Goal 1: Reduce poverty in Canada in all its forms

This Goal's focus on reducing poverty in all of its forms directly supports SDG Global Indicator Framework target 1.2: by 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions.

Poverty can be understood as 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. While poverty affects everyone differently, when some Canadians are left behind, all Canadians are affected. Poverty influences the strength and resilience of our communities. People living in poverty are more likely to face health-related setbacks, to have difficulty finding and keeping a job, to find themselves in the criminal justice system, and to need various social supports and assistance. In addition, children who grow up in poverty are more likely to be in contact with the child welfare system as well as the justice system, and to remain in poverty as they age.

Data from the 2020 Canadian Income Survey released in 2022 shows that close to 2.7 million fewer people lived in poverty in 2020 compared to 2015. About 2.4 million Canadians, or 6.4% of the population, lived below Canada's official poverty line in 2020 compared to 14.5% in 2015. The government is making significant progress towards its target to reduce poverty by 50% by 2030, relative to 2015 levels. The poverty rate in Canada has decreased steadily since 2015, but the decrease in poverty between 2019 and 2020 is largely attributed to temporary COVID-19 emergency benefits.

While the overall poverty rate in Canada is falling, not all groups are affected equally. Single-parent families, single people aged 45 to 64, persons with disabilities, recent immigrants and Indigenous Peoples are more likely to have a low income than other groups in Canadian society. Some individuals may also face intersecting challenges that make them more at risk of poverty—for example, individuals from Black or other racialized communities, transgender individuals and persons with disabilities.

According to the Canadian Survey on Disability 2017, 13.5% of persons with a disability live below the poverty line, compared to 10.1% of all Canadians. Before the COVID-19 pandemic, working-aged Canadians with disabilities experienced significant financial hardships, on a systemic basis. They were twice as likely as their peers without disabilities to be living in poverty were and far more likely to live in deep poverty. The pandemic has made this situation worse. In a 2020 Statistics Canada crowd sourcing survey, 61% of participants aged 15 to 64 with disabilities or long-term conditions reported a major or moderate impact from COVID-19 on their ability to meet at least one type of financial obligation or essential need.

Individuals living in northern and remote communities can also experience distinct challenges that make them more at risk of living in poverty, such as high cost of food, barriers to accessing health care and unmet housing needs, which are particular challenges in Nunavut.

A similar proportion of men and women live in poverty, but some women face unique barriers that can make them more vulnerable to poverty than men. For example, 80% of single parents are women, and more than one third of single parent women live in poverty.

Poverty is linked with other sustainable development issues, including climate change. For example, poverty can worsen the impacts of extreme weather events and natural disasters, while these events can also cause or exacerbate poverty. Over the last 20 years, the world has experienced more floods, wildfires, and other climate-related disasters than in any other documented 20-year period in history. This has affected communities, the environment and the resources it provides, as well as overall poverty levels. (See Goal 13 for more information on extreme weather events and natural disasters).

In 2018, the Government of Canada launched its first poverty reduction strategy, Opportunity for All - Canada's First Poverty Reduction Strategy. Building on a national consultation process with provincial, territorial, municipal and Indigenous governments, academics, people involved in social service delivery, and people who have lived experience of poverty, the strategy committed to the SDG 1 targets of reducing poverty by 20% by 2020 and 50% by 2030.

The Poverty Reduction Strategy seeks to reduce and remove systemic barriers, including for those communities that face unique barriers that can make them more vulnerable to poverty. This includes Indigenous Peoples, single people aged 45 to 64, persons with disabilities, single parents, newcomers, Black Canadians and individuals from other racialized communities, 2SLGBTQI+ (in particular transgender) individuals and Canadians with significant health issues.

The Poverty Reduction Strategy defined Canada's Official Poverty Line for the first time, based on the Market Basket Measure. It reflects the combined costs of a basket of goods and services that individuals and families require to meet their basic needs and achieve a modest standard of living. The basket includes items such as healthy food, appropriate shelter and home maintenance, and clothing and transportation. Wherever individuals and families are living across the country, if they cannot afford the cost of this basket of goods and services in their particular community, they are considered to be living in poverty.

The Poverty Reduction Strategy also established the National Advisory Council on Poverty. The council provides independent advice to the Minister of Families, Children and Social Development on poverty reduction, reports on the progress achieved, and maintains a national dialogue with Canadians. It brings together a committed and diverse group of 10 members, including persons with lived experience, leaders, experts, academics, and practitioners that work in the field of poverty reduction.

The Government of Canada continues to work with National Indigenous Organizations and other partners to co-develop indicators of poverty and well-being from First Nations, Inuit, and Métis perspectives. This will help to better measure poverty among Indigenous populations in Canada in a way that is culturally appropriate.

Following from a commitment in Canada's First Poverty Reduction Strategy, the Poverty Reduction Act came into force in 2019. The Act enshrines into law the government's poverty reduction targets, Canada's Official Poverty Line, and the National Advisory Council on Poverty.

A number of initiatives to support low-income individuals and families are contributing to the target to reduce poverty in Canada by 50% by 2030. For example:

• The Canada Child Benefit (CCB), introduced in 2016, provides support for low- to middle-income families with children. The CCB provides support to about 3.5 million families in respect of over 6 million children, providing over $25 billion, tax-free, each year to Canadian families.
• The Child Disability Benefit is a tax-free monthly payment made to families who care for a child under age 18 with a severe and prolonged impairment in physical or mental functions.
• The Canada Workers Benefit is a refundable tax credit that supplements the earnings of low- and moderate- income workers, letting them take home more money while they work. It has two parts: a basic amount and a disability supplement.
• The On-reserve Income Assistance Program supports eligible First Nations on reserve residents to cover the costs of their daily living and provides funding to access pre-employment supports.
• To support future seniors, the Government of Canada, in collaboration with provincial partners, has enhanced the Canada Pension Plan (CPP). The enhancement increases the CPP retirement pension, post-retirement benefit, disability pension and survivor's pension that Canadians may receive.
• In July 2022, the Old Age Security pension increased by 10% for seniors aged 75 years and older to give seniors greater financial security as they advance in their retirement.

Key federal income supports are designed to keep up with inflation. Benefits such as the CCB, Canada Workers Benefit and the GST/HST tax credit, as well as Old Age Security and the Guaranteed Income Supplement, are indexed to the Consumer Price Index, allowing them to keep up with increases in the cost of living.

Through Canada's COVID-19 Economic Response Plan, the government has invested in targeted income support to individuals, business, key sectors, and community organizations on the frontlines of serving Canadians to help reduce social inequalities and support vulnerable groups most affected by the global pandemic.

The federal government is also taking action to reduce homelessness and make housing in Canada more affordable. To learn about commitments and actions on housing, see Goal 11.

Targets, indicators, milestones and contextual indicators

Theme: Poverty reduction 

Target: Poverty reduction ⁽¹⁾

By 2030, reduce the poverty rate by 50% from its 2015 level (Minister of Families, Children and Social Development)

Short-term milestone: Address key gaps in poverty measurement ⁽¹⁾

By the end of 2023, advance the Data and Measurement Plan to address key gaps in poverty measurement in Canada, including by finalizing the methodology for the Market Basket Measure in the Northwest Territories and Yukon and developing a Market Basket Measure methodology for Nunavut.

Contextual indicator: Prevalence of asset resilience ⁽ⁱ⁾

As part of Canada's Official Poverty Dashboard of Indicators, this indicator tracks the percentage of Canadians who are asset resilient. Asset resilience is defined as having enough savings to maintain well-being for a specified period of time. In 2019, 67.1% of Canadians were asset resilient for at least 3 months.

Implementation strategies and departmental actions

Theme: Poverty reduction

Implementation strategy: Improve the measurement of poverty ⁽¹⁾

Strengthen poverty data and measurement, including by expanding the Canadian Income Survey so that Canada's Official Poverty Line can be calculated in the territories, ensuring that the basket of goods and services reflects the unique costs of living in Canada's northern and remote communities, and regularly updating the cost and the items within the basket of goods and services to ensure that it reflects what Canadians require to meet their basic needs and achieve a modest standard of living.

Implementation strategy: Make investments to reduce poverty ⁽¹⁾

Make significant investments that will help Canada meet its official poverty reduction target and make measurable progress toward social and economic well-being for all Canadians, including through the Canada Child Benefit, the proposed Canada Disability Benefit, the Canada Workers Benefit, the Old Age Security pension, the Guaranteed Income Supplement, and the On-reserve Income Assistance Program.

Implementation strategy: Work with partners to reduce poverty ⁽¹⁾

Support the work of the National Advisory Council on Poverty and work closely with Indigenous Peoples, provinces and territories, municipalities, stakeholders, charities and community groups to ensure that programs and policies are aligned and complementary. Work in partnership with Indigenous organizations to realize a Canada where there is meaningful reconciliation with First Nations, Inuit and Métis communities, including by recognizing the unique understanding and experience of poverty amongst Indigenous Peoples, supporting autonomy and empowerment, and building on investments to date that take a distinctions-based approach, where programming is designed with and for Indigenous Peoples.

Responsibilities and contributions of federal organizations

Performance measurement

*Indicators that have also been included in the Canadian Indicator Framework.

For more detailed information see Strengthening transparency and accountability.