As we submit our budget recommendations to the Standing Committee on Finance this year, Canada stands at a critical crossroads. Low-income households are teetering under the weight of record-high income inequality, while escalating tariff wars threaten to exacerbate an already deepening economic crisis. These families face a perfect storm of rising costs from tariffs, looming service cuts, and shrinking opportunities for economic mobility, all of which contribute to worsening income and wealth gaps.
The new federal government bears a serious responsibility to safeguard low-income and vulnerable households. Any pursuit of budget cuts, austerity measures, or tax reductions that disproportionately benefit the wealthy—while eroding social protections—would be catastrophic. In these turbulent times, Canada requires an enhanced, robust, and inclusive social safety net to combat soaring costs, unacceptable levels of income inequality, and entrenched poverty, ensuring that no one falls through the cracks.
Canadians need their government to rise to the occasion, now more than ever. The next budget will serve as a true measure of whether it is up to the task.
ISAC’s recommendations, outlined below, emphasize the urgent investment priorities needed to support and protect people living on low incomes across Canada. We urge the government to consider them with the seriousness they deserve.
- Ensure barrier-free access to the Disability Tax Credit
- Raise the maximum amount of the Canada Disability Benefit
- Fix the Canada Disability Benefit’s punitive income treatment and income threshold
- Base the Canada Disability Benefit on an individual’s income
- Expand eligibility for the Canada Disability Benefit beyond the Disability Tax Credit
- Undertake robust Employment Insurance emergency measures to protect vulnerable, low-income workers
- Reform Employment Insurance to ensure equitable access and adequate support for all workers
- Withdraw Bill C-2 and establish a comprehensive regularization program for migrant workers
- Make meaningful financial investments for Indigenous communities
Read ISAC’s full 2025 pre-budget submission here.