Thank you, Madam Chair and honourable committee members, for inviting United Way Centraide Canada to the committee today. We serve as the national office for Canada's United Way Centraide network.
United Way Centraide is Canada's largest non-government funder of community services. With deep local expertise and trust, we fundraise annually over $600 million and invest in 3,800 partner agencies to serve eight million people. We work in 5,000 communities to address immediate needs and tackle the toughest social issues so that everyone in every community can reach their full potential. This includes supporting and delivering financial literacy and personal financial counselling programs. In 2025, we invested $8 million in serving 155,000 people.
We welcome the provisions in Bill C-31 to automate tax filing by the CRA for those who are eligible.
I have three main points that I will cover today. First is underscoring the importance of this initiative. Second is the opportunities for even more people to benefit. Third is the importance of community service infrastructure so that no one falls through the cracks.
The tax system is certainly a critical gateway to income supports like the CCB, the Canada groceries and essentials benefit and the Canada workers benefit. According to StatsCan, systemic and personal barriers prevent about one in five people with low incomes from tax filing and accessing income benefits and credits. This is alarming, given that these benefits and credits are the main source of income for 62% of low-income households.
Recent national United Way Centraide research conducted by Leger showed that 60% of respondents reported feeling financially anxious due to the high cost of living, which has been impacted by the trade war and economic uncertainty. Financial pressures are taking a measurable toll on basic well-being and daily function in our communities. In our research, 38% struggled with food insecurity, 40% reported difficulty sleeping and 34% said financial stress made it harder to concentrate at work or school. Rates of financial anxiety are even higher among those in low-income, lone-parent households, among newcomers and among youth.
This is the time for governments at all levels to take proactive steps to improve income supports, to improve access to in-demand careers, including within the care economy, and to reduce poverty. Automated benefits will help to ensure that people living with low incomes are not leaving any of the benefits they're entitled to on the table.
We support all avenues that will improve program design. United Way Centraide Canada and partner organizations like Maytree, Prosper Canada and Momentum have recommended improving eligibility for the program so that it reaches more people, ensuring easier access to the program for those receiving social assistance and investing sufficiently in the delivery of this program, including in public education in multiple languages and in accessible formats.
The success of the automated benefits program will only be further bolstered by investing in community-based supports so that no one falls through our social safety net. The government's investment in the community volunteer income tax program is a great example. It is important because it is a real-life touchpoint for hard-to-reach community members and people with complex tax situations.
Sustained collaboration with frontline providers can bring critical design questions to the surface, identify service gaps and inform program adaptation so that it can be even more effective. Relatedly, further investment in vital community service infrastructure—services, programs and community navigation—will only enhance outcomes for people in vulnerable circumstances.
Our national survey on financial anxiety highlighted the critical importance of a strong community safety net, showing that when people access community organizations for support, they do receive real relief, as 40% reported a positive impact on their financial situation, 36% said the organizations helped them manage their anxiety and 76% of those who accessed community housing assistance found it extremely helpful. Right now, Canada's community service infrastructure is under strain due to a trilemma of high service demand, financial instability and an overburdened workforce. Resourcing support within these organizations so that tax filing can be undertaken and people can access the benefits they are entitled to will be very important for the success of the program and in moving individuals and families from poverty to possibility.
Thank you for the time today and for considering my three points.