It’s no secret that more and more Canadians are struggling financially in the face of Canada’s prolonged affordability crisis. This crisis is further aggravated by U.S. trade actions that are undermining Canada’s economy while fundamentally reshaping our global trading system and threatening to unwind prosperity gains around the world.
According to the Financial Consumer Agency of Canada, 35 per cent of households in Canada now borrow money for daily expenses and 32 per cent report a high level of anxiety, stress or worry with respect to their finances. Almost 40 per cent of households with debt say it has increased and half of households are depleting their savings to cope with the current economic situation. This situation is worse among low-income households, with 66 per cent reporting they have trouble or sometimes struggle with their financial commitments.
In response, Canadians are asking how we can build our future prosperity in this new reality and calling for bold solutions to meet this moment.
On April 7th, Prosper Canada launched Resilient Futures: Building Financial Well-being for All Canadians – a direct and powerful response to this challenge.
With $60 million in funding over 4.25 years from the Government of Canada’s Employment and Social Development Partnerships Program – Children and Families and $12 million in matching funds raised by Prosper Canada, we are expanding free, community, financial help services to empower financially struggling Canadians to rebuild their financial stability and health.
Over the next four years, community partners we select across Canada will deliver year-round tax filing, benefit assistance, and financial coaching and counselling support to one million Canadians with low incomes and connect them to an additional $2 billion in critically needed income.
Interested non-profit organizations that serve Canadians with low incomes and want to be part of this effort are invited to visit our Call for Proposals to learn more about this funding opportunity. Funding applications are due on May 14th, 11:59 pm EDT. Prosper Canada will provide successful applicants with the orientation, training and funding they need to deliver quality financial help services to those who need them most – empowering Canadians to build their financial capability, boost their incomes, tackle debt, and save for their future.
To ensure the financial empowerment services we build are accessible to anyone with a low income, we are taking additional steps to reach traditionally underserved populations:
First Nations, Inuit and Métis Peoples, members of Black communities, and people living with disabilities. Resilient Futures has a dedicated Priority Populations funding stream to build connections with these communities and facilitate their access to financial help services. All of the service providers we fund will be supported and encouraged to help us expand access to services for rural and remote communities and official language minority communities.
Through this initiative, every province and territory in Canada will soon have one or more regional financial empowerment hubs that will:
Deliver a full suite of financial empowerment services;
Build capacity and referral partnerships with other organizations and communities to turn them into prosperity gateways;
Help drive ongoing service innovation to expand our reach and impact.
With their support, we will help close Canada’s tax filing and benefit take-up gap. Currently, an estimated one in five people with low incomes are missing out on critically needed income because they don’t tax file. Many others are not receiving benefits they are eligible for because of personal, institutional and systemic barriers. Free, year-round, tax filing and benefit help will ensure more struggling Canadians are connected to income they are eligible for, but not yet receiving.
In all of this work, we will strive to foster greater financial equity and inclusion by building partnerships with, and funding, Indigenous, Black and disability organizations. We will also leverage the leadership and expertise of our network to ensure all the services we provide are accessible to everyone who needs help – no matter where they live or who they are.
Canada is at a critical juncture. Our economy is under threat and Canadians are under growing pressure financially. This isn’t a problem that any one sector can solve on its own but, through Resilient Futures, governments, businesses and community organizations will be working together to build a better and stronger future for all Canadians, leaving no one behind. -Liz Mullholland, CEO, Prosper Canada