Government Anti-Poverty Programs/Poverty In CANADAECONOMICS 12

JANUARY 21, 2015

Investment in human capital Local and provincial governments pay the full cost of primary and secondary schools. Some provincial governments will cover parts of university and college tuition.

In addition to programs that are intended to reduce poverty, there are programs that give relief from the symptoms of poverty.

Social insurance programsHEALTH INSURANCE

Paid by provincial and federal governments from general taxation. Covers all health care except for dental care.

UNEMPLOYMENT INSURANCE

Introduced in the 1940’s and greatly expanded in 1971.

The amount paid varies with the individuals salary before being unemployed.

Canada Pension Plan ( C.P.P also Q.P.P)

The CPP program mandates all employed Canadians who are 18 years of age and over to contribute a prescribed portion of their earnings income to a nationally administered pension plan

In 2013, the prescribed employee contribution rate was 4.95% of a salaried worker's gross employment income between $3,500 and $51,100.

Quebec is the only province in Canada that opted out of the CPP

When the contributor reaches the normal retirement age of 65, the CPP provides regular pension benefit payments to the contributor, equal to 25% of the earnings on which CPP contributions were made over the entire working life of a contributor from age 18 to 65 in constant dollars

Programs specifically for the poorOLD AGE SECURITY PENSION (OAS)

Payment available to most Canadians 65 years of age or older.

As of July 2013, the basic amount is C$549.89 per month

Paid entirely by the federal tax revenues

GUARANTEED INCOME SUPPLEMENT

For pensioners on a limited income apart from the OAS.

Programs specifically for the poorCHILD TAX BENEFIT

The Canada Child Tax Benefit (CCTB) is a tax-free monthly payment available to eligible Canadian families to help with the cost of raising children.

CANADA ASSISTANCE PLAN

For those not adequately covered by any other plan.

People who can get this coverage are blind, disabled, unmarried mothers, needy mothers and needy people in special homes for the aged..

Provincial and federal government covers this plan. 50/50

Working income tax benefit The WITB was introduced in 2007 to encourage low income people to enter the labour force, and to provide them with increased financial support.

Benefits increase, and then decrease, with income.

WHO IS POOR IN CANADA????

It’s hard to measure There is no official measure of poverty in Canada. Statistics Canada reports that 14.9 per cent of Canadians have "low income" (2013)

They refuse to use the word “Poor”

It varies widely between different groups Aboriginal Canadians make about 30 per cent less than the rest of Canadians

It's a significant burden on the economy

Poverty can exert extra health care, crime and social assistance costs.

According to an estimate from the Ontario Association of Food Banks, poverty costs that province between 5.5 and 6.6 per cent of its Gross Domestic Product.

Poverty can shorten your life in Canada 21-year gap in life expectancy between that city's richest and poorest neighbourhoods.

 Homelessness is widespread As many as 200,000 Canadians will experience homelessness each year, according to a recent report from the Canadian Homelessness Research Network

Early investment can yield big dividends A 2008 report from the Public Health Agency of Canada argues that reducing child poverty can have huge spillover effects on society. "It is estimated that $1 invested in the early years saves between $3 and $9 in future spending on the health and criminal justice systems, as well as on social assistance," the report says.

Conclusion Each province is exploring the development of a measurement tool to track any progress made on reducing poverty

As of 2014, there is no federal plan to reduce poverty.