Surrey Board of Trade
Poverty Reduction Policy
BACKGROUND
April 2012
Poverty reduction is a sound investment for the City of Surrey, the Province of British
Columbia and the Government of Canada.
“... poverty costs us all. Poverty expands healthcare costs, policing burdens and diminished
educational outcomes. This in turn depresses productivity, labour force flexibility, life spans
and economic expansion and social progress, all of which takes place at huge cost to
taxpayers, federal and provincial treasuries and the robust potential of the Canadian
consumer economy...
We believe that eradicating poverty and homelessness is not only the humane and decent
priority of a civilized democracy, but absolutely essential to a productive and expanding
economy benefitting from the strengths and abilities of all its people.”
Source: Federal Poverty Reduction Plan: Working in Partnership Towards Reducing Poverty in Canada, Report of the
Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities,
November 2010, 40th Parliament, 3rd Session.
British Columbia has the highest poverty rate in Canada but is one of only two
provinces without a Poverty Reduction Plan.









12% of the population – half a million British Columbians – live in poverty
BC’s child poverty rate, at 12%, is the highest in Canada for the eighth year in a row
Most people living in poverty are working, and almost half of BC’s poorest children live in
families where at least one parent has a full-time, full-year job
Last year, over 90,000 people in BC used food banks in one month: 1 in 3 of them were
children and 1 in 7 were Aboriginal. On a monthly basis between 14,000 and 15,000
people access the Surrey Food Bank, and 40% are children
Inequality negatively impacts physical and mental health, education outcomes, trust and
community life, homicide rates, children’s health and wellbeing, drug abuse, and more
The income inequality gap is growing in B.C. much faster than in most other provinces
Income Assistance rates are completely inadequate at $610 a month for a single person
The final minimum wage rate of $10.25 an hour will not bring a worker above the poverty
line in Surrey, Vancouver and other large cities in B.C.
Poverty is concentrated in specific populations, such as Aboriginal people, people with
disabilities, people with health issues, recent immigrants and those who have come
through to the country as refugees, single parent (usually mother led) households,
people with limited education/lack of employment skills and single senior women
Economic growth partnered with a Poverty Reduction Strategy would make our
communities healthier: physically, socially and economically.
1 POVERTY REDUCTION POLICY 2012
WHAT DOES POVERTY IN SURREY LOOK LIKE?
In Surrey, there were 70,500 individuals living in poverty in 2006, which translates into a
poverty rate of approximately 18 per cent before tax. This compares favourably to the
regional poverty statistics, with approximately 433,500 individuals living in poverty in Metro
Vancouver in 2006, or 20.8 per cent of all individuals living in Metro Vancouver.
Poverty affects a wide range of individuals in our communities –low income families, single
parent families, children and youth, seniors living on a fixed income, Aboriginal people, new
immigrant families, women and single person households.
Addressing issues related to poverty and low income in Surrey involves implementing
targeted strategies and actions around accessible and affordable transportation, affordable
housing, adequate income and appropriate community supports.
Transportation
For lower income households the cost of operating a vehicle can be significant. Investments
in public transit can make a real difference, by helping to bring down the cost of travelling to
work as well as by providing low income families and individuals with better access to jobs
and employment.
Housing
While housing in Surrey is more affordable when compared to other parts of the region, our
research shows that there are still too many low income families and individuals who are
struggling to find housing that they can afford. We also know that access to affordable
housing plays a critical role in helping to provide low income families and individuals with the
foundation that they need for stability and for their health and well-being.
Income
Income determines the types of opportunities and life chances available to families and
individuals. For households who are in low income and who are living pay cheque to pay
cheque, an unexpected expense such as an increase in their rent, car repairs or other
unanticipated costs can have a devastating impact.
Based on current low income cut-offs, a family of four with an annual income of $35,573 is
considered to be living in poverty. The National Council of Welfare reported in 2010 that a
family of four receiving income assistance in BC lives on a total of $21,179 annually.
Support
One of the consequences of poverty is a sense of powerlessness resulting from the scarcity
of real choices. Addressing poverty involves supports and services such as affordable child
care, education and training, community programs that help vulnerable families and
individuals, and a social safety net in times of need. Collaborative community-based
strategies and approaches can help to respond to gaps within the current system and
provide people with the skills and support that they need to move out of poverty.
FAMILIES WITH CHILDREN
2
In Surrey there were 103,210 families of which 55,485 included children under 18. Of those
households, 16,100 families (16%) were living in poverty.
POVERTY REDUCTION POLICY 2012
Total
Economic
Families
#
Total Economic
Families in Low Income
(Before Tax)
#
%
Total Economic Families
in Low Income
(After Tax)
#
Change
(After vs
Before Tax)
%
Metro Vancouver
557,270
95,293
17.1
73,002
13.1
-22,291
Surrey
103,210
16,101
15.6
11,869
11.5
-4,232
Burnaby
54,300
12,000
22.1
9,394
17.3
-2,606
Coquitlam
31,355
5,644
18
4,358
13.9
-1,286
In the City of Surrey there were more than 29,220 children between the ages of 0 and 6 in 2006.
Of these, approximately 23% or almost 1 in 4 was living in poverty in 2006.
Children 0-6 living in low income
Total
Population
#
In Low Income (Before Tax)
%
#
In Low Income (After Tax)
%
Change
#
%
Metro Vancouver
126,105
21.5
27,113
17.2
21,690
-5,423
Surrey
29,220
23.2
6,779
18.1
5,289
-1,490
Burnaby
11,330
26.8
3,036
22.5
2,549
-487
Coquitlam
6,860
17.4
1,194
14
960
-233
Female single parent family households are particularly vulnerable to poverty and low income.
Of the 64,080 female single parent family households across Metro Vancouver, 22,428 (35%)
were living in poverty in 2006. In Surrey, there were 11,300 female led single parent families of
which 3,966 (35%) were living in poverty.
Dependable and affordable child care is essential in terms of helping families to gain access to
employment, while at the same time allowing parents to feel confident that their children’s needs
are being met. Many lower income households have few choices in terms of the child care
options available to them. HELP research indicates that BC mothers whose youngest child is age
3 to 15 have the lowest labour force participation in Canada, and BC mothers whose youngest
child is 2 and under have the second lowest participation rate.
The evidence suggests that with access to affordable, quality child care, more BC mothers would
enter the paid labour force.
EMPLOYMENT AND EARNINGS
There is significant variation in the employment and economic opportunities available to different
groups and sectors of the community. Not all households will be in the labour force, but of those
who were in the labour force, the following general patterns and trends emerged:
3 POVERTY REDUCTION POLICY 2012
Women: Approximately 51% of all women 15 and older living in Surrey worked part-time while
40% worked full year, full-time. Of those working full-time, the median hourly earnings were
$18.42 in 2006. In addition, approximately 7% of all women in the labour force in Surrey were
looking for work at the time of the 2006 Census.
Men: Approximately 39% of all men 15 and older living in Surrey worked part-time while 55%
worked full year, full-time. Of those working full-time, the median hourly earnings were $23.24.
Approximately 5% of all men in the labour force in Surrey were looking for work at the time of the
2006 Census.
Aboriginal people: Approximately 51% of all Aboriginal people 15 and older living in Surrey
worked part-time while 44% worked full year, full-time. Of those working full-time, the median
hourly earnings were $19.67. Approximately 10% of Aboriginal people in the labour force in
Surrey were looking for work at the time of the 2006 Census.
Recent immigrants: Approximately 66% of all recent immigrants 15 and older living in Surrey
worked part-time while 31% worked full year, full-time. Of those working full-time, the median
hourly earnings were $14.23. Approximately 11% of all recent immigrants in the labour force in
Surrey were looking for work at the time of the 2006 Census.
People with Disabilities: Approximately 44% of all people with health and activity limitations in
Surrey 15 and older worked part-time while 44% worked full year, full-time. Of those working fulltime, the median hourly earnings were $19.95. Approximately 8% of all people with disabilities
were looking for work at the time of the 2006 Census.
EDUCATION
Aboriginal people: Approximately 24% of Aboriginal people in Surrey age 24 to 64 did not have
any certificate, diploma or degree in 2006, while 27% had a high school diploma or the
equivalent. Approximately 49% had a certificate, diploma, or degree from a college, university,
apprenticeship, or trades program.
Recent immigrants: Approximately 18% of recent immigrants in Surrey age 24 to 64 did not
have any certificate, diploma or degree in 2006, while 21% had a high school diploma or the
equivalent. Approximately 61% had a certificate, diploma, or degree from a college, university,
apprenticeship, or trades program with 79% in this category having a university degree.
People with disabilities: Approximately 22% of people with health and activity limitations in
Surrey age24 to 64 reported that they did not have a certificate, diploma or degree in 2006 while
28% had a high school diploma or the equivalent. Approximately 50% had a certificate, diploma,
or degree from a college, university, apprenticeship, or trades program with 39% in this group
having a university degree.
AFFORDABLE HOUSING
Renter households account for approximately 35% of all households across Metro Vancouver.
Within the City of Surrey, approximately 25% of all households are renters. While many
households will aspire to be owners, there are also many households for whom owning might not
be possible and renting is their only option.
4 POVERTY REDUCTION POLICY 2012
While the average rent in Surrey is 26% below the average market rent for the region, the rents
are still unaffordable to many lower income households, especially those living in poverty. Even
with the higher levels of affordability when compared to rents across the region, the average rent
in Surrey is between $100 and $200 per month above the level that is affordable to a household
living at the poverty line.
Affordability of Rents for Households Living in Low Income
1 person
2 person
3 persons
4 persons
Low Income
Threshold
$19,144
$23,832
$29,299
$35,573
Affordable Rent
Levels
$479
$596
$732
$889
Surrey Rent
Levels
$610
$718
$897
$982
Difference
($131)
($122)
($165)
($93)
Households in Core Housing Need
Core Housing Need refers to households who are spending 30% or more of their income on
their housing costs, or who are unable to find housing in their community that is suitable in size
and that is in good repair with the resources they have available.
INALH (In Need and At Least Half) refers to households that are in core housing need and who
are spending 50% or more of their income on their housing. These households are seen as
being particularly vulnerable to homelessness should their circumstances change.
In Surrey, of the 10,430 renter households in core housing need, there were 3,495 renter
households who were in “worst case” need. This represents approximately 34 per cent of all
renter households in core housing need.
Renter
Households
Greater Vancouver
Surrey
Burnaby
Coquitlam
Renter
Households In
Core Housing
Need
%
INALH
Households
% of renters
in core need
who are
INALH
#
#
%
#
%
283,755
32,475
30,050
10,340
79,365
10,430
8,475
2,925
28
32.1
28.2
28.3
31,290
3,495
3,310
1,025
39.4
33.5
39.1
35
Approximately 13% of the 32,475 rental housing units available in Surrey are social housing
units, and there are approximately 850 families and 1,204 seniors receiving rental assistance
through BC Housing’s RAP and SAFER programs. BC Housing reports that, as of December
2009, there were 1,921 social housing units targeted to low income families in Surrey.
Approximately 1,320 families living in Surrey are on BC Housing’s Applicant Registry waiting to
get into social housing.
Across Surrey, 360 individuals were identified as homeless on the night of the 2011 Metro
Vancouver Homeless Count. This included 135 who were among the sheltered homeless and
225 who were among the street homeless.
5 POVERTY REDUCTION POLICY 2012
THE COST OF DOING NOTHING ABOUT POVERTY AND INEQUALITY
INEQUALITY AND ECONOMIC GROWTH
Canada has greater income inequality than most OECD nations, ranking 24th out of 35 countries
(OECD report, 2011). BC has one of the highest rates of income inequality in Canada and it is
growing at a faster rate than the national average. Not only is inequality associated with multiple
health and social problems with significant long-term costs, it also damages economic growth.
According to a recent report from the International Monetary Fund, “inequality is strongly
associated with less sustained growth” (Berg and Ostry, 2011), and the Conference Board of
Canada warns that “inequality can diminish economic growth if it means that the country is not
fully using the skills and capabilities of all its citizens or if it undermines social cohesion, leading
to increased social tensions” (July 2011).
THE COST OF POVERTY IN BC
A recent study from the Canadian Centre of Policy Alternatives finds that “the costs of inaction
are so large that they far exceed the costs of poverty reduction” (Ivanova, July 2011). According
to this report:
Poverty is consistently linked to poor health, lower literacy, poor school
performance for children, more crime, and greater stress for family members. It is
society as a whole that bears the costs of poverty, through higher public health
care costs, increased policing and crime costs, lost productivity, and forgone
economic activity…
The bottom line is that poverty in BC represents a direct cost to government
alone of $2.2 to $2.3 billion annually, or close to 6 per cent of the provincial
budget. The cost to society overall is considerably higher – $8.1 to $9.2 billion, or
between 4.1 per cent of BC’s GDP. That is as much as $2100 for every man,
woman and child in BC, or $8400 for a family of four, every year.
THE COSTS AND BENEFITS OF A POVERTY REDUCTION PLAN
In contrast, the estimated cost of a comprehensive poverty reduction plan in BC is $3 to $4 billion
per year. As the Surrey Board of Trade has already recognized, homelessness and lack of
accessible and affordable child care are the central issues, and therefore more social housing
and universal child care are key components of such a plan. Although they are the items with the
highest costs for the government, the returns on these investments for government, business and
families are clear.
Housing and child care are the two highest costs in a household’s budget so the un-affordability
of both contributes to high stress and work-life conflict among employees. According to the
position paper on Business and Families produced for the Surrey Board of Trade in March 2012,
work-life conflict for parents with young children causes problems for employers, including higher
absenteeism, greater turnover, lower productivity, and increased use of extended health benefits
(Papadionissiou). For those employees with preschool-aged children, these issues add up to a
cost of $600 million per year for the BC business community. Investing in affordable, publicly
funded services for families will reduce these costs significantly.
Looking at Quebec as a model, their provincial child care system featuring $7-a-day child care
now pays for itself. According to a study released last year, “for every dollar Quebec invests, it
6 POVERTY REDUCTION POLICY 2012
recoups $1.05 while Ottawa receives a 44-cent windfall” (Fortin, June 2011). This is primarily
through an increase in mother’s annual income and consumption taxes as their labour
participation rates increase. More benefit could be expected in BC as we currently have the
second lowest rate of labour participation for mothers with children under six. The Childcare
Research and Resource Unit also includes the longer-term child development benefits in their
study on child care as a good public investment, and they estimate that for every dollar invested
in high quality child care, there is a two dollar benefit to children, parents and society.
As well as addressing housing and child care, a strong poverty reduction plan also includes more
support for training and education, which directly benefits the business community, enhanced
health care and higher incomes for those in the low-wage workforce and those on income
assistance.
The majority of those living in poverty in BC are working and, in 2009 (the last year for which we
have data), almost half (48%) of BC’s poor children live in families where at least one adult had a
full-time, full-year job. The current minimum wage, despite the recent increases, provides only
$21,320 per year, which does not lift a worker above the poverty line in Surrey or other large
cities in BC. Families who work for low wages face impossible choices – buy clothing or heat the
house, feed the children or pay the rent. The result can be spiraling debt, constant anxiety and
long-term health problems. In many cases it means that the adults in the family are working long
hours just to pay for basic necessities, often at two or three jobs. In fact, according to a recent BC
Stats report, BC’s rate of multiple job holders is higher than the rest of Canada. These workers
have little time to spend with their family, much less to help their children with school work or
participate in community activities.
While further increases to the minimum wage would be a cost to local businesses, they may also
experience the benefit because low-wage workers would have more purchasing power and these
workers spend within their local communities. It would also benefit the government in terms of
increased tax and consumption revenue.
Doing nothing about poverty in BC
is costing society more than double
what it would cost to tackle poverty directly.
We pay now or pay later.
POVERTY REDUCTION PLANS ARE SUCCESSFUL
As mentioned earlier, BC is now one of the last places in Canada without a poverty reduction
plan. Everywhere else except BC and Saskatchewan is saving lives and money by tackling
poverty directly rather than dealing with the negatives consequences of poverty later.
Newfoundland and Labrador used to share the worst poverty rate in Canada with BC but has
committed to a poverty reduction plan and successfully reduced their poverty rate by 5 per cent
between 2004 and 2009. During the 2008 recession, Ontario lifted 19,000 children and families
out of poverty through its commitment to combat child poverty.
The strength of a provincial poverty reduction strategy is its broadness and therefore its ability to
get to the heart of the causes of poverty.
7 POVERTY REDUCTION POLICY 2012
RECOMMENDATIONS TO GOVERNMENTS
1. Government of Canada - WHEREAS poverty and its social and economic effects are an issue
that all levels of government and all communities throughout the country are faced with, the
Surrey Board of Trade urges:
That the Government of Canada in conjunction with the provinces design and
implement a ‘National Poverty Reduction Strategy’ with goals, objectives and target
dates to reduce/eliminate poverty in our country, to include an ‘Affordable Housing
Strategy’ and specifically address a ‘National Child Care Program’ to enable parents to
work and contribute to the economic well-being of their families, communities and
country.
2. Government of British Columbia - WHEREAS poverty and its social and economic effects
are an issue that all communities throughout the province are faced with,
And WHEREAS people who are in affordable, appropriate, safe and stable housing are more
likely to seek training, become employed, and contribute to the economy of our province
Therefore, the Surrey Board of Trade urges:
That the Government of British Columbia implement a comprehensive targeted
‘Provincial Poverty Reduction Strategy’ with specific goals, objectives and target dates
to reduce/eliminate poverty in British Columbia by September 2017;
That the Government of British Columbia adopt as a core social policy poverty
eradication goal that all programs dealing with poverty and homelessness are to lift
people out of poverty rather than to make living in poverty more manageable;
That the Government of British Columbia work cooperatively in a timely fashion with
civic governments throughout the province, local community champions, and
homebuilders to develop new, innovative and creative ways to convert, buy or build
housing stock to develop affordable housing options for people in our province.
3. City of Surrey - WHEREAS poverty and its effects are an issue that all neighbourhoods
throughout the City of Surrey are faced with, the Surrey Board of Trade urges:
That the City of Surrey work in partnership with BC Housing, Fraser Health Authority,
non-profit agencies and other stakeholders, to plan and create the capacity and
conditions necessary to develop new social housing projects in Surrey.
8 POVERTY REDUCTION POLICY 2012