Universal Basic Income isn’t currently offered in Canada. That said, they have conducted experiments with UBIs in the past, including the Ontario Basic Income Pilot Project, which began in 2016. However, Canada does offer assistance to those with lower incomes to help them make ends meet.
How Universal Basic Income Works
The idea behind a universal basic income is that everyone receives some sort of income. With a UBI, the intention is that everyone will receive the same amount whether they’re employed or not. The idea behind them is that everyone can afford their basic needs.
In UBI proposals, the idea is to give recipients a monthly income. To receive the money, you may need to meet a few conditions, but they will likely be minor. It’s important to remember, though, that every country will have its own approach to UBIs and choose how to distribute them. There are two main approaches that countries should consider.
UBI
The first approach is the traditional UBi approach. This one involves every citizen receiving the same amount of money. It’s important to keep in mind, though, that with this approach, those in a higher income bracket may have to repay the funds when they file their taxes. It could also be that they just pay higher taxes on the funds. It all depends on how the country chooses to structure that.
Guaranteed Basic Income
This second approach is based on earned income. Those who have lower incomes will receive the most funds. The more money you make annually, the less you’ll receive from the guaranteed basic income program. There is also an income cutoff where you won’t receive any funds at all. The idea behind this is to have a guaranteed livable basic income.
Countries That Have Universal Basic Income
There are actually quite a few countries that have implemented a universal basic income. Some of these countries implemented them for a short period, while others still do today. One of the first countries to implement a UBI was Iran. They started this in 2010 and sent a monthly cheque to all of their citizens. They aren’t the only ones, though. Some of these other countries are doing something similar.
Norway
The system currently in place in Norway is the closest to a UBI system. To receive the benefits, those who qualify must seek employment, comply with the law, participate in elections, and pay taxes. Not everyone receives the benefit either. It’s given to those who need income and don’t have current employment.
One of the main reasons Norway has implemented this benefit is that it’s a welfare state. Even though the benefits aren’t available to everyone, they ensure that all of their citizens can access healthcare, education, and income, giving them the best opportunities for success.
Finland
While Finland doesn’t currently offer a UBI, it experimented with one in 2016. They randomly selected 2,000 unemployed citizens and provided them with a monthly benefit. It didn’t require constant paperwork like other benefits and was quite successful.
Brazil
In Brazil, certain areas offer a universal basic income. Specifically, Santo Antonio do Pinhal has implemented one of the first true UBI systems. In this town, all residents receive a portion of the city’s tax revenue. The only stipulation is that they have to live there for at least 5 years to qualify. In the Quatinga region, a UBI pilot program has greatly improved the quality of life. It’s been around since 2008.
United States
The US has attempted a UBI system multiple times. There are also many smaller programs throughout different states. The most notable is the Alaska Permanent Fund. This program gives each of its citizens a portion of the oil and gas revenue. They’ve been doing this since 1982, and the portion given to residents is usually somewhere between $1,000 and $2,000 per year. It made a comeback in 2020 as part of former presidential candidate Andrew Yang’s campaign.
What Bill S-206 Proposes
Bill S-206 is also officially known as the National Framework for a Guaranteed Livable Basic Income Act. This proposal was introduced in the Canadian Senate by Senator Kim Pate.
The idea behind this is that every person in Canada who is 17 years or older and in need. This particular bill accounts for regional differences in the cost of living, and there are no work mandates.
What Happened to Bill S-233?
Senate bill S-233 was the National Framework for a Guaranteed Livable Basic Income Act. When the parliament was dissolved, so was this act. It officially died in January 2025, and BS-206 was introduced afterward.
Quebec’s Basic Income Program and Who It Covers
The Basic Income Program in Quebec is covered and funded by the Government of Quebec using provincial public funds. This program is for adults with severe, long-term health problems that prevent them from working.
Unlike with other programs, you don’t have to fill out a basic income application. You’ll automatically start receiving this payment once you’ve been receiving benefits from the Social Solidarity Program for 66 months out of 72 months.
In 2026, the amount that you’ll receive for Quebec Basic Income is $1,336 per month. Depending on your situation, you could also receive additional adjustments if you are single or have dependent children. However, you can still earn up to $16,032 per year and have up to $20,000 in savings, without losing your benefits.
Are Canadians Able to Apply for a National UBI?
Currently, there is no National UBI, so there’s nothing to apply for. If one does start, however, then the eligibility requirements will be released.
What Manitoba’s Mincome Experiment Revealed
The Mincome Manitoba experiment was conducted between 1974 and 1979 in Dauphin, Manitoba. This project tested negative income tax concepts and found many different findings, including:
- Hospitalization rates are dropping by 8.5%
- Modest work reduction with only 1% in men, 3% for married women, and 5% for unmarried women
- Adolescents are spending more time in school and completing grade 12
Overall, the Dauphin pilot results were relatively positive.
Cancellation of the Ontario Pilot Program
The Ontario pilot was cancelled in 2018 when the Ontario government changed. It was originally launched in 2017 to test whether a basic annual income could be a better option for supporting low-income workers, improving health and education, and reducing poverty.
There were the Lindsay basic income pilot, the Hamilton basic income pilot, the Brantford/Brant County pilot, and the Thunder Bay pilot, each comprising roughly 4,000 participants who received a designated annual amount. In fact, you could have received:
- $17,000 annually for single individuals
- $24,000 annually for couples
- An extra $6,000 for disabled individuals
The Ford administration ended this program, claiming that it was too expensive and wasn’t having the intended impact. Later, it was determined that the program’s short duration was actually successful. In fact, there was even a Class Action Lawsuit that represented the 4,000 people who were forced to end the program early.
Would Having a UBI Increase Inflation in Canada?
Whether or not having a UBI in Canada will increase inflation depends on the specifics of the program. The first is how it’s funded. If it’s funded through reallocated taxes or matching tax increases rather than by printing money or heavy deficit spending, the impact on inflation would likely be minimal.
The Cost of a National Basic Income
If a basic income were implemented in Canada, the cost would be estimated at between $53 billion and $107 billion. Since UBI payment dates will replace other benefits, it won’t be restricted to those with a severely limited capacity to work, and a UBI eligibility checker will likely be limited to individual and household assessments.
While there could still be benefit clawbacks and earnings exemptions, those who need the funds will receive them. When it comes to budget, though, since no other programs will be required, the total additional cost to what is currently spent is only $3.6 billion to $5 billion.
When a government is figuring out the basic income costing estimates, there are certain things they need to consider, including:
- Distributional analysis
- Provincial coordination
- Revenue-neutral funding
- Inflation indexing
- Guaranteed Annual Income history
In a cost-benefit analysis, consumer spending effects and small-business effects also have to be considered.
Does Having a Basic Income Decrease Willingness to Work?
Currently, there is a disincentive to work under UBI. However, previous pilot projects have proven that it helped improve food insecurity, housing affordability, school completion, and health outcomes. Even with a benefit reduction rate, it has been shown to help people escape the poverty trap (welfare wall).
Negative Income Tax
A negative income tax system is one in which people with incomes below a certain threshold receive government funds instead of paying income taxes. Those who sit above the poverty line pay a standard percentage of their income in tax to the government. Those who are at the line will pay zero, and those below the line will receive a refund.
The reason for implementing a system like this is to reduce gross fiscal costs by consolidating income redistribution from multiple programs into a single one.
Protecting Disability Services With a Universal Basic Income
With the currently proposed UBI, disability services are protected by offering an additional supplement to those who qualify. Many UBI proposals don’t account for this, setting the monthly amount the same for everyone, regardless of disability status.
PBO Poverty Model
The Parliamentary Budget Officer’s poverty model, also known as the PBO poverty model, estimates that the national Guaranteed Basic Income program could reduce the poverty gap in Canada and reduce poverty rates by up to 40%. It’s based on the randomized controlled trial from Ontario’s 2017 pilot program.
It uses the set maximum benefits of 75% of the Low-Income Measure, which is:
- $21,903 for a single person
- $30,975 for a couple
- An additional $7,355 for a single person
While there isn’t a specific low-income cutoff, the benefits will be reduced by $0.50 for every $1 of family net income.
Basic Income Pilots in Other Countries
While a full, permanent Universal Basic Income hasn’t been implemented anywhere in the world yet, many countries have tested basic income pilot programs or partial models. Some of these include the:
- Kenya Give Directly Trial: This is a long-term trial that uses cash-transfer evidence over 12 years to measure sustained impacts on both living standards and local economies.
- Stockton, California Pilot: This program, launched in 2019, offered a $ 500-per-month stipend to 125 randomly selected residents. It ran for 2 years.
- Spain Minimum Vital Income: This is considered a means-tested safety net rather than a UBI. It guarantees a base rate of $733.60 per month.
- Wales Care Leavers Pilot: This provided a pre-tax income of $1,600 per month for 224 months to those turning 18 between July 2022 and June 2023. These individuals must have been care-experienced.
- Germany Basic Income Study: 122 participants received roughly $1,320 per month for 3 years. It was used to study behavioural responses and financial outcomes.
How is Poverty Measured in Canada?
Poverty in Canada is measured using the official Market Basket Measure. It does this by calculating a specific basket of goods and services required to meet a modest, basic standard of living. Five main components are included in this basket:
- Food
- Clothing and footwear
- Shelter
- Transportation
- Other necessary expenses
Universal Versus Targeted Programs
Universal benefit programs and targeted benefit programs are very different. With a universal program, the benefits go to everyone, no matter how much they make. An example of this in Canada is public healthcare. This type of program is known for building social unity, avoiding social shame, and administrative cost savings. A targeted benefit program works differently.
With a targeted benefit program, income goes only to those with low income or high needs through means testing. Some examples of this include:
- Provincial income assistance rates
- Indigenous income support
- Social assistance caseloads
While this type of program is less expensive and puts more resources where poverty is highest, there are also some cons. It can create complex paperwork, and skip families when income amounts shift. This is because it’s usually decided based on your marginal effective tax rate.
Automation, AI, and a Universal Basic Income
Since having a UBI is known to decrease food bank demand, improve mental health outcomes, and reduce hospital visits, many tech experts think it should be considered in light of the labour supply effects of automation and job loss. This can also be referred to as artificial intelligence automation and can have precarious employment impacts on gig economy workers and many other professions.
Final Thoughts
Having the most up-to-date information regarding UBI can help you avoid falling for basic income scams. Since there currently isn’t a UBI in Canada, any implications of such are a scam. However, this doesn’t mean that there will never be a UBI.
Before a UBI is put in place, though, there are considerations, including inflation concerns, funding through taxation (value-added tax), wealth tax proposals, and the implementation timeline. However, before that even happens, political party positions, public opinion polling, and federal-provincial jurisdiction will also have to be considered.
