Why Poverty Is Increasing
Why is the Poverty Rate Increasing in Canada?
The 2022 poverty rate increased 2.5 per cent from 2021 and 3.5 per cent 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 are living in poverty, including 875,000 children. Another 2.5 million are at risk of poverty. In total, almost one in five Canadians is 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
WEBINAR | From National Findings to Local Solutions: Understanding the 2025 Poverty Report
January 21, 2026
1:00 - 2:00 PM ET
Description
Join us Tamarack Institute for a timely and thought-provoking webinar featuring Scott McAffee as we explore the 2025 Annual Report from the National Advisory Council on Poverty: “We Can Do Better: It Is Not a Safety Net If the Holes Are This Big.” This year’s report highlights the widening gaps in Canada’s social safety net and calls for bold, community-driven solutions to address poverty across the country.
Scott will walk us through the report’s key findings, including:
- Progress—and setbacks—on Canada’s poverty reduction targets
- Barriers to affordability, income security, and access to essential supports
- Insights from individuals with lived and living experiences of poverty, with a focus on Urban Indigenous, Black, and 2SLGBTQIA+ communities.
Related Pages
Last edited: March 10, 2026