Thank you for having me here today.
My name is Neil Hetherington, and I have the awesome privilege of representing the Daily Bread Food Bank—Canada's largest food bank. We are based in Toronto and have a mission to ensure that everyone's right to food is realized.
I'm here today to speak about the grocery rebate included in the 2023-24 budget. I'm grateful to have the opportunity to share what we are seeing on the ground at our food banks across the city and why you, our elected representatives, should be gravely concerned about the state of food insecurity in Canada right now.
Before the pandemic, we used to see about 60,000 client visits every single month. During the pandemic, that doubled to 120,000 client visits per month. This past March, we were horrified that there were 270,000 client visits recorded. We can do better.
Where we used to see some 2,000 individuals make use of the food bank for the very first time, we are now seeing some 12,000, every single month, come to the Daily Bread Food Bank. The underlying reasons for this are complex, but I can summarize them in one sentence: People do not have enough income to afford the rapidly rising cost of living.
With unemployment being at record lows, it begs the question. Why are we seeing such historic increases in food bank usage? Food bank usage has always had a correlation between its use and unemployment. As a result, I have sleepless nights—and a few newly found grey hairs—thinking about what will happen if unemployment begins to rise.
Many of the people who are coming to our food banks in Toronto are relying on fixed incomes, particularly social assistance. I worry very much about those receiving income from disability. Those funds in Ontario total about $1,200 per month for an individual to survive on. It is a full $900 below the poverty line. In the past year, we have seen the proportion of people with income derived from employment as the primary source double from 15% to 33%. No longer is there a promise that, if you get an education and you work hard, you will not need food charity.
Seventy per cent of our clients at food banks are paying more than half of their incomes on housing, which is putting them at a high risk of homelessness. Almost one in five food bank clients is putting 100% of their income toward housing, leaving nothing for food and for other expenses. They are totally relying on charity, friends and family.
Every household in Canada feels the impact of food inflation, which remains at 9.6%. However, for those accessing food banks, this is simply the tip of the iceberg. These households were already living with precarity before skyrocketing inflation.
Let's turn to the question at hand: Will the grocery rebate make a difference?
Any money in the pockets of low-income Canadians is generally a good thing. Using the GST credit as a vehicle makes sense since this is an income-tested benefit that will target low-income Canadians. It does not require somebody to be working to receive it, which means that people living with disabilities, who are unable to work, will still receive the benefit. We also appreciate this approach, which is grounded in dignity and in low-barrier access. Rather than having to apply for the benefit, Canadians who have filed their income tax will automatically receive the benefit.
However, none of this answers the question of whether it will make a difference. Ultimately, while the benefit is helpful, our analysis is that the temporary grocery rebate will not shorten the lineups outside of food banks across Canada. The good news is that we know exactly what will.
Our colleagues at PROOF, a research institute housed at the University of Toronto, have published extensively on this matter. They found that the Canada child benefit and the guaranteed income supplement have both had significant impacts on reducing the severity of food insecurity, and these programs should be celebrated and replicated.
I've had the opportunity to testify at the Senate about Bill C-22, and I expressed my strong support for the Canada disability benefit. Depending on its design, this benefit has the potential to reduce and even to eliminate poverty and food insecurity among Canadians with disabilities. We hope this bill will continue to receive all-party support.
Despite these important steps forward, significant gaps in our social safety net remain. In particular, single working-age individuals represent close to half of the food bank clients across the country and also make up half of those living in deep poverty in Canada. Another gap is around those who have recently become unemployed. The government announced a process to reform EI, but we have not yet seen the outcomes. As a result, thousands of Canadians continue not to qualify because the program does not reflect modern realities such as gig work and self-employment.
Poverty reduction requires long-term sustained investment. We are grateful that the government has signalled a strong commitment to supporting low-income Canadians through the grocery rebate and through the Canada disability benefit, EI reform and ongoing investments in the Canada child benefit and guaranteed income supplement.
We have the tools to tackle food insecurity. We at the Daily Bread are here to push you and to support you as we work collectively to reduce poverty nationally.
Thank you.