Question Period Note: COMMUNITY-DELIVERED FINANCIAL HELP SERVICES FOR CANADIANS

Budget 2024 proposes to provide $60 million over five years to Prosper Canada to expand community‑delivered financial help services. These enhanced services are expected to reach one million low- to moderate-income Canadians and help them receive nearly $2 billion in unclaimed tax and benefit income.

The Government of Canada is committed to supporting low- and moderate-income Canadians experiencing social and economic impacts due to the pandemic and rising cost of living.

Budget 2024 announced $60 million in funding to support Prosper Canada and its partner organizations to deliver financial help services to low- and moderate-income Canadians to help them increase their financial stability and address affordability challenges.

The initiative will support Prosper Canada to work with community organization partners across Canada to deliverinclusive financial help services and supports to diverse populations.

If Pressed (What will be accomplished with this funding?)

The government expects that the funding will support, for example, help with tax filing and coaching to build skills to address financial challenges. If Pressed (How will this funding be allocated?)

Prosper Canada with be allocated the funds to deliver programming in partnership with community organizations across the country.

Funding will support Prosper Canada’s costs to lead and deliver the overall initiative and will support community organization partners as they deliver financial help services on the ground across Canada, including in urban, rural, remote and Indigenous communities.

Prosper Canada is a national charity dedicated to expanding economic opportunity for Canadians living in poverty through program and policy innovation. Prosper Canada works with government, business, and community partners who serve critical community needs both in times of stability and crisis, including supporting low- and moderate-income people to improve their financial situation. Organizations deliver support to diverse populations, including rural and remote communities, Indigenous communities, youth, seniors, persons with disabilities, Black and racialized communities, women, members of Official Language Minority Communities and members of the 2SLGBTQI+ community.

Community-delivered financial help services (sometimes also called financial empowerment) are a proven approach to poverty reduction that provides services and supports to help people build their knowledge, skills and confidence to improve their overall financial situation and wellbeing. Tools, resources and supports help people address affordability challenges and reduce financial stress. In so doing, it supports social inclusion, enabling community members to participate more fully in all aspects of society.

The initiative will be delivered through the Social Development Partnerships Program (SDPP) of ESDC – Children and Families Component. This Program targets vulnerable populations and has pioneered innovations in federal funding to charities and non-profits. Previous investments in financial empowerment under this Program include: $5.5M in funding over five years (2016-2020) to Prosper Canada for the Financial Empowerment for Vulnerable Canadians project; and up to $11.6M in funding over five years (2022-2027) for 11 projects across the country that serve diverse populations and were identified via a Call for Proposals held in 2021.

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