NEWS RELEASE

FOR IMMEDIATE RELEASE JULY 20, 2006

Canada needs a national anti-poverty plan to ensure a successful future for our country, the National Council of Welfare (NCW) said in a report published today.

The report, Poverty Profile, 2002 and 2003, shows that in spite of progress made in the fight against poverty among seniors, poverty rates for children and working-age adults are about the same as they were almost a quarter century ago. Income inequality is growing and many groups of Canadians continue to have unacceptably high poverty rates. For those in need today, however, Canada's social safety net offers less protection against poverty than ever before.

"Governments cannot walk away from social policy," states Council Chairperson John Murphy of Canning, Nova Scotia. "About 16 percent of Canadians, or 4.9 million people, lived in poverty in 2003. Many jobs pay too little to let people pull themselves and their families out of poverty. This report shows that full-time, full-year employment is not always enough to make ends meet."

The report calls for a long-term plan with clear goals to prevent and reduce poverty and inequality. The plan needs to explore innovative solutions and include a process that involves Canadians living in poverty. It should respect the social and economic rights that Canadians have under international agreements, including the right to an adequate standard of living. To be effective, it must have indicators and targets so that governments and leaders can be held accountable.

Two provinces in Canada are leading the way. Quebec and Newfoundland and Labrador have their own poverty reduction strategies. Other countries, such as the United Kingdom, Ireland and the Nordic states, have made considerable progress in addressing poverty.

"Poverty not only results in individual misery, it also does not make good economic sense," says Murphy. "People living in poverty are more likely to experience poor health and well-being. This in turn limits Canada's economic performance. Preventing and reducing poverty is essential if we are to have a strong and prosperous country."

Poverty Profile, 2002 and 2003 also shows that:

• Welfare is the main source of income for a surprisingly small percentage of people living in poverty. For example, only 28 percent of poor single-parent mothers relied primarily on welfare in 2003.

• The number of working-age single people who survive on incomes of less than half the poverty line more than tripled between 1989 and 2003, jumping from 163,000 to 552,000.

• Average earnings for full-time, full year workers living in poverty were extremely low in 2003 - $9,522 for single people and $16,333 for families.

• The average depth of poverty for poor families ranges from $3,300 for single senior women to $9,900 for two-parent families.

Poverty Profile is a regular publication of the Council that is based on survey data from Statistics Canada. It includes detailed information about poverty rates and numbers, depth of poverty, duration of poverty, common sources of income for poor people, income inequality in Canada and poverty and the paid labour market.

The National Council of Welfare is a citizens' advisory group to the Minister of Human Resources and Social Development on matters of concern to low-income people in Canada.

For more information or to arrange an interview, please contact:

National Council of Welfare
112 Kent Street, 9th Floor
Place de Ville, Tower B
Ottawa, Ontario K1A 0J9

Telephone: (613) 957-2961
Fax: (613) 957-0680