Why Poverty Is Increasing
Why is the Poverty Rate Increasing in Canada?
The 2022 poverty rate increased 2.5 percent from 2021 and 3.5 percent from 2020. This represents 1.4 million more people living in poverty in Canada in 2022 compared to 2020. Statistics Canada reports the following from that period of time:
- The cost of food increased by 8.9 per cent;
- shelter costs increased by 6.9 per cent;
- transportation costs increased by 10.6 per cent; and
- health and personal care costs increased by 4.1 per cent.
According to the 2024 National Advisory Council on Poverty costs remain high for key household expenses such as groceries, transportation and housing (Department of Finance Canada, 2024).
Almost two million Canadians used a food bank in 2023, an increase of 32 per cent from the previous year (Food Banks Canada).
Of these two million Canadians, many were people accessing services for the first time.
- One in five people used charitable services to meet essential needs in 2023, outpacing the capacity of the non-profit sector (CanadaHelps, 2024).
- 27 per cent of recent Statistics Canada survey respondents had to borrow money from friends or relatives, take on additional debt or use credit to meet day-to-day expenses (Statistics Canada 2022).
- Consumer prices rose faster than average hourly wages, which puts pressure on government benefits too.
Consumer prices increased by 7.6 per cent, while average hourly wages rose 5.2 per cent from July 2021 to July 2022 (Statistics Canada, 2022b).
Poverty is persistent. More than three million Canadians living in poverty including 875,000 children. Another 2.5 million are at risk of poverty. In total, almost one in five Canadians are living in or at risk of poverty.
Poverty affects everyone. The impacts of poverty include reduced mental and physical health, delayed development for children, reduced social cohesion and lost productivity.
Poverty costs. A vast array of government and non-profits support and services work to address the impacts of poverty. It is estimated that poverty costs Canada $86 billion annually.
Upcoming Learning Opportunities
how to address the deep poverty of people receiving social assistance
Maytree’s Welfare in Canada report is the primary source for evaluating Canada’s progress on fulfilling the human right to an adequate standard of living for households receiving social assistance.
This webinar will present the main findings of the 2024 edition, offer additional analysis, and share Maytree’s recommendations for improving the incomes of people receiving social assistance.
The webinar will also highlight a new addition to this year’s report: an analysis of shelter benefits for unhoused households. It will explore how social assistance programs across the country provide inadequate shelter benefits for those renting in the private market while providing even less to those who are unhoused.
Date: Thursday, September 11, 2025
Time: 11 a.m.
Related Pages
Last edited: August 28, 2025