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

Royal Bay Secondary School (Black Press Media file photo)
Sooke School District alerts community to coronavirus positive case at Royal Bay secondary

Contact tracing underway after potential COVID-19 exposure Jan. 15

The Starbucks in Langford’s Westshore Town Centre is one of almost 300 storefronts that the U.S. coffee giant will be shutting across Canada by the end of March. (Google Maps)
Langford’s Westshore Town Centre Starbucks to close permanently

Popular coffee chain to close 300 storefronts across Canada by end of March

A female prisoner sent Langford police officers a thank-you card after she spent days in their custody. (Twitter/West Shore RCMP)
Woman gives Victoria-area jail 4.5-star review in handwritten card to police after arrest

‘We don’t often get thank you cards from people who stay with us, but this was sure nice to see’: RCMP

Staff and volunteers at the Shaw Centre for the Salish Sea were disappointed by the theft of an educational porpoise skull likely taken on Jan. 8. (Courtesy of Tina Kelly)
Well-loved porpoise skull stolen from Sidney aquarium

Skull had been used for youth and visitor education and outreach for years

NEW CUTLINE Pacific FC fans fill the stands during a game at the former Westhills Stadium
 Starlight Developments has purchased the naming rights from the City of Langford for the next 10 years.(Gazette file photo)

Pacific FC slid into third place in the league after defeating FC Edmonton 1-0 at Westhills Stadium on Saturday. (Shalu Mehta/News Staff)
Langford sells stadium naming rights for $500,000 to Starlight Developments

10-year sponsorship deal largest in the history of Langford, says mayor

Provincial health officer Dr. Bonnie Henry prepares a daily update on the coronavirus pandemic, April 21, 2020. (B.C. Government)
B.C. adjusts COVID-19 vaccine rollout for delivery slowdown

Daily cases decline over weekend, 31 more deaths

(Black Press Media file photo)
From arts to environment, nominate your West Shore hero

Nominations for the Goldstream Gazette’s Local Hero awards are open

An elk got his antlers caught up in a zip line in Youbou over the weekend. (Conservation Officer Service Photo)
Elk rescued from zip line in Youbou on Vancouver Island

Officials urge people to manage items on their property that can hurt animals

A Trail man has a lucky tin for a keepsake after it saved him from a stabbing last week. File photo
Small tin in Kootenay man’s jacket pocket saved him from stabbing: RCMP

The man was uninjured thanks to a tin in his jacket

Tla-o-qui-aht First Nation Chantel Moore, 26, was fatally shot by a police officer during a wellness check in the early morning of June 4, 2020, in Edmundston, N.B. (Facebook)
Frustrated family denied access to B.C. Indigenous woman’s police shooting report

Independent investigation into B.C. woman’s fatal shooting in New Brunswick filed to Crown

Delta Police Constable Jason Martens and Dezi, a nine-year-old German Shepherd that recently retired after 10 years with Delta Police. (Photo submitted)
Dezi, a Delta police dog, retires on a high note after decade of service

Nine-year-old German Shepherd now fights over toys instead of chasing down bad guys

Nurses collect samples from a patient in a COVID suspect room in the COVID-19 intensive care unit at St. Paul’s hospital in downtown Vancouver, Tuesday, April 21, 2020. (THE CANADIAN PRESS/Jonathan Hayward)
5 British Columbians under 20 years old battled COVID-19 in ICU in recent weeks

Overall hospitalizations have fallen but young people battling the virus in hospital has increased

Canada released proposed regulations Jan. 2 for the fisheries minister to maintain Canada’s major fish stocks at sustainable levels and recover those at risk. (File photo)
New laws would cement DFO accountability to depleted fish stocks

Three B.C. salmon stocks first in line for priority attention under proposed regulations

Trees destroyed a Shoreacres home during a wind storm Jan. 13, 2021. Photo: Submitted
Kootenay woman flees just before tree crushes house

Pamala DeRosa is thankful to be alive

Most Read