Statistics Canada’s offices at Tunny’s Pasture in Ottawa are shown on Friday, March 8, 2019. The Canadian economy posted its biggest monthly job loss since the financial crisis as the unemployment rate also pushed higher in November. THE CANADIAN PRESS/Justin Tang

Statistics Canada’s offices at Tunny’s Pasture in Ottawa are shown on Friday, March 8, 2019. The Canadian economy posted its biggest monthly job loss since the financial crisis as the unemployment rate also pushed higher in November. THE CANADIAN PRESS/Justin Tang

Bump in low-income rates expected as StatCan sets to redraw poverty line

The measure calculates the minimum a person or family would have to earn for a modest living standard

The national statistics office is looking at changes to the federally adopted poverty line which, if approved, could mean more people are considered to live below the low-income threshold.

The last time the made-in-Canada measure was updated was in 2008 and poverty rates increased by 2.2 per cent because the financial cut-off used to define low-income was raised.

Experts suggest that a plan by Statistics Canada to recalculate the threshold by changing the “market basket measure” early next year could lead to a similar bump in poverty rates.

The measure calculates the minimum a person or family would have to earn to afford a basket of goods and services needed to reach a modest or basic living standard.

The Liberals adopted the measure as the country’s official poverty line last year and set aside $12 million over five years to update the basket, which doesn’t include things like wireless services.

In July, the top official at Employment and Social Development Canada and the minister at the time were told federal officials would decide “on the actions to be taken” with Statistics Canada’s recommendations, including which to implement, and which to send for more research when it comes to making the changes.

A final report from Statistics Canada is expected in February.

The Canadian Press obtained copies of the briefing notes under the access-to-information law.

Statistics Canada has published reports outlining possible updates to the cost and items in the basket of goods and services, as well as “disposable income” thresholds, which are how much income a family has leftover after accounting for taxes and payroll deductions.

ALSO READ: Canada’s GDP falls 0.1 per cent in October

A family or individual would be considered in poverty if the basket of goods strips away too much of their disposable income.

Other updates proposed by Statistics Canada include reflecting changes to the national food guide in the cost of food, and updating transportation costs to reflect census findings that while some low-income earners take public transit, others drive. The agency has also suggested excluding capital gains taxes when calculating disposable income to avoid families “appearing to be in poverty” from a hefty tax bill, and putting homeowners with a mortgage and people in subsidized housing on “more equal footing” with renters when determining who is in poverty.

Garima Talwar Kapoor, director of policy and research at Maytree, said the cost of housing, for instance, has gone up faster in the last 10 years than earnings, which could help increase the percentage of Canadians living in poverty.

She said a similar effect happened in the 2008 update when costs rose faster than incomes.

“That trend is continuing,” Kapoor said.

“The growth in costs is so much faster than the average income … which would therefore translate to a higher poverty level.”

ALSO READ: Feds lowered poverty line, reducing the number of seniors in need: documents

Changes to measuring poverty would likely result in an increase not only in the percentage of people in poverty, but a slight increase in the raw numbers as well, Kapoor said.

The Liberals have touted that under their watch, more than 800,000 people, including some 280,000 children, have been lifted out of poverty, and rates have dropped by about 20 per cent of where they were in 2015. The figures are key benchmarks — politically and from a policy perspective — to track the path of the government’s anti-poverty strategy.

Iglika Ivanova, a senior economist at the Canadian Centre for Policy Alternatives, doesn’t foresee a revamped poverty line shifting Canada off the recent decrease in poverty rates.

The changes could drop those just above the line into poverty despite no material changes to their circumstances, she said.

Updates to the measurement will help identify the financial pressure points for people in poverty, which in turn would help governments set anti-poverty plans, she said.

“It’s just important to keep updating these things because sometimes they are used to say we’ve done enough by the government — provincial or federal.”

Jordan Press, The Canadian Press


Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Chris Squires of The Wack Window Cleaning Company has created the #100housechallenge where he’ll be cleaning the exterior windows of 100 homes for free when an interior window cleaning service is purchased and a food item is donated to Wilma’s Transition Society. (Jenna Hauck/ Chilliwack Progress)
Chilliwack window cleaner ready to donate to Wilma’s through #100housechallenge campaign

Chris Squires enjoys providing service, wants to express it via donations, giving back to community

A cyclist was struck at the intersection of Prest and Bailey roads in Chilliwack on Saturday, March 6, 2021. (Google Maps)
UPDATE: Cyclist struck by SUV in Chilliwack

Incident happened at Prest and Bailey roads around 2:45 p.m. Saturday

Donald Alan Sweet was once an all star CFL kicker who played for the Montreal Alouettes and Montreal Concordes over a 13-year career. Photo courtesy of Mission RCMP.
Retired Mission teacher and star CFL kicker charged for assault, sexual crimes against former students

Donald Alan Sweet taught in school district for 10 years, investigators seeking further witnesses

B.C. RCMP Lower Mainland District officer, Asst. Commissioner Stephen Thatcher presents RCMP blankets to (from left) Chief James Hobart, Chief Maureen Chapman, Chief Derek Epp and Chief Mark Point. (RCMP)
Historic agreement between Fraser Valley FN communities, RCMP to expand Indigenous role in policing

Community Safety Agreement builds relationship of ‘trust, communication and prevention,’ says Chief

Canadian Reformed Church in Chilliwack. (GoogleMaps)
OPINION: Churches that defy the law and public health orders are in the extreme minority

The nature of news coverage means that aberrations from the norm are what make the headlines

The James C Richardson Pipe Band marches in a Remembrance Day parade on Nov. 11, 2019 in Chilliwack. Wednesday, March 10 is International Bagpipe Day. (Jenna Hauck/ Chilliwack Progress file)
Unofficial holidays: Here’s what people are celebrating for the week of March 7 to 13

International Bagpipe Day, Wash Your Nose Day and Kidney Day are all coming up this week

Victoria man Brett Andersen is asking for people’s help to secure him one of eight free tickets to the moon. (Screenshot/@brettandersen Instagram)
Victoria man wants your help securing a free ticket to the moon

Japanese billionaire offering eight people a trip to the moon

The Conservation Officers Service is warning aquarium users after invasive and potentially destructive mussels were found in moss balls from a pet store. (BC Conservation Officers Service/Facebook)
Aquarium users in B.C. warned after invasive mussels found at pet store

Conservation officers were told the mussels were found in a moss ball from a Terrace pet store.

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Hockey hall-of-fame legend Wayne Gretzky, right, watches the casket of his father, Walter Gretzky, as it is carried from the church during a funeral service in Brantford, Ont., Saturday, March 6, 2021. HE CANADIAN PRESS/Nathan Denette
Walter Gretzky remembered as a man with a ‘heart of gold’ at funeral

The famous hockey father died Thursday at age 82 after battling Parkinson’s disease

The family of injured Willoughby resident Ronald Gerald Jesso is hoping someone saw something that will help solve the mystery of how he came to be so badly hurt on the morning of Feb. 22. Jesso is still in hospital. (Jesso family/Special to Langley Advance Times)
An appeal to help solve the mystery of an injured Langley man

Family of Ronald Gerald Jesso asks witnesses to come forward

During a press event on March 6, Const. Alex Berube, media relations officer for the West Shore RCMP, addressed a deadly shooting that occurred in Metchosin the night before. (Devon Bidal/News Staff)
VIDEO: One man shot dead on Vancouver Island in ‘targeted incident’

Highway 14 reopens following multi-hour closure for investigation

Personal protective equipment is seen in the COVID-19 intensive care unit at St. Paul’s hospital in downtown Vancouver. THE CANADIAN PRESS/Jonathan Hayward
$16.9 million invested to improve worker safety, strengthen B.C.’s food supply chain

Money to be used for social distancing, personal protective equipment, cleaning, and air circulation

Most Read