New Poverty Report shows growing need across Canada

Many Canadians are struggling financially and facing difficult decisions amidst uncertain economic times, and the social nets that should be helping are stretched thin. The National Advisory Council on Poverty has just released their 2025 report, We can do better: it is not a safety net if the holes are this big, which reflects on Canada’s progress in poverty reduction. This year's report captures how people in Canada are really doing, and its findings are truly hard to ignore.  
 
While poverty in Canada has been rising, the report highlights that it has increased over the past three years. This increase significantly affects Canada’s ability to achieve its planned poverty-reduction goals in the coming years, particularly the goal of reducing poverty by half in 2030. 

According to the report, around four million people are currently living below the poverty line. This figure represents parents choosing between groceries and bills, seniors living alone on fixed incomes, and young people trying to get ahead amid soaring prices. While a strong support system, like family and friends, is vital, reducing poverty is more than a single issue, like increasing income. In fact, the report highlights socio-economic and structural issues that contribute to poverty. It’s very much tied to colonialism, systemic racism, trauma, culture, and discrimination. Unfortunately, many communities facing poverty today have been carrying the weight of systemic barriers for generations. These barriers show up everywhere, from difficulty accessing benefits to unfair housing conditions. 

Key themes from the report: 

1. Poverty is multidimensional and rooted in systemic inequities. 

It is shaped by factors like colonialism, discrimination, trauma, and other systemic inequities that continue to affect certain communities.   

2. Access to benefits and services remains a barrier. 

Many Canadians still struggle to understand what supports are available to them and how to apply. Individuals are left without the help they need due to complex systems, digital divides, and administrative rules. 

3. Costs are rising faster than income supports. 
Income support and benefit programs have not kept up with the changing times. 

4. Nonprofit organizations are under pressure. 

Again, demand for community programs is rising faster than the funding available for them. Many organizations rely on short-term funding, making it difficult to plan for the long term or expand their services to a broader audience. 

5. The social safety net needs to be strengthened. 

The report warns of a system that no longer reflects the economic times faced by many. Canadians need supports that are flexible, timely, and easy to access. 

How Prosper Canada is helping to fill the gaps 

While the findings are concerning, they reiterate the importance of financial empowerment tools, resources, and services being accessible and grounded in culture. This is a major part of the work Prosper Canada and our partners do, which is needed more than ever. 

Culturally grounded financial wellness 

One way Prosper Canada is ensuring financial resources are grounded in culture is through our work with AFOA Canada and Simon Brascoupé in the creation of Braiding Mind, Body, and Spirit: A Financial Wellness Bundle. The bundle is more than a financial guide. It’s a resource built around Indigenous teaching that reframes money as part of healing, balance, and community connection. This resource is an excellent example of what the report calls for, that poverty reduction strategies should reflect lived experiences and cultural identities.   

Reducing barriers to benefits and services 

Another area of concern in this report is access to benefits and services being restricted. Many people living in Canada simply do not know where to start. Oftentimes, people do not have the means to access these resources, the required documentation, or even know which benefits apply to them. There is also a sense of shame that comes with openly talking about money matters and asking for help. However, tools like the Benefits Wayfinder and our work through Prosperity Gateways help close this gap by making it easier to find and access resources. The Benefits Wayfinder was developed so people can easily walk through the process, in simplified steps, to get the benefits they qualify for. Through the Prosperity Gateways, we’ve helped municipalities deliver financial support directly through libraries. When people walk into a library, they don’t necessarily feel intimidated to ask for help. And finally, with funding from the Government of Canada and our partners, the Resilient Futures initiative will help other financial empowerment organizations support people with low incomes to access tax filing, benefits, coaching, and counselling. The goal of this project is to reach one million people by 2029. Although it is a big goal, it’s the kind of coordinated effort that the report says is needed to deliver financial support across the country. 

Moving forward with care and intention 

The poverty report is honest about the complex set of challenges facing people in Canada. To solve these challenges, it calls for solutions that honor dignity, improve access, and support people through tools that reflect community and culture. Prosper Canada remains committed to advancing this work with partners across the country. We’re improving access to financial help programs, developing culturally relevant resources, and embedding these directly into the communities where people can access them without guilt and shame.This is how we help create a future where every person living in Canada has an opportunity to build financial stability with dignity.