Canada stands at a “historic crossroad” as poverty and hunger have surged nearly 40% over the past two years, according to Food Banks Canada’s national 2025 Poverty Report Card, released recently.
The report grades the federal government’s poverty reduction efforts a “D,” highlighting how 25.5% of Canadians—over 10 million people—now experience some level of food insecurity, the highest rate ever recorded, per the organization’s Material Deprivation Index.
Drawing on Statistics Canada data, the analysis shows unemployment climbing for the third straight year, with youth rates up a third since 2023, and low-income households spending over 50% of earnings on rent alone.
This leaves little buffer against essentials like food and dental care, fuelling record food bank usage and deepening hardship for vulnerable groups, including single parents (44.5% unable to afford two or more basics) and renters (42%).
Despite the grim outlook, the report points to fragile positives: easing inflation at 2%, interest rate cuts to 2.75%, and emerging programs like the Canadian Dental Care Plan and National School Food Program.
“While governments have not yet taken action to meet the scale of the crisis, newly introduced programs are showing early promise for greater adoption and expansion,” said CEO Kirstin Beardsley.
Food Banks Canada urges three priorities: committing to halve food insecurity by 2030, enshrining automatic tax filing to unlock unclaimed benefits, and bolstering the Canada Disability Benefit (max $2,400/year, deemed inadequate).
“With bold collective action from all governments, we can make real and lasting change,” Beardsley added. “It is possible to reduce food insecurity in Canada by 50% by 2030.”
Ottawa has prioritized initiatives to support low-income Canadians, including the $13-billion Build Canada Homes program launched in 2025 to accelerate prefabricated housing construction, reduce building costs, and address affordability crises impacting vulnerable populations. This builds on ongoing commitments to bolster low-wage workers through expanded access to affordable childcare and employment supports, while advocacy groups have pushed for exploring Universal Basic Income to further combat poverty.
However, the efforts occur amid fiscal pressures, with the Parliamentary Budget Officer projecting a sharp rise in the federal deficit to $68.5 billion for 2025-26 (2.2% of GDP), up from $51.7 billion in 2024-25, driven by slower economic growth forecasts of 1.2% in 2025 and escalating debt servicing costs exceeding $53 billion annually, potentially straining future social spending.