Question Period Note: FOOD INSECURITY

Food insecurity

Notre gouvernement reconnaît que l’insécurité alimentaire et les prix des aliments sont à la hausse, ce qui fait en sorte qu’il est plus difficile pour de nombreuses familles de se procurer régulièrement des aliments nutritifs.

C’est pourquoi, en juillet 2023, notre gouvernement a investi 2,5 milliards de dollars sous la forme d’un remboursement unique pour l’épicerie dans le cadre de l’allégement ciblé de l’inflation pour 11 millions de Canadiens et de familles à revenu faible ou modeste.

Depuis 2015, nous avons investi dans des programmes comme l’Allocation canadienne pour enfants, l’Allocation canadienne pour les travailleurs, qui a récemment été bonifiée, et les prestations de la Sécurité de la vieillesse afin de réduire la pauvreté, d’accroître le bien-être et d’améliorer la capacité des familles et des particuliers à acheter des produits essentiels, comme de la nourriture. Ces formes clés de soutien financier aux particuliers et aux familles sont indexées pour suivre le coût de la vie.

Les mesures récentes prises par le gouvernement pour stabiliser le prix de la nourriture sont une preuve de plus que notre gouvernement continue d’appuyer les Canadiens alors que nous continuons à faire face aux conséquences de l’inflation mondiale.

The Government of Canada’s Approach to Measuring Food Insecurity

Health Canada defines household food insecurity as “the inability to acquire or consume an adequate diet quality or sufficient quantity of food in socially acceptable ways, or the uncertainty that one will be able to do so. Household food insecurity is often linked with the household’s financial ability to access adequate food.”

Food Policy for Canada (FPC) identifies food security as a central objective, with their stated vision being that “all people in Canada are able to access a sufficient amount of safe, nutritious, and culturally diverse food.”

Previously, estimates of food insecurity and unmet health needs were published using data from the Canadian Community Health Survey (CCHS). Going forward, food insecurity and unmet health needs will be analyzed using data from the annual Canadian Income Survey (CIS), which was recently updated to include questions on food security.

Food insecurity estimates are based on 18 questions asked to CIS respondents as part of the Household Food Security Survey Module. Through these questions, respondents self-report on food insecurity situations resulting from limited financial resources.

The overall rate of food insecurity was 12.9% in 2021, compared to 11.2% in 2020. This national rate does not include the population living in the territories (territorial rates are reported separately).

Based on a household’s experience, food insecurity can be categorized into 3 categories:

Marginal food insecurity: captures worry about running out of food and/or limited food selection due to a lack of money for food.

Moderate food insecurity: captures compromises in the quality and/or quantity of food due to a lack of money for food.

Severe food insecurity: captures missed meals, reduced food intake and, at the most extreme, go day(s) without food.

According to Food Banks Canada, there were 1.9 million visits to food banks in March 2023, an all-time high. This was 32% higher than in March 2022 and 78.5% higher than in March 2019. About 640,000 of food bank clients were children in 2023. Children represent 33% of food bank clients while representing only 20% of the general population.

The report attributed an increase in food bank visits to the increasing cost of food and housing, high inflation and low social assistance rates, however, the report states the CCB has been crucial in buffering some of the economic impacts of the pandemic and rising cost of living.

Canada’s Official Poverty Line and Food Prices

Canada’s Official Poverty Line is based on the Market Basket Measure (MBM), an existing measure of low income developed in Canada. The MBM establishes income thresholds based upon the cost of a basket of food, clothing, shelter, transportation, and other items for individuals and families representing a modest, basic standard of living, across 53 regions in Canada. If a person’s or family’s disposable income is below the threshold for the region in which they live in a given year, they are considered to be living in poverty.

The MBM uses the 2019 National Nutritious Food Basket (NNFB), developed by Health Canada, to calculate the cost of the food component. The NNFB is a survey tool used by various levels of government and stakeholders to monitor the cost and affordability of healthy eating. Food prices are collected by Statistics Canada in 38 cities across Canada and updated annually using the provincial Consumer Price Index for food.

Over the course of 2022, Canadian food prices grew at their fastest pace in 40 years. Food prices continued to rise significantly in the last year – between July 2022 and July 2023, the price of food rose by 7.8%, while overall inflation rose by 3.3%. Annual updates to food prices in the MBM’s food basket means that it is responsive to changing food prices. As such, the rising cost of food will be reflected in Canada’s poverty rates.

As food prices increase, poverty thresholds are likely to follow. This could impact poverty rates in Canada in the coming years. The impact of high inflation in 2022 will be reflected in poverty statistics for 2022, expected to be released in the Spring of 2024.

Food Banks Canada data

Food Banks Canada’s annual HungerCount report documents food bank use in Canada.

Food Banks Canada uses a cross-sectional census survey of most food bank agencies, organizations and programs within and outside of the Food Banks Canada network.

Government initiatives that are helping to address food insecurity.

The Canada Child Benefit (CCB) (introduced in 2016) which is tax-free and based on income, providing more support to families with children who need help the most. The Government began indexing the CCB, starting in July 2018, to keep pace with the cost of living.

In the 2023-24 benefit year, beginning July 2023, the maximum annual CCB benefit is $7,437 per child under 6 years of age, and $6,275 per child aged 6 through 17. When the CCB was originally introduced in July 2016, the maximum amount $6,400 per child under the age of six, and $5,400 per child aged 6 through 17.

The CCB provides support to over 3.5 million families, including over 6 million children, putting more than $25 billion, tax-free, each year in the hands of Canadian families.

The Canada Workers Benefit (CWB) (introduced in 2019), a refundable tax credit that supplements the income of low-income workers. Budget 2021 enhanced the CWB, investing $8.9 billion over six years and $1.7 billion per year ongoing in additional support for low- and modest-income workers.

For the 2022 tax year, the maximum basic amounts for the CWB were $1,428 for single individuals without children and $2,461 for families. In 2019, maximum CWB amounts were $1,355 for single individuals without children and $2,335 for families.

Starting in July 2023 and based on the 2022 taxation year, the CWB will provide advance payments equal to 50% of the CWB across 3 payments under the Advanced Canada workers benefit (ACWB). This initiative puts more money in the workers' pockets to help cope with the rising cost of living.

The Old Age Security (OAS) program plays a significant role in providing income security for Canadian seniors. OAS recipients with little to no income, other than the OAS pension, are eligible for additional assistance through the Guaranteed Income Supplement.

To help seniors who are living in poverty or are most at risk of living in poverty, the Government enhanced the GIS in 2016 by increasing the amount received by up to $947 annually for the most vulnerable single seniors and helping improve the financial security of 900,000 seniors.

In July 2022, the Government increased the OAS pension by 10 percent for seniors 75 years and older, to provide more than $800 in new support to full pensioners over the first year, and increased benefits for more than 3 million seniors.

In 2015, the maximum monthly OAS amount was $569.95 for seniors aged 65 and over. In 2023, the maximum monthly OAS amount was $707.68 for seniors aged 65 to 74 and $778.45 for seniors aged 75 and over. This represents an increase of $137.73 (24%) and $208.50 (37%), respectively.

In 2015, the maximum monthly GIS amount was $772.83 for single seniors and $512.44 for seniors with a spouse who receives a full OAS pension. In 2023, the maximum monthly GIS amount was $1,057.01 for single seniors and $636.26 for seniors with a spouse who receives a full OAS pension. This represents an increase of $284.18 (36%) and $123.82 (24%), respectively.

Poverty Reduction Strategy

In 2018, Canada introduced Opportunity for All – Canada’s First Poverty Reduction Strategy, which established an official measure of income poverty (Canada’s Official Poverty Line), set concrete poverty reduction targets and aligns with the United Nations Sustainable Development Goal of ending poverty.

The Strategy recognizes that poverty and food insecurity are linked. Food insecurity is an indicator on the poverty reduction strategy’s dimensions of poverty hub under the “dignity” pillar, and is defined at the household level as “households that do not have enough money to purchase or access a sufficient amount and variety of food to live a healthy lifestyle.”

Results from the 2021 Canadian Income Survey (CIS) shows that Canada’s overall poverty rate, based on Canada’s Official Poverty Line, was 7.4% in 2021, up from 6.4% in 2020. The 2021 rate represents a 49% decrease in the overall poverty rate compared to 2015 (14.5%), the baseline year for Canada’s legislated poverty reduction targets. Between 2015 and 2021, almost 2.3 million Canadians were lifted out of poverty, including 653,000 children and 11,000 seniors.

As part of the strategy, Canada offers a number of robust and targeted social programs and income supplements that provide cash supports to many Canadians, enabling them to decide how to spend their money, reduce their financial burdens, and improve their access to essentials, including food. These include the Canada Child Benefit, which provides substantial income support to families raising children as well as Old Age Security (OAS) and the Guaranteed Income Supplement which play a significant role in providing income security for Canadian seniors.

Food Policy for Canada

Budget 2019 announced over $134.4 million in initial investments to support a Food Policy for Canada. Led by Agriculture and Agri-Food Canada (AAFC), the policy is meant to ensure that all Canadians “are able to access a sufficient amount of safe, nutritious, and culturally diverse food [and that] Canada’s food system is resilient and innovative, sustains our environment and supports our economy.” The Food Policy for Canada aligns with the objectives of initiatives across the federal government, such as the Canadian Agricultural Partnership, the Heathy Eating Strategy, and the Poverty Reduction Strategy, among others.

As part of the implementation of the Food Policy, AAFC announced the Local Food Infrastructure Fund, a five-year, $60 million initiative, ending March 31, 2024, which supports community-based initiatives to strengthen food systems and improve food access.

Emergency Food Security Fund

In April 2020, the Government of Canada announced up to $100 million through the Emergency Food Security Fund to Canadian food banks and other national food rescue organizations to help improve access to food for people experiencing food insecurity in Canada due to the COVID-19 pandemic. Funds were used to:

purchase food and other basic necessities

buy or rent equipment and materials

transport and distribute food

access new distribution centres

hire temporary help to fill volunteer shortages

implement biosecurity measures

The Government worked with the following organizations to distribute funding to regional agencies that have an established food aid distribution network for providing food to those in need.

Food Banks Canada

Second Harvest

Community Food Centres Canada

Breakfast Club of Canada

Salvation Army

La Tablée des Chefs

On August 4, 2021, a further top-up of $100 million was announced for the Emergency Food Security Fund to advance the efforts of these 6 organizations, as they work to improve access to food for more Canadians during the COVID-19 pandemic.

On December 22, 2021, an additional top-up of $30 million was announced for the Emergency Food Security Fund, for a total of $330 million, to provide more support for these 6 food banks and local food organizations, who are coping with increased demand and fewer resources as a result of the COVID-19 pandemic and extreme weather conditions faced across parts of the country.

The top-up for the EFSF is part of the additional $140 million outlined in Budget 2021 to help emergency hunger relief organizations prevent hunger, strengthen food security in our communities, and provide nutritious food to more Canadians.

Additional Federal Measures

As part of Canada's COVID-19 Economic Response Plan, the Government announced, on April 21st, 2020, $350 million for an Emergency Community Support Fund to help community organizations improve their ability to serve vulnerable populations during the COVID-19 crisis.

The Government worked alongside three national intermediaries, including the Canadian Red Cross, United Way Centraide Canada, and Community Foundations of Canada to disburse funds through their regional and local partners to local community organizations who support a wide range of vulnerable populations. Community organizations that received funding used it to address diverse needs including, but not limited to, food security. All funding has been allocated and over 11,500 projects have been supported in diverse communities across the country. The Emergency Community Support Fund was a temporary initiative put in place to address acute issues related to the pandemic and does not provide ongoing funding.

The Community Services Recovery Fund was announced in Budget 2021 as a one-time, $400 million investment to help community service organizations across Canada adapt, modernize and build internal organizational capacity for post-pandemic recovery.

Working with the Canadian Red Cross, Community Foundations of Canada and United Way Centraide Canada, nearly 5,500 community service organizations are being funded under the Community Services Recovery Fund (CSRF). Based on initial data reporting, approximately 50 organizations operating food banks received a total of just over $3 million to address food insecurity in communities across Canada.

Nearly 250 organizations with an organizational mission of achieving the UN Sustainable Development Goal of “zero hunger” also received a total of over $15 million in CSRF funding.

Projects will run between May 2023 and June 2024. Final data will be available at the end of the project period.

A list of funded projects is available on the National Funders’ Community Services Recovery Fund website.

Budget 2022 included several measures that will help to reduce poverty and inequality. These measures include a comprehensive plan to make housing more affordable, providing dental care for low-income Canadians and implementing an employment strategy for persons with disabilities. The Government is also working with provincial, territorial and Indigenous partners to implement a Canada-wide, community-based system of quality child care.

Budget 2022 also affirmed the 2021 Mandate Letter commitment of the Minister of Families, Children and Social Development and the Minister of Agriculture and Agri-Food to work with provinces, territories, municipalities, Indigenous partners and stakeholders to develop a National School Food Policy and explore how more Canadian children can receive nutritious food at school.

In March 2022, a new phase of the Local Food Infrastructure Fund (LFIF) was launched, with an investment of up to $20 million. This funding, available over the next two years, will support community-based and not-for-profit organizations in their efforts to create long-term solutions to address food security challenges. This new phase of the Local Food Infrastructure Fund has been tailored to meet the needs of Indigenous, Northern and remote communities by providing funding to help them build a food system that will meet both current and future community needs.

Also in 2022, the Government announced the Affordability Plan⁠, a suite of measures totalling $12.1 billion in new support to help make life more affordable for millions of Canadians, including enhancements to existing benefits such as the Canada Workers Benefit and Goods and Services Tax Credit, as well as new investments in dental care and housing affordability.

Further, Budget 2023 proposed new, targeted inflation relief for the most vulnerable Canadians to help support them with the cost of living, including those hardest hit by rising food prices. It proposed a one-time Grocery Rebate, providing $2.5 billion in targeted inflation relief for 11 million low- and modest-income Canadians and families. The Grocery Rebate also provided eligible couples with two children with up to an extra $467; single Canadians without children with up to an extra $234; and seniors with an extra $225 on average.

To address the escalating price of groceries, the Prime Minister announced, on September 14, 2023, that the government:

is calling for major grocery store chains to stabilize grocery prices in the near term. In recent years, large grocers have been making more money, all while the cost of groceries has risen drastically and families are struggling to put food on their tables. To address this, the leaders of the largest grocery chains in Canada were called to an immediate meeting in Ottawa to begin discussions toward this goal.

will take immediate steps to enhance competition across the Canadian economy, with a focus on the grocery sector, which would help drive down costs for middle-class Canadians. The government intends to introduce a first set of legislative amendments to the Competition Act to:

provide the Competition Bureau with powers to compel the production of information to conduct effective and complete market studies;

remove the efficiencies defence, which currently allows anti-competitive mergers to survive challenges if corporate efficiencies offset the harm to competition, even when Canadian consumers would pay higher prices and have fewer choices; and

empower the Bureau to take action against collaborations that stifle competition and consumer choice, in particular situations where large grocers prevent smaller competitors from establishing operations nearby.

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