441-02535 (Social affairs and equality)

In 2018, the Government of Canada released Opportunity for All – Canada’s First Poverty Reduction Strategy. Opportunity for All was developed using a Gender-based Analysis Plus (GBA+) lens in order to take into consideration the variation in experiences and barriers that different groups face with regards to poverty. Based on its three pillars of Dignity, Opportunity and Inclusion and Resilience and Security, the Strategy offers a bold vision for Canada as a world leader in the eradication of poverty and is aligned with the United Nations Sustainable Development Goal of ending poverty.  

The Poverty Reduction Strategy established an official measure of poverty, Canada’s Official Poverty Line, and sets ambitious and concrete poverty reduction targets: a 20 percent reduction in poverty by 2020 and a 50 percent reduction in poverty by 2030, in comparison to the 2015 levels. 

In addition, the Poverty Reduction Strategy establishes the National Advisory Council on Poverty to advise the Minister of Families, Children and Social Development on poverty reduction and to report to the public annually on progress towards Canada’s poverty reduction targets.

The Poverty Reduction Act, which received Royal Assent in June 2019, entrenched Canada’s Official Poverty Line, the poverty reduction targets and the National Advisory Council on Poverty into law.

The Strategy brings together significant investments that the Government has made since 2015 to support the social and economic well-being of all Canadians. These investments include funding for key poverty reduction initiatives, such as the Canada Child Benefit, the increase to the Guaranteed Income Supplement top-up, and the National Housing Strategy. The Canada Child Benefit alone represents an investment of more than $25 billion per year.

Guided by this strategy, Canada’s poverty reduction efforts are showing positive results. The overall poverty rate, as measured by Canada’s Official Poverty Line, was 9.9 percent in 2022, down from 14.5 percent in 2015. From 2015 to 2022, close to 1.3 million Canadians, including 380,000 children, have been lifted out of poverty. This represents a 32% reduction in poverty rate between 2015 and 2022.

Canada also continues to track progress on poverty reduction through indicators included in the Dimensions of Poverty Hub. These indicators capture multiple dimensions of poverty beyond income. 

Recent budgets introduced several measures that will help to reduce poverty and inequality. For example, Budget 2022 included a comprehensive plan to make housing more affordable and outlined an employment strategy for persons with disabilities, while Budget 2021 expanded the Canada Workers Benefit to support about 1 million additional Canadians in low-wage jobs. Budget 2023 committed $13 billion over five years, and $4.4 billion ongoing, to implement the Canadian Dental Care Plan. The Plan’s phased rollout started in 2023 and provides dental coverage for uninsured Canadians with annual family income of less than $90,000.

More recently, Budget 2024 announced further measures to help make life more affordable, including significant investments in housing, affordable child care, school food for children, and lowering everyday costs. It also included an investment of $6.1 billion over six years, and $1.4 billion ongoing, for a new Canada Disability Benefit.

The Government is also working with provincial, territorial and Indigenous partners to build a Canada-wide, community-based child care system. The federal government will achieve this by providing the provinces and territories with significant funding to support substantial cost reductions to families for regulated child care spaces.

The Government of Canada also undertakes research and analysis on potential basic income programs and other approaches that could positively impact Canada’s economy and society, as part of its efforts to tackle poverty and to ensure that all Canadians have a real and fair opportunity to succeed.