Across the country, families are doing the math and coming up short. Statistics Canada reports inflation rose to 3.2% in May, the highest level since 2023. For families, rent, groceries, transportation, childcare and energy bills are not abstract pressures. They are core determinants of health and wellbeing: they determine whether a parent can get to work, whether a young person can stay in school or training, and whether one unexpected bill pushes a household into debt.
The latest United Way Centraide Canada Financial Anxiety Index, conducted by Léger, confirms what our network sees every day: financial stress is rampant. Sixty per cent of people in Canada feel anxious about personal finances. Nearly half could cover basic expenses for only one month or less before falling into debt. Forty per cent are losing sleep over bills, and 38 per cent are struggling to put food on the table. The findings also show who is being squeezed hardest: tenants, single parents, newcomers and young adults. Household instability is not only a social problem, but also an economic one. People who cannot afford rent, food or transportation are less able to work, study, care for others or plan for the future.
Governments have levers to help households absorb shocks before hardship becomes crisis. Building on the model of the Canada Groceries and Essentials Benefit, federal action can meet urgent needs while addressing root causes through services and income.
The first lever is investment in the community services sector that actions government priorities to support people on the ground. Across Canada, community organizations help people access nutritious food, connect to benefits, stay housed and employed. Often, they are the difference between early footholds and an uphill battle out of financial hardship. Services are currently straining under high demand, workforce shortages and unstable funding. An initial $150 M investment targeted at front line services can help it ease the burden on households.
The second lever is housing. The federal government should renew the National Housing Strategy with a sharper focus on preventing homelessness and expanding deeply affordable, supportive and bridge housing. A renewed strategy should sustain and expand Reaching Home, build on Build Canada Homes’ $1 billion investment in supportive housing, and improve and extend Canada Housing Benefits so more people can stay housed, and 330,000 don’t lose the support at expiration in 2028. Prevention is more compassionate, cost-effective and effective than responding after a home is lost.
The third lever is income security. A targeted Canada Child Benefit increase would reach low- and moderate-income families as food, rent and child-related costs stretch parents thin. The federal government can also leverage the $18 billion Canada Social Transfer to provinces and territories. By targeting a portion to social assistance, the government can improve income adequacy, health and social outcomes.
The fourth lever is worker support. Canada needs stronger tools to help people navigate layoffs, disruption and recessionary impacts. Employment Insurance should be more accessible, with stronger benefits and improved eligibility so workers can stabilize quickly after job loss. Governments should also expand peer-led labour adjustment programs for unionized and non-unionized workers, helping people retrain, navigate transition and stay attached to the labour market. For young people, the Youth Employment and Skills Strategy should move to five-year agreements so organizations and employers can plan, retain staff and deliver stronger outcomes.
Housing, income and employment measures will only achieve their full impact when paired with investments in the organizations that help people navigate them. Targeted regional investments, support for the 211 community navigation service, and predictable funding to attract and retain the workforce behind essential community services are all connected levers: housing benefits are stronger when people can find help early, income supports are more effective when families know how to access them, and worker transition programs matter more when people can also stabilize child care, housing and mental health needs. Investing in community services is how these policies become real in people’s lives.
The Financial Anxiety Index is a warning sign we must heed. The data point us towards practical federal policy solutions that will contribute to a stronger economy: keeping people housed, boosting income where pressure is highest, supporting workers through disruption and investing in community organizations. These are not only social investments. They are economic resilience measures, and they are the right thing to do for people, families and neighbours carrying the weight of uncertainty. If Canada wants households and communities to withstand hard times, federal action should start there.
