Policy initiatives for Canada’s poverty reduction strategy

CPJ’s Envisioning Canada Without Poverty campaign has ended. We thank CPJ members and supporters for contacting their MPs and sharing the important message that poverty must be addressed. Thanks to you, the campaign was a success. For new opportunities to get involved in the fight against poverty, check out CPJ’s new campaign: Dignity for All.

What kinds of areas should Canada’s poverty reduction strategy include?

It is important that the federal government commit to a comprehensive poverty reduction strategy. That framework provides vision and accountability for the commitment. Within that framework, there are a variety of policy areas and targeted strategies the federal government could include.

Poverty is more than lack of income. While focusing on incomes in the aim of ensuring every Canadian has a sustainable livelihood is an important goal, a poverty reduction strategy would also need to address other aspects of poverty. Targeted initiatives could also be developed within Canada’s larger anti-poverty framework that would address certain vulnerable populations or particular areas of need. Here are a few areas we think a federal poverty reduction strategy should address:

• Affordable and adequate housing

  Approximately 1 in 6 Canadian households currently experiences housing affordability challenges. Many Canadians face dual challenges of the rising costs of housing and lacking sufficient income. Meanwhile, Canada’s affordable housing policy has eroded with the lack of a national strategy and a decline in annual investment from all levels of government. The result has been crisis management and short-term solutions rather than long-term, sustainable measures.

• Income insecurity and social transfers

  10.8% of Canadians have after-tax incomes lower than the poverty line. These Canadians are forced to make hard economic choices between basic necessities or using foodbanks and other charities to make ends meet. Government programs and transfers currently don’t ensure all Canadians have enough income for well-being. The federal government has tools like individual tax credits and transfers, but they also contribute to social assistance through their financial transfers to the provinces.

• Support for workers

  Many Canadians living in poverty receive most or all of their income from paid employment. For example, in 2003 more than 50% of two parent families living in poverty received their principal income from employment and received no welfare or Employment Insurance payments. Not all jobs pay a living wage. And for workers who lose their jobs, not everyone who has paid EI premiums will receive EI payments. In fact, in 2004, only 38% of unemployed Canadians were able to access EI. Those who are cut off from EI payments are also cut off from EI training programs. Finding good appropriate, accessible and affordable child care is also a significant challenge for many Canadian workers.

• Targeted support for aboriginal peoples and newcomers

  Aboriginal Canadians experience significantly higher rates of poverty than other Canadians, whether they’re on reserve or in one of Canada’s largest cities. In fact, the living conditions of some aboriginal communities have been compared to the Third World. While aboriginal peoples confront many of the same challenges as other Canadians living in poverty, their conditions and experiences also relate to their history and experiences with non-aboriginals and Canadian governments. Addressing aboriginal poverty requires reconciliation and healing in light of this history.

  New Canadians also face higher poverty rates and chronically low incomes. A 2007 Statistics Canada report showed that even after ten years in Canada, many immigrants had considerably lower incomes than other Canadians. Refugees and immigrants can experience challenges in integration, entering the job market, recognition of foreign credentials and racism, all of which need to be taken into consideration when responding to poverty among newcomers.

• Support for provincial poverty reduction strategies

  Quebec and Newfoundland and Labrador have already adopted provincial poverty reduction strategies. Ontario and Nova Scotia are developing plans. Prince Edward Island has shown an interest in a local strategy. Each of these provinces is showing leadership on poverty. But they could all use support from the federal government as well. A federal poverty reduction strategy doesn’t just have to address individuals, it could also support provinces. One idea might be an open coordination framework, with the federal government undertaking funding commitments for specific provincial goals with appropriate monitoring and accountability.

What sorts of initiatives would demonstrate the government’s serious commitment to action on poverty?

A poverty reduction strategy doesn’t need to be fully designed from day one to be successful. Many ideas will be identified by public and provincial consultations, or developed as needs and policy impacts are monitored. However, there are certain policy initiatives the federal government could undertake immediately to demonstrate its commitment to reducing poverty is serious. We think these policies should include:

• Renew and extend the existing housing programs due to expire March 2009. (Renewed funding announced September 17, 2008!)
• Commit to long-term strategic planning with appropriate funding on affordable housing.
• Double the Working Income Tax Benefit and raise the cut-off for access so that someone working full-time, year round for minimum wage would qualify.
• Reform EI to give access to people engaged in precarious or non-traditional employment.
• Create a genuine national childcare and early learning plan.