After years of decline, child poverty in Canada is rising swiftly: report

Child poverty in Canada is on the rise, and Campaign 2000’s latest report indicates that the Canada Child Benefit (CCB) is no longer effectively reducing poverty levels or income inequality. The report reveals that 1.4 million children are currently living in poverty in Canada, with an additional 360,000 children falling into poverty over the past two years.

Campaign 2000, an anti-poverty organization, has been monitoring child and family poverty in Canada since 1991. Their most recent report shows that child poverty rates have increased in every province and territory from 2021 to 2022, marking a troubling reversal of the downward trend that began in 2015. The report highlights a significant 2.5 percentage point jump in child poverty rates from 2021 to 2022, the largest annual increase since 2000.

The Canada Child Benefit, introduced by Prime Minister Justin Trudeau’s Liberal government, was designed to consolidate various payments and tax credits into one benefit with the goal of lifting nine out of 10 families out of poverty. Initially, the CCB showed promising results, with a reduction in child poverty rates by 8.8 percentage points annually. However, the latest data reveals that the CCB only decreased child poverty by 7.8 percentage points in 2022, the lowest reduction to date.

Statistics Canada data used by Campaign 2000 indicates that when the Liberals came into power, 20.9% of children under the age of 18 were living in poverty. Over the following years, this percentage gradually declined, reaching a low of 13.5% in 2020 when pandemic support programs were implemented. However, with the cessation of pandemic benefits and the rise in inflation, child poverty rates have been on the rise, reaching 18.1% in 2022.

The report highlights disparities in child poverty rates across provinces and territories, with Nunavut having the highest rate at 41.8%, followed by Manitoba at 27.1% and Saskatchewan at 26.7%. In contrast, Yukon and Quebec boast the lowest child poverty rates at 12% each. The report also underscores the impact of poverty on children from different family backgrounds, with nearly all children not living with a family and 45% of children in single-parent families living in poverty.

Campaign 2000 is urging the federal government to enhance the CCB and implement a more robust poverty reduction strategy. They are also calling for an end to the practice of compelling low-income families to repay emergency pandemic benefits, which has resulted in significant financial burdens for many families.

In response to the report, Genevieve Lemaire, press secretary to Families, Children, and Social Development Minister Jenna Sudds, emphasized the government’s commitment to combatting child poverty through initiatives such as national daycare and dental plans, as well as the CCB. Lemaire affirmed the government’s dedication to reducing poverty and ensuring that all Canadians, including children, can experience financial relief and dignity.