Canada has taken the first steps towards a groundbreaking initiative aimed at making universal basic income in the country a reality.
The Senate’s national finance committee initiated discussions on Senator Kim Pate’s Bill S-233, a proposal for a national framework for a universal basic income.
The concept of a basic income program is not foreign to Canada, as it’s been on politicians’ radars since the 1970s.
In December 2021, Senator Pate and Member of Parliament Leah Gazan introduced Bills S-233 and C-223, which, if passed, would establish the country’s first framework for an unconditional Guaranteed Livable Basic Income for everyone over 17 across Canada.
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The momentum for a basic income program surged during and after the COVID-19 pandemic, particularly due to the Canada Emergency Response Benefit (CERB), which provided $2,000 monthly to millions of Canadians.
This ignited the possibility of a permanent income program.
@immigrationnewscanada 🇨🇦 National Framework for a Guaranteed Livable Basic Income Act will give every person authorized to work in Canada access to a livable basic income 🇨🇦 Senator Kim Pate introduced this bill as S-233 with the second reading in Senate on April 18, 2023. 🇨🇦 Now this bill is in consideration in the Standing Senate Committee on National Finance with its most recent meeting on October 17, 2023 🔗 Link in bio for full details #canadian #universal #basic #income #guaranteed #livable #act #senate #eradicatepoverty #homelessness #dignity #new #update ♬ original sound – Immigration News Canada (INC)
As the government begins to actively explore the options of universal basic income and traction among the public begins to grow, here’s how it’s starting to take shape for Canadians.
What is Universal Basic Income (UBI)?
UBI is a payment from the government that every citizen would receive, regardless of their income or needs.
The UBI could encompass various plans that would be adjusted according to each individual’s requirements.
Pros and cons of UBI
Like any major policy, UBI comes with its pros and cons.
Advocates highlight several benefits, including increased school attendance, higher employment rates, improved community health, and enhanced financial stability. They note that UBI hasn’t led to negative outcomes like increased unemployment claims or alcohol abuse in pilot programs. Supporters also argue that UBI allows students to pursue their interests in college without solely focusing on money-making degrees.
On the flip side, opponents argue that funding a nationwide UBI system could necessitate higher taxes for everyone. They express concerns that without requirements for receiving UBI (such as proof of employment or a willingness to work), some individuals might lose motivation to seek employment. There’s also the fear that free income could trigger inflation, potentially negating UBI’s goal of reducing poverty and improving overall living standards.
What could Canada’s UBI look like?
The Senate’s proposal introduces the idea of a guaranteed “livable basic income” for all Canadians aged 17 and above. This includes temporary workers, permanent residents, and refugee claimants. Importantly, this proposed basic income framework wouldn’t replace or reduce existing health or disability benefits.
What is the UBI budget?
In 2021, Yves Giroux, the Parliamentary Budget Officer, estimated a basic income program could offer $17,000 annually to low-income households and could cut poverty rates in half.
Giroux says implementing UBI in Canada would cost the federal government $85 billion.
UBI in Canadian history
Various provinces have dipped their toes into providing unconditional cash to their citizens.
From 1974 to 1979, Manitoba assured every household a minimum income. If nobody in the household worked, they received the maximum benefit, which decreased as household income increased.
In 2017, Ontario initiated a basic income pilot in Hamilton, Thunder Bay, and Lindsay. While the program aimed to assist 4,000 low-income residents in the region with up to $17,000 annually over three years, it was discontinued when Premier Doug Ford took office after a significant election victory in 2018.
Quebec launched its own basic income program in early 2023, offering a base amount of $1,211 per month to residents with severely limited employment capacity. Those receiving the benefit can earn up to $14,532 annually without impacting their benefit.
An interesting map consisting of countries that have historically implemented UBI programs can be found right here.
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