estimates (B) for fiscal year ending March 31, 2023?

Key facts

Budget 2017 announced $100 million over 10 years for the Early Learning and Child Care (ELCC) Innovation Program and the 2020 Fall Economic Statement made that funding permanent with $15 million annually starting in 2028 to 29.

ESDC is requesting to re-profile $4.4 million of the 2021 to 2022 ELCC lapses in grants and contributions to 2022 to 2023. Funding to be re-profiled consists of $152,000 to support early learning and child care (ELCC) Data and Research, and $4,270,357 dedicated to ELCC Innovation Projects.

ELCC Data and Research funding facilitates the involvement of the broader expert community and organizations (academia, stakeholders and other non-government organizations) in the development of new projects to address long-standing ELCC data and research gaps.

The re-profiling of grants funding for ELCC Data and Research is requested due to delays in working with Indigenous partners, changes in the organizational mechanism to launch calls for proposals for data and research projects, and changes in organizational capacity during the year.

The 2020 ELCC Innovation Program Call for Proposals ran from October 30, 2020 to January 7, 2021 and resulted in a significantly higher number of applications than anticipated, which prolonged the assessment period. While projects were ultimately approved in late 2021, funding did not flow to recipients until 2022 to 2023.

Re-profiling $4.2 million of ELCC Innovation Program funding will help to ensure continued outcomes at the national, regional and local levels.

Response

The 2020 ELCC Innovation Program Call for Proposals resulted in a significantly higher number of applications than anticipated. The assessment period was prolonged and funding timelines were delayed.

$4.2 million in re-profiled funds will support multi-year projects starting in 2022 to 2023, ensuring the continued positive impact of the ELCC Innovation Program.

Reprofiled funds for ELCC Data and Research will support the broader expert community in the development of new projects to address ELCC data and research gaps.

Background

Table 22: Existing funding, Supplementary Estimates B and total funding, 2022 to 2023
Funding ($) Existing funding 2022 to 2023 Supplementary Estimates B 2022 to 2023 Total funding 2022 to 2023
Subventions 1,250,000 152,500 1,402,500
Contributions 11,702,668 4,270,357 15,973,025
Total Vote 5 12,952,668 4,422,857 17,375,525

Budgets 2016 and 2017 committed $7.5 billion over 11 years for ELCC, starting in 2017 to 2018, including $195 million, over 10 years, for investments in child care innovation and data and research.

ELCC Innovation Program

The ELCC Innovation Program supports the exploration, testing and development of innovative approaches to support children and families’ access to high-quality, affordable, flexible and inclusive early learning and child care programs and services across the country. The scope of the projects are either local, regional or national and target the needs of children under 6 years of age and their families.

The 2020 ELCC Innovation Program Call for Proposals ran from October 30, 2020 to January 7, 2021 and resulted in a significantly higher number of applications than anticipated, which prolonged the assessment period.

While projects were ultimately approved in late 2021, funding did not flow to recipients until 2022 to 2023. Therefore, the $14.5 million planned in 2021 to 2022 was sought for reprofile to next 3 years (2022 to 2023, to 2024 to 2025), including a re-profile of $4.2 million portion into fiscal year 2022 to 2023.

ELCC Data and Research

ELCC Data and Research funding is to address key information gaps and improve internal knowledge capacity required for building the Canada-wide system. ELCC data and research funding supports reporting, addresses ELCC data and research gaps to inform policy development, and improves measurement and understanding of the impact of ELCC investments on children and families. It also facilitates the exchange and dissemination of ELCC research supporting evidence‑based policy development and effective decision-making.

In 2021 to 2022, $850,000 of ELCC Data and Research – Operating and Maintenance funding was converted into grants and contributions to diversify federal data and research investments, which currently rely primarily on projects with Statistics Canada. A grants and contributions program facilitates broader stakeholder participation in contributing to data and research projects, including to promote and enable Indigenous‑led data and research activities, and facilitate new approaches to knowledge exchange. For example, knowledge exchange activities could include ELCC data and research conferences or workshops where data and research findings and projects can be disseminated, and information exchange with all orders of government and society, including academia, Indigenous organizations, ELCC advocates and organizations, and the general public.

The re-profiling of grants funding for ELCC data and research is requested due to delays in working with Indigenous partners, changes in the organizational mechanism to launch calls for proposals for data and research projects, and changes in organizational capacity during the year.

Key quotes

NIL

  • Prepared by: Lyne Deschênes, Manager, [phone number redacted]
  • Key contact: Chloe McIsaac, Director, [phone number redacted]
  • Approved by: Michelle Lattimore, Director General, [phone number redacted]
  • Date: October 2, 2022

7.i. Transfer from ISC for IELCC

Issue

Why is Employment and Social Development Canada (ESDC) requesting a re-profile of $4.4 million for the Investment Readiness Program in the Supplementary Estimates (B) for fiscal year ending March 31, 2023?

Key facts

Budget 2021 announced $50 million over 2 years ($25 million each fiscal year) for a renewed Investment Readiness Program (IRP) starting in 2021 to 2022.

Of the $23 million available in 2021 to 2022 grants and contribution funding, $15 million were committed into these agreements, resulting in uncommitted funds of approximately $7.7 million. ESDC is requesting to re-profile these uncommitted funds across 2 fiscal years (2022 to 2023 and 2023 to 2024).

Response

In 2021 to 2022, ESDC experienced delays in implementing the renewed Investment Readiness Program. ESDC enacted a new public process that, while increasing transparency, significantly lengthened the timeline required to conduct a solicited call for proposals.

As a result, the first group of funding agreements were not signed until March 2022 leaving 1 full fiscal year (2022 to 2023) to complete project activities while approved project proposals outlined an 18 to 24 month timeframe.

In order to meet the intended outcomes of the program, a re-profile is being requested to move uncommitted fiscal year 1 (2021 to 2022) funds into fiscal year 2 (2022 to 2023) and fiscal year 3 (2023 to 2024). ESDC is requesting to move $4.4 million into the current fiscal year, ending March 31, 2023, and to move the remaining $3.3 million into the fiscal year 2023 to 2024.

ESDC worked closely with the recipients to determine how much they could realistically spend in fiscal year 2021 to 2022. As a result, the ESDC was able to commit $15 million in 2021 to 2022 into these agreements, leaving approximately $7.7 million in uncommitted funds.

Re-profiling these funds across 2 fiscal years will help mitigate the impact caused by the delays and give funding recipients the time they need to complete their project activities. The re-profile will also ensure that the program achieves the results and outcomes it has committed to.

Background

Table 23: Funding for the Investment Readiness Program
Funding ($) Existing funding Supplementary Estimates B Total funding
Grants 2,000,000 0 2,000,000
Contributions 20,826,508 4,356,106 25,182,614
Total Vote 5 22,826,508 4,356,106 27,182,614

Key quotes

NIL

  • Prepared by: Danielle Lediard, Policy Analyst
  • Key contact: Corinne Baggley, Director, [phone number redacted]
  • Approved by: Karen Hall, Associate Assistant Deputy Minister, [phone number redacted]
  • Date: October 13, 2022

7.j. IELCC Reprofile

Issue

Why is Employment and Social Development Canada (ESDC) requesting a reprofile of $1.9 million for the Indigenous Early Learning and Child Care (IELCC) in the Supplementary Estimates (B) for fiscal year ending March 31, 2023?

Key facts

In 2022 to 2023, a selection of Indigenous governments partnering with the Government of Canada on the implementation of the IELCC Transformation Initiative requested adjustments to their planned multi-year funding allocations. Adjustments were requested in order to respond to the impact of the pandemic on their communities, and to provide partners additional time to position, plan and expend the incremental IELCC investments.

Indigenous partners who made these requests included the Akaitcho Territory Government in North West Territories (NWT), Tlicho Government in NWT, Métis National Council in the National Capital Region, Nunavut and Kitikmeot Inuit Association in Nunavut.

The COVID‑19 pandemic has impacted Indigenous governments' and communities' ability to implement planned early learning and child care initiatives and expend Budget 2021 funding given the continued need to focus Indigenous leadership attention and community resources on pandemic responses. A selection of Indigenous governments have requested carry-forward of funds as a result.

To respond to these requests from Indigenous governments, ESDC is re-profiling $11.9 million in funding from 2021 to 2022 into future years, including $1.9 million in 2022 to 2023. The funding being re-profiled originally comes from announcement made in Budget 2017, the 2020 Fall Economic Statement and in Budget 2021 for the IELCC.

Response

The proposed reprofile ($1.9 million) corresponds to incremental funding provided in 2021 to 2022 to support Indigenous priorities in establishment of a Canada-wide ELCC system – a key government commitment.

The request for responds to updated funding allocation and implementation decisions from Indigenous governments.

IELCC investments are managed through a partnership model between the Government of Canada and Indigenous partners. Under this model, Indigenous governments are at the forefront of decision-making on funding allocations, plans and priorities.

The reprofile would provide Indigenous communities impacted by the pandemic more time to spend funding that was planned for 2021 to 2022.

The funds provided will advance commitments outlined in the co-developed IELCC Framework and supporting strategies and work plans developed by individual First Nation, Inuit and Métis communities. Examples of funding activities include: the development of a culturally appropriate Early Childhood Educator training program for Tlicho communities and enhancing early childhood educator staff retention at Day Cares and Aboriginal Headstart programs for Inuit in Nunavut through wage subsidy programs.

Background

Table 24: Funding for the IELCC Transformation Initiative
Funding ($) Existing funding Supplementary Estimates B Total funding
Contributions (Vote 5) 245,355,330 1,885,963 247,241,293

The reprofile includes amounts for Akaitcho Territory Government, NWT, Tlicho Government in NWT, Métis National Council in the National Capital Region, Nunavut and Kitikmeot Inuit Association in Nunavut.

Additional background on IELCC

Budget 2017 announced $1.7 billion over 10 years, starting in 2018 to 2019, to advance the goals of the Indigenous and Early Learning and Child Care (IELCC) Framework and support a range of culturally appropriate early learning and child care programs and services.

In September 2018, the Government of Canada released the co-developed Indigenous Early Learning and Child Care Framework (the Framework) alongside leaders from the Assembly of First Nations, Inuit Tapiriit Kanatami, and the Métis National Council. The Indigenous ELCC Framework sets the stage for Indigenous led ELCC systems policy, programs and supports for Indigenous children and families, now and in the future. It sets out a vision, principles and is a guide for all actors in the Indigenous ELCC sphere.

Subsequent incremental investments provided through the 2020 Fall Economic Statement and Budget 2021 ($2.5 billion over 5 years and $542 million annually ongoing) build on this and will serve to advance Indigenous priorities and participation in the design of a Canada-wide ELCC system. The Indigenous ELCC Transformation Initiative also aligns with the Government of Canada’s broader priorities relating to Indigenous peoples including reconciliation and a nation-to-nation relationship.

The Indigenous Early Learning and Child Care Transformation Initiative is a horizontal initiative across multiple federal departments. New flexible programming authorities enable Indigenous-led investments in a broad range of ELCC priorities for all Indigenous children and families no matter where they live in Canada. The Initiative is using a new partnership model to facilitate Indigenous-led decision making to advance national and regional priorities.

The distinctions-based Indigenous ELCC funding envelopes are managed in partnership with First Nations, Inuit and the Métis Nation. This partnership model – in which First Nations, Inuit and Métis Governments make decisions jointly with the Government of Canada on Indigenous ELCC funding for priorities of their choosing – is already being implemented across the country as part of the Indigenous ELCC Transformation Initiative.

Key quotes

Indigenous peoples are important partners in establishing the new Canada-wide early learning and child care system. Early learning and child care programs designed by and with Indigenous families and communities will provide Indigenous children the best start in life. This necessitates collaboration, leadership and investment by all levels of government in a spirit of respect, cooperation and reconciliation.

Former Minister of Families, Children and Social Development (now Minister of Diversity, Inclusion and Youth) the Honourable Ahmed Hussen, July 2021
  • Prepared by: Stephanie Toulouse, Policy Analyst, [phone number redacted]
  • Key contact: Francis Nolan Poupart, Director, IELCC, [phone numbers redacted]
  • Approved by: Cheri Reddin, Director General, [phone number redacted]
  • Date: October 12, 2022

7.k. Immigration Levels Plan

Issue

Why is Employment and Social Development Canada (ESDC) requesting $169 thousand for the resettlement of Afghan Refugees (Budget 2022) in the Supplementary Estimates (B) for fiscal year ending March 31, 2023?

Key facts

The Social Insurance Number (SIN) is a file number that citizens and permanent or temporary residents must obtain in order to work in Canada or to receive various benefits and services from government programs.

The issuance of SINs during the ongoing Afghan resettlement initiative has been successful due to the partnership with Immigration, Refugees and Citizenship Canada (IRCC) and ESDC / Service Canada in organizing specialized clinics.

The SIN Program’s public services include the work of Citizen Services Officers (Tier I) across Canada, and of SIN/Social Insurance Register (SIR) Officers (Tier II – for complex cases) located in in Bathurst, New Brunswick.

Tier I processes the majority of SIN applications and uses a longstanding process between the 2 departments that enables the electronic validation of immigration documents directly with IRCC. This secure channel mitigates the risk of issuing the wrong SIN to the wrong individual. However, issues sometimes arise with document validation and require escalation to Tier II. Funding will therefore enable Tier II to provide support if the validation of that document fails.

With an increase in immigration levels due to the Afghan resettlement initiative, the SIN Program anticipates a corresponding increase in the number of individuals accessing the program, including applications that require Tier II assistance.

Response

In line with Budget 2022, IRCC is seeking funding equal to the incremental increase in permanent resident admissions in addition to what has already been approved in the 2021 to 2023 Immigration Levels Plan. This plan includes increasing Canada’s resettlement commitment to up to 50,000 Afghan refugees.

ESDC is requesting $169,135 to support incremental costs (Salary and O and M) for the SIN/SIR (Tier II) operations. This amount will enable SIN/SIR to support Citizen Service Officers (Tier I) operation of clinics including SIN services for resettled Afghan refugees in Canada.

Background

Table 25: Funding for the resettlement of Afghan Refugees
Funding ($) and FTE Existing funding Supplementary Estimates B* Total funding
FTE 0 0.1 0.1
Salary 0 142,257 142,257
O and M 0 26,878 26,878
Total Operating (Vote 1) 0 169,135 169,135
EBP 0 38,410 38,410
Total 0 207,545 207,545

For this costing, there are 3 separate elements, comprised of SIN Management Services (SMS) at National Headquarters (NHQ), SIN Call Centre, SIN/SIR operation in Bathurst. All Branches in the department have been consulted on the costing and the methodology.

Key quotes

NIL

  • Prepared by: Chris Durham-Valentino, Director, Identity Policy and Programs Division
  • Key contact: Karl Ghiara, Director General, Identity Policy and Programs Directorate, [phone number redacted]
  • Approved by: Mary Crescenzi, Assistant Deputy Minister, Integrity Services Branch, [phone number redacted]
  • Date: October 12, 2022

7.l. Transfer from ISC for IELCC

Issue

Why is Employment and Social Development Canada requesting a transfer of $14.6 million from the Department of Indigenous Services for Indigenous Early Learning and Child Care (IELCC) in the Supplementary Estimates (B) for fiscal year ending March 31, 2023?

Key facts

Under the IELCC Initiative, Indigenous partners have the flexibility to request that some or all of their funding be advanced through existing funding agreements with a selection of federal departments that deliver IELCC programs, namely, Employment and Social Development Canada (ESDC), Indigenous Services Canada (ISC), the Public Health Agency of Canada (PHAC), and Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC).

This approach supports commitments outlined in the co-developed IELCC Framework relating to flexibility and streamlined service delivery for Indigenous partners.

In the spring of 2022, the First Nation ELCC partner in Quebec - Commission de la Santé et des services sociaux des Premières Nation du Québec et du Labrador (CSSSPNQL) directed that their existing and incremental IELCC funding be advanced through a single funding agreement with ESDC instead of ISC in order to streamline administration of this funding.

Response

The request responds to updated funding allocation and implementation decisions by Indigenous governments.

IELCC investments are managed through a partnership model between the Government of Canada and Indigenous partners. Under this model, Indigenous governments are at the forefront of decision-making on funding allocations, plans and priorities. Indigenous governments have the flexibility to request that some or all of their funding be advanced through existing contributions with a selection of federal departments that deliver IELCC programs.

The transferred funds of $14.6 million will be used to fund First Nation recipients responsible for the implementation of Indigenous early learning and child care programs and activities in Quebec for this fiscal year 2022 to 2023.

This request is consistent with the Government of Canada's support for the co-developed Indigenous ELCC Framework and incremental investments provided in Budget 2017, the 2020 Fall Economic Statement and Budget 2021 to support the implementation of the Framework and access to high quality, culturally appropriate early learning and child care programs and services for Indigenous children and families.

Background

Table 26: Funding for the Indigenous Early Learning and Child Care
Funding ($) IELCC Existing funding Supplementary Estimates B Total funding
Contributions (Reprofile) 299,362,645 1,885,967 301,248,612
Transfer from Indigenous Services Canada (ISC) 0 14,587,931 14,587,931
Transfer to Crown-Indigenous Relations and Northern Affairs (CIRNAC) 0 -15,021,850 -15,021,850
Total 299,362,645 1,452,048 300,814,693

Note that the rationale for the reprofile of funds and the transfer to Crown-Indigenous Relations and Northern Affairs (CIRNAC) is provided in separate 2022 to 2023 Supplementary Estimates B House Cards.

Additional background on IELCC

Budget 2017 announced $1.7 billion over 10 years, starting in 2018 to 2019, to advance the goals of the Indigenous and Early Learning and Child Care (IELCC)Framework and support a range of culturally appropriate early learning and child care programs and services.

In September 2018, the Government of Canada released the co-developed Indigenous Early Learning and Child Care Framework (the Framework) alongside leaders from the Assembly of First Nations, Inuit Tapiriit Kanatami, and the Métis National Council. The Indigenous ELCC Framework sets the stage for Indigenous led ELCC systems policy, programs and supports for Indigenous children and families, now and in the future. It sets out a vision, principles and is a guide for all actors in the Indigenous ELCC sphere.

Subsequent incremental investments provided through the 2020 Fall Economic Statement and Budget 2021 ($2.5B over 5 years and $542M annually ongoing) build on this and will serve to advance Indigenous priorities and participation in the design of a Canada-wide ELCC system. The Indigenous ELCC Transformation Initiative also aligns with the Government of Canada’s broader priorities relating to Indigenous peoples including reconciliation and a nation-to-nation relationship.

The Indigenous Early Learning and Child Care Transformation Initiative is a horizontal initiative across multiple federal departments. New flexible programming authorities enable Indigenous-led investments in a broad range of ELCC priorities for all Indigenous children and families no matter where they live in Canada. The Initiative is using a new partnership model to facilitate Indigenous-led decision making to advance national and regional priorities.

The distinctions-based Indigenous ELCC funding envelopes are managed in partnership with First Nations, Inuit and the Métis Nation. This partnership model – in which First Nations, Inuit and Métis Governments make decisions jointly with the Government of Canada on Indigenous ELCC funding for priorities of their choosing – is already being implemented across the country as part of the Indigenous ELCC Transformation Initiative

Through distinct funding envelopes for First Nations, Inuit and Métis, approximately $130 million in IELCC Transformation Initiative funding provided through Budget 2021 was invested in 2021 to 2022 to support services and program delivery. This funding is advanced to communities through a range of funding agreements, primarily through ESDC, Indigenous Services Canada (ISC), Public Health Agency of Canada (PHAC) and Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC).

Key quotes

Indigenous peoples are important partners in establishing the new Canada-wide early learning and child care system. Early learning and child care programs designed by and with Indigenous families and communities will provide Indigenous children the best start in life. This necessitates collaboration, leadership and investment by all levels of government in a spirit of respect, cooperation and reconciliation.

Former Minister of Families, Children and Social Development (now Minister of Diversity, Inclusion and Youth) the Honourable Ahmed Hussen, July 2021
  • Prepared by: Stephanie Toulouse, Policy Analyst, [phone number redacted]
  • Key contact: Francis Nolan Poupart, Director, IELCC, Cell: [phone numbers redacted]
  • Approved by: Cheri Reddin, Director General, Cell: [phone number redacted]
  • Date: October 12, 2022

7.m. Transfer to CIRNAC for IELCC

Issue

Why is Employment and Social Development Canada requesting a transfer of $27.1 million to the Department of Crown-Indigenous Relations and Northern Affairs to support Indigenous Early Learning and Child Care (IELCC) and Indigenous Skills and Employment Training (ISET) in the Supplementary Estimates (B) for fiscal year ending March 31, 2023?

Key facts

Under the IELCC Initiative, Indigenous partners have the flexibility to request that some or all of their funding be advanced through existing funding agreements with a selection of federal departments that deliver IELCC programs, namely, Employment and Social Development Canada (ESDC), Indigenous Services Canada (ISC), the Public Health Agency of Canada (PHAC), and Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC).

This approach supports commitments outlined in the co-developed IELCC Framework relating to flexibility and streamlined service delivery for Indigenous partners.

In 2022, a number of Indigenous partners requested that their IELCC funding be advanced through agreements with CIRNAC, for a total of $27.1 million. These Indigenous partners are: the Kativik Regional Government in Quebec, Nunatsiavut Government in Newfoundland and Labrador and a selection of Metis Nation partners - Métis National Council (MNC), Métis Nation of Alberta (MNA), Métis Nation – Saskatchewan (MNS) and the Manitoba Métis Federation (MMF).

Response

The request responds to updated implementation decisions by Indigenous governments.

IELCC investments are managed through a partnership model between the Government of Canada and Indigenous partners. Under this model, Indigenous governments are at the forefront of decision-making on funding allocations, plans and priorities. Indigenous governments have the flexibility to request that some or all of their funding be advanced through existing contributions with a selection of federal departments that deliver IELCC programs.

The transferred funds of $27.1 million will be used to fund First Nations and Métis recipients responsible for the implementation of Indigenous early learning and child care programs and activities for this fiscal year 2022 to 2023.

This request is consistent with the Government of Canada's support for the co-developed Indigenous ELCC Framework and incremental investments provided in Budget 2017, the 2020 Fall Economic Statement and Budget 2021 to support the implementation of the Framework and access to high quality, culturally appropriate early learning and child care programs and services for Indigenous children and families.

Background

Table 27: Funding to CIRNAC for the Indigenous Early Learning and Child Care
Funding ($) IELCC Existing funding Supplementary Estimates B Total funding
Contributions (Reprofile) 299,362,645 1,885,967 301,248,612
Transfer from Indigenous Services Canada (ISC) 0 14,587,931 14,587,931
Transfer to Crown-Indigenous Relations and Northern Affairs (CIRNAC) 0 -15,021,850) -15,021,850
Total 299,362,645 1,452,048 300,814,693
Table 29: Total funding transferred to CIRNAC
Total transfer from ESDC to CIRNAC requested in the Supplementary Estimates B (incl. IELCC and ISET) -27,087,752

An Interdepartmental Letter of Agreement (ILA) between ESDC and CIRNAC was signed to advance funds to the Kativik Regional Government (KRG) through an ESDC to CIRNAC agreement from April 2022 to March 2029. This includes the transfer of funds to support Indigenous Skills and Employment training (ISET) and is part of the Interdepartmental Transfer to CIRNAC in 2022 to 2023.

Note that the rationale for the reprofile of funds and the transfer from Indigenous Services Canada (ISC) is provided in separate 2022 to 2023 Supplementary Estimates B House Cards.

Additional background on IELCC

Budget 2017 announced $1.7 billion over 10 years, starting in 2018 to 2019, to advance the goals of the Indigenous and Early Learning and Child Care (IELCC) Framework and support a range of culturally appropriate early learning and child care programs and services.

In September 2018, the Government of Canada released the co-developed Indigenous Early Learning and Child Care Framework (the Framework) alongside leaders from the Assembly of First Nations, Inuit Tapiriit Kanatami, and the Métis National Council. The Indigenous ELCC Framework sets the stage for Indigenous led ELCC systems policy, programs and supports for Indigenous children and families, now and in the future. It sets out a vision, principles and is a guide for all actors in the Indigenous ELCC sphere.

Subsequent incremental investments provided through the 2020 Fall Economic Statement and Budget 2021 ($2.5B over 5 years and $542M annually ongoing) build on this and will serve to advance Indigenous priorities and participation in the design of a Canada-wide ELCC system. The Indigenous ELCC Transformation Initiative also aligns with the Government of Canada’s broader priorities relating to Indigenous peoples including reconciliation and a nation-to-nation relationship.

The Indigenous Early Learning and Child Care Transformation Initiative is a horizontal initiative across multiple federal departments. New flexible programming authorities enable Indigenous-led investments in a broad range of ELCC priorities for all Indigenous children and families no matter where they live in Canada. The Initiative is using a new partnership model to facilitate Indigenous-led decision making to advance national and regional priorities.

The distinctions-based Indigenous ELCC funding envelopes are managed in partnership with First Nations, Inuit and the Métis Nation. This partnership model – in which First Nations, Inuit and Métis Governments make decisions jointly with the Government of Canada on Indigenous ELCC funding for priorities of their choosing – is already being implemented across the country as part of the Indigenous ELCC Transformation Initiative.

Through distinct funding envelopes for First Nations, Inuit and Métis, approximately $130 million in IELCC Transformation Initiative funding provided through Budget 2021 was invested in 2021 to 2022 to support services and program delivery. This funding is advanced to communities through a range of funding agreements, primarily through ESDC, Indigenous Services Canada (ISC), Public Health Agency of Canada (PHAC) and Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC).

Key quotes

Indigenous peoples are important partners in establishing the new Canada-wide early learning and child care system. Early learning and child care programs designed by and with Indigenous families and communities will provide Indigenous children the best start in life. This necessitates collaboration, leadership and investment by all levels of government in a spirit of respect, cooperation and reconciliation.

Former Minister of Families, Children and Social Development (now Minister of Diversity, Inclusion and Youth) the Honourable Ahmed Hussen, July 2021
  • Prepared by: Stephanie Toulouse, Policy Analyst
  • Key contact: Francis Nolan Poupart, Director, IELCC, [phone numbers redacted]
  • Approved by: Cheri Reddin, Director General, [phone numbers redacted]
  • Date: October 12, 2022

8. Overview of Minister Gould’s mandate letter commitments, February 10, 2023

Mandate letter commitment 1

Supported by the Minister for Women and Gender Equality and Youth, continue advancing the creation and sustainability of a Canada-wide Early Learning and Child Care system, including:

Progress - Commitment 1

Agreements have been signed with all jurisdictions and include a commitment to reduce fees by an average of 50%, with the exception of Yukon and Quebec who have already achieved a 50% fee reduction.

Four jurisdictions—Quebec, Yukon, Nunavut and Newfoundland and Labrador—have regulated child care fees at $10-a-day or less.

Eight jurisdictions—British Columbia, Alberta, Saskatchewan, Ontario, New Brunswick, Nova Scotia, Prince Edward Island, and the Northwest Territories—have already announced a 50% fee reduction in line with the December 2022 deadline or ahead of schedule.

As of December 1st, 2022, provinces and territories have announced the creation of 31,959 new child care spaces under the Canada-wide agreements. Another 10,000 are planned by provinces and territories in the coming months. Provincial and territorial action plans include recruitment and retention measures to support the goal of hiring 40,000 more early childhood educators.

Next steps - Commitment 1

Implementation Committees with provinces and territories (except Quebec) will continue to report to the Government of Canada and their respective jurisdictions on progress to date on shared Early Learning and Child Care goals, including the average 50% fee reduction commitment.

By the end of winter 2023, Manitoba is expected to have achieved a 50% reduction in fees (with an average fee of $20.70 in 2019, achieving a 50% reduction will be, in effect, the achievement of $10-a-day).

The negotiation of the action plans for the years 2023 to 2024 and 2025 to 2026 is expected to begin by spring 2023, except with Ontario whose current action plan is in place between 2022 to 2023 and 2023 to 2024. The final space creation commitments will be further addressed through these Action Plans.

Mandate letter commitment 2

Introducing federal child care legislation to strengthen and protect a high-quality Canada-wide child care system (ELCC).

Progress - Commitment 2

Legislation was introduced in Parliament on December 8, 2022.

Next steps - Commitment 2

Employment and Social Development Canada will continue to support this legislation as it receives Parliamentary review. If the Bill is passed and receives Royal Assent, my department will be prepared to implement the new Act as required.

Mandate letter commitment 3

Establishing a National Advisory Council on Early Learning and Child Care (ELCC).

Progress - Commitment 3

Members of the Council were announced on November 24, 2022.

Next steps - Commitment 3

The first in-person meeting of the Council was held on January 30 and January 31, 2023.

Mandate letter commitment 4

Continuing to advance work with provinces and territories to reduce fees for families for before and after school care (ELCC).

Progress  - Commitment 4

On October 14, 2022, the 2022 Survey on Before-and-After-School Care in Canada was released, providing a snapshot of before-and after-school care services and use across the country.

On November 28, 2022, Nova Scotia announced reductions in fees for before-and after-school care programs for school-aged children.

Next steps - Commitment 4

Work continues with provinces and territories to explore options to support them in reducing before-and-after-school care fees alongside existing Canada-Wide Early Learning and Child Care investments, including through research and the monitoring of results of the current bilateral agreements.

Mandate letter commitment 5

Ensuring the Federal Secretariat on Early Learning and Child Care is fully resourced and operational by early 2023 (ELCC).

Progress - Commitment 5

The Federal Secretariat was formally launched in August 2021, resources have been secured, and the Secretariat is operational.

Next steps - Commitment 5

N/A

Mandate letter commitment 6

Work with Indigenous partners to ensure that Indigenous children have access to a culturally appropriate Indigenous Early Learning and Child Care system that meets the needs of Indigenous families wherever they live, including ensuring more Indigenous families have access to high-quality programming, creating 3,300 new child care spaces and continuing to support before and after school care for First Nations children on reserve (ELCC).

Progress - Commitment 6

Implementation is underway with Indigenous and federal delivery partners and with provinces and territories to ensure that children have access to culturally appropriate Indigenous Early Learning and Child Care programs and services that meet the needs of Indigenous families wherever they live.

Co-developed annual plans identifying priority areas of investment continue to be implemented on a rolling basis and are guiding investments in Indigenous Early Learning and Child Care programs and services that are reaching over 35,000 Indigenous children. Early priorities include enhancing operating funding at Early Learning and Child Care centres, which supports training and retaining a skilled workforce and curriculum development to enable high-quality, culturally-relevant Indigenous Early Learning and Child Care programming in a variety of settings.

Nineteen quality-improvement projects are advancing the implementation of the Indigenous Early Learning and Child Care Framework through research and innovation.

Funding to support before-and after-school programming is being delivered through Indigenous Services Canada’s Elementary and Secondary Education Program.

First Nations, Inuit and Métis governments and organizations are leading the way by building Indigenous-led Early Learning and Child Care specific governance through national and regional partnership tables as a first step toward transfer and to support greater Indigenous participation in establishing a Canada-wide Early Learning and Child Care system.

Discussions are being convened among willing provincial and territorial governments, Indigenous governments and partners to identify shared priorities in the development of a Canada-wide Early Learning and Child Care system.

Since 2019, a total of 32 quality improvement projects have been funded. These will continue to advance the implementation of the Indigenous Early Learning and Child Care Framework through best practices and innovation.

Engagement is underway with Indigenous governments to identify Infrastructure priorities, with up to $420 million over 3 years, starting in 2023 to 2024 and $21 million ongoing available to support a growing Indigenous Early Learning and Child Care sector. These investments will help improve access to high quality, culturally appropriate Early Learning and Child Care programming for Indigenous children and families, and demonstrate progress towards the creation of 3,300 new spaces.

Some departments have already begun to advance funding for repairs and renovations funding for existing federally funded daycares and Head Start centres in some communities, while others continue to finalize their review of proposals before notifying recipients by winter 2023.

Next steps - Commitment 6

Employment and Social Development Canada will:

Mandate letter commitment 7

Advance the implementation of the Community Services Recovery Fund (CSRF) to help charities and non-profits adapt and modernize as they recover from the pandemic.

Progress  - Commitment 7

After concluding a public solicited Call for Proposals in February 2022, 3 organizations—the Canadian Red Cross, Community Foundations of Canada and United Way Centraide Canada—were selected to act as National Funders to redistribute funds to charities and non-profits. Contribution agreements were signed with the National Funders in early November, and they were publicly announced on November 22, 2022.

The funding application process for Community Service Organizations opened on January 6 and will close on February 21, 2023.

Next steps - Commitment 7

In early 2023, Employment and Social Development Canada will work to finalize the Canada-Quebec agreement outlining the terms and conditions under which the program will be implemented in Quebec as well as obtain M-30 exemption for Quebec-based Community Service Organizations applying for Community Services Recovery Fund funding.

The assessment of applications for funding will be completed in spring and summer 2023, after which funds will start to flow to successful projects.

Mandate letter commitment 8

Continue advancing the Social Innovation and Social Finance strategy, including fully implementing the Social Finance Fund and launching the Social Innovation Advisory Council.

Progress - Commitment 8

A competitive process to select professional investment managers who will receive funding to implement the Social Finance Fund has concluded. Employment and Social Development Canada is currently reviewing detailed plans submitted by potential investment managers and is completing the necessary due diligence on applications.

Candidates have been selected from a public call for applications to appoint to the Social Innovation Advisory Council. Employment and Social Development Canada is in the process of finalizing these members’ appointments.

The launch of the Investment Readiness Program (IRP) was officially announced on July 18, 2022. The program is being implemented by 26 organizations who have agreements with Employment and Social Development Canada

The members of the Social Innovation Advisory Council were announced on February 1st, and the inaugural meeting was held.

Next steps - Commitment 8

In spring 2023, investment managers will be selected and contribution agreements will be signed to disburse funding to wholesalers under the Social Finance Fund.

Investment Readiness Program Readiness Support Partners will assess applications for funding from Social Purpose Organizations, which should be completed in spring 2023, and funding will begin to flow to selected organizations (spring and summer 2023).

Mandate letter Commitment 9

Through the delivery of Canada’s Poverty Reduction Strategy and other measures, continue leading implementation of the 2030 Agenda for Sustainable Development adopted by the United Nations.

Progress - Commitment 9

In July 2022, Canada’s 2021 Annual Report on progress related to the 2030 Agenda and its Sustainable Development Goals was released, and Minister Gould led Canada’s delegation to the United Nations Forum on Sustainable Development.

In December 2022, the Canada.ca 2030 Agenda webpage was updated to inform Canadians of the federal government’s work to advance the 2030 Agenda and its Sustainable Development Goals.

The Poverty Reduction Strategy goal of a 50% reduction in poverty by 2030, relative to 2015 levels, is aligned with the United Nations Sustainable Development Goals on poverty.

The 2020, 2021, and 2022 reports of the National Advisory Council on Poverty in Parliament were tabled, and the poverty rate in Canada has fallen from 14.5% in 2015 to 6.4% in 2020. Canada has met its interim target of reducing poverty by 20% by 2020, relative to 2015 levels.

It is important to note that COVID-19 emergency income supports led to a significant drop in poverty rates in 2020. As the COVID-19 supports were temporary and some began to be phased out in late 2020 and 2021, it is too early to conclude that the Government has met the mandate commitment of reducing poverty by 50% by 2030. Employment and Social Development Canada is currently undertaking analysis to better understand the impact of the emergency benefits on poverty rates.

Employment and Social Development Canada continues to monitor a number of trends in the economy and government policy changes that may impact poverty rates.

Next steps- Commitment 9

Canada’s second Voluntary National Review will be prepared to be presented in July 2023 at the United Nations High-level Political Forum on Sustainable Development.

In July 2023, Minister Gould will lead Canada’s delegation to the United Nations High-level Political Forum on Sustainable Development.

Results from the 2021 Canadian Income Survey are expected to be released in March 2023 and will report on poverty rates during the second year of the pandemic, when key temporary income support measures ended or began to phase-out.

Mandate letter commitment 10

Work with the Minister of Agriculture and Agri-Food and with provinces, territories, municipalities, Indigenous partners and stakeholders to develop a National School Food Policy and to work toward a national school nutritious meal program.

Progress - Commitment 10

Over the last several months, meetings with stakeholders and experts have been held (that is, national and regional service providers, school boards and administrators, nutrition experts, academics, parents, and municipalities) as well as with representatives from provinces and territories.

On November 16, 2022, an online questionnaire was launched to seek broad views on school food and will be looking to hear directly from children through sessions that will be designed specifically to solicit their views in a child-appropriate way.

Employment and Social Development Canada is also seeking to engage with First Nations, Inuit and Métis partners to gauge interest, perspectives and needs with regard to a National School Food Policy.

The purpose of these engagements is to gain a better understanding of the current school food landscape and hear the views of stakeholders about what should be the goals of a National School Food Policy.

Next steps - Commitment 10

Engagement will continue with stakeholders, provinces and territories, Indigenous partners and Canadian children into winter 2023 in order to inform the development of a National School Food Policy.

Mandate letter commitment 11

Work with the Minister of Seniors to provide seniors with a single point of access to a wide range of government services and benefits.

Progress - Commitment 11

Employment and Social Development Canada continues to explore different avenues to meet the commitments outlined in both the Minister of Seniors’ and Minister of Families, Children and Social Development Mandate letters.

Seniors currently have multiple points of access to some, but not all, government programs (for example, Old Age Security, Canada Pension Plan, etc.) by telephone (1 800 O-Canada), in-person through Service Canada centres, through outreach activities, and through eService Canada.

In addition, through the Community and Outreach Liaison Service, Service Canada offers alternative service delivery options (including access to the Outreach Support Centre, toll-free line) to vulnerable clients, including seniors, by working directly with community organizations to reach seniors who may not otherwise be able to access regular channels.

Improvements continue to be made to provide seniors with more centralized access to government services.

Next steps - Commitment 11

Work will continue to ensure that seniors have access to the services and benefits that they need.

Mandate letter commitment 12

As the Minister Responsible for Service Canada, lead the development and implementation of modern, resilient, secure and reliable services and benefit delivery systems for Canadians and ensure those services and benefits reach all Canadians regardless of where they live.

Progress  - Commitment 12

As part of the Benefits Delivery Modernization Programme, Employment and Social Development Canada continued activities to advance a new Common Benefits Delivery Platform that will support the onboarding of the first benefits (Old Age Security). Foundational elements required to begin the onboarding of Old Age Security were completed in October 2022.

Technical Debt Remediation Initiatives continue to advance so that the department’s Information Technology infrastructure will be more secure and able to provide reliable services to Canadians.

Next steps - Commitment 12

Continue working towards onboarding the Old Age Security program onto the Common Benefits Delivery platform by late 2024.

Continue to improve network performance with the implementation of regional communication hubs by March 2023 and modernization of the department’s network.

Make further improvements to the department’s security by advancing the adoption of Government of Canada secure infrastructure at Employment and Social Development Canada.

Employment and Social Development Canada will also continue reducing risk to service delivery through completion of almost all disaster recovery solutions for critical business systems by March 2023.

Mandate letter commitment 13

Work with the Minister of National Revenue toward the implementation of a real-time e-payroll system, and ensure that businesses of all sizes benefit from this work.

Progress  - Commitment 13

Prototypes have been developed that explore options for the flow of payroll, employment and demographic data from employers to the Government of Canada.

The Canada Revenue Agency has established 3 tiers of consultation to seek input and strategic advice from stakeholders from industry, professional associations and academia at various levels.

Next steps - Commitment 13

Public opinion research targeting employee segments on data security and user interface is planned for the winter and spring of 2023.

Employment and Social Development Canada will continue monthly research and development workshops to feed into the prototyping and recommendations of an ePayroll solution.

Mandate letter commitment 14

Enhance the capacity and effectiveness of Black-led and Black-serving organizations through the continued implementation of the Supporting Black Canadian Communities Initiative. You will be supported in this work by the Minister of Housing and Diversity and Inclusion.

Progress - Commitment 14

To enhance the capacity and effectiveness of Black-led and Black-serving organizations, Employment and Social Development Canada has advanced a number of key initiatives to support and improve Black-led organizations’ workplaces and community spaces through the Supporting Black Canadian Communities Initiative.

Through the National Funders Network of 4 intermediary organizations, more than $25.7 million has been invested in over 705 projects to support Black-led and Black-serving community organizations.

More than 1,370 projects have been funded under the Capital Assistance Fund stream with a total investment of almost $82 million to support renovation and equipment purchases for Black-led and Black-serving organizations.

A steering committee has been set up with each National Funder to support ongoing dialogue on current and planned activities, and to monitor progress to ensure timely and transparent implementation.

The External Reference Group was formally launched on November 7, 2022, consisting of 7 members of African descent from the not-for-profit, education, public and private sectors.

The members will support Minister Gould in ensuring the meaningful implementation of the Supporting Black Canadian Communities Initiative to help build capacity within communities by providing strategic advice, expertise and insight on the emerging priorities of Black Canadians, and to support the advancement of the Government of Canada’s commitments related to the United Nations Decade for People of African Descent.

A competitive process to select an organization to implement the National Institute for People of African Descent has concluded. The list of candidates is now under consideration.

Next steps - Commitment 14

Employment and Social Development Canada will further explore options to continue supporting capacity building within Black communities in the long term. This includes meeting with the External Reference Group this winter to engage on the best way forward to implement the National Institute for People of African Descent, Budget 2022 priorities, and the United Nations Decade for People of African Descent.

Employment and Social Development Canada will continue to engage with Black Canadian communities to strengthen the capacity of grassroots, Black-led community-based organizations, address emerging priorities and bring positive benefits to Canada’s Black communities by removing systemic barriers and tackling anti-Black racism.

Mandate letter commitment 15

Work with the Minister for Women and Gender Equality and Youth to ensure the voices and needs of children are represented in our Government’s agenda, as we work to make Canada the best place to grow up.

Progress - Commitment 15

Employment and Social Development Canada has been working with Women and Gender Equality Canada, as well as with other federal departments on how best to advance efforts related to children and youth.

Employment and Social Development Canada is also leveraging existing initiatives to better incorporate the voices and needs of children. For example: for the development of a National School Food Policy, engagement sessions with children are being planned. These sessions will seek to understand children’s experiences, needs and interests and to incorporate these into the policy and program design.

Next steps - Commitment 15

Employment and Social Development Canada will continue working with the Women and Gender Equality and Youth and other federal departments on how best to implement, monitor, and report on this commitment.

As part of Employment and Social Development Canada’s efforts to leverage the National School Food Policy to better incorporate the voices and needs of children by:

Mandate letter commitment 16

Work with the Minister for Women and Gender Equality and Youth and the Minister of Mental Health and Addictions to ensure mental health supports are accessible to children and youth as they recover from the impact of the pandemic.

Progress - Commitment 16

Through the Health Portfolio, the Government of Canada funded a number of projects following Budget 2021 that promote mental health in populations disproportionately affected by COVID, including children and youth.

$5 billion is being invested over 10 years (2017 to 2027) via negotiated bilateral agreements to help provinces and territories expand access to mental health and addiction services, with a focus on expanding community-based services for children and youth.

Integrated Youth Services are also a priority area for the work being undertaken by Health Canada and the Standards Council of Canada to develop national mental health and substance use standards.

Additionally, the government is investing in pilot projects that support the mental health needs of children and youth. In one such project, the Children’s Hospital of Eastern Ontario Research Institute has developed a tool with and for Indigenous children to help them self-assess and report on their health and wellness.

Through Budget 2022, Health Canada received funding to continue the Wellness Together Canada portal, and Pocketwell app, both of which are accessible to children and youth. Through the Portal, children and youth (ages 5 to 29) are able to access mental health and substance-use resources, including Kids Help Phone, which provides online, phone and text-based support to young people who are in crisis or dealing with mental health issues.

Next steps- Commitment 16

Employment and Social Development Canada will continue working with the Women and Gender Equality and Youth and Health Canada, Mental Health and Addictions on options to support the mental health of children and youth.

9. Parliamentary environment

9.a. Scenario note

1. Overview

The Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA) has invited you to appear in view of its study of the Supplementary Estimates (B), 2022 to 2023.

2. Committee proceedings

The appearance is scheduled to take place February 14, 2023, from 3:30 to 4:30 pm.

You will be accompanied by:

Your fellow ESDC Ministers appeared on the same subject on the following dates:

Minister Hussen is scheduled to appear after you, from 4:30 to 5:30 pm.

You will have up to 5 minutes for opening remarks.

HUMA has agreed that questioning of witnesses would be allocated as follows:

  1. Conservative Party
  2. Liberal Party
  3. Bloc Québécois, and
  4. New Democratic Party
  1. Conservative Party, 5 minutes
  2. Liberal Party, 5 minutes
  3. Bloc Québécois, 2 and a half minutes
  4. New Democratic Party, 2 and a half minutes
  5. Conservative Party, 5 minutes, and
  6. Liberal Party, 5 minutes

9.b. Anticipated questions based on the parliamentary environment

Service delivery

Anticipated questions

ELCC

Anticipated questions

Social and economic improvement

Topics
Anticipated questions

9.c. Committee profile (title included for accessibility)

House of Commons Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA).

Member’s biographies

Liberal party of Canada

Conservative party of Canada

New democratic party of Canada

Bonita Zarrillo, British Columbia, Disability Inclusion Critic

Bloc Québécois

Louise Chabot, Québec, Employment, Workforce Development and Labour Critic

Committee members biography

Chad Collins, Liberal Party, Hamilton East-Stoney Creek, Ontario
Chad Collins, Liberal Party, Hamilton East-Stoney Creek, Ontario

Brief biography

Chad Collins was first elected to the House of Commons for Hamilton East - Stoney Creek on September 20, 2021. A lifelong resident of Hamilton East - Stoney Creek, Chad resides in the Davis Creek area with his wife Mary and 2 children, Chase and Reese. He attended Glendale Secondary School, the University of Western Ontario, and McMaster University. Chad was first elected to City Council in 1995, at the age of 24, making him one of the youngest elected representatives in the City's history.

Chad is passionate about engaging local residents and community stakeholders, focusing on revitalization of infrastructure, development of social housing and stream-lining municipal programs.

As President of City Housing Hamilton, Chad has been committed to addressing the City's aging affordable housing stock by pressuring all levels of government to invest in the much needed repair of over 7,000 publicly owned units. He continues to work on nearly a dozen new projects across the City and in the riding that will provide new affordable housing units to those in need.

From the creation and development of new community parks and trails to the opening of a new food bank, Chad knows community consultation is an integral part of improving quality of life for everyone in Hamilton East - Stoney Creek.

Of note:

Key issues of interest: affordable housing

Michael Coteau, Liberal Party, Don Valley East, Ontario
Michael Coteau, Liberal Party, Don Valley East, Ontario

Brief biography

Michael Coteau was first elected to the House of Commons for Don Valley East on September 20, 2021. He has served as the Member of Provincial Parliament for Don Valley East since 2011. During his time in the Ontario government, his ministerial roles include: Minister of Children and Youth Services; Minister Responsible for Anti-Racism; Minister of Tourism, Culture and Sport; Minister Responsible for the 2015 Pan/Parapan American Games; and Minister of Citizenship and Immigration.

Prior to entering the provincial government, Michael was elected as a school board trustee for the Toronto District School Board (TDSB) in 2003, 2006 and 2010. As a trustee, Michael advocated for student nutrition, community use of space and the use of educational technology. He initiated the ‘Community Use of Schools’ motion that drastically cut user fees and made schools more accessible to groups that offer programs for children. He helped introduce nutritional changes in schools that supported healthy food programs and increased awareness of student hunger.

Michael worked as an ESL instructor and curriculum developer before becoming a community organizer for a United Way agency in Scarborough. He was also the Marketing Manager for ABC Life Literacy, where he was responsible for the organizing of the Family Literacy Day across Canada, and was Executive Director of Alpha Plus, a national literacy organization mandated to support adult education through the use of technology.

Michael grew up in Don Valley East and attended Don Mills Middle School and Victoria Park Collegiate Institute. He holds a degree from Carleton University in Political Science and Canadian History. He and his wife Lori live in Toronto with their 2 daughters, Maren and Myla.

Of note:

Wayne Long, Liberal Party, Saint John Rothesay, New Brunswick
Wayne Long, Liberal Party, Saint John Rothesay, New Brunswick

Brief biography

Wayne Long was first elected to the House of Commons for Saint John — Rothesay in 2015 and was re-elected in 2019 and 2021. He is a member of the Saint John community with national and international business experience. Wayne currently serves as President of the Saint John Sea Dogs, and his efforts have helped turn the team into one of Canada’s most successful CHL hockey franchises winning the cherished Memorial Cup in 2011. That same year, Wayne was recognized with the John Horman Trophy, awarded to the Top Executive in the QMJHL.

Prior to his work with the Sea Dogs, Wayne was President of Scotiaview Seafood Inc. He was also a successful large-scale product manager with Stolt Sea Farm Inc. Wayne’s work has seen him travel across North America, negotiating contracts with national restaurant distributors, restaurant chains, and retail chains. He earned the North American Excellence in Sales and Marketing award twice. Wayne is a former Board Member for Destination Marketing and Salmon Marketing.

Wayne was born in the riding, and currently calls the area home alongside his wife, Denise, and their 2 children, Khristian and Konnor.

Of note:

Soraya Martinez Ferrada, Liberal Party, PS for Housing and Diversity and Inclusion (Housing), Hochelaga, Québec
Soraya Martinez Ferrada, Liberal Party, PS for Housing and Diversity and Inclusion (Housing), Hochelaga, Québec

Brief biography

Soraya Martinez Ferrada was first elected to the House of Commons for Hochelaga in 2019 and re-elected in 2021. She was appointed Parliamentary Secretary to the Minister of Immigration, Refugees and Citizenship in 20219 and became Parliamentary Secretary to the Minister of Transport in 2021. She has also served on the Standing Committee on Official Languages in the last Parliament.

She is a proud resident of the east end of Montréal. Originally from Chile, her family settled in the area in the 1980s. Soraya has deep roots in the community where she currently resides with her son and daughter.

Before being elected, Soraya worked for more than 20 years in the community where she specialized in communications and developed multiple cultural and political projects. Among her achievements, she created the very first cultural and socio-professional integration program at TOHU, a unique example of sustainable development in Montréal.

In 2005, she was elected as a city councillor and appointed by the mayor to the position of Associate Advisor for Culture on the City’s Executive Committee. In 2009, she became Chief of Staff to the Leader of the Official Opposition at Montréal City Hall. She transitioned to the federal government in 2015 as Chief of Staff and Senior Advisor to the Minister of Canadian Heritage.

She created the Vedette d’Hochelaga video clips in which she highlights the commitment of citizens, community organizations, and entrepreneurs in the riding of Hochelaga. She has also set up virtual roundtables and regular newsletters that present federal programs directly serving the people of her riding.

Of note:

Robert (Bobby) J. Morrissey, Liberal Party, Egmont, Prince Edward Island
Robert (Bobby) J. Morrissey, Liberal Party, Egmont, Prince Edward Island

Brief biography

In 2015, Bobby was elected to the House of Commons and was re-elected in 2019 and 2021. He served as a Member on the Standing Committee on Fisheries and Oceans, as well as the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities.

Previously, he was elected to the Prince Edward Island Legislative Assembly in 1982 and has dedicated his career and volunteer life to serving the residents of PEI.

Having served as MLA for nearly 20 years, Bobby has a deep understanding of his communities’ needs. He has held a number of high-profile roles within the Assembly, such as Minister of Transportation and Public Works, Minister of Economic Development and Tourism, and Opposition House Leader. He was also responsible for the redevelopment of the Canadian Forces Base Summerside and the surrounding community following its closure by the federal government in 1989. Bobby left politics in 2000 to join the private sector as a consultant specializing in government relations, fisheries, and the labour market. Bobby has been a member of the Board of Directors for the Heart and Stroke Foundation of PEI. He was the founding member and former president of the Tignish Seniors Home Care Co-op, and Vice-Chair of Tignish Special Needs Housing.

Of note:

Tony Van Bynen, Liberal Party, Newmarket – Aurora, Ontario
Tony Van Bynen, Liberal Party, Newmarket – Aurora, Ontario

Brief biography

Tony Van Bynen was first elected to the House of Commons for Newmarket-Aurora in 2019 and re-elected 2021. A resident of Newmarket for over 40 years, Tony and his wife Roxanne raised their 2 daughters there.

Community service, volunteerism, and helping those who need it most is what drives Tony every day. He and Roxanne have volunteered at the Southlake Hospital, and the Inn from the Cold, for over 10 years. They also deliver food for the Newmarket Food Bank, and Tony was instrumental in creating Belinda’s Place, which is a multi-purpose facility for homeless and at-risk women.

He also had the privilege of serving as the Mayor of Newmarket for 12 years. During that time, community building is what guided Tony on his mission to revitalize Main Street, renew the historic Old Town Hall, and build the Riverwalk Commons so families and friends can enjoy great public places.

Through his previous role as the President of the Chamber of Commerce, and his 30-year career in banking, Tony understands what local businesses need to thrive and grow. He’s delivered innovative solutions to help local business owners find success, including creating the Envi broadband network, so businesses in the community have ultra-high-speed connectivity, which has been particularly crucial during the pandemic.

Of note:

Key issues of interest: Focused studies to help Canadians, especially getting through the pandemic

Rosemarie Falk, Conservative Party, Associate Labour Critic, Battlefords-Lloydminster, Saskatchewan
Rosemarie Falk, Conservative Party, Associate Labour Critic, Battlefords-Lloydminster, Saskatchewan

Brief biography

Rosemarie Falk is the Conservative candidate for Battlefords-Lloydminster. Rosemarie was born and raised in Lloydminster, Saskatchewan. Along with her husband Adam, she is now raising her children there. She has always been actively engaged in her community. Throughout her social work career and extensive volunteer work she has worked with some of the most vulnerable members of the community.

Rosemarie was first elected to the House of Commons in a by-election on December 11, 2017. Prior to this, Rosemarie worked as a registered Social Worker in Saskatchewan and has a Bachelor of Social Work from the University of Calgary. She also has experience as a legal assistant specializing in family law and as a legislative assistant in federal politics.

In October 2022, under the new Conservative Party leader, she was named to the new Official Opposition's Shadow Cabinet as the Associate Shadow Minister for Labour and Associate Labour Critic.

Of note:

Michelle Ferreri, Conservative Party for Families, Children and Social Development Critic Peterborough Kawatha, Ontario
Michelle Ferreri, Conservative Party for Families, Children and Social Development Critic Peterborough Kawatha, Ontario

Brief biography

Michelle is the Member of Parliament for Peterborough-Kawartha and was elected in the 2021 federal election. Michelle was appointed as Shadow Minister for Tourism as part of the Conservative Shadow Cabinet for the 44th Parliament. In October 2022, under the new Conservative Party leader, she was named to the new Official Opposition's Shadow Cabinet as the Minister for Families, Children and Social Development.

Prior to being elected, Michelle was a well-known community advocate, an award-winning entrepreneur, a committed volunteer, and a highly sought-after public speaker and social media marketer.

Michelle has over 20 years’ experience in media, marketing and public speaking. During her time as a reporter, one of Michelle’s most memorable experiences was when she had the opportunity to visit the Canadian Forces Base, Alert and fly to the station on a C-17 Globemaster.

Michelle is a graduate of Trent University (Biology/Anthropology) and Loyalist College (Biotechnology). Her education in science has led her to be a passionate advocate for physical and mental health.

She is a proud mother of 3 children, between the ages of 12 and 17, and shares her life with her supportive partner, Ryan, and his 3 daughters.

Of note:

Tracy Gray, Conservative Party – Employment, Future Workforce Development and Disability Inclusion Critic Calgary Midnapore – Kelowna – Lake Country, British Columbia
Tracy Gray, Conservative Party – Employment, Future Workforce Development and Disability Inclusion Critic Calgary Midnapore – Kelowna – Lake Country, British Columbia

Brief biography

Tracy was elected to serve as Member of Parliament for the riding of Kelowna-Lake Country in October 2019. In October 2022, under the new Conservative Party leader, she was named to the new Official Opposition's Shadow Cabinet as the Shadow Minister for Employment, Future Workforce Development and Disability Inclusion. She previously served as Shadow Minister for Interprovincial Trade and as the Shadow Minister for Export Promotion and International Trade.

Tracy has extensive business experience and worked most of her career in the BC beverage industry. She founded and owned Discover Wines VQA Wine Stores, which included the number one wine store in BC for 13 years. She is has been involved in small businesses in different sectors including financing, importing, oil and gas service and a technology start-up.

The daughter of a firefighter and Catholic School teacher, Tracy grew up around service and a strong work ethic. She has one son and been married for 27 years.

Tracy has received many accolades including RBC Canadian Woman Entrepreneur of the year, Kelowna Chamber of Commerce Business Excellence Award and 100 New Woman Pioneers in BC.

Tracy served with many organisations over the years. She was appointed to serve by BC Cabinet to the Passenger Transportation Board and elected to the Board of Prospera Credit Union for 10 years. In addition, she served on the Okanagan Film Commission, Clubhouse Childcare Society, Okanagan Regional Library Trustee and Chair of the Okanagan Basin Water Board.

Of note:

Scott Aitchison, Conservative Party, Housing and Diversity and Inclusion Critic, Parry Sound – Muskoka, Ontario
Scott Aitchison, Conservative Party, Housing and Diversity and Inclusion Critic, Parry Sound – Muskoka, Ontario

Brief biography

Scott Aitchison was born and raised in Huntsville, Ontario. After leaving home at 15, Scott was raised by the character of his hometown. In October 2022, under the new Conservative Party leader, he was named to the new Official Opposition's Shadow Cabinet as the Shadow Minister for Housing and Diversity and Inclusion.

Scott was first elected at the age of 21 to Huntsville Town Council. After serving as Town Councillor, District Councillor and Deputy Mayor, he was elected as Mayor of Huntsville in 2014 on a promise of fiscal discipline, responsible governance and excellent customer service. As Mayor, he built a reputation as a consensus-builder relentlessly focused on breaking down barriers and finding solutions.

Of note:

Critic – Housing and Diversity and Inclusion in the Official Opposition's shadow cabinet

Bonita Zarrillo, New Democratic Party, Disability Inclusion Critic Port Moody – Coquitlam, British Columbia
Bonita Zarrillo, New Democratic Party, Disability Inclusion Critic Port Moody – Coquitlam, British Columbia

Brief biography

Bonita Zarrillo was first elected as Member of Parliament for Port Moody-Coquitlam in 2021. She is known to be a voice for equality and drives systemic change that puts people first. She entered public service so she could advocate for working people and to support the needs of the most vulnerable in the community. She championed buy-local as a tool for small businesses to thrive and to enable them to hire locally, challenged pipeline corporations to pay their fair share, and completed a successful housing affordability strategy that generated the most rental housing starts in her region.

On Coquitlam Council, Bonita served on the following: Fraser Health Municipal Government Advisory Council, Multiculturism Advisory Committee, Metro Vancouver Indigenous Relations Committee, Universal Access Ability Advisory Committee, and past Board Member for the Federation of Canadian Municipalities. She sat on the board of 2 local Not-For-Profits that advocate for gender equality and speaks regularly at The Commission on the Status of Women at the United Nations.

Before being elected to municipal government, Bonita worked in consumer products as a Business Analyst for companies across North America and Europe. She has a B.A. in Sociology from the University of Manitoba, a Human Resource Management Certificate from the University of Calgary and has a Computer Science Degree from CDI Montreal.

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Louise Chabot, Bloc Québecois – Employment, Workforce Development and Labour Critic – Thérèse-De Blainville, Quebec
Louise Chabot, Bloc Québecois – Employment, Workforce Development and Labour Critic – Thérèse-De Blainville, Quebec

Brief biography

Louise Chabot was first elected as Member of Parliament in 2019 and was re-elected in 2021. She was born in 1955 in Saint-Charles-de-Bellechasse, Quebec, is a Quebec trade unionist and politician. She was president of the Centrale des Syndicates du Québec (CSQ) from 2012 to 2018. The organization initially represented nearly 200,000 members, including 130,000 in the education and early childhood sector. She coordinated a major unionization project that resulted in the consolidation of more than 15,000 family day care managers, a first in the union world in Canada.

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