NORTHERN ONTARIO — A new report from Statistics Canada confirms what Indigenous communities in Northern Ontario, including those on Manitoulin Island, have long known: Indigenous children who grow up in government care (non-Indigenous foster homes, group homes, residential schools) face significantly worse health and socioeconomic outcomes than those who remain with their families. The findings highlight an ongoing crisis in the child welfare system, where Indigenous children are disproportionately removed from their homes at alarming rates.
The report reveals that Indigenous people who were in government care as children suffer from higher rates of disability, lower self-reported health, increased rates of homelessness and greater financial instability later in life. This trend is particularly concerning for First Nations in Northern Ontario, where systemic barriers to healthcare, education, and economic opportunities exacerbate the long-term impacts of family separation.
According to the report, 11 percent of Indigenous people aged 15 and older reported being in government care as children, compared to only two percent of non-Indigenous individuals. For First Nations children, the number is even more staggering, with 16 percent having experienced foster care or other government interventions. This disparity remains persistent despite the closure of residential schools and the official end of the Sixties Scoop, raising urgent questions about the effectiveness of current child welfare policies.
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The health disparities for Indigenous people who have been in government care are stark. Only 24 percent of Indigenous people who were in care as children report excellent or very good health, compared to 46 percent of those who were not in care. Among First Nations adults, this gap is even wider: just 26 percent of those who had been in care rate their health as excellent or very good, compared to nearly half (48 percent) of those who remained with their families.
Mental health is another major area of concern. Thirty-eight percent of Indigenous adults who were in care report a mental health-related disability, double the rate of those who were not. For many, the trauma of family separation, coupled with experiences of neglect or abuse within the child welfare system, has lasting psychological effects.
Disability rates are also notably higher. Two-thirds (66 percent) of Indigenous adults who had been in care as children now live with a disability, compared to 46 percent of Indigenous adults who were never in care. Many of these disabilities are classified as severe, impacting mobility, learning and mental health.
Financial insecurity and homelessness are also disproportionately high among those who were in care. Sixty percent of Indigenous adults who grew up in government care struggle to meet their basic household needs, compared to 38% of those who were not in care. Additionally, 26 percent of Indigenous people who had been in care as children report experiencing homelessness at some point in their lives—nearly four times the rate of those who were not in care (seven percent).
For communities on Manitoulin Island, these findings reflect lived realities. When children are taken from their communities, they lose connection with their language, their traditions, and their support networks. Many Indigenous people are struggling because the system is not designed to help them thrive—it’s designed to remove them.
The Fight for Self-Determination in Child Welfare
In a move that signaled growing frustration with Canada’s child welfare policies, a $47.8 billion federal child welfare reform proposal was officially rejected by First Nations leaders on December 20, 2023. The rejection came after a vote by the Assembly of First Nations (AFN) chiefs, who determined that the agreement fell short of ensuring self-determination and culturally appropriate care.
Some local Indigenous families argue that true systemic change cannot be achieved merely by dissolving Children’s Aid Societies and establishing new on-reserve agencies if the same non-Indigenous workers continue to occupy key positions.
For decades, First Nations communities have fought for the right to care for their own children without interference from a system that has historically removed them en masse. The federal proposal was seen as another attempt to impose solutions without truly transferring control to Indigenous governments.
Some community advocates feel that funding the issue is not enough without wholesale changes to the way systems operate under federal control.
Key concerns among First Nations leaders included:
Lack of Autonomy: The proposal did not provide Indigenous communities with full control over child welfare decisions, a critical element of self-governance.
Failure to Address Systemic Issues: While financial compensation was offered, there were no binding commitments to overhaul the system and keep Indigenous children with their families.
Limited Support for Prevention Services: Many leaders argued that the plan focused on financial payouts rather than strengthening family support services to prevent child apprehensions in the first place.
Jurisdictional Barriers: The proposal required provincial and territorial cooperation, rather than direct agreements between First Nations and the federal government, limiting First Nations’ ability to make independent decisions about their child welfare programs.
First Nations across Northern Ontario, including those on Manitoulin Island, have long demanded that the child welfare system be restructured to prioritize keeping children within their communities. The rejection of the settlement signals a deeper problem: Indigenous leaders are being asked to accept financial compensation without meaningful structural change.
As negotiations continue, many are calling on the federal government to return to the table with an approach that centers Indigenous governance and long-term solutions rather than short-term payouts. Without fundamental reforms, Indigenous children will continue to be taken from their homes, and the cycle of trauma, poor health and economic hardship will persist.
