Public statement: Response to the defeat of Bill C-223 - an act to develop a national framework for a guaranteed livable basic income

The primary aim of Bill C-223 was to develop a national framework for a Guaranteed Livable Basic Income (GLBI) across Canada. Contrary to misconceptions, this bill did not propose the immediate implementation of a basic income program. Instead, it sought to task the Minister of Finance with creating a framework within one year to guide future discussions on how a basic income could be designed, including determining what constitutes a livable income and accounting for regional cost variations. Importantly, Bill C-223 would have established the groundwork for provinces, territories, and Indigenous groups to work collaboratively with the federal government in shaping the principles of a basic income model, without enforcing immediate action or execution of such a program.

This bill is an exact replica of its counterpart, Bill S-233, which is currently under review in the Senate’s National Finance Committee. The two bills were developed in close coordination to ensure a shared focus on creating a GLBI framework, aiming to prompt a national dialogue with interested parties on making this concept a reality.

Understanding basic income

A basic income is a financial payment provided unconditionally by the government, designed to help individuals meet their basic living needs. It is intended to reduce poverty and economic insecurity, regardless of a recipient's employment status. There are two common types of basic income models:

• Universal basic income (UBI): Provides a fixed, taxable benefit to all individuals, regardless of income level.
• Guaranteed basic income (GBI): Targets low-income individuals, providing a maximum benefit that tapers off as their other sources of income increase, similar to the existing Guaranteed Income Supplement (GIS) for seniors in Canada.

Both models offer benefits that differ from traditional social assistance, as they eliminate stigmatizing conditions or restrictive criteria often imposed on current support programs.

Basic income is not only a mechanism for reducing poverty—it offers a path to a more dignified, inclusive, and supportive social safety net. Evidence from the 1970s Manitoba Mincome experiment and the Ontario Basic Income pilot of 2017 indicates that basic income programs can lead to substantial social and economic improvements. In Manitoba, for example, researchers found that providing a basic income reduced hospitalizations and mental health diagnoses, and improved educational outcomes, especially for those facing economic hardship. Similarly, the Ontario pilot demonstrated that many participants improved their work prospects, with some moving into higher-paying and more stable employment, contradicting the common concern that basic income would reduce motivation to work.

Basic income programs have the potential to significantly reduce poverty and homelessness, lower healthcare costs by addressing the root causes of economic instability, and promote individual well-being by allowing individuals to meet their needs without the stigma or restrictions imposed by current social assistance programs. 

What the defeat of Bill C-223 means

While the defeat of Bill C-223 is a setback for advocates of a GLBI, the broader conversation surrounding basic income in Canada is far from over. Significant momentum continues at various levels of government. For instance, Bill S-233 is advancing in the Senate and continues to gain traction. In addition, Prince Edward Island (PEI) is demonstrating leadership on the issue: In 2021, an all-party committee unanimously endorsed a recommendation to begin negotiations with the federal government on implementing a basic income program for the province. These negotiations are ongoing, with PEI poised to become a potential pilot site for future national programs.

Furthermore, hundreds of social, business, and advocacy organizations across Canada continue to support the concept of basic income, reflecting widespread recognition of the need for reforms to our existing social safety net. The continued interest in these programs highlights an opportunity for policymakers to revisit the potential of a basic income framework, leveraging the valuable insights gained from past research and pilot projects.

The O’Brien Institute for Public Health stands firmly in support of evidence-based policy discussions aimed at reforming Canada’s social safety net. Basic income offers an efficient, equitable solution to persistent poverty and inequality, and we remain committed to fostering informed debate and advocating for further research and pilot programs. In provinces like PEI, the ongoing negotiations and discussions offer hope that a well-designed basic income could become a cornerstone of Canada’s efforts to address systemic poverty, inequality, and economic insecurity.

The defeat of Bill C-223 may feel like a step backward, but it provides an important opportunity for reflection and renewed action. The O’Brien Institute for Public Health encourages all interested parties to remain engaged in the national conversation on basic income. While this particular bill may not have passed, the need for basic income remains clear, as evidenced by its potential to alleviate the strain on healthcare, improve individual well-being, and provide a safeguard against economic disruption. We urge policymakers to revisit the issue and continue building upon the evidence supporting basic income as a key solution for the future of Canada’s social safety net.

Authored by:

Lee Stevens, policy and research specialist, Vibrant Communities Calgary, PhD student, Faculty of Social Work, University of Calgary

O'Brien Institute for Public Health staff