Canadian Public Health Association | Association Canadienne de Santé Publique
Donate
Canadian Public Health Association

A Basic Income Guarantee (BIG) and Public Health in Canada

elxn45 image

PUBLIC HEALTH MATTERS

The implementation of a Basic Income Guarantee (BIG) in Canada has the potential to dramatically improve social equity, reduce poverty, and enhance the health and well-being of millions of Canadians. As the country grapples with rising income inequality and economic instability, the federal government must take a leading role in designing and funding a nationwide BIG to ensure every citizen has access to a stable income floor.

A Higher Standard

Income is a determinant of health that has one of the most significant impacts on overall well-being. Research shows that financial insecurity contributes to increased rates of chronic disease, mental illness, and overall poorer health outcomes. In Canada, 8.1% of households experience food insecurity, which significantly impacts physical and mental health (Statistics Canada, 2023).

Evidence from the Ontario Basic Income Pilot (2017-2019) demonstrated that recipients reported improved physical and mental health, reduced stress, and increased employment participation (Office of the Parliamentary Budget Officer, 2021).

Canada’s federal government has a role to play in ensuring income security for all. A national BIG program could help lift millions of Canadians out of poverty while reducing healthcare costs and improving overall economic stability.

It’s time for Canada to do better.

Why It Matters

Studies show that reducing poverty through direct income supports leads to better health outcomes, reducing strain on the healthcare system. A 2021 study estimated that a national BIG could reduce poverty by nearly 50% in Canada while costing about $85 billion annually, partially offset by savings in healthcare and social assistance costs (Office of the Parliamentary Budget Officer, 2021).

Other countries have explored basic income programs with positive outcomes. Finland’s basic income experiment (2017-2018) led to increased life satisfaction, mental well-being, and employment participation among recipients (Wellbeing Economy Alliance, 2020).

Canada has already tested BIG through pilot projects such as the Ontario Basic Income Pilot and the 1970s Mincome experiment in Manitoba, both of which demonstrated reduced hospitalization rates, improved health outcomes, and better educational attainment (Forget, 2011).

Policy Solutions for the Next Federal Government

  1. Establish a National Basic Income Framework: Collaborate with provinces and territories to create a national framework that ensures every Canadian receives a minimum income regardless of their employment status.
  2. Reform Existing Social Welfare Programs: Streamline and integrate current welfare programs such as Employment Insurance and social assistance into a single, more efficient basic income system.
  3. Progressive Taxation to Fund Basic Income: Implement progressive income and wealth taxes to ensure that higher-income Canadians contribute fairly to funding a basic income program.
  4. Expand Research and Pilots: Increase funding for ongoing basic income pilot programs in different provinces to gather comprehensive data on its benefits and scalability.

Questions for the Candidates

  • Does your party support a national guaranteed basic income program?
  • How will your party ensure that a BIG program is sustainable and effectively integrated with existing social programs?
  • What measures will your party take to ensure that a BIG reduces health inequities and improves overall public health outcomes?
  • How will your party finance a guaranteed basic income while maintaining fiscal responsibility?

Resources