In 1989, the House of Commons unanimously resolved to eliminate child poverty by the year 2000. However, no long-term action plan was developed to meet this goal and monitor progress. Despite some improvement, poverty remains a significant problem in Canada. In 2007, 9.2% of Canadians lived on low income; a proportion that was significantly less than in 1996 when 15.2% of the population was living on low income. In 2007, low income remained a significant challenge for 2.95 million Canadians. Statistical evidence shows that children, lone parents (particularly female lone parents), women, Aboriginal people, persons with disabilities, immigrants (particularly recent immigrants), and unattached individuals, for a variety of factors, are particularly at risk of living on low income.

The rates of family and child poverty are unacceptably high taking into account Canada’s high quality of living standard. Interest groups defending the rights of people living in poverty have stressed the need for further action from all government levels. The National Council of Welfare (NCW) as well as other social policy advocates and anti-poverty organizations specifically asked the federal government to take a leadership role and establish a national poverty reduction strategy.

The Standing Committee on Human Resources, Social Development and the Status of Persons with Disabilities (hereafter the Committee) heard their call for action and, on February 14, 2008, decided to undertake a study on the role of the federal government in reducing poverty in Canada. During the 2^nd session of the 39^th Parliament, the Committee held seven meetings on the matter. During those initial meetings, Committee members learned that poverty reduction strategies being implemented in certain European countries and Canadian provinces were showing positive results and could effectively reduce some of the risk factors that contribute to poverty. The Committee also heard from department officials and social policy experts who provided members with an overview of poverty in Canada, its underlying causes and its socio-economic costs. Some witnesses also discussed issues related to measuring low income and poverty in Canada. The Committee was told that to prevent, reduce and alleviate poverty, a comprehensive, integrated and multi‑faceted approach was needed and that the federal government had an important role to play in this regard.

Work on this study resumed in the 40^th Parliament. The Committee held 47 meetings on this topic, including 11 meetings in the Maritime Provinces and in Québec in May 2009; 10 meetings in Toronto in June 2009; and 8 meetings in the Western provinces, the Northwest Territories and the Yukon in November and December 2009. Finally, the Committee held 9 meetings and visited two Aboriginal communities between March and June 2010.

In marked contrast to the economic growth observed at the beginning of the Committee’s study, part of the study also took place during a period of economic recession. Given the importance of acting promptly to address poverty and to mark the 20^th anniversary of the 1989 resolution to eliminate child poverty in Canada, the Committee adopted the following motion on November 17, 2009:

That, with November 24^th, 2009 marking the 20^th anniversary of the 1989 unanimous resolution of this House to eliminate poverty among Canadian children by the year 2000, and not having achieved that goal, be it resolved that the Government of Canada, taking into consideration the Committee’s work in this regard, and respecting provincial and territorial jurisdiction, develop an immediate plan to eliminate poverty in Canada for all.

Throughout this study, Committee members listened to a large number of Canadians who shared their experience of living in poverty and to organizations and social policy experts who shared their knowledge about the living conditions of Canadians living in poverty or at-risk of poverty, and who suggested means of raising these groups out of poverty, whether through existing programs or by creating new initiatives. The Committee was told that we also need a shift in perspective if we are to significantly reduce poverty in Canada. Poverty reduction measures must not be seen only as charity work or only be guided by moral principles, but must be set within a human rights framework, specifically the recognition that governments have a duty to enforce socio-economic and civil rights. Adopting a human rights framework also limits the stigmatization of people living in poverty. The Committee fully endorses such a framework in this report.

In Chapter 1, we share some of what we learned about defining and measuring poverty in Canada; provide a statistical profile of poverty, an overview of poverty-related issues such as physical and mental health; food security and housing; and homelessness. We also provide a summary of what is currently known about the socio-economic costs of poverty.

Chapter 2 provides a brief overview of poverty reduction strategies in Canada, Ireland and the United Kingdom. The Committee carefully studied these strategies and the various poverty reduction measures that have already been implemented across Canada and around the world. Notwithstanding the progress that has been made, there is no doubt that the recent economic downturn has hindered poverty reduction efforts in Canada as well as in other countries. The Committee believes that the federal government can learn from these efforts as it moves ahead on this issue and that it should support and respect provincial and territorial poverty reductions strategies as well as community organizations delivering services to low-income Canadians.

Members of the Committee recognize that the federal government has an important role to play in reducing poverty in Canada. For example, the reduction in poverty among Canadian seniors is generally recognized as one of Canada’s most notable achievements of the past 30 years. The reduction is attributed largely to the provision of a Guaranteed Income Supplement (GIS) to low-income seniors receiving Old Age Security (OAS) payments, an initiative that has been in place since 1967. The impact of the National Child Benefit Initiative, introduced in 1998, is another example of the role public policy can play in reducing poverty in Canada. Evidence suggests that the National Child Benefit Supplement (NCBS) has played a key role in improving the economic well-being of some Canadian families with children and that it could play an even greater role.

The Committee believes that the federal government must develop an action plan to reduce poverty, and we make this the first recommendation of our report in Chapter 3 along with other recommendations outlining the key elements of this plan and its institutional framework. The Committee also recommends measures to support and recognize the work being done by community organizations that are dedicated to poverty reduction.

Chapter 4 discusses an array of federal measures currently in place that play a direct or indirect role in alleviating poverty in Canada among vulnerable populations in Canada. The Committee makes concrete recommendations to improve these measures and asked that the federal government implement some of these recommendations immediately. As the Canada Child Tax Benefit (CCTB) has clearly made an impact on poverty, the Committee recommends that the federal government incrementally increase the annual amount of the CCTB—including both the base benefit and the NCBS—to reach a minimum of $5,000 per child within five years’ time. To assist people with disabilities, we recommend that the federal government immediately amend the Income Tax Act to make the Disability Tax Credit (DTC) a refundable credit. As a first step to improving the living conditions of Aboriginal people, the Committee recommends that the Government of Canada endorse the United Nations Declaration on the Rights of Indigenous People. The Committee also recommends changes to the GIS as well as an increase to the goods and services tax (GST) credit, among other recommendations. The Committee believes that these measures will assist low-income Canadians in making ends meet and help reduce poverty in Canada.

Members of the Committee think that having a place to call home is a fundamental need and a basic human right. Unfortunately, many people living in poverty are unable to meet their housing needs. Chapter 5 is dedicated to housing and homelessness issues. The Committee was told that decent affordable housing is both an important foundation for healthy social and physical development, and a springboard to exit poverty and to take advantage of education and training opportunities that can open doors to better economic and personal well-being. Among other recommendations, we call on the federal government to preserve Canada’s existing affordable housing stock and to ensure that the measures announced in Budget 2009 for the construction of social housing units for low-income seniors, people with disabilities, Aboriginal people, and areas of the North are promptly delivered.

Members of the Committee recognize the key role of education and human capital in helping people get access to and retain high-quality jobs, and in lifting and maintaining people out of poverty. The federal government plays a role in skills development through many of its programs. Chapter 6 describes these programs, as well as employment-related measures, and contains recommendations pertaining to financial literacy, the social economy and other aspects related to education and training. For example, we recommend additional financial support to the Mental Health Commission of Canada to support projects related to training. These recommendations, we hope, will ensure all Canadians can contribute to society and be prevented from living in poverty.

It is the Committee’s intent that the recommendations made in this report contribute to the development of an effective federal poverty reduction plan that will reduce poverty and increase labour force participation rates. Members of the Committee realize that the implementation of the federal action plan recommended in this report will require an ongoing commitment and greater cooperation between federal, provincial and territorial governments. The Committee agrees that the time has come to seriously address the risk factors associated with poverty, and that the federal government can work in cooperation with other levels of government, Aboriginal stakeholders and community organizations to ensure that all Canadians live in dignity and can fully and actively participate in Canada’s social and economic life.