Quebec 2026 Poverty Report Card

Quebec enters 2026 in a period of sustained fiscal pressure and mounting political transition. Budget 2025–2026 projected a deficit of $13.6 billion — the largest in recent memory — driven by expanding public service costs, infrastructure commitments, and the ongoing effects of trade uncertainty stemming from U.S. tariff threats. Budget 2026–2027 showed an improved fiscal situation, with the projected deficit reduced from that high to $8.6 billion. Real GDP growth reached 1.1% in 2026 and household purchasing power continued to improve relative to Ontario.  

The dominant political story of 2026 is the CAQ leadership transition. Premier François Legault announced his resignation effective April 2026, which triggered a leadership race, ahead of the planned autumn provincial election. Finance Minister Eric Girard's final budget was widely characterized as a transitional exercise rather than a bold pre-election statement. A $250 million transition fund was set aside to allow the incoming CAQ leader to implement their own priorities after taking office on April 12. Both leadership candidates have questioned the interventionist approach that characterized Legault-era governance, signalling that the coming political environment could shift the province's approach to social investment and poverty reduction.  

The most pressing material concern for Quebecois with low incomes is the acute housing crisis. In January 2025, the Tribunal administratif du logement (TAL) recommended a 5.9% rent increase guideline for unheated dwellings — the highest in 30 years. Montreal’s vacancy rate stood at 2.9% in 2025, but vacancy rates for units below market rate were approximately 1.5%. The CAQ’s reform of the residential tenancy framework, which took effect on January 1, 2026, has further shifted the balance of power in favour of landlords. The previous multi-indicator rent increase formula has been replaced by a simplified mechanism that critics argue will produce systematically higher increases for tenants with new leases. Bill 31, passed in 2023, already allowed landlords to refuse lease assignments without providing an explanation, which weakened a key form of informal rent stability.  

In response to the housing crisis, Budget 2026–2027 allocates $741 million over three years to improve access to housing, including $209 million to build 1,000 new affordable housing units. However, the immediate 2026/27 allocation for those units is only $46 million, with the bulk scheduled to be invested in subsequent years when a different party may be in power. Budget 2026–2027 allocates $90 million over five years for homelessness supports. An additional $21 million over three years for 1,000 new emergency units for those at risk of becoming homeless comes into effect on July 1 — a critical date in Québec's rental market with its annual lease renewal cycles. Encampments have appeared in cities across the province, and shelters have reported record demand.  

Quebec stands apart from most other provinces because it has an active, legislated poverty reduction framework that requires the government to adopt successive action plans. The current provincial government action plan covers 2017–2023 and has still not been formally renewed. Civil society organizations have called for an updated plan with concrete plans, but the government has pointed to individual budget measures rather than a renewed cross-ministerial strategy.  

Quebec has three main programs for income support: the Social Assistance Program (indexed and increases annually), the Social Solidarity Program (for people who have severely limited employment capacity), and the Basic Income Program (Revenu de base, for people who have experienced long-term barriers to employment). In November 2025, the government confirmed an indexation rate of 2.05% for 2026, but despite this, welfare incomes remain below the Market Basket Measure for most households.  

The province increased its minimum wage to $16.10/hour effective May 1, 2025 — a 2.2% increase. However, the Institut de recherche et d'informations socioéconomiques (IRIS) estimates that a single person in Montreal would need to earn $28/hour to achieve a decent standard of living. Quebec’s minimum wage lags behind that of BC and Ontario, the other two largest provinces, by $2.15 and $1.50/hour respectively.  

Food insecurity remains a critical and growing concern. Budget 2026–2027 allocates $257 million to strengthen services for vulnerable individuals, including $21 million for food bank supply over the next year — a direct response to record demand at food banks across the province. Nationally, food insecurity increased from 11.6% in 2018 to 19.1% in 2023. Quebec participates in the Canada-wide National School Food Program, and Budget 2025–2026 maintained its investment in educational childcare services, including $171 million to convert 1,000 non-subsidized childcare spaces into subsidized spaces.  

On the federal–provincial front, Quebec has maintained its assertive stance on jurisdictional autonomy. The province has not signed a pharmacare agreement under the federal Pharmacare Act, arguing that its existing drug insurance regime (the RAMQ) provides adequate coverage. However, the province ratified the National School Food Program Agreement and accepts funding through early learning and childcare transfers. Revenu Québec’s plan to automatically file tax returns for some people with low incomes, starting in spring 2027, could improve access to benefits that often go unclaimed.  

Looking ahead, the CAQ leadership transition and the October 2026 provincial election represent the primary political and legislative inflection points for any substantive shift in Quebec’s approach to housing, income supports, and social investment. In the absence of a renewed poverty reduction strategy, these events will largely determine whether current measures are consolidated or recalibrated under a new governing agenda.

Affordability 

Accelerate the construction of purpose-built affordable rental housing.
Although Quebec recently announced additional investments in affordable housing construction, there is still no adequate long-term, sustained funding to address the province’s housing needs. Allocating an additional $3 billion over the next five years, equivalent to approximately 10% of the Provincial Government’s existing commitments to tax reductions and financial supports it would help build nearly 15,000 more units than the province is already planning to help construct. 

Income Security

Raise social assistance in Quebec to the poverty line. 
Quebec has long been a leader in poverty reduction, but the adequacy of its social assistance system has steadily eroded in real terms since the first edition of this report. Within its aide financière de dernier recours (last-resort financial assistance) system, only one household type — unattached singles deemed employable in the MAN stream — receives income above the poverty line ($24,617), at 107% of the threshold. However, this accounts for approximately 2% of recipients. All other benefit types fall below poverty levels. Quebec should raise all social assistance rates to at least the poverty line to ensure adequacy across the system. 

Labour Market Reform 

Raise the minimum wage to $18 per hour and establish a clear pathway to a living wage. 
Quebec should increase the minimum wage to $18/hour, reflecting a benchmark established in 2021 based on broad consensus among labour and community organizations that full-time work should lift people out of poverty. However, this benchmark is now outdated: with prices rising by more than 20% since 2021, an equivalent living wage today would be approximately $22/hour across the province. 
To address this gap, Quebec should legislate a defined pathway to a living wage, including automatic annual indexation to inflation so that wages keep pace with rising costs over time.

Develop an upskilling and second-chance education strategy. 
Quebec should establish a comprehensive strategy to expand upskilling and retraining opportunities for residents who have completed other levels of education but need new skills to adapt to changes in the labour market. As part of this strategy, and consistent with recommendations to scale up affordable housing construction, the province could prioritize training pathways into the construction trades. This would help create more well-paid jobs for vulnerable workers while supporting a stronger foundation for housing affordability.