A Brief Update of Data Available through Statistics Canada Measuring Poverty A Brief Update of Data Available through Statistics Canada Planning and Policy Support December 10, 2013

Topics Statistics Canada and Measuring Poverty London’s numbers Threshold amounts Definitions Pros and Cons Current availability Recommended reading

Statistics Canada & Measuring Poverty “Statistics Canada does not define 'poor' nor does it estimate the number of poor families and individuals in Canada.” Early 1960’s to today - published low-income statistics – key dimension of poverty – low income = at-risk of poverty Source: Statistics Canada. Income Research Paper Series. Low Income Lines 2011-2012. Catalogue no. 75F0002M — No. 002. Modified June 27, 2013.

London’s Numbers Source: Statistics Canada NHS Community Profile and Small Area Administrative Data provided through the Community Data Program. Source: Statistics Canada CANSIM table 202-0802. Data must be used with caution.

The Thresholds Source: Statistics Canada. Low Income Lines 2011-2012 When using the LICO or the MBM, the economic family is the appropriate unit – related by blood. When using the LIM, the household is the appropriate unit – occupy the same dwelling Source: Statistics Canada. Low Income Lines 2011-2012

Measure #1 – Low Income Cut Off First published in 1967; current thresholds based on 1992 spending patterns If family income below LICO, then likely to be spending more than the average on food, shelter, clothing Mixed consumption/equity measure

Measure #2 – Market Basket Measure Dates back to 2000 Measure of consumption Cost of nutritious diet, shelter, public transit, clothing and footwear, other necessary goods and services If family income below the MBM line, unlikely to be able to afford all items

Measure #3 – Low Income Measure Used by Province to track progress Measure of equity Household considered poor if income is 50% below the median 50% have income below the median 50% have income above the median Poor = having income 50% below the LIM Median household income

Before Tax or After Tax? Before Tax – historic – does not take into account tax transfers and credits – Campaign 2000 After Tax – 2006 Census – preferred by Stats Can as takes into account tax transfers and credits Looking at both allows us to see impact of tax measures

Pros and Cons Pros Cons LICO History Adjusts for family size Adjusts for community size Expenditure assumptions not being updated LIM Used by Province to track progress Community size and regional differences not accounted for MBM Adjusts for family size, regional differences Clarity Debate as to contents of basket

Current Status of Data Availability for London Data source Geography Timing Trend # below LICO NHS by request City Census Not to be compared to previous years Taxfiler - CANSIM CMA Annual, 2 to 3 year lag Yes # below LIM NHS online None Taxfiler – Community Data Program # below MBM CANSIM data is based on 20% sample – data for subgroups must be used with caution due to data reliability

A Final Thought “… low-income statistics are not intended to provide an indication of the success or failure of specific programs designed to assist the poor.” Source: Statistics Canada. Income Research Paper Series. Low Income Lines 2011-2012. Catalogue no. 75F0002M — No. 002. Modified June 27, 2013.

Recommended Reading Cutting Through the Fog by John Stapleton http://metcalffoundation.com/wp-content/uploads/2011/05/cutting-through-the-fog.pdf Poverty. Where Do We Draw the Line by Chris Sarlo http://www.fraserinstitute.org/uploadedFiles/fraser-ca/Content/research-news/research/publications/Poverty-where-do-we-draw-the-line.pdf A Measure of Poverty in Canada. A Guide to the Debate About Poverty Lines by Greg DeGroot-Maggetti http://action.web.ca/home/cpj/attach/A_measure_of_poverty.pdf Research & Policy Development Poverty Links http://www.london.ca/About-London/community-statistics/social-issues/Pages/Poverty.aspx