OTTAWA — 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 cut-off used to define low-income was raised.
Statistics Canada plans to redraw how it calculates the line by early next year, which experts suggest could lead to a similar bump in poverty rates.
The “market basket measure,” as it’s known, 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 currently doesn’t include things like wireless services.
It will ultimately fall to the government to decide what changes should be made.
This report by The Canadian Press was first published Dec. 23, 2019.
The Canadian Press
The Canadian Press
