Child Poverty in Canada Climbs for Third Straight Year, Erasing Post-Benefit Gains

Child poverty in Canada has increased for the third consecutive year, with nearly 30,000 additional children falling below the poverty line in 2025, according to the latest Child and Family Poverty Report Card. The findings signal a troubling reversal of progress made in the years following the introduction of the Canada Child Benefit in 2016.

The report warns that Canada is drifting further from its goal of eliminating child poverty. In fact, at the current rate of improvement, researchers estimate it could take almost four centuries to eradicate child poverty nationwide. Poverty rates are now nearing levels last seen in 2017, suggesting that earlier advances have been steadily eroded.

The burden of poverty remains unevenly shared. Nearly one in five children under the age of six now live in poverty. The situation is particularly severe for First Nations families living on reserve and for communities in provinces such as Nunavut, Saskatchewan, and Manitoba. Advocates say these disparities highlight deep-rooted structural inequities that continue to disadvantage Indigenous and marginalized populations.

Beyond the rising numbers, the depth of poverty is also intensifying. The report notes that low-income families are falling further below the poverty line than they were before the pandemic. Rates of deep poverty defined as incomes significantly below the poverty threshold have climbed steadily since 2020.

Food insecurity has become an alarming indicator of this trend. Approximately 2.5 million children now live in households struggling to afford adequate food. The number of children experiencing severe food insecurity has doubled between 2019 and 2023, underscoring the growing strain on families amid rising living costs.

Family structure also plays a critical role. Children in lone-parent households face a poverty rate of 45.2 per cent, compared to 10.1 per cent among children in two-parent families. Meanwhile, employment alone is no longer a guaranteed safeguard against hardship. More than 1.2 million adults about 6.8 per cent of the adult population are considered to be in working poverty, earning wages that are insufficient to lift them above the poverty line.

The report urges the federal government to strengthen its poverty reduction strategy through a comprehensive action plan backed by dedicated funding and clear timelines. Among its recommendations are increased public investments in child care, housing, health care, and mental health services to help shield families from market pressures.

It also calls for better alignment between wages and income supports to ensure families can achieve a basic standard of living. Addressing systemic discrimination embedded in poverty reduction policies is described as essential to improving outcomes for marginalized communities.

Finally, the report advocates for a more progressive tax system to reduce income and wealth inequality, arguing that equitable taxation is key to ensuring income adequacy and long-term stability for Canadian families.

As policymakers debate the next steps, advocates stress that reversing the current trend will require urgent and coordinated action warning that without meaningful intervention, another generation of children risks growing up without the security and opportunity they deserve.