Report on Poverty Measurement and its Alignment with Sustainable Development Goals in Canada

Introduction: Enhancing Poverty Measurement to Track Sustainable Development Goals

A comprehensive assessment of poverty in Canada reveals the necessity of adopting advanced metrics to accurately track progress towards key Sustainable Development Goals (SDGs), particularly SDG 1 (No Poverty). While traditional income-based statistics show modest improvements in living standards, they fail to capture the full impact of social policies designed to reduce material hardship. This report examines the Material Deprivation Index (MDI) as a complementary tool for monitoring poverty, with a specific focus on its ability to measure the effects of initiatives like the Canadian Dental Care Plan, thereby providing a more holistic view of progress on SDG 1, SDG 3 (Good Health and Well-being), and SDG 10 (Reduced Inequalities).

The Material Deprivation Index (MDI): A Modern Tool for SDG 1 Monitoring

The Material Deprivation Index (MDI) is an outcome-based metric that tracks the number of Canadians unable to afford two or more essential items from a predefined list. Developed in 2023 and surveyed annually by Food Banks Canada, the MDI offers a more timely and direct measure of lived poverty, aligning closely with the multidimensional nature of SDG 1.

Advantages of the MDI over Traditional Metrics

• Timeliness: MDI data is collected and released significantly faster than official income data, which has a 16-month lag, allowing for more current analysis of economic conditions and policy impacts.
• Direct Measurement of Hardship: Unlike income measures such as the Market Basket Measure (MBM) or Low-Income Measure (LIM), the MDI directly quantifies a household’s inability to afford necessities, thus capturing the real-world effects of inflation and cost-of-living changes.
• Policy Impact Assessment: The MDI effectively measures the poverty-reduction effects of in-kind benefits and services that reduce out-of-pocket spending, such as public healthcare initiatives. This is critical for evaluating policies that contribute to SDG 3 and SDG 10 but do not involve direct income transfers.

MDI Components

The MDI is composed of eleven goods, services, and activities considered necessary for a decent standard of living. The variation in incidence rates across these items allows for an assessment of both the level and severity of material deprivation. The inclusion of “regular dental care” is particularly relevant for assessing progress on SDG 3.

Analysis of Poverty Trends (2023-2025) and Linkages to SDGs

Overall Poverty Trends and Economic Factors

The MDI provides critical insights into recent poverty trends, reflecting the economic pressures on Canadian households and their progress toward SDG 1.

• The national MDI rate increased from 25% in 2023 to 33% in 2024, corresponding with high inflation.
• The rate subsequently decreased to 28% in 2025, indicating a modest recovery as inflation eased and wage growth improved purchasing power.

This trend demonstrates the MDI’s sensitivity to economic drivers that directly impact household well-being and the achievement of SDG 8 (Decent Work and Economic Growth).

Impact of Social Policy on SDG 3 and SDG 10: The Canadian Dental Care Plan

The Canadian Dental Care Plan is a federal social policy initiative that directly supports SDG 3 by improving access to essential health services and SDG 10 by targeting support to lower-income households, seniors, children, and persons with disabilities. The program reduces the need for out-of-pocket spending on dental care for eligible Canadians, a benefit that traditional income-poverty measures would fail to capture.

The MDI is uniquely positioned to measure the plan’s success by:

1. Tracking how money freed up from dental expenses is used for other necessities, thus reducing overall material deprivation (SDG 1).
2. Directly measuring the change in the number of people unable to afford regular dental care, a key indicator for SDG 3.

Key Findings: The MDI’s Efficacy in Policy Evaluation

Reduced Deprivation Among Target Groups

Data from 2024 to 2025 shows that the MDI rate declined for all population groups, but the reduction was most significant for the primary beneficiaries of the Canadian Dental Care Plan, demonstrating progress on SDG 10 (Reduced Inequalities).

• Seniors: The MDI rate for seniors saw a substantial decrease, falling to a level below that of 2023. This highlights the effectiveness of targeted policies, including pension programs and the new dental plan, in protecting vulnerable populations.
• Households with Children: This group also experienced a larger reduction in deprivation compared to the general population, indicating the positive impact of the policy’s phased rollout.
• General Population: While the MDI rate improved, it remained three percentage points above the 2023 level, suggesting that broader economic pressures persist.

Direct Impact on Access to Dental Care (SDG 3)

The MDI provides direct evidence of the dental plan’s contribution to SDG 3 (Good Health and Well-being) by tracking the specific deprivation item related to dental care.

• For the senior population, the proportion unable to afford regular dental care was halved, dropping from 20% in 2024 to 10% in 2025.
• This dramatic improvement for a key target demographic strongly suggests the policy has been successful in removing financial barriers to essential healthcare.

Conclusion and Recommendations for Enhanced SDG Tracking

The findings reinforce the value of incorporating the Material Deprivation Index (MDI) as a complementary official measure of poverty in Canada. Adopting the MDI would enable a more accurate and timely assessment of progress towards national poverty reduction targets and the Sustainable Development Goals.

Recommendations:

1. Integrate the MDI: Officially adopt the MDI alongside income-based measures to provide a comprehensive framework for monitoring poverty, in line with the multidimensional spirit of SDG 1.
2. Inform Policy: Utilize MDI data for in-depth analysis of social policies, particularly those providing in-kind benefits, to better understand their impact on SDG 1, SDG 3, and SDG 10.
3. Enhance Reporting: Leverage the MDI’s real-time feedback capabilities to report on current economic conditions and their effect on vulnerable populations, ensuring that policy interventions are timely and effective.

By combining diverse poverty indicators, Canada can better track the full scope of poverty, validate the success of its social investments, and advance its commitment to creating an acceptable standard of living for all, as envisioned in the 2030 Agenda for Sustainable Development.

SDGs Addressed in the Article

The article discusses issues and initiatives that are directly relevant to several Sustainable Development Goals (SDGs), primarily focusing on poverty, health, and inequality within Canada.

• SDG 1: No Poverty
• SDG 3: Good Health and Well-being
• SDG 10: Reduced Inequalities

Specific Targets Identified

SDG 1: No Poverty

The article’s core theme is the measurement and reduction of poverty, which aligns directly with SDG 1.

1. Target 1.2: By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions.
   • Explanation: The article is centered on a new national definition and measurement tool for poverty, the Material Deprivation Index (MDI). It explicitly discusses tracking “the full scope of poverty” and assessing “progress on poverty reduction.” The MDI is presented as a way to measure poverty “in all its dimensions” beyond just income, by tracking the inability to afford a basket of necessary goods and services.
2. Target 1.3: Implement nationally appropriate social protection systems and measures for all, including floors, and by 2030 achieve substantial coverage of the poor and the vulnerable.
   • Explanation: The article highlights the Canadian Dental Care Plan as a key “federal anti-poverty initiative” and an example of a policy that reduces poverty by “reducing the need for such resources in attaining a certain living standard.” This plan is a form of a social protection system aimed at providing coverage for vulnerable groups, including seniors, children, and low-income households. The text also credits “generous minimum pension income programs, old age security and the general income supplement” for the low poverty rates among seniors, further emphasizing the role of social protection systems.

SDG 3: Good Health and Well-being

The focus on the Canadian Dental Care Plan connects the issue of poverty to health outcomes and access to healthcare.

1. Target 3.8: Achieve universal health coverage, including financial risk protection, access to quality essential health-care services and access to safe, effective, quality and affordable essential medicines and vaccines for all.
   • Explanation: The Canadian Dental Care Plan is described as a program that “covers a portion of the costs of various dental care services for eligible Canadian residents who do not currently have dental insurance.” This directly addresses the goal of achieving universal health coverage by expanding access to essential health services (dental care) and providing “financial risk protection” by reducing out-of-pocket spending for eligible citizens. The article notes the plan’s success in improving seniors’ ability to “afford regular dental care.”

SDG 10: Reduced Inequalities

The article analyzes how poverty and policy interventions affect different demographic groups, which is central to SDG 10.

1. Target 10.2: By 2030, empower and promote the social, economic and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status.
   • Explanation: The Canadian Dental Care Plan is specifically designed to promote inclusion by targeting vulnerable groups. The article states the plan expanded to “seniors aged 65 and older, individuals qualifying for a disability tax credit and children under 18.” By analyzing the MDI rates for “seniors and households with children,” the article assesses how the policy impacts these specific age and family groups, demonstrating a focus on reducing inequality between population segments.
2. Target 10.4: Adopt policies, especially fiscal, wage and social protection policies, and progressively achieve greater equality.
   • Explanation: The article explicitly frames the Canadian Dental Care Plan as a “social policy” and an “anti-poverty” policy. It contrasts policies that increase financial resources (like income transfers) with those that reduce the need for them (like the dental plan). This discussion is a direct analysis of how social protection policies can be adopted to “progressively achieve greater equality” by improving the standard of living for less well-off Canadians.

Indicators for Measuring Progress

The article mentions or implies several specific indicators that can be used to measure progress towards the identified targets.

For SDG 1 (No Poverty)

• The Material Deprivation Index (MDI) rate: The primary indicator proposed by the article. It is defined as the percentage of the population “who cannot afford two or more items of an eleven-item scale.” The article provides concrete data points: the MDI rate was 33% in 2024 and fell to 28% in 2025.
• Proportion of the population unable to afford specific necessities: The MDI is composed of 11 items. The inability to afford any of these items, such as “regular dental care,” serves as a sub-indicator of material deprivation.
• Traditional income-based poverty measures: The article mentions the Market Basket Measure (MBM) and the Low-Income Measure (LIM) as existing, albeit less comprehensive, indicators of poverty in Canada.

For SDG 3 (Good Health and Well-being)

• Proportion of the population unable to get regular dental care: This is a specific item within the MDI and a direct indicator of access to essential health services. The article provides data showing this rate for seniors dropped from 20% in 2024 to 10% in 2025, suggesting the dental plan’s impact.
• Coverage of social health programs: The eligibility criteria for the Canadian Dental Care Plan (e.g., “household income below $90,000,” no private insurance) and the number of people approved (“two million Canadian seniors approved”) serve as indicators of the reach of health coverage initiatives.

For SDG 10 (Reduced Inequalities)

• Disaggregated MDI rates by population group: The article uses this indicator to measure inequality. It provides a chart (Figure 2) showing different MDI rates and trends for “the entire population, seniors and households with children,” which allows for an analysis of whether inequality between these groups is decreasing.
• Targeting of social protection policies: The specific inclusion of “seniors,” “individuals qualifying for a disability tax credit,” and “children under 18” in the dental plan is an indicator of policies aimed at reducing inequality for vulnerable groups.

Summary Table of SDGs, Targets, and Indicators

Source: policyoptions.irpp.org