Measuring Poverty A Brief Update of Data Available through Statistics Canada Planning and Policy Support December 10, 2013 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 Catalogue no. 75F0002M — No Modified June 27, 2013.

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

The Thresholds Source: Statistics Canada. Low Income Lines

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 Median household income Poor = having income 50% below the LIM 50% have income above the median 50% have income below the median

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 ProsCons LICOHistory Adjusts for family size Adjusts for community size Expenditure assumptions not being updated LIMUsed by Province to track progressCommunity size and regional differences not accounted for MBMAdjusts for family size, regional differences Clarity Debate as to contents of basket

Current Status of Data Availability for London Data sourceGeographyTimingTrend # below LICONHS by requestCityCensusNot to be compared to previous years Taxfiler - CANSIM CMAAnnual, 2 to 3 year lag Yes # below LIMNHS onlineCityCensusNone Taxfiler – Community Data Program CityAnnual, 2 to 3 year lag Yes Taxfiler - CANSIM CMAAnnual, 2 to 3 year lag Yes # below MBMTaxfiler - CANSIM CMAAnnual, 2 to 3 year lag Yes

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 Catalogue no. 75F0002M — No Modified June 27, 2013.

Recommended Reading Cutting Through the Fog by John Stapleton through-the-fog.pdf Poverty. Where Do We Draw the Line by Chris Sarlo 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 Research & Policy Development Poverty Links issues/Pages/Poverty.aspx