ontario campaign 2000 december 2020 update
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Ontario Campaign 2000 December 2020 Update
Decreases in the rate of childpoverty have slowed
Child PovertyRates in Ontario
Source: Statistics Canada, T1 Family Files. After-tax low income status of tax filers anddependents based on Census Family Low Income Measure (CFLIM-AT), by family type andfamily type composition. 2014-2018. Table: 11-10-0018-01 (formerly CANSIM 111-0046).
Per
cen
tage
of C
hild
ren
in L
ow
Inco
me
Ontario Child Poverty Rate, 2014-2018 (Under18)
22.5%21.1%
19.5%18.7% 18.0%
2014 2015 2016 2017 20180
5
10
15
20
25
18.2% NationalRate 2018
507,760children
544,710children
586,150children
619,170children
523,990children
2015 2016 2017 20180
5
10
15
20
Source for CFLIM data: Statistics Canada. T1 Family Files. After-tax low income status of taxfilers and dependants based on Census Family Low Income Measure (CFLIM-AT), by family typeand family type composition, 2018. Table: 11-10-0018-01 (formerly CANSIM 111-0046)Source for MBM data: Statistics Canada. Market Basket Measure Low income statistics by age,sex and economic family type. Table: 11-10-0135-01 (formerly CANSIM 206-0041)
CF LIM18.0%
MBM12.5%
Ontario Child Poverty Rate Comparison: MBM vs CFLIM
507,760childrenin lowincome
338,000 childrenin lowincome
Source: Statistics Canada. T1 Family Files. Table F-20 After-tax low income status of censusfamilies (census family low income measures, CFLIM-AT) by family type and family composition,adjusted methodology, 2018.
Depth of Family Poverty in Ontario
After-Tax Median Income Poverty Gap
Lone Parent with 1Child
Couple with 1 Child Lone Parent with 2Children
Couple with 2Children
0
10k
20k
30k
40k
LIM AT: $30,877
LIM AT: $37,816 LIM AT: $37,816
LIM AT: $43,666
$19,580 $27,090 $26,170 $33,840
$11,297
$10,276 $11,646
$9,826
Per
cen
tage
of C
hild
ren
in P
over
ty
Impact of Government Transfers (Under 18)
Poverty Rate Without Transfers Poverty Rate With Transfers
Canada Ontario0
10
20
30 46.6%lowerwith
transfers
45.0%lowerwith
transfers33.1% 33.7%
18.2% 18.0%
Source: Statistics Canada, Center for income and socioeconomic well-being statistics, Annual IncomeEstimates for Census Families and Individuals (T1 Family File), Custom Tabulation, 2018.
No matter how you measure it,children in poverty are fallingthrough the cracks
Lone Parents Experience LargePoverty Gaps; and Movement outof Poverty for Many Families isSlowing
Without Government Benefits,Many More Children would livein Poverty
Systemic inequities have deepened during the pandemic, and the Ontario Government has been Missingin Action on meaningful reform. Treading water on ending child poverty is unacceptable at any time;avoiding policy changes that would help to stem pandemic-related impacts on children and familiesliving in poverty is inexcusable. Ontario Campaign 2000 provides the following recommendations:
To read Ontario Campaign 2000's full set of recommendations as published in the April 2020 Report on ChildPoverty please visit www.ontariocampaign2000.ca. National, provincial, and territorial report cards can befound at www.campaign2000.ca.
The child poverty rate in Ontario hasdecreased annually since 2013, butrecent reductions are marginal - lessthan a percentage a year since 2015.The under-6 child poverty rate is19.5% (170,730 children), with a ratereduction of 0.7% from 2017-2018; only 5560 young children moved outof poverty in 2018.Children whose families facemarginalization and who are impactedby the ongoing legacy of colonizationface higher rates of poverty than theprovincial average, ranging from 21% forMétis children, 31% for Inuit children,32% for non-status FN children, 37% forStatus FN children off reserve, and 48%for Status FN children on reserve.
Whether rates are measured by MBM orCFLIM-AT, the trend is the same: The rateof reduction has slowed or stopped.
Using the Market Basket Measure (MBM),instead of the Census Family LowIncome Measure (After-Tax) (CFLIM-AT), to measure poverty doesn’t showthe whole picture.
In Ontario, 169,760 children live in thepoverty gap between the MBM and theCFLIM-AT. If the government isn’trecognizing these children, theirfamilies may be excluded from povertyreduction solutions.
1 in 7 families in Ontario live inpoverty. This number increases to 1 in3 for lone parent families.
Regardless of family type, socialassistance rates in Ontario have beenfairly flat since the mid-1990s, and do notbring income rates up to the CFLIM-AT.
Lone parent families living in lowincome face larger wealth gaps thancouple families with children living inlow income.
Government transfers like the CanadaChild Benefit and the Ontario ChildBenefit have a massive impact ondriving down the child poverty rate.The Ontario Child Benefit is indexed tothe rate of inflation, but has not beensignificantly increased in years.Barriers to access can contribute tohigher rates of poverty among childrenin vulnerable families, including FirstNations children living on reserve,children in women-led households whohave fled violence, children of migrantworkers, and undocumented children.
Acknowledge the role of systemicinequities in entrenching povertyImplement Gender Based Analysis+for all policies and programs. Collectdisaggregated data at the provinciallevel to better inform targeted,supportive policies. Invest in systemsthat will reduce inequities in theworkplace, including employmentequity programs that set cleartargets, are monitored, and are tiedto community benefits agreements.
Ensure Income Supports WorkTogether to Bring All Incomes up tothe Low Income MeasureReduce barriers to access andincrease the OCB, ODSP, and OWbenefits. Stop the clawbacks ofemergency benefits.
Ensure Equitable Access to Safe, HighQuality, Affordable Childcare & PublicEducationProvide adequate base funding forlicensed childcare providers. Providefunding for smaller class sizes andcapital funding for ventilationimprovements. Close the digital dividefor virtual learners living in low income.
Implement Labour Reforms to KeepWorkers and their Families SafeRaise the minimum wage. Requireemployers to provide paid sick leave: 7 permanent days and an additional14 days during public healthemergencies. Close wage gaps bylegislating equal pay for equal work.
Reduce Risk of Homelessnessthrough Support for Tenants andPrecariously Housed PeopleRe-instate the eviction moratorium aslong as the pandemic lasts, and re-institute effective rent control. Allowappeals for all LTB decisions made afterAugust 1, 2020.
This snapshot is an update to Ontario Campaign 2000's full April 2020 report on child poverty, and acompanion piece to Campaign 2000's National Report Card on Child Poverty, released December 2020.
Lone parent families are predominantlyheaded by women. In 2018, median totalincome for female-led families was$20,000 lower than those headed bymales. While this gap showed slightimprovement from 2015-16, it has sinceremained static, as female-led familyincome continues to lag by nearly 30%.
Commit to reducing child poverty by50% by 2025Follow this commitment with bold policy choices & significantinvestments in support of lowincome children and families.
twitter: @ONCampaign2000
Beat the Pandemic in EveryCommunity Fund site-specific, community-ledinterventions to ensure improvedaccess to testing and quarantinesupports, and ensure vaccine accessis provided to the most vulnerablegroups first, regardless of status orgeographic location.
Even well-designed governmenttransfers are not enough to end childpoverty.
1 Statistics Canada, Custom Tabulation. T1 Family File, 2018.2 Statistics Canada, Custom Tabulation, 2016. Generously provided by Canadian Centre for Policy Alternatives.
1
2
3
3 Statistics Canada, Table: 11-10-0011-01 (formerly CANSIM 111-0011), “Census families by age of older partner or parent and number of children”, 2018.
Based on Ontario data from the last few years, we expected to see a strong continuation of rate reduction,but after looking at the latest comprehensive data (2018), we wonder: what happened in Ontario to slowthe downward trend? We can also anticipate that the pandemic has had an even more severe effect onchild poverty rates over the last year. The Government of Ontario has no time to lose in making policydecisions and funding interventions designed to support all children and families living in poverty.