On May 28th, 2025, Senator Kim Pate introduced Bill S-206, an act to develop a national framework for a guaranteed livable basic income, into the Senate. This bill is a successor to a different bill (Bill S-233) that was terminated with the dissolution of the 44th Parliament. 

Bill S-206 would require the federal government to develop framework for a guaranteed basic income (GBI) for all people over the age of seventeen within one year of the bill being passed. This bill specifies that the GBI would be unconditional (i.e. in order to qualify, individuals do not need to be participating in the labour market or attending school) and that there would not be a reduction in services meant to meet individual’s needs related to health and disability (no other programs are slashed due to GBI). While Bill S-206 would pressure the government to investigate how a GBI would be implemented if passed, it does not force the government to implement a GBI. The bill also does not lay out the framework itself or any suggestions, such as what means-testing would look like or what amount the GBI would be. Bill S-206 completed the second reading in the Senate on November 6th, 2025.  

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What is GBI and how can it help?

Guaranteed basic income refers to a cash transfer to citizens living below the poverty line to ensure that they can afford their basic needs. In 2023, Statistics Canada reported that 10.2% of Canadians are living below the poverty line. 

A report in 2021 by the Parliamentary Budget Office demonstrated that a GBI could cut poverty rates dramatically. Additionally, the report detailed that a GBI would have little effect on the recipient’s willingness to work, a concern voiced by some groups who do not support GBI. 

As detailed by the Office of Senator Kim Pate, a goal of this bill is to create a program that unlike current social assistance programs, does not police the recipients or keep them living below the poverty line with assistance rates too low to meet their basic needs.  

Guaranteed Basic Income v. Universal Basic Income

Guaranteed basic income and universal basic income (UBI) are sometimes used interchangeably, but they are not the same thing. GBI is means-tested, meaning that a GBI is targeted towards individuals who are low income and struggling to meet their basic needs. 

UBI is a program offered to everybody, regardless of income level. It would be received by all adults. Though there can be a case made for UBI, universal basic income is not currently being reviewed by the Canadian government. 

Bottom Line

With so many Canadians struggling to meet their basic needs and living below the poverty line, any method that can help Canadians improve their quality of life is worth considering. There is a strong case for GBI to be made, with many pilots both within and outside of Canada demonstrating its efficacy. Guaranteed basic income works, and it’s about time Canada stopped ignoring a program that could dramatically benefit so many residents.