United Way Peterborough Unveil Findings On Living Wage History, Release Report of 34-Year History of Income Inadequacy

The United Way Peterborough & District has released a report that focuses on a 34-year history of income inadequacy and its impact on public health, released on Tuesday.

Jim Russell, United Way CEO (left); Elisha Rubacha, United Way’s community impact officer (middle) and Betsy Farrar, United Way manager of community impact (right) The report was released around World Health Day which is on Sunday, Photo by dAVID tUAN bUI.

The report, called ‘The Gap: Income (In)Adequacy Report 2024,’ uses the 2023 living wage rate for comparison. The Gap shows how Ontario’s minimum wage rate and social safety net have changed.

“There is an unspoken covenant between various levels of government and their citizens and that is to serve people, to preserve communities and to ensure opportunity for all to experience the fullness of life and their potential,” said Jim Russell, United Way CEO. “Built into this notion is the belief that there should be a minimum standard of living for all people. When the cost of living outpaces income available through a minimum wage or social assistance programs, this minimum standard is not upheld as people are not able to afford basic necessities. Through this report, we are calling on readers to reflect, refresh, rethink, and renew how we understand adequate income as not something that is earned, but something that everyone in our community deserves access to.”

“United Way Peterborough & District has previously reported on our local region’s Living Wage rate, as we believe in the value that adequate income brings to our entire community,” said Betsy Farrar, United Way manager of community impact. “This year’s report uses a living wage as a measure of cost of living to highlight the shortfalls of other income types against the cost of living. Our research is highlighting how income rates such as minimum wage and social assistance are increasingly insufficient as the gap between these amounts and the cost of living widens year over year.”

Elisha Rubacha, United Way’s community impact officer, noted that The Gap frequently discusses food insecurity because it’s such a sensitive measure of poverty, resulting in many preventable illnesses that could be avoided if incomes were higher.

“Maintaining poverty is expensive,” she said. “For instance, adults in severely food insecure households in Ontario will generate healthcare costs that are 121 per cent higher than those in food secure households. Within the 34-year period examined in the report, Ontario’s minimum wage was frozen half of the time.”

In Canada, over 60 per cent of food insecure households rely on wages, salaries or self-employment as their primary source of income, indicating that too many of today’s jobs offer insufficient wages according to the report.

“When even working people can no longer afford to eat properly, that illustrates a serious problem,” said Rubacha. “Our social safety net similarly offers little protection from food insecurity, and in fact, has never been fully adequate to meet basic needs.”

The report illustrates the positive impact of existing tax benefits (the Canada Child Benefit and the Guaranteed Income Supplement) that function as basic income guarantees. It presents some results from past Canadian basic income projects (Mincome and the Ontario Basic Income Pilot).

“United Way Peterborough & District believes in moving people from Poverty to Possibility. Improving incomes is necessary, whether that’s through a basic income guarantee, a higher minimum wage, more certified living wage employers, or all of the above. The suffering that results from poverty is preventable. We can choose to prevent it,” according to a United Way press release.

The United Way plans to release this report to all local dignitaries and politicians to address the issue.

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