Canada improved its ‘poverty grade’, but Manitoba advocates say grading system needs improvement

Despite increased and ongoing food and housing affordability issues, Canada’s largest food bank association gave the country an improving ‘grade’ this year, which advocates say may distort the reality on the ground.

Food Banks Canada points to a series of new federal programs and benefits as part of the reason the country went from a D to a D+ in its annual Poverty Report Card.

“We are encouraged to see that policies we called for in our 2024 and 2025 reports have become reality, helping to slow deepening poverty in Canada,” reads the report.

The report credits measures such as the Canada Child Benefit, increases to the Guaranteed Income Supplement for seniors, the rollout of dental care and pharmacare programs, disability benefits and housing supports.

However, despite the improvement, food insecurity and housing affordability remain worsening challenges, with one in four Canadians categorized as food insecure.

The report found that more people receiving government support say their benefits aren’t enough, rising from 45.9 per cent in 2023 to 66 per cent in 2026, highlighting that many of Canada’s most vulnerable people are still not getting enough support.

The only two provinces to score above the national rating is Manitoba and Quebec, receiving a C- and C.

In Manitoba, the government released a five-year Poverty Reduction Strategy earlier this year.

It also became the first government in Canada to eliminate childcare fees for low-income families.

The province also plans to remove the provincial sales tax from groceries July 1 and children and youth will ride transit for free, plus its expanded adult literacy funding with dedicated investments in First Nations and Northern communities, while increasing the Renters Affordability Tax Credit.

The report found a four per cent reduction in the number of people who felt worse than they did a year ago, from 41 per cent in 2025 to 37 per cent this year. 

However, some advocates questioned whether Manitoba’s boost reflects the reality faced by people living in poverty.

“Just because there is some [new] government policy doesn’t mean it’s good policy,” said Kate Kehler, executive director of the Social Planning Council of Winnipeg.

Kehler argued the report places significant weight on government actions, with legislative progress accounting for 20 per cent of a province’s final grade, while poverty and food insecurity measures rely on data from Statistics Canada’s Canadian Income Survey.

“My most frustration comes from the idea of praising poor government policy.”

Kehler pointed to the province’s fourth consecutive freeze of Employment and Income Assistance (EIA) rates, arguing that the 30,000 Manitoba households who rely on social assistance have seen their purchasing power steadily erode due to inflation.

She also pointed to the province’ reduction in affordable housing funding, going from 670 affordable housing units in the 2025 budget to 215 in this year’s budget.

Methodology questions

Food Banks Canada’s report card combines several different measures of poverty and affordability. 

It relies on a mix of Statistics Canada data, a national Pollara survey and a qualitative assessment of government policies introduced between April 2025 and March 2026.

Kehler said one of her concerns is the report’s reliance on the Canadian Income Survey, which does not fully capture people living on First Nations reserves.

“We know who is overrepresented in poverty in Manitoba and across Canada — First Nations people,” Kehler said. 

“The Canadian Income Survey used in the Food Banks Canada report does not include First Nations communities.”

Kelher’s organization leads Campaign 2000’s Manitoba Child and Family Poverty Report Card and instead relies on Statistics Canada’s Census Family Low Income Measure after tax.

“It’s based on tax returns, which the vast majority of people do, not everybody, but people do because otherwise it’s tied to their benefits. So it’s got more reliable data.”

Through their report, they found Winnipeg Centre has the highest rates of child and family poverty in an urban federal riding.

“I don’t want dueling reports calling out another organization for doing their research,” Kehler said.

“It is their grading.. It really does matter what’s happening on the ground here and now.”

A spokesperson for Food Banks Canada was not available for an interview regarding its methodology. 

What could help?

Advocates have long pointed to Employment and Income Assistance (EIA) reform as a way to improve conditions for people living in poverty.

The report found that social assistance in Manitoba covers only 39 per cent of the income required to reach the poverty line. 

Make Poverty History Manitoba is one of the groups that’ve been calling for an increase.

“It’s harder for people to get ahead now,” said Molly McCracken, chair of the provincial working group of Make Poverty History Manitoba.

“We need to modernize the system because that’s the experience of more people now with precarious work and more part-time work,” she said.

As of August 2025, the ElA earned income exemption allows recipients to earn up to $500 per month without clawbacks, but there is a 70 per cent clawback on additional earnings. 

“It really isn’t enough in the grand scheme of life if somebody is using EI income and assistance,” said McCracken.

Across Canada, 66 per cent of people receiving social assistance said their benefits were not high enough to keep up with the cost of living, up from 45.9 per cent in 2023.

While Manitoba received one of the highest grades in the country, advocates say rising living costs continue to outpace the supports available to many low-income residents.

“As long as anyone is living in poverty, that’s too many people, and we need to make sure that we have better public policy to support people.”