Cuts to welfare increase food bank use

There is a close relationship between welfare rates and food bank use, with a 10% cut in benefits leading to a 14% increase in food bank use, according to a study by the Canadian Centre for Policy Alternatives. Similarly, a cut in the welfare caseload of 10% resulted in over a 4% increase in food bank use, negating the belief that being removed from welfare will make recipients self-sufficient by reducing “dependency.”

The study, “Understanding the Link Between Welfare Policy and the Use of Food Banks,” by Michael Goldberg and David A. Green, contains a number of such revealing yet troublesome facts about food bank use.

For instance, improvements in employment rates do decrease food bank use, but at a lower rate than welfare cuts increase use. Food bank use increased dramatically between 1998 and 2004 (from 700,000 to 840,000) despite excellent economic growth because the employment effect did not offset the impact of welfare cuts.

Numbers have declined since 2004 to levels just over 700,000, demonstrating that a significant number of Canadians were left-behind by the decade of strong economic growth. Many of these clients spend more than 60% of their income on rent and utilities, and receive so little income that even a $100 reduction in their monthly incomes would be “disastrous.” Very few food bank lived in subsidized housing (3%), despite the fact that most of them rented their homes.

Roughly 60% of those surveyed live with children, meaning that there are many children who are dependent on food banks.

The study offers a series of recommendations to ensure that every Canadian has access to adequate and appropriate food, which the authors note is an internationally recognized right. The recommendations range from adequate and accessible welfare, to support for child care, education and training, and affordable housing.