Haliburton, Kawartha, Pine Ridge District Health Unit Addressing Food Insecurity Through Income Summary Report 2017 www.hkpr.on.ca 1-866-888-4577 #RethinkPoverty
2 FOOD INSECURITY Food insecurity is defined as not having enough food or worrying there is not enough to eat because of financial constraints. 1 Poverty is the root cause of food insecurity. 2 After paying for basic needs, such as rent and utilities, most people with low incomes do not have enough money left over to buy adequate healthy food, and meet their other basic needs. The rising costs of housing and food, along with the reality of low paying, unstable jobs, greatly increases the risk of individuals facing food insecurity. Although strategies have been put in place to reduce poverty through the Ontario Poverty Reduction Strategy, the rates of food insecurity have not changed. 3 Lone parent households, people receiving social assistance, new immigrants and Indigenous populations are the groups more at risk of experiencing food insecurity because of lower incomes. 4 In Canada, more than four million people are affected by food insecurity and one in six children are affected by household food insecurity. 5 Of those, two-thirds experience moderate to severe food insecurity. 6 In Ontario, 11.9 per cent of households experience food insecurity and 17 per cent of children under the age of 18 in the province live in food insecure households. 7 Locally, the percentage is even higher with 13.5 per cent of households in the area served by the Haliburton, Kawartha, Pine Ridge District Health Unit experiencing food insecurity. 8 How is Food Insecurity Monitored? In 2005, Statistics Canada began monitoring food insecurity through the Canadian Community Health Survey (CCHS). Households are classified as being food secure or marginally, moderately or severely food insecure. 9 Severe Marginal food insecurity is classified as worrying about (293, 000) running out of food or limiting food selection because of a Moderate (608,100) lack of money for food. Moderate food insecurity is defined as compromising the quality or quantity of food Marginal due to a lack of money for food. Severe food insecurity (~400, 410) involves missing meals, reducing food intake, and the most extreme, going days without food. Figure 1 shows the Figure 1 number of households in Canada that are food insecure. 10
3 4500 4000 3500 3000 2500 2000 1500 1000 500 0 Healthcare Costs ($) Food Secure Marginally insecure Moderately insecure Severely Insecure What is the Impact of Food Insecurity on Health? Food insecurity is a serious public health issue as it has many negative impacts on health and well-being. 11 People who experience food insecurity face serious health problems, including poor mental and physical health. 12 People living in food insecure households have a higher risk of developing chronic diseases including asthma, arthritis, back problems, bowel-disorders, diabetes mellitus, heart disease, hypertension, migraines, and stomach or intestinal ulcers. 13 They experience higher rates of mood or anxiety disorders, and also struggle to manage their current conditions if they are already ill. 14 Children who live in food insecure households are more at risk of developing asthma, depression, and are more apt to have ideas about suicide in their adolescence and early adulthood. 15 Because of these negative health impacts, severe food insecurity causes a 76 per cent increase in health care costs. The average yearly health care cost for one person living in a food insecure household is $3,930. The same yearly cost for an individual not experiencing food insecurity is $1,608. 16,17 This increased use of the health care system contributes to higher wait times in emergency rooms and longer delays in receiving care. For these reasons, food insecurity affects us all. Reducing the rates of food insecurity will result in significant savings for our health care system. Insufficent Income Food Insecurity Poor mental health Increased risk of chronic disease Inability to manage current conditions Higher Healthcare Costs What is the Cost of Healthy Eating? Each year, the Haliburton, Kawartha, Pine Ridge (HKPR) District Health Unit researches the price of a Nutritious Food Basket (NFB) to find out the local average cost of healthy eating. Staff visit several local grocery stores to determine an average weekly cost for families and individuals to purchase the items contained in a NFB. 18 The basket consists of 67 food items that are nutritious and commonly purchased by Ontarians. It does not include other essential items such as soap, toilet paper, toothpaste and personal care items. In 2017, it costs $882 to feed a family of four for one month (with two adults, one teenage boy, 14 to 18 years old and a girl, four to eight years of age). It is important to note that this is an average costing for the Health Unit district and the NFB for people living in Haliburton County may be higher than those living in the City of Kawartha Lakes or Northumberland County.
Using NFB data, along with rent reported by the Canadian Mortgage and Housing Corporation (CMHC), 19 the table below reflects real-life scenarios. Money left over at the end of the month must pay for other expenses such as transportation, heat, phone, clothes, medical, etc. 2017 Income Scenarios Using NFB Data 4 Households with Children One Ontario Full-Time Works Minimum Wage Earner Single Parent Two Children, Ontario Works Person on Ontario Works Single Person Households Person on Ontario Disability Support Program Senior on Old Age Security/ Guaranteed Income Supplement INCOME $1,976 $1,285 $1,019 $ 706 $ 1,128 $1,443 Ontario Guaranteed Annual Income System Canada Child Benefit $ 1,115 $ 1,126 $ 1,126 $ 83 GST/HST credit $ 70 $ 70 $ 70 $ 23 $ 31 $ 35 Ontario Trillium $ 148 $ 48 $ 119 $ 65 $ 67 $ 102 Benefit Working Income Tax $ 74 Benefit Employment Ins. $ 32 Canada Pension Plan $ 83 TOTAL INCOME $ 3,268 $ 2,549 $2,334 $ 794 $ 1,226 $ 1,663 Less Average Market Rent (no heat/hydro) 20 $ 1,262 $1, 262 $1,051 $ 860 $ 860 $ 860 Less Food 21 $ 881 $ 881 $ 692 $ 283 $ 283 $ 270 TOTAL SELECTED EXPENSES MONEY LEFT for OTHER Basics $ 2,143 $ 2,143 $ 635 $ 1,143 $ 1,143 $ 1,130 $ 1,124 $ 405 $ 1,698 -$ (349) $ 83 $ 533 % of income spent on rent % of income spent on healthy food 39% 50% 45% 108% 70% 52% 27% 35% 30% 36% 23% 16%
Families living on minimum wage or receiving social assistance don t have enough money left to pay for other necessities. For example, when a full-time minimum wage earner pays for their family s heat and hydro, car expenses, phone/internet, clothing, toiletries, and any medications, there is no money left over (Figure 2). Households with children need to spend 30 per cent or more of their income to buy healthy food. Often people will sacrifice their food dollars to pay for other expenses. If there are any unexpected expenses such as car repairs (Figure 3), a family earning a low-income could not afford to pay. It is well documented that households that rely on social assistance as their main source of income are at extremely high risk of being food insecure. 22 In Ontario, almost 65 per cent of people on social assistance experience food insecurity, with 61 per cent being moderately to severely food insecure. 23 Average Rent versus Actual Rent Lower-income individuals and families spend a higher percentage of their income on rent, exceeding the recommended 30 per cent from the CMHC. The average market rent in the table above, does not include hydro and heat and it is lower than actual or true rent for available units in our community. Locally, the average rent for available units is closer to $1,500 24 for a three-bedroom apartment, which is approximately 30 per cent higher than the average market rent. Furthermore, vacancy rates are very low and units such as a bachelor apartment, one, and three-bedroom apartment are difficult to find. As such, the demand for housing rentals exceeds availability, resulting in higher rents locally. Figure 2 Figure 3 5
6 What is the Link Between Employment and Food Insecurity? As previously mentioned, poverty is the root cause of food insecurity and one of the contributing factors perpetuating the problem of poverty is low-paying and precarious employment. In Ontario, one-third of the workforce 25 years of age and older, are earning less than $15 an hour. o 70 per cent of Canadians living in poverty are considered working poor, i.e. people who are working, but are not earning enough to get by 25 o 57.5 per cent of Ontario families struggling to put food on the table are part of the labour force but trapped in low-paying and unstable jobs 26 o Nearly 30 per cent of Ontario s workforce earn less than $15 an hour with more than one million people over 25 years of age making $15 dollars or less per hour 27 o Almost half of Ontario s minimum wage workers are employed in large firms (over 500 employees) 28 Changes in the workforce Recent years have seen an increase in the number of individuals working part-time and earning minimum wage. 29 There has been an increase in involuntary part-time work where people are working part-time but want to work full-time. The term working poor includes people who have a job but are precariously employed; meaning they work in part-time, temporary and/or contract positions that typically pay low wages. They often have few, or no benefits. Often, they work shifts, are on-call, and have uncertain periods of unemployment. 30,31 Those who are considered the working poor are more at risk of experiencing food insecurity. 32 Working Poor Precarious Employment People have a job but live below the Low-Income Measure which is a fixed percentage (50 per cent) of the median household income that is adjusted for household needs. * Employment that is part-time, temporary and/or contract work that typically pays low wages and little to no benefits, often with oncall shifts and uncertain periods of unemployment. Most people precariously employed are the working poor. * Low income measures from Statistics Canada (2015). 33 Median income is the middle income where there s an equal number of incomes above and below it. Why Is Food Charity Not the Solution? Food charity, such as donating food or money to food banks, soup kitchens, or food-based programs, has been used as an attempt to fix the problem for those who do not have enough food, or worry they do not have enough to eat. Yet, household food insecurity rates have steadily increased over the past 12 years, which shows these food charity programs are not working. 34 People do not have enough to eat because they don t have enough money, and providing them with a short-term supply of food does not solve the problem. 35
Furthermore, research shows that less than 25 per cent of people with food insecurity use food banks; there is a feeling of stigma and social exclusion associated with their use; people s food and nutrient needs are not usually met at food banks; and demand often exceeds supply. 36 7 Food banks were meant to be a short-term solution when they first started, but now have become established institutions in our society. However, income-based policies are required to decrease or eliminate the incidence of food insecurity and poverty. 37 These include increases to minimum wage, changes to social assistance, improved employment standards, and more affordable and safe housing. Working Towards Change: We Need Income Based Solutions Minimum Wage is Not a Living Wage Minimum wage does not provide enough money to pay rent, buy groceries, and support a family. Wages must allow parents to pay for housing, food, child-care, transportation and provide for a decent quality of life. The amount required to provide a living wage in our region is approximately $17.65 per hour. 38 A living wage would allow people to pay their bills and still be able to buy healthy, sufficient food. A living wage would reduce food insecurity. According to the Ontario Living Wage Network, living wages not only benefit employees, but also employers. 39 Employees have better mental and physical health outcomes, which means reduced absences due to illness. Employers have more productive staff who stay in their positions longer, resulting in decreased staff turnover. These factors result in cost savings for employers as they spend less on hiring and training of new employees. Employment Standards People who work in precarious employment not only struggle with low wages but also with the general instability of their work. Ontario has recently introduced Bill 148 the Fair Workplaces, Better Jobs Act. The 15 and Fairness campaign (15andfairness.org) provides an overview of the changes this bill will address and how it will positively impact people who experience precarious employment. 40 This bill addresses not only wages but employment standards. Here are some of the changes this bill will address: Providing two paid days for personal emergency leave Guaranteeing three weeks of vacation time after five years with the same employer Implementing a mandatory three hours pay if a shift is cancelled within 48 hours of start time Ensuring part-time, seasonal, temporary or casual employees receive the same pay (equal) to full-time employees with the same job The Fair Workplaces, Better Jobs Act includes the importance of, not only fair wages, but the need for fair working conditions.
Basic Income Guarantee A Basic Income provides a set payment to individuals or families regardless of their employment status to guarantee a minimum income. A three-year pilot project was started in 2017 in Ontario, and is taking place in Lindsay, Thunder Bay, and Hamilton. The Ontario Pilot will involve 4,000 randomly selected participants between the ages of 18 to 64 years who are living on a low income. A single person will receive $16,989 a year minus half of any earned income A couple will receive $24,027 a year minus half of any earned income A person with a disability can receive an additional $6,000 each year This pilot project will monitor food security, stress and anxiety, mental health, health and healthcare usage, housing stability, education and training, and employment and labour market participation over the years. For more details on the pilot, refer to the provincial government s brochure Ontario s Basic Income Pilot: Studying the Impact of a Basic Income. 41 Support for a Basic Income Guarantee A Basic Income Guarantee is supported by research on income-based policies that have been proven to be effective. The Old Age Security (OAS) program in Canada is one of the strongest arguments in favour of a basic income for all. The results from the OAS guaranteed income support for seniors showed a 50 per cent drop in food insecurity rates for that population. 42 This demonstrates the impact that a guaranteed income can have on food insecurity. Another example that demonstrates how income-based policy changes can impact food insecurity is the Newfoundland and Labrador Poverty Reduction Strategy. This strategy tackled poverty by making changes that allowed individuals to increase their income. Newfoundland and Labrador increased social assistance rates, indexed their income supplements to inflation, allowed for larger earning exemptions, increased the low-income tax threshold, and created more subsidized affordable housing. 43 These changes were aimed at reducing poverty across the province and resulted in a drop in the rates of food insecurity for individuals receiving social assistance. 44 The rates dropped from 59 per cent in 2007 to 33 per cent in 2012. 45 8 Living Wage A living wage is the pay required to cover basic costs such as food, clothing, shelter and transportation for an individual or family. It s a wage that allows employees to have a decent quality of life, to raise children, to participate in the community, and to be healthy, and active social citizens. 15
9 Working Poor CALL TO ACTION Food insecurity effects child and adult health, as well as health care costs. Research supports the need for income-based solutions to address food insecurity and poverty. Join our Call to Action. 1. Support income-based solutions to food insecurity A Basic Income Guarantee Increases to minimum wage and social assistance rates Improvements to employment standards What can you do? Write your local MPP and tell them that you support these solutions Use our sample letter at www.rethinkpoverty.ca that can be sent by email or mail to your local MPP 2. Support companies that pay their employees a living wage What can you do? Talk to local businesses and choose to buy their products and services 3. Be compassionate, don t make judgements about people living in poverty What can you do? View our video Rethink Poverty that illustrates the struggles of people who live in poverty (www.rethinkpoverty.ca) Support our Rethink Poverty: Change minds, Change lives campaign and share and use social media to post our infographics and video For more information Call 1-866-888-4577, ext. 1218 Visit www.rethinkpoverty.ca
10 Sources 1 Ontario Society of Nutrition Professionals in Public Health. (2015). Position statement on responses to food insecurity. Retrieved from https://www.osnpph.on.ca/upload/membership/document/2016-02/positionstatement-2015-final.pdf 2 Dietitians of Canada. (2005). Individual and Household Food Insecurity in Canada: Position Statement of the Dietitians of Canada. Retrieved from https://www.dietitians.ca/downloads/public/householdfoodsecposition-paper.aspx 3 4 Ontario Society of Nutrition Professionals in Public Health. (2015). Position statement on responses to food insecurity. Retrieved from https://www.osnpph.on.ca/upload/membership/document/2016-02/positionstatement-2015-final.pdf 5 PROOF Food Insecurity Policy Research. (2017). Monitoring food insecurity in Canada. Retrieved from http://proof.utoronto.ca/resources/fact-sheets/#monitoring 6 Ibid 7 Ibid 8 Haliburton, Kawartha, Pine Ridge, District Health Unit (2012). Infocus: Healthy eating, physical activity and healthy weights. Retrieved from http://www.hkpr.on.ca/portals/0/pdf%20files/pdf%20- %20Epi/HKPRDSB%20in%20Focus%20rev%2009%2019.pdf 9 PROOF Food Insecurity Policy Research. (2017). Monitoring food insecurity in Canada. Retrieved from http://proof.utoronto.ca/resources/fact-sheets/#monitoring 10 Tarasuk, V, Mitchell, A, Dachner, N. (2016). Household food insecurity in Canada, 2014. Toronto: Research to identify policy options to reduce food insecurity (PROOF). Retrieved from http://proof.utoronto.ca/wpcontent/uploads/2016/04/household-food-insecurity-in-canada-2014.pdf 11 12 ibid 13 PROOF Food Insecurity Policy Research. (2017). The impact of food insecurity on health. Retrieved from http://proof.utoronto.ca/resources/fact-sheets/#monitoring 14 ibid 15 16 17 PROOF Food Insecurity Policy Research. (2017). The impact of food insecurity on health. Retrieved from http://proof.utoronto.ca/resources/fact-sheets/ 18 Ministry of Health Promotion. (2010). Nutritious food basket guidance document. 19 Rental Market Survey (RMS), Canada Mortgage and Housing Corporation. 20 Rental Market Survey (RMS), Canada Mortgage and Housing Corporation. 21 HKPR District Health Unit. (May 2017). Nutrition Food Basket Costing. 22 PROOF Food Insecurity Policy Research. (2017). Food Insecurity and Social Assistance. Retrieved from http://proof.utoronto.ca/resources/fact-sheets/ 23 ibid 24 Aa scan of all the sources available indicating rental listings for the City of Kawartha Lakes and Haliburton and Northumberland Counites retrieved August 2017
25 Lefroncois, A. (2015). Canada s working poor and precarious employment. Retrieved from http://www.livingwagecanada.ca/index.php/blog/canadas-working-poor-and-precarious-employment/ 26 Ontario Society of Nutrition Professionals in Public Health. (2015). Position statement on responses to food insecurity. Retrieved from https://www.osnpph.on.ca/upload/membership/document/2016-02/positionstatement-2015-final.pdf 27 Canadian Centre for Policy Alternatives Ontario Office, Block, S. (2015). A higher standard: The case for holding low-wage employers in Ontario to a higher standard. Retrieved from https://www.policyalternatives.ca/sites/default/files/uploads/publications/ontario%20office/2015/06/higher _Standard.pdf 28 Edmonds, S. & Sidhu, N., Social Planning Toronto (2014). Where are minimum wage earners in Ontario working? Retrieved from http://15andfairness.org/wp-content/uploads/2017/07/report-2014.11.28- Firm_Size_and_Min_Wage-FINAL-3.pdf 29 Poverty and Employment Precarity in Southern Ontario. (2013). It s more than poverty, employment precarity and household well-being. Retrieved from https://www.unitedwaytyr.com/document.doc?id=91 30 Canadian Centre for Policy Alternatives Ontario Office. (2016). Ontario s working poor. Retrieved from https://www.policyalternatives.ca/sites/default/files/uploads/publications/ontario%20office/2016/07/ccpa %20ON%20OnPolicy%20Summer%202016%202.pdf 31 Tiessen, K., Canadian Centre for Policy Alternatives Ontario Office. (2014). Labour market trends: Ontario s ongoing struggle to recover. Retrieved from http://behindthenumbers.ca/2014/10/14/labour-market-trendsontarios-ongoing-struggle-to-recover/ 32 Tarasuk, V, Mitchell, A, Dachner, N. (2016). Household food insecurity in Canada, 2014. Toronto: Research to identify policy options to reduce food insecurity (PROOF). Retrieved from http://proof.utoronto.ca/wpcontent/uploads/2016/04/household-food-insecurity-in-canada-2014.pdf 33 Statistics Canada. (2015). Low income measures. Retrieved from http://www.statcan.gc.ca/pub/75f0002m/2012002/lim-mfr-eng.htm 34 PROOF Food Insecurity Policy Research. (2017). Monitoring food insecurity in Canada. Retrieved from http://proof.utoronto.ca/resources/fact-sheets/#monitoring 35 36 Ontario Society of Nutrition Professionals in Public Health. (2015). Position statement on responses to food insecurity. Retrieved from https://www.osnpph.on.ca/upload/membership/document/2016-02/positionstatement-2015-final.pdf 37 Ontario Society of Nutrition Professionals in Public Health. (2015). Position statement on responses to food insecurity. Retrieved from https://www.osnpph.on.ca/upload/membership/document/2016-02/positionstatement-2015-final.pdf 38 Peterborough Social Planning Council. (2016). Living wage report. Retrieved from http://www.pspc.on.ca/sites/default/files/attach/living%20wage%202016%20report.pdf 39 15 and Fairness (2017). Fighting for 15 and fairness pays off. Retrieved from http://15andfairness.org/wpcontent/uploads/2017/06/ff15f-strengthen-bill-148.pdf 40 15 and Fairness (2017). Fighting for 15 and fairness pays off. Retrieved from http://15andfairness.org/wpcontent/uploads/2017/06/ff15f-strengthen-bill-148.pdf 41 Government of Ontario (2017). Ontario s basic income pilot. Retrieved from https://files.ontario.ca/170508_bi_brochure_eng_pg_by_pg_proof.pdf 42 11
43 Ontario Society of Nutrition Professionals in Public Health. (2015). Position statement on responses to food insecurity. Retrieved from https://www.osnpph.on.ca/upload/membership/document/2016-02/positionstatement-2015-final.pdf 44 45 Ibid 12