Reducing homelessness will cost Ottawa billions more to hit targets: PBO

In order to reduce chronic homelessness in Canada by 50 per cent in the 2027/28 fiscal year, the Parliamentary Budget Officer (PBO) estimates it would cost the federal government an additional $3.5 billion annually.

This comes as the PBO estimates the amount of Canadians experiencing chronic homelessness has increased by 20 per cent since 2018, reaching 34,270 people.

Meanwhile, the PBO estimates that Infrastructure Canada’s Reaching Home program has helped 6,000 people escape chronic homelessness. Without this program, the PBO estimates the homeless population would be about 15 per cent higher.

Still, the PBO analysis says the “best available evidence” suggests that homelessness has increased despite Reaching Home.

For direct homelessness support, the PBO says Canada puts up approximately $561 million annually with almost all of it going to the Reaching Home program, which helps provide emergency support for people without shelter, including those living in encampments.

“The truth is that we can’t just support homelessness initiatives at a community level and to actually end homelessness, which needs to be the goal,” Housing Minister Sean Fraser said on his way out of the weekly Liberal caucus meeting Wednesday.

“We need to build the affordable housing stock so people have a place to go, not just receive temporary support.”

The 2024 budget puts an emphasis on housing programs, with around $8.5 billion in spending tied to housing initiatives, with the goal of building nearly four million more homes in Canada by 2024.

Referencing the PBO report, Conservative Leader Pierre Poilievre asked Prime Minister Justin Trudeau about the rising rates of homelessness in Canada on Wednesday.

“Why is it that the more he spends, the worse things