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Breaking the Cycle: a Study on Poverty Reduction

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Breaking the Cycle: a Study on Poverty Reduction BREAKING THE CYCLE: A STUDY ON POVERTY REDUCTION Report of the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities Bryan May Chair MAY 2017 42nd PARLIAMENT, 1st SESSION Published under the authority of the Speaker of the House of Commons SPEAKER’S PERMISSION Reproduction of the proceedings of the House of Commons and its Committees, in whole or in part and in any medium, is hereby permitted provided that the reproduction is accurate and is not presented as official. This permission does not extend to reproduction, distribution or use for commercial purpose of financial gain. Reproduction or use outside this permission or without authorization may be treated as copyright infringement in accordance with the Copyright Act. Authorization may be obtained on written application to the Office of the Speaker of the House of Commons. Reproduction in accordance with this permission does not constitute publication under the authority of the House of Commons. The absolute privilege that applies to the proceedings of the House of Commons does not extend to these permitted reproductions. Where a reproduction includes briefs to a Standing Committee of the House of Commons, authorization for reproduction may be required from the authors in accordance with the Copyright Act. Nothing in this permission abrogates or derogates from the privileges, powers, immunities and rights of the House of Commons and its Committees. For greater certainty, this permission does not affect the prohibition against impeaching or questioning the proceedings of the House of Commons in courts or otherwise. The House of Commons retains the right and privilege to find users in contempt of Parliament if a reproduction or use is not in accordance with this permission. Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca BREAKING THE CYCLE: A STUDY ON POVERTY REDUCTION Report of the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities Bryan May Chair MAY 2017 42nd PARLIAMENT, 1st SESSION STANDING COMMITTEE ON HUMAN RESOURCES, SKILLS AND SOCIAL DEVELOPMENT AND THE STATUS OF PERSONS WITH DISABILITIES CHAIR Bryan May VICE-CHAIRS Bob Zimmer Brigitte Sansoucy MEMBERS Anju Dhillon Dan Ruimy Wayne Long Ramesh Sangha Hon. Pierre Poilievre Mark Warawa Yves Robillard OTHER MEMBERS OF PARLIAMENT WHO PARTICIPATED Ziad Aboultaif Peter Julian Niki Ashton Alistair MacGregor Bob Benzen Phil McColeman Kelly Block Glen Motz John Brassard Michel Picard Marjolaine Boutin-Sweet Terry Sheehan Nicola Di Iorio Karen Vecchio iii CLERK OF THE COMMITTEE Julie Geoffrion LIBRARY OF PARLIAMENT Parliamentary Information and Research Service Elizabeth Cahill, Analyst Julie Mackenzie, Analyst Mayra Perez-Leclerc, Analyst iv THE STANDING COMMITTEE ON HUMAN RESOURCES, SKILLS AND SOCIAL DEVELOPMENT AND THE STATUS OF PERSONS WITH DISABILITIES has the honour to present its SEVENTH REPORT Pursuant to its mandate under Standing Order 108(2), the Committee has studied poverty reduction strategies and has agreed to report the following: v TABLE OF CONTENTS INTRODUCTION ............................................................................................................. 1 CHAPTER 1: BACKGROUND ........................................................................................ 3 A. Defining Poverty ................................................................................................... 3 B. Measuring Poverty ................................................................................................ 3 1. Indices that complement low-income measures ............................................... 6 C. The Cost of Poverty .............................................................................................. 7 D. Towards a Poverty Reduction Plan ...................................................................... 7 E. Governmental Roles ............................................................................................. 9 CHAPTER 2: INCOME SECURITY ............................................................................... 11 A. Background ........................................................................................................ 11 1. Main federal programs .................................................................................... 11 a. Working age population ........................................................................... 12 b. Seniors ..................................................................................................... 13 2. Budget 2016 measures .................................................................................. 14 B. What the Committee Heard ................................................................................ 15 1. Income security architecture for the working age population .......................... 16 a. Guaranteed minimum income or basic income ........................................ 16 b. Targeted guaranteed minimum income programs ................................... 17 c. Strengthening existing federal programs ................................................. 18 i. Employment Insurance ....................................................................... 18 ii. Working Income Tax Benefit .............................................................. 19 iii. Canada Pension Plan Disability ......................................................... 19 iv. Disability Tax Credit ............................................................................ 20 v. Canada Disability Savings Program ................................................... 20 vi. Income supports for First Nations People on reserve ......................... 20 vii. Canada Child Benefit .......................................................................... 21 2. Income security for seniors ............................................................................. 21 3. General insights on federal income security programs ................................... 22 4. Making life better for the working poor ............................................................ 23 a. Marginal effective rates ............................................................................ 23 vii b. Lower taxes ............................................................................................. 23 c. Raising minimum wages .......................................................................... 23 5. Ensuring basic necessities are affordable ...................................................... 24 a. Food......................................................................................................... 24 b. Health care services not covered under public systems .......................... 25 c. Transit ...................................................................................................... 26 CHAPTER 3: EDUCATION, SKILLS TRAINING AND EMPLOYMENT ....................... 27 A. Background: Federal Contributions to Education, Skills Training and Employment ........................................................................................................ 27 1. Main federal programs .................................................................................... 27 2. Budget 2016 measures .................................................................................. 29 B. What the Committee Heard ................................................................................ 30 1. Education and skills training ........................................................................... 30 a. Early learning and childhood development .............................................. 32 b. Saving for post-secondary education and the Registered Education Savings Plan ............................................................................................ 33 c. The cost of post-secondary and postgraduate education ........................ 34 d. Financial literacy and vulnerable groups .................................................. 36 e. Recognition of foreign credentials ............................................................ 38 2. Employment ................................................................................................... 39 a. The gap between education and employment ......................................... 39 b. Precarious employment ........................................................................... 41 c. The impact of child care on the employment of women ........................... 43 d. The employment of people with disabilities .............................................. 44 C. Innovative Approaches Linked to Education, Skills Training and Employment ... 47 CHAPTER 4: MENTAL HEALTH................................................................................... 51 A. Background ........................................................................................................ 51 B. What the Committee Heard ................................................................................ 53 1. Mental health in Canada ................................................................................. 53 a. The cost burden of mental illness ............................................................ 53 b. Link between mental illness and poverty ................................................. 53 c. Vulnerable populations and mental health ..............................................
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