Building Understanding: The First Report of the National Advisory Council on Poverty

Poverty in Canada

Statistics Canada calculates the Market Basket Measure, Canada's Official Poverty Line, using data from the Canadian Income Survey. There is a 2-year lag between when Statistics Canada administers the survey and when the data becomes available. The most current statistics available are from 2018.

According to the data, 1 in 9 people in Canada live in poverty. Some groups have disproportionately high levels of poverty, including, unattached individuals, persons with disabilities, children, recent immigrants, persons in sole-caregiver families and First Nations People living on a reserve. The impacts of poverty are particularly profound for women and individuals who belong to more than one at-risk group. Statistics Canada reports other indicators of poverty on Canada's Poverty Dashboard in addition to the Market Based Measure. This includes food insecurity, housing and the percentage of people in deep poverty. However, federal survey data cannot always be disaggregated to enable reporting for some of the most marginalized and under-served individuals, including Indigenous people living on a reserve, racialized people and LGBTQ2S individuals.

What we heard

In March 2020, we began an engagement to hear from individuals with lived expertise of poverty. We believe it is important that the people most affected by decisions are able to inform those decisions. We also included service providers, government personnel and other interested parties in our consultations. We ended our engagement prematurely because of the COVID-19 pandemic. As a result, planned consultations in central and eastern Canada had to be cancelled. These consultations were to focus on racialized groups, persons with disabilities, LGBTQ2S individuals and children and youth. This report, therefore, is incomplete. We will address those shortcomings in next year's report.

We met over 200 individuals. They told us poverty is personal and that their identity, background, past experiences, health and other factors influence their experience of poverty. Regardless of differences, poverty leaves a lasting impact and imprint on the lives of those for whom it is, or was, a daily reality. We heard from individuals with lived expertise about their experiences living without income and lacking resources to maintain basic needs like food and shelter. In each of the communities we were struck by stories regarding the stigma of poverty and the guilt and shame associated with living in poverty. The experiences that were shared, told of discrimination and feelings of being invisible, devalued, or ignored, not only within society, but also when using services.

We asked individuals with lived expertise what works to decrease the impact of poverty. They emphasized the importance of having agency and choice. They also emphasized the need for programs that are based on mutual trust, are culturally safe and include wraparound supports to address the multiple and complex barriers many individuals and families living in poverty face. Participants stressed the need to invest in proven solutions, such as affordable housing, education and child care and to improve inclusion for marginalized populations and education and training for employers and service providers.

Report on progress

Between 2015 and 2018, the percentage of the population living below the official poverty line decreased by 21.5%. There were reductions in poverty in every province. If the progress is continued and sustained, the Government will meet its poverty reduction target of a 20% decrease by 2020. Despite the overall decrease in people living below the official poverty line, there has been an increase in food insecurity, a decrease in literacy and numeracy and a small rise in unmet housing needs. In addition, those living in poverty are further below the poverty line. These findings indicate that more must be done to reduce poverty in Canada.

We are unable to adequately report on how equitable poverty reduction has been. There were decreases in poverty in all groups measured by Canada's Official Poverty Line. However, data limitations make it impossible to assess in detail whether progress has been observed for some of the most marginalized groups, including racialized populations, persons with disabilities and LGBTQ2S individuals.

COVID-19

A few weeks after we started collecting evidence for this report, all that we knew about poverty would rapidly change due to COVID-19. The full effects of the crisis on Canadians living in poverty will not be known for some time. This includes how it will affect poverty rates and Canada's efforts towards meeting its poverty reduction goals. The COVID-19 pandemic continues to unfold and the government's response continues to evolve.

We do know, however, that the pandemic has exposed gaps and vulnerabilities in our social safety net, particularly in the Employment Insurance program. It has made it impossible to ignore the harsh realities that the most marginalized members of our society face every day.

Joblessness puts pressure on many Canadian families, particularly those family types that were already at higher risk for living in poverty. The sudden closure of most in person supports and services for marginalized Canadians left many people with nowhere to turn to for the essential services relied on.

The pandemic has created an environment for change. Rather than simply returning to the pre-pandemic status quo, we can instead develop a more equal, healthy, purposeful and resilient society. This would involve building more responsive systems that include targeted policies for at-risk populations and are at a level that is sufficient to keep people out of poverty.

Recommendations

As a council, we have been tasked with reporting on the Government of Canada's progress and to continue a national dialogue on poverty. We have also chosen to offer some recommendations based on our experience over the past year.

1. The federal government's Poverty Reduction Strategy is already showing promising results in meeting Canada's commitment to reduce poverty by 20% by the year 2020. From 2015 to 2018, the overall poverty rate in Canada fell from 14.5% to 11% of people living under Canada's Official Poverty Line. The Government of Canada has invested in a number of areas that help to reduce poverty. These include current and planned investments in the National Housing Strategy, Reaching Home, the acquisition fund, infrastructure, disability benefits, as well as the Multilateral Early Learning and Child Care Framework and supports for before school and after school clubs. However, the overall poverty rate, while moving in the right direction, does not tell the whole story. To appreciate the multi-dimensional nature of poverty, one must consider the entire poverty dashboard of indicators. It reveals that progress in certain areas has been slow or non-existent. Rates of food insecurity, unmet housing needs, and literacy and numeracy rates indicate a need for immediate action. In this context:
   • the Government of Canada should continue with the implementation of the Poverty Reduction Strategy and with its current government-wide investments
   • the Government of Canada should focus additional investments in 4 areas where progress is falling behind: food security, housing and homelessness, literacy and numeracy and the poverty gap
2. As acknowledged throughout our report and in Opportunity for All – Canada's First Poverty Reduction Strategy, poverty in Indigenous communities is an outcome of colonialization and government policies. As a result, the Government of Canada has committed to a nation-to-nation, government-to-government and Inuit-Crown relationship with First Nations, Métis and Inuit. Based on the principles that those commitments were founded on, collaborative work is underway to reduce poverty in Indigenous communities. However, progress remains slow and poverty rates among Indigenous people living in urban, rural and remote settings remains very high compared to the general population
   • The Government of Canada should take urgent action to support Indigenous leaders to reduce poverty in their communities and to ensure they have all the resources available to support their own people in their own way. We specifically recommend the co-development of Indigenous indicators of poverty, as committed to in the Poverty Reduction Strategy, the co-development of a range of Indigenous poverty reduction strategies such as distinctions-based housing strategies, as committed to in the National Housing Strategy and commitments made through the Indigenous early learning and child care agreements
   • The data necessary to be able to report on Indigenous people should be made available to report on by our next progress report in 2021
3. We heard that the experience of poverty is different for everyone and is influenced by identity, background, past experiences, health, privilege and many other factors. However, data limitations mean that marginalized populations are often uncounted or undercounted for in the Government of Canada's statistics. Our assessment and reporting for this report were hampered by our inability to disaggregate data. We saw that many people were excluded or silenced through a failure to collect data, to ask inclusive questions, or to engage with them in program and policy development. The silencing of their voices leaves those who are the most marginalized and underserved out of the conversation
   • All Statistics Canada and federal population-based surveys should ask inclusive questions and provide inclusive response options on women and gender equity, Indigenous heritage, immigration/refugee status, race/ethnicity, disability, prior or current institutionalization, sexual orientation and gender identity, to allow for routine disaggregation of data to support better decision making and reporting of poverty disparities
   • The Government of Canada should work with stakeholders and communities to ensure that any new survey questions and response options regarding race, gender identity and sexual orientation are inclusive and that the questions reach the populations that are currently not captured
4. We heard from individuals with lived expertise of poverty that discrimination, racism, anti-Black racism and stigma are among the main causes of poverty. Persons with disabilities, immigrants, refugees, ethno-cultural and racialized groups, LGBTQ2S individuals and many others remain at a high risk of living in poverty compared to the general population
   • The Government of Canada should incorporate an equity lens when it reviews, develops and implements strategies, policies and programs. It should ensure Canada's poverty reduction efforts work as well for those at the highest risk as for everyone else and meets the unique needs of marginalized populations, including immigrants, refugees, ethno-cultural and racialized groups, persons with disabilities, LGBTQ2S individuals and people experiencing homelessness. The Government should also use available data to transparently report on the use of the equity lens and the outcomes
5. During the pandemic, the Government of Canada moved quickly to fill gaps in the social safety net and to provide direct support to families and individuals. Early data indicates that women, youth, children, less educated workers, recent immigrants, racialized individuals, informal workers who do not have a job with benefits and temporary employees on short-term contracts with no job security have been hardest hit by the economic impacts of the COVID-19 pandemic. There was an emphasis on providing low barrier, broad-based support and with less onerous application processes. At present, there is a unique opportunity to consider the lessons learned from this crisis and to rebuild and recover in such a way that capitalizes on opportunities for a more vibrant, resilient and sustainable economy while improving both the social safety net and proactive initiatives to prevent poverty by creating supportive social environments across the life course
   • The Government of Canada should collaborate with provinces and territories to build on its COVID-19 response and strengthen existing strategies, programs and policies to ensure a coordinated robust social safety net in Canada by collectively providing income support that is at least at the level of Canada's Official Poverty Line
   • We recommend that benefits be streamlined and simplified to make them low barrier, easier to access and easy to tailor to individual needs

Dedication

We dedicate this 2020 progress report to all those courageous people who shared their stories, successes and struggles with the Council in the hope that we would in turn share them across Canada. You are at the heart of this report. Thank you for your time, insight and resilience.

Message from the Chair

It is my honour and pleasure to present, on behalf of the National Advisory Council on Poverty (NACP) our 2020 report on the progress of Opportunity for All – Canada's First Poverty Reduction Strategy. Consistent with our values, throughout this report, we seek to bring forward the diverse voices of over 200 individuals with lived expertise that we had the privilege of hearing from during our engagement sessions; we look at the big picture and shed light on the structural barriers that keep people from exiting poverty; and, we prioritize equity, inclusion and compassion in our analysis and recommendations.

Poverty is scary, it means something different to everybody, to some it is a loss of freedom and good choices, to others it is hungry bellies or sleeping rough, not being able to buy your daughter a Barbie, or to always be worried about making rent. You probably all have your own definition. Poverty is a soul crushing daily reality for far too many individuals across Canada.

The Council recognizes that poverty reduction and ultimately eradication – requires strong partnerships. When efforts at all levels are aligned, complimentary and interwoven positive policies can lead to successful and sustainable programs. Poverty can't simply be solved, we must learn our way out of it, which is what the Council set out to do.

In March 2020 members of NACP began a coast to coast-to-coast engagement dialogue on poverty. We had the privilege of hearing from individuals with lived expertise, stakeholders and service providers in Surrey, Abbotsford, Vancouver, Yellowknife, Edmonton, Prince Albert, Saskatoon and Winnipeg about their experiences of poverty and their efforts toward poverty reduction.

We witnessed amazing resilience, mental fortitude and deep caring along the way. Beautiful souls, who shared their journey, their hardships and their triumphs. These incredible people dedicate themselves to supporting each other in their communities through the never-ending grind of poverty.

Unfortunately, mid-way through these engagement sessions, the world changed dramatically. The COVID-19 pandemic forced the Council to postpone visits to central and eastern Canada. As a result, there are many voices, perspectives and stories missing from this document. In this context, this report is about the government's progress towards poverty reduction since the release of Opportunity for All, but it is also about the changes COVID-19 has forced upon us and how we move forward as a country from this crisis to build back a better "next normal" that doesn't leave anyone behind, because much like our collective response to COVID-19, none of us are safe, until we are all safe.

Thank you,
Scott MacAfee

Poverty defined

According to Opportunity for All – Canada's First Poverty Reduction Strategy, poverty is the condition of a person who is deprived of the resources, means, choices and power necessary to acquire and maintain a basic level of living standards and to facilitate integration and participation in society. As a council, we agree with this broad definition of poverty. We also feel that a more comprehensive definition would highlight the feelings of disempowerment, disconnection from society and lack of control that characterise poverty. This is in line with the United Nations definition of poverty. A comprehensive definition of poverty reminds us that poverty reduction is about more than making sure that people have enough money to buy healthy, nutritious food or to secure safe housing. Poverty reduction is about ensuring that all people living in Canada have the right resources to be healthy and to thrive, to feel included and to feel they have control of their lives.

Global efforts to reduce poverty

The United Nations has led efforts to set poverty reduction targets at a global level through the Sustainable Development Goals. These goals aim to reduce the proportion of people living in poverty by half by 2030, with an overall goal of no poverty. The Government of Canada has committed to achieving this goal and has developed a Poverty Reduction Strategy, Opportunity for All, to help reach it.

Opportunity for All – Canada's First Poverty Reduction Strategy

Opportunity for All – Canada's First Poverty Reduction Strategy was designed to bring together new and existing government investments and to set the foundation for future government investments in poverty reduction.

National Advisory Council on Poverty Progress Report 2020

Created as part of Opportunity for All, the National Advisory Council on Poverty brings together a diverse group of 10 dedicated, passionate and knowledgeable members from across Canada. We are individuals with lived expertise, leaders, experts, academics and practitioners from across the field of poverty reduction. Visit the National Advisory Council on Poverty website for additional information about our members and our terms of reference. This is our first report on progress.

Number of people living in poverty

Statistical data can provide important information for decision-making about the number of people living in poverty, the populations that are at highest risk, the impact of government interventions and whether things are improving or not over time. In this chapter, we will provide a brief snapshot of poverty in Canada, using Canada's Official Poverty Line.

As a council, we heard from those with lived expertise that poverty is a constant struggle. We also heard that the experience of poverty varies from person to person; it does not have 1 definition and no 2 people experience poverty the same way. It is influenced by a person's identity, background, past experiences, health, privilege and other factors. As a result, capturing the diverse and deeply challenging experience of living in poverty through data alone is not possible. Statistics alone cannot tell us about what it means to live in poverty.

How poverty is measured

Although an Individual's income level and poverty experiences are not the same, income level is often used as a proxy measure for poverty. With the passing of the Poverty Reduction Act in June 2019, Canada's official measure of poverty, Canada's Official Poverty Line, was entrenched into law. Canada's Official Poverty Line is based on the Market Basket Measure (MBM), which is based on the cost of a basket of goods and services that individuals and families require to meet their basic needs and achieve a modest standard of living in communities across the country.

What more we need to learn about people in poverty in Canada

What we do not know about people living in poverty is just as important as what we do know. Federal surveys often collect demographic information so that data can be disaggregated by age and sex. However, information about poverty among some of the most vulnerable and marginalized groups continues to be limited because:

• many of the most underserved people (such as those in institutions or the homeless) are often not part of survey target populations
• the sample size of many surveys is too small to allow for disaggregation for smaller population groups
• questions related to race, ethnicity, sexual orientation and gender identity are often not asked of survey respondents

Moreover, low income estimates based on Canada's Official Poverty Line are not currently available for people living in the territories or on a reserve. Statistics Canada is currently working with territorial governments to develop a Market Basket Measure in the 3 territories.

This means that data on poverty in Canada is incomplete and that we do not have information about low income rates among some of the most vulnerable and marginalized groups in Canada.

What poverty means to you

We asked individuals in each location to respond to the question: "What does poverty mean to you?" The discussion that we had with each of the individuals and groups is highlighted below and informed the development of our report and a deeper understanding of poverty.

Overwhelmingly, we heard that the experience of poverty is different for everyone. It is influenced by identity, background, past experiences, health, privilege and many other factors. Throughout the engagement we were struck by the diversity of experience of those living in poverty.

"[Poverty is] just barely surviving, and never getting to live."
- Participant with lived expertise in Winnipeg, Manitoba

Some described poverty as a lack of income. Others described poverty as lacking the resources needed to maintain their own and their family's basic needs, such as food and shelter. Some participants shared that poverty felt like an identity and described being treated poorly because of it. Many mentioned feeling that the system made them feel invisible or like they did not exist and that they were ignored.

We also heard from many participants that poverty is a constant struggle. Some elements of this struggle identified by participants were:

• having to make impossible choices (such as between buying food or paying rent)
• spending hours waiting in lines to access resources, doing things specifically to survive (such as sex work, begging)
• living with the stigma of being poor
• living in a constant state of fear, of not knowing what comes next, being isolated from the community and never being comfortable in the present
• physical pain and struggle: of being frozen cold, of having swollen feet and being unable to put on shoes because of this

"To me, poverty is struggling to survive."
-Participant with lived experience from Yellowknife, Northwest Territories

Systemic barriers and common challenges

While we heard that poverty is individual, we also heard about a number of systemic barriers, common challenges and sources of frustration. During the engagements, individuals with lived expertise and stakeholders working for community organizations described some of the key barriers that create and reinforce poverty. Stakeholders acknowledged that these issues, particularly discrimination and stigma, are problems that are deeply rooted in our society.

Challenges of existing supports

During the engagements, many individuals with lived expertise described challenges they experienced in accessing a variety of supports that were often wholly inadequate. Alternatively, we also heard about services and supports that have been effective in increasing the resiliency of those living in poverty. It is important to hear about program successes and challenges directly from the people they are meant to serve. Participants shared a wealth of information about the challenges and effective solutions. Overwhelmingly, however, participants across engagements shared that dignity, choice and respect were key to transformative service delivery and provision.

What works

We also asked participants what works. They emphasized the importance of giving agency and choice. This includes programs that are based on mutual trust and are culturally safe. They also emphasized that programs must include wraparound supports that address the multiple and complex barriers many individuals and families living in poverty face.

Participants stressed the need to invest in proven solutions, such asaffordable housing, education and child care, to improve access for marginalized populations. They also stressed the need for education and training for employers and service providers.

Progress under Canada's Official Poverty Line

Opportunity for All – Canada's First Poverty Reduction Strategy set 2 key poverty reduction targets: a 20% reduction in poverty by 2020 and a 50% reduction in poverty by 2030, relative to 2015 levels.

The poverty rate in Canada fell from 14.5% in 2015 to 11% in 2018. This represents a 24.1% reduction. These figures are based on the Official Poverty Line and the Market Basket Measure, however, it excludes data for the 3 territories. In 2018, 1.09 million fewer people were living in poverty than in 2015. However, this data is more than 2 years old and it remains unclear how the COVID-19 pandemic will affect poverty rates and trends.

• Source: Canadian Income Survey

Text description of Figure 1

Year	2015	2016	2017	2018
Number of persons in poverty	5,074,000	4,543,000	4,188,000	3,983,000
Percentage of persons in poverty (%)	14.5	12.8	11.7	11.0

Between 2015 and 2018, poverty, as measured by Canada's Official Poverty Line, fell across all provinces in Canada and for all population groups. This was captured using available Statistics Canada data. However, the size of this change varied across regions and marginalized groups.

Despite improvements in the overall poverty rates, some of the other indicators of poverty, including food insecurity, unmet housing needs and the average poverty gap ratio, stayed the same or worsened. Data limitations make it difficult to assess trends across these indicators for different marginalized groups. That makes it challenging to identify where additional investments would be most beneficial.

Trends for marginalized populations under Canada's Official Poverty Line

Between 2015 and 2018, the poverty rates for all groups that can be counted for using data from the Canadian Income Survey decreased. However, the poverty rate among many marginalized groups remained well above the national average. In particular, poverty rates remained persistently high (at over 30%) for both unattached male and female individuals over this period. In addition, although female-led sole-caregiver families saw a considerable decrease in their poverty rate over this period, they continued to be at high risk of living in poverty.

• Source: Canadian Income Survey

Text description of Graph 2

Demographic group	Poverty rate (%) in 2015	Poverty rate (%) in 2018
Overall	14.5	11.0
Unattached females (18 to 64 years old)	41.8	36.7
Unattached males (18 to 64 years old)	36.6	34.6
Female sole caregiver families	36.6	28.6
Recent immigrants (landed <5 years)	36.0	26.0
Indigenous people (living off reserve)	26.0	19.5
Youth (18 to 24 years old)	22.3	18.0
Persons with disabilities	20.7	16.6
Male sole caregiver families	18.3	14.1
Immigrants	17.0	12.3
Children (0 to 17 years old)	16.4	10.8
Seniors (+65 years old)	7.0	5.6

Regional trends

People across Canada experience poverty differently, as the country is very diverse. The Canadian provinces and territories exist in very different contexts; they have different economics and demographic realities. They also take difference approaches to their social programs and use a variety of social policies to achieve their policy objectives.

According to the Canadian Income Survey, which collects information on the income of Canadians living in the 10 provinces, in 2018, poverty was highest in Nova Scotia (13.3%) and lowest in Alberta (9.4%). Between 2015 and 2018, the poverty rate in each province was on a downward trend. Over this period, the largest decreases among provinces were in New Brunswick (37.9%) and British Columbia (32.0%) and the smallest decreases were in Alberta (6%) and Saskatchewan (11.8%). However, New Brunswick and British Columbia had higher poverty rates in 2015 than many of the other provinces, particularly Alberta and Quebec, whose poverty rates have remained below the national average during this period.

Between 2015 and 2018, the national poverty rate fell by more than 24%, from 14.5% to 11.0%. This represents roughly 1,091,000 fewer persons living below the poverty line in a four-year period. New Brunswick and British Columbia had the largest reductions in poverty (37.9% and 32.0% respectively).

• Source: Canadian Income Survey

Text description of Infographic

Province	Poverty rate (%) in 2015	Poverty rate (%) in 2018	Percent decrease between the 2015 and 2018 rates (%)
Canada	14.5	11.0	-24.1
Newfoundland and Labrador	13.1	11.2	-14.5
Prince Edward Island	14.8	11.9	-19.6
Nova Scotia	17.0	13.3	-21.8
New Brunswick	16.1	10.0	-37.9
Quebec	13.7	9.7	-29.2
Ontario	15.1	11.6	-23.2
Manitoba	14.0	10.9	-22.1
Saskatchewan	12.7	11.2	-11.8
Alberta	10.0	9.4	-6.0
British Columbia	17.8	12.1	-32.0

Progress on multiple dimensions of poverty

Recognizing the fact that poverty has many dimensions, in addition to Canada's Official Poverty Line, Opportunity for All established a dashboard of indicators that Canadians can use to track progress made across the many dimensions of poverty, such as housing, health, food security, literacy and numeracy. A summary of the progress made across these indicators is presented below in Table 2.

Summary of indicator trends

Although poverty as measured by Canada's Official Poverty Line has fallen between 2015 and 2018, there are some dimensions of poverty tracked under the strategy where a lack of progress was observed or where the data trends indicate things may be getting worse.

Specifically, at the general population level, there has been a decrease in food security and a small rise in unmet housing needs. In addition, the average poverty gap (or average shortfall from the poverty line for those living in poverty) has increased. Literacy and numeracy both decreased.

Average poverty gap ratio^{Footnote 4}

This indicator measures the average shortfall below Canada's Official Poverty Line for those living in poverty.

Between 2015 and 2018, the average poverty gap ratio increased from 31.8% in 2015 to 33.4% in 2018. This trend was observed in every province and across demographic groups. However, as shown in Table 4, the size of the average poverty gap ratio and the rate of change varied among subpopulations. This indicates that, although the percentage of people living in poverty has declined, on average, those living in poverty had income that fell further below the poverty line in 2018 compared to 2015. Low income male sole-caregivers and unattached males saw their income going further below the poverty line between 2015 and 2018. The lack of progress under this indicator makes clear that more must be done to help the most marginalized in our society from falling further behind.

• Source: Canadian Income Survey

Summary of multi-dimensional poverty trends for marginalized populations

Our analysis of multi-dimensional poverty trends among marginalized populations was hampered by our inability to disaggregate data. In particular, indicators tracked under the dashboard, in most cases, cannot be disaggregated to look at the experience of Indigenous people, LGBTQ2S individuals, racialized populations and persons with disabilities. This is particularly concerning, given that available data indicates that there are significant differences in the experiences of subpopulations.

Aspirational data

While they provide important information about multi-dimensional poverty, from our point of view, the dashboard could be adapted to present a more holistic picture of the experience of poverty in Canada. In particular, we believe that indicators of children's well-being, mental health, social inclusion, and security and violence would help strengthen the existing dashboard. Currently, there is a limited data available to report on these dimensions of poverty. However, we have identified a few data sources and indicators that provide some important information about how Canadians are doing in these areas.

We recommend that data for these indicators be collected regularly by Statistics Canada, and be added to the dashboard of indicators tracked under the poverty reduction strategy on the Dimensions of Poverty Hub.

Indicators for Indigenous people

Given that Indigenous people experience poverty in different and unique ways, we also want to highlight the importance of co-developing Indigenous indicators of poverty, as committed to in the Poverty Reduction Strategy. Without consistent information on the experience of poverty in diverse Indigenous communities, Indigenous leaders and governments face challenges in making evidence-informed policy decisions for poverty reduction. Moreover, the current classification of Indigenous people as "First Nations, Inuit and Métis" does not represent the reality of the different communities. It is also important to reiterate that most Statistics Canada surveys do not collect information on Indigenous people living on a reserve and so available statistics, including under Canada's Official Poverty Line, do not capture the experiences of a large proportion of Indigenous people in Canada.

Impact on marginalized Canadians

Available data and our experiences in the field indicate that the pandemic has affected all Canadians, but not equally. We have seen that the pandemic has exacerbated many of the challenges marginalized populations were already facing and that they have borne the brunt of its negative health, well-being and financial impacts.

What we need to know about the impact on marginalized Canadians

Although it is clear that the COVID-19 pandemic has disproportionately impacted marginalized Canadians and amplified challenges faced by those living in poverty, there is still a lot that we do not know. As the crisis continues to evolve, there is a need for additional data and information to properly measure disparities and outcomes related to COVID-19. The collection of race-based and otherwise disaggregated COVID-19 case data by several provinces and public health authorities is a promising start. So is the addition of questions about visible minority status to the Statistics Canada's Labour Force Survey. However, to better understand who is most vulnerable to COVID-19, socio-demographic and race-based data should be collected across all jurisdictions. National surveys should collect information to allow decision-makers to better understand the differential impacts of COVID-19 on diverse populations.

Federal government response for marginalized Canadians

The Government of Canada responded quickly to mitigate the economic impacts of closing most non-essential businesses with a suite of measures aimed at protecting Canadians who were unable to work due to COVID-19. Among all of the federal investments made in response to COVID-19, the Canadian Emergency Response Benefit (CERB) was the largest COVID-19 emergency support directed toward individuals and families. It provides an income replacement ($2,000 over a 4-week period, initially for a maximum of 16 weeks, then extended twice for an additional 12 weeks) to employed, recently laid off and self-employed individuals who were directly affected by COVID-19.

Through the CERB, the Government of Canada was able to distribute funds to a large number of unemployed individuals in a short time frame. As of mid-September 2020, applications from 8.8 million applicants had been received and processed. This was achieved in large part because the application process was kept simple to make the benefit low-barrier and easy to access.

The introduction of the CERB raised questions about the adequacy of current benefits. The CERB was developed in part because many people who found themselves unemployed or unable to work as a result of the pandemic would not have been eligible for Employment Insurance. This speaks to an increasing misalignment between federal programming and the type of employment that many Canadians find themselves in (for example part-time, contract or temporary positions). The Government acknowledged this in the 2020 Speech from the Throne, in which it was stated that "the pandemic has shown that Canada needs an Employment Insurance system for the 21st century, including for the self-employed and those in the gig economy."

Moreover, although the flat monthly rate of $2,000 provided through the CERB was just enough to keep most individuals and families from falling below Canada's Official Poverty Line (see Appendix C), it is more generous than what many claimants would receive on EI, provincial and territorial social assistance programs and disability benefits. This raises serious questions about the adequacy of current benefits for some of Canada's most marginalized populations.

It is also notable that government funding for the middle class came largely through direct payments to individuals (the CERB) and that support for businesses was provided largely through a direct wage subsidy. However, support for marginalized Canadians was withheld from them and instead provided to organizations who support them. This continues to perpetuate a perception of blame and mistrust of the poor and takes away choice and control from marginalized individuals. It also left many low income people with nowhere to turn when frontline service organizations were forced to close.

Lessons learned for promoting recovery

Not only has the pandemic pushed governments to react quickly to support individuals affected by it, it has prompted us to think about how existing social security nets serve marginalized populations. The collective experience of the pandemic presents an opportunity for all Canadians to rethink how to better support marginalized populations and to identify ways of creating more supportive environments to prevent poverty in the first place. The initial government response to COVID-19 created the sense that all Canadians were in the crisis together. Most importantly, it included broad, low-barrier supports. As a council, we believe that it is important the Government continue to provide low-barrier support to all Canadians. We need to avoid returning to the type of supports that further marginalize some.

The pandemic has created an environment for change. Rather than simply returning to the pre-pandemic status quo, we can instead develop a more equal, healthy, purposeful and resilient society. This would involve collecting data to better understand how COVID-19 is impacting disparities and outcomes among diverse populations. And it would require building more responsive systems that include targeted policies for at-risk populations and are at a level that is sufficient to keep people out of poverty, allowing for greater autonomy, dignity and an opportunity for all.

Recommendations

1. The federal government's Poverty Reduction Strategy is already showing promising results in meeting Canada's commitment to reduce poverty by 20% by the year 2020. From 2015 to 2018, the overall poverty rate in Canada fell from 14.5% to 11% of people living under Canada's Official Poverty Line. The Government has invested in a number of areas that help to reduce poverty, including current and planned investments in the National Housing Strategy, Reaching Home, the acquisition fund, infrastructure, disability benefits, the Multilateral Early Learning and Child Care Framework and supports for before- and after-school clubs. However, the overall poverty rate, while moving in the right direction, does not tell the whole story. To appreciate the multi-dimensional nature of poverty, one must consider the entire poverty dashboard of indicators. It reveals that progress in certain areas has been slow or non-existent. Rates of food insecurity, unmet housing needs, homelessness, and literacy and numeracy rates indicate a need for immediate action. In this context:
   • the Government of Canada should continue with the implementation of the Poverty Reduction Strategy and with its current government-wide investments
   • the Government of Canada should focus additional investments in 4 areas where progress is falling behind: food insecurity, housing and homelessness, literacy and numeracy and the poverty gap
2. As acknowledged throughout our report and in Opportunity for All – Canada's First Poverty Reduction Strategy, poverty in Indigenous communities is an outcome of colonization and government policies. As a result, the Government of Canada has committed to a nation-to-nation, government-to-government and Inuit-Crown relationship with First Nations, Inuit and Métis. Based on the principles that those commitments were founded on, collaborative work is underway to reduce poverty in Indigenous communities. However, progress remains slow and poverty rates among Indigenous people in urban, rural and remote settings remains very high compared to the general population
   • The Government of Canada should take urgent action to support Indigenous leaders to reduce poverty in their communities and to ensure they have all the resources available to support their own people in their own way. We specifically recommend: the co-development of Indigenous indicators of poverty, as committed to in the Poverty Reduction Strategy; the co-development of a range of Indigenous poverty reduction strategies such as distinctions-based housing strategies, as committed to in the National Housing Strategy; and commitments made through the Indigenous early learning and child care agreements
   • The data necessary to be able to report on Indigenous people should be made available to report on by our next progress report in 2021
3. We heard that the experience of poverty is different for everyone and is influenced by identity, background, past experiences, health, privilege and many other factors. However, data limitations mean that marginalized populations are often uncounted or undercounted for in the Government of Canada statistics. Our assessment and reporting for this report were hampered by our inability to disaggregate data. We saw that many people were excluded or silenced through a failure to collect data, to ask inclusive questions, or to engage with them in program and policy development. The silencing of their voices leaves those who are the most marginalized and underserved out of the conversation
   • All Statistics Canada and federal population-based surveys should ask inclusive questions and provide inclusive response options on women and gender equity, Indigenous heritage, immigration/refugee status, race/ethnicity, disability, prior or current institutionalization, sexual orientation and gender identity, to allow for routine disaggregation of data to support better decision making and reporting of poverty disparities
   • The Government of Canada should work with stakeholders and communities to ensure that any new survey questions and response options regarding race, gender identity and sexual orientation are inclusive and that the questions reach the populations that are currently not captured
4. We heard from individuals with lived expertise of poverty, that discrimination, racism, anti-Black racism and stigma were among the main causes of poverty. Marginalized groups remain at a high risk of living in poverty compared to the general population
   • The Government of Canada should incorporate an equity lens when it reviews, develops and implements strategies, policies and programs. It should ensure Canada's poverty reduction efforts work as well for those at the highest risk as for everyone else and meet the unique needs of marginalized populations, including, immigrants, refugees, ethno-cultural and racialized groups, persons with disabilities, LGBTQ2S individuals and people experiencing homelessness. The Government should also use available data to transparently report on the use of the equity lens and the outcomes
5. During the pandemic, the Government of Canada moved quickly to fill gaps in the social safety net and to provide direct support to families and individuals. Early data indicates that women, youth, children, less educated workers, recent immigrants, racialized individuals, informal workers who do not have a job with benefits and temporary employees on short-term contracts with no job security have been hardest hit by the economic impacts of the COVID-19 pandemic. There was an emphasis on providing low barrier, broad-based support and with less onerous application processes. At present, there is a unique opportunity to consider the lessons learned from this crisis and to rebuild and recover in such a way that capitalizes on opportunities for a more vibrant, resilient and sustainable economy while improving both the social safety net and proactive initiatives to prevent poverty by creating supportive social environments across the life course
   • The Government of Canada should collaborate with the provinces and territories to build on its COVID-19 response and strengthen existing strategies, programs and policies to ensure a coordinated robust social safety net in Canada by collectively providing income support that is at least at the level of Canada's Official Poverty Line
   • We recommend that benefits be streamlined and simplified to make them low-barrier, easier to access and easy to tailor to individual needs

Appendix A – Glossary of terms

Assimilation

Process by which the Government of Canada forced Indigenous people to adopt the beliefs, languages and customs of Canadian society, resulting in the loss of Indigenous language and culture in the process.

Canada's Official Poverty Line

See Market Basket Measure.

Co-development

Process where 2 or more parties come together to jointly develop or create something.

Cultural safety

An approach that considers how social and historical contexts, as well as structural and interpersonal power imbalances, shape interactions and experiences.

Disaggregated data

Refers to information that has been summarized and then broken down into component parts or smaller units of data usually to reveal trends, patterns and insights.

Discrimination

The unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, sex, gender identity and sexual orientation.

Equity lens

A process of analyzing or diagnosing the impact of the design and implementation of policies on underserved and marginalized individuals and groups, and to identify and potentially eliminate barriers.

Food insecurity

The inability to acquire or consume an adequate diet quality or sufficient quantity of food in socially acceptable ways, or the uncertainty that one will be able to do so.

Food security

A measure of the availability of healthy food and individuals' ability to access it.

Gender identity

Gender identity is a person's subjective experience of their own gender. It is a deep internal feeling of whether they identify as female, male, genderqueer, or anywhere along the gender spectrum. A person's gender identity may be the same as or differ from the sex assigned to them at birth.

Homophobia

Irrational fear of or prejudice against individuals who are or perceived to be gay, lesbian, bisexual and other non-heterosexual individuals.

Inclusion

Eliminating relational sources of bias by ensuring that identity group status is unrelated to access to resources, creating expectations and opportunities for heterogeneous individuals to establish personalized cross-cutting ties and integrating ideas across boundaries in joint problem solving.

Indigenous

Throughout this land, First Peoples represent many communities, languages, traditions, cultures and individuals. We have endeavoured to honor those communities and people by representing them throughout the document in the essence of the words we have chosen. We acknowledge that we could not effectively reference and carry the stories of ALL of this land's First Peoples. The report is limited in using the broad definition of "Indigenous" to capture the unique beauty and nuance of these communities and people.

Individuals with lived expertise

People who have experienced or are currently living in poverty and are able to share their knowledge, thoughts and opinions to help inform the development of policies, procedures and programs.

Intergenerational poverty

Poverty experienced by several generations of the same family.

Intersectionality

The complex, cumulative way in which the effects of multiple forms of discrimination combine, overlap, or intersect especially in the experiences of marginalized individuals or groups.

LGBTQ2S

Acronym that stands for lesbian, gay, bisexual, transgender, queer, questioning and 2-spirit people.

Low Income Measure

The Low Income Measure defines low income as being below a fixed percentage of income. A household is considered low income if its income is below 50% of median household incomes.

Marginalized population

A group of people that are excluded from full participation in society and/or have a feeling of being insignificant or unimportant.

Market Basket Measure (MBM)

A measure of low-income 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, footwear, transportation, shelter and other expenses for a reference family of 2 adults aged 25 to 49 and 2 children (aged 9 and 13).

Multi-dimensional poverty

A recognition that poverty is not simply a lack of income, but that it includes all of the consequences that come with lacking income, including poor health, unsafe housing conditions and lack of access to food.

Sexual orientation

How a person identifies to whom they are sexually and romantically attracted to (for example lesbian, gay, bisexual and heterosexual).

Social safety net

A collection of services provided by the state or other institutions to improve the lives of individuals and families experiencing – or at risk of experiencing – poverty.

Sole-caregiver (or lone-parent) family

Refers to a parent who is not married and does not have a partner, who is bringing up a child or children.

Stigma

Strong feelings of disapproval that most people in a society have about something, especially when this is unfair.

Systemic barriers

Policies, practices or procedures that result in some people receiving unequal access or being excluded.

Transgender

A term used to describe people whose gender identity does not match with the sex they were assigned at birth. Transgender is also used as an umbrella term and can encompass those who identify as genderqueer, gender fluid and whose gender identities challenge gender norms.

Transphobia

Feelings of rage, hate and disapproval toward people who identify as transgender or non-binary. Transphobia can be manifested in numerous ways, such as verbally, emotionally and through physical attacks.

Appendix B – Organisations and stakeholders that attended the engagement sessions

Appendix C – Estimated monthly disposable income for families receiving the CERB compared to thresholds under Canada's Official Poverty Line

Appendix D – Surveys