Gaps in advice, benefits, and services leave three million behind
Canada needs broader access to financial support—from advice and tax benefits to community services—as gaps in these areas continue to leave millions struggling to stay afloat, according to Co-operators.
More than three million people are struggling financially while facing barriers to these supports, according to recent findings from Prosper Canada. In particular, low-income Canadians are less likely to access services that could help them navigate their finances or claim available benefits.
Those gaps have real consequences. People in this group carry an average debt of $34,539, and many are not fully using existing programmes. About 20% miss out on tax benefits, with some choosing to file on their own due to a lack of trust in mainstream providers or because services are not designed around their needs.
The findings point to several areas where support could be strengthened. These include expanding access to free or low-cost financial planning, introducing automatic tax filing to ensure benefits are not missed, and investing more in community-based services that are easier to access and better tailored to local needs. Accessibility audits are also identified as a way to identify where services fall short.
“There is an urgent need to expand access to community-based financial support services and improve the availability of government benefits. By acting now and working together, we can build a future where every Canadian has the support and resources they need to thrive,” said Jessica Fisher, associate vice president of citizenship at Co-operators.
Addressing these gaps will require coordination across different sectors, the report notes, with governments, financial institutions, and community organisations all playing a role in improving access.
“Our research in Closing the Divide highlights a significant societal issue that disproportionately affects underserved communities. This comprehensive solution framework, developed with Co-operators, provides a clear approach for governments, financial institutions, and community organizations to work together,” said Elizabeth Mulholland, CEO of Prosper Canada.
“By addressing these barriers and fostering collaboration, we can help ensure every person in Canada has equitable access to the financial tools and support crucial for their well-being and a more financially resilient future.”
