What is UBI?

In practice, most UBI programs are not universal but are aimed at low-income people. Participants receive payments regardless of their ability to work, family size, marital status and other factors that affect eligibility for welfare and other traditional government benefit programs.

Universal basic income in Canada

Canada has conducted several UBI pilot programs:

• The Manitoba Basic Annual Income Experiment, also called “Mincome,” ran from 1974 to 1979, serving 1,200 low-income residents of Winnipeg and the town of Dauphin.
• The Ontario Basic Income Pilot, launched in 2017, included 4,000 people with incomes below the Ontario poverty line. Planned to run for three years, the program was cancelled early after a change in government.
• Quebec’s Programme de revenue de base (Basic Income Program) was launched in January 2023, providing payments to 84,000 people with a “severely limited capacity for employment for at least 66 months over the previous 72 months.”

What supporters say about UBI

Supporters of UBI say that by providing people with a regular income to pay for healthy food, safe housing and other necessities, UBI leads to improved physical and mental health. Income security can also give people the stability and peace of mind to start businesses, go back to school or pursue other goals and dreams.

Existing government programs typically target specific populations. Universal basic income could close the gaps, making financial support available to everyone who needs help.

Some people who support UBI argue that the cost could be covered by contributions from the financial sector and reduced tax breaks for large companies and wealthy Canadians. Most Canadians would not have to pay more taxes to fund the program.

What critics say about UBI

Critics of UBI point to the cost, which they say might result in significant tax increases or a big jump in government debt. They believe most Canadians would not support UBI, seeing only the huge cost and no benefit to themselves. 

Critics also argue that UBI could create a disincentive to working and encourage people to quit low-paying jobs and apply for government assistance.

Some worry that existing benefits paid by targeted programs might be reduced or eliminated, or that people served by those programs would receive less under UBI.

When will UBI start in Canada?

Whether Canada’s federal or provincial governments will launch UBI programs in the future is unknown. A Canadian universal basic income program was proposed in 2021 by Senator Kim Pate and Member of Parliament Leah Gazan. If passed, their bills, S-233 and C-223, would require the minister of finance to create a national framework for a “guaranteed livable basic income” (GLBI) for Canadians over age 17.

Example: “The Canada Emergency Response Benefit (CERB) changed some Canadians’ attitudes toward universal basic income. CERB demonstrated that the government could roll out a nationwide income assistance program quickly and effectively. With the help of the CERB, people were able to retrain, start small businesses and survive the financial crisis many suffered during the pandemic.”

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About MoneySense Editors

MoneySense editors and journalists work closely with leading personal finance experts in Canada. Since 1999, our award-winning magazine has helped Canadians navigate money matters.

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