Breaking the Cycle: Ontario's Poverty Reduction Strategy

Minister's Message

It is my privilege as the Minister of Children and Youth Services to lead Ontario's Poverty Reduction Strategy and to present this annual report, which reflects three years of dedicated effort and commitment to reducing poverty in our province and building a stronger Ontario.

Certainly, there is a clear moral imperative for the Poverty Reduction Strategy. It is the right thing to do. But there are critically important economic and social imperatives as well. We will thrive and prosper as a province and as a society when every child and youth has the opportunity to succeed and contribute to their community. We cannot afford anything less. That is why we have chosen to focus our efforts strategically on the needs of children and their families in the first five years of the strategy in order to break the intergenerational cycle of poverty.

Of course, our efforts toward poverty reduction have taken place in a climate of considerable economic uncertainty. There is no question that the economic downturn of the past few years has presented serious challenges. Despite these challenges, we remain strongly committed to our Poverty Reduction Strategy and we know it is making a difference.

The poverty rate for children in Ontario declined from 15.2 per cent in 2008 to 14.6 per cent in 2009, which means 20,0001 children have moved out of poverty, due in part to our investments in children and families. As well, the poverty rate for children living in deep poverty declined from 8.5 per cent in 2008 to 7.3 per cent in 2009, meaning 34,000 children were lifted out of deep poverty. Poverty rates for children in single mom-led families dropped most dramatically, from 43.2 per cent in 2008 to 35.2 per cent in 2009. It is important to note that data from Statistics Canada lags by 18 months. This means statistics for our income-based indicators are available for only the first year of the strategy. However, these developments show that the Poverty Reduction Strategy is already making a real difference in the lives of children and families in low-income circumstances.

Over the past three years, we have taken deliberate steps to help families hit hardest by the recession, while continuing our substantial investments in children. Major initiatives like the Full-Day Kindergarten Program, the Student Nutrition Program and Best Start Child and Family Centres provide opportunities for children to get the best possible start, which increases their chances to succeed later in life. We have made key investments to create jobs in Ontario and improve our social and economic infrastructure. At the same time, we are helping families get back on their feet through increased financial supports such as Ontario tax credits, an increased minimum wage and the Ontario Child Benefit, which remains a cornerstone of our Poverty Reduction Strategy.

Poverty reduction is everybody's business. I acknowledge, with respect and thanks, the tireless work being done by thousands of individuals and organizations in communities across the province whose contribution is making a difference every day for our most vulnerable citizens. I also thank the many Ontarians who took part in the dialogues held throughout 2011. I can assure you that your insights and suggestions will do much to inform our work as we move forward in 2012.

The Honourable Dr. Eric Hoskins
Minister of Children and Youth Services

1 The Poverty Reduction Strategy uses Statistics Canada's Low Income Measure (LIM50) fixed to a base year of 2008 to assess progress in reducing child poverty. For 2009, the LIM50 lines are determined by applying the Canada Consumer Price Index (CPI) inflation rate to the base year. Under Statistics Canada's methodology for calculating the LIM, the number of kids in poverty would have been 393,000 versus 392,000. The result would be 19,000 kids lifted out of poverty versus 20,000 kids under Ontario's Poverty Reduction Strategy LIM methodology.


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Breaking the Cycle: The Third Progress report