DON"T GIVE UP!! How does it help your wife and child for you to give up?! There are
lots of monetary benefits in Ontario for mothers with small children - make sure that she is collecting all of the monetary benefits that she's eligible for. There are
maternity benefits (EI) that she may be eligible for if she was working prior to the birth of the child. Even if she wasn't working, she's eligible for
Federal government benefits like the Canada Child Tax Benefits (CCTB), Universal Child Care Benefits (UCCB), and HST rebates! Including her maternity benefit, my daughter (who has a 4 month old child) is getting almost $1400 per month. There are also benefits like free diapers and food through her local food bank that can save her hundreds of dollars a month.
There is no reason a mother in Ontario should be completely broke and looking at social assistance! Check out the CRA and Service Ontario sites I linked to and make sure that she's not overlooking money that she's entitled to before you consider ruining your immigration application over social assistance. Which embassy is processing your application? If you've been in process for over a year, you could be close to the end.