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

A historic home near Granny’s Fruit Stand in Summerland was the home of two of the community’s mayors. J.R. Campbell and Don Cameron both lived at the home on Highway 97 in Summerland, but not at the same time. (Photo courtesy of the Summerland Museum)
Historic house was home to two Summerland mayors

Building along Highway 97 was constructed in 1906

Interior Health reported 91 new COVID-19 cases in the region Jan. 20, 2021 and three additional deaths. (Jennifer Smith - Morning Star)
95 new COVID-19 cases in Interior Health, two deaths

Another member of Vernon’s Noric House has passed

Fiction writing contest
A call to writers in the Okanagan

UBCO holds annual fiction writing contest

Vaccine rollout is focused on health care workers first, especially those dealing with long-term care facilities. (Nathan Denette - Canadian Press)
General public shouldn’t expect vaccines until fall: Interior Health

Interior Health focused on vaccinating long-term and first-line care workers

A mother hold hands with her daughter while sharing about her struggles with addiction during Overdose Awareness Day. (Jesse Major/Black Press file)
Overdose and suicide support group starts in Penticton

Penticton was one of the province’s communities hardest hit by the overdose crisis in 2020

Toronto Public Health nurse Lalaine Agarin sets up for mass vaccination clinic in Toronto, Jan. 17, 2021. B.C. is set to to begin its large-scale immunization program for the general public starting in April. THE CANADIAN PRESS/Frank Gunn
B.C.’s COVID-19 mass vaccinations expected to start in April

Clinics to immunize four million people by September

School District 57 headquarters in Prince George. (Mark Nielsen, Local Journalism Initiative Reporter)
Prince George school district settles with sexual abuse victim

Terms were part of an out-of-court settlement reached with Michael Bruneau, nearly four years after he filed a lawsuit

The Oliver Fire Department’s “new” truck was built with the help of various local companies. It was completed Thursday, Jan. 21, 2021. (Oliver Fire Dept. / Facebook)
It takes a town to build a truck: The Oliver Fire Department gets creative

Ingenuity and local connections played an important role in the upgrading fire truck

Surrey provincial court. (File photo: Tom Zytaruk)
New COVID-19 protocols set for provincial courthouses

The new rules were issued on Jan. 21, and took effect immediately

Police in Vancouver looking for male suspect who allegedly spat and attacked a store manager for not wearing a mask, at 7-Eleven near Alma Street and West 10th Avenue just before noon on Dec. 17, 2020. (Vancouver police handout)
VIDEO: Man spits on 7-Eleven manager over mask rule, sparking Vancouver police probe

‘Unfortunately, the store manager sustained a cut to his head during the assault’

The Vancouver-based SAR team successfully rescued two lost snowshoers off of the west side of Tim Jones Peak in the early morning of Monday, Jan. 19. (North Shore Rescue photo)
B.C.’s busiest SAR team raises alarm after 2021 begins with fatality, multiple rescues

‘People beyond ski resort areas of Seymour, Grouse, and Cypress go without cell reception,’ SAR warns

A ‘Notice of trespass and personal liability’ has been ‘served’ by a mysterious group called the Sovereign Republic of British Columbia to several Okanagan mayors.
Mysterious group serves notice to Okanagan-Shuswap mayors, demanding end to ‘unlawful’ COVID rules

26-page letter sent by ‘Sovereign Republic of British Columbia’

Vernon’s Ellison Provincial Park has everything the outdoor enthusiast could wish for. (Ribbons of Green photo)
Upgrades trail in for Okanagan campgrounds

Bear Creek and Ellison improvements underway

Thirty-four unionized workers represented by MoveUp started rotating job action at VantageOne Credit Union's two Vernon locations Monday, Dec. 14, 2020. Workers are calling for basic job protection and fair security. (Jennifer Smith - Vernon Morning Star)
VantageOne staff urged to take tentative deal

It’s been more than one month since union workers went on strike

Most Read