TORONTO, Oct. 01, 2019 (GLOBE NEWSWIRE) -- Feed Ontario, formerly the Ontario Association of Food Banks, released a new report today revealing that poverty is costing the provincial government an estimated $27.1- $33 billion dollars per year. The study, entitled The Cost of Poverty in Ontario, examines the relationship between poverty, poor health, the justice system, and lost productivity and makes the economic case that investing in people by reducing poverty is not only socially responsible but financially sound.
“The question we are trying to answer is, how much does it cost us when we allow poverty to exist?” says Michael Maidment, Chair, Feed Ontario, Board of Directors. “The Cost of Poverty report shows us that maintaining people in poverty is expensive - and that proven poverty reduction investments not only benefit our communities, but carry significant cost savings and revenue opportunities for the provincial government as well.”
The study examines current poverty trends in Ontario and has found that while the overall poverty rate has started to decline, particularly with the introduction of the Ontario Child Benefit, poverty rates have increased for unattached adults and families without children. Further, it argues that those living in poverty are experiencing deeper levels of poverty than before.
“This trend is echoed in our food bank use data, which indicates that unattached adults or single person households are one of the fastest growing groups of food bank users in the province,” says Maidment. “Further, not only is a single person more likely to require the support of a food bank throughout the year, they are more likely to visit more often.”
The Cost of Poverty in Ontario report also examines the recent changes that the provincial government has made in its approach to poverty alleviation and reduction, and argues that while it has maintained commitments to invest in affordable housing and job creation, it has prioritized reducing Ontario’s deficit through decreased spending on a number of social services and programs. The report goes on to argue that pursuing this strategy may actually work against the intended outcome by incurring greater health care expenses, depriving itself of tax revenue and the means to address the deficit, and delaying the growth of the economy and progress of the province.
“Cost analysis and case studies have shown that investing in people improves the quality of life for everyone, not just those living in poverty, as well as our economic bottom line,” says Maidment. “And, perhaps even more significantly, arguably shows that, long-term, it costs more to keep people in poverty than it does to eliminate it.”
The study concludes by making key recommendations that encourage the provincial government to build on the success of the Ontario Child Benefit by expanding similar support to unattached adults, as well as by investing in people and the province through proven poverty reduction strategies, such as a basic income, which have demonstrated significant cost savings and increased opportunity for economic growth.
“We believe that our vision of ending poverty is shared by all levels of government, but that this vision will not be achieved without an intentional and committed approach to taking action against poverty,” says Maidment. “And further, that there has never been a greater need for this action than there is today.”
To access The Cost of Poverty in Ontario report, please visit: https://feedontario.ca/cost-of-poverty-2019/
Report Highlights and Trends
Poverty in Ontario
- Using Canada’s Low Income Measure (LIM), 1.57 million people in Ontario live in poverty, including 382,000 children
- Between 2012-2015, the Ontario Child Benefit (OCB) brought a 24% reduction in child poverty and a 37% reduction in children living in deep poverty
- The Canada Child Benefit (CCB), which topped up the OCB, also played a significant role in moving families with children out of poverty
- In contrast, poverty rates have increased overall for unattached adults and families without children by 24% over the same period
Cost of Poverty in Ontario
- Methodology: In calculating the cost of poverty, the report looks at health care, justice system, and opportunity costs – expenditures that are proven to be impacted by those living in poverty – and estimates how much might be saved if we increase the income of the lowest 20% of the population to that of the second-lowest 20% (or quintile).
- Findings: Poverty costs the provincial government between $27.1 - $33 billion per year
| Total Cost of Poverty in Ontario | |
| The Justice System | $1.1 billion |
| Health Care | $ 3.9 billion |
| Opportunity Income | $19.4 - $25 billion |
| Taxes forgone | $2.7 - $3 billion |
| Total: | $27.1 - $33 billion |
Food Bank Use Statistics
- 507,977 adults, children, and seniors accessed food banks across Ontario in 2018, visiting more than 3,033,970 times during the same period
- 52% of households served by food banks identified as single person households, with 89% being rental or social housing tenants, and 65% citing social assistance as their primary source of income
- Since 2008, the proportion of single person households accessing food banks has increased 45%
About the Cost of Poverty Report:
This first analysis in Canada of the cost of poverty was produced by the Ontario Association of Food Banks (now Feed Ontario) in 2008 to help shape the provincial government’s strategy to tackle poverty. Since then, it has been replicated in several other provinces, including: Alberta, British Columbia, Nova Scotia, Prince Edward Island, and Saskatchewan towards similar efforts. While this 2019 report brings a new context, different social and economic challenges, and an updated methodology, the message remains the same: investing in people is not only socially responsible but financially sound.
About Feed Ontario (formerly the Ontario Association of Food Banks):
From securing fresh and healthy food sources to driving change through policy research and innovative programming, Feed Ontario unites food banks, industry partners, and local communities in its work to end poverty and hunger. Join us as we Feed Ontario and help build a healthier province. Every $1 raised provides the equivalent of 3 meals to an Ontarian in need. Learn more at: www.feedontario.ca
For more information, please contact:
Amanda King | Feed Ontario | amanda@feedontario.ca | 416-656-4100 x2932