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- CHAPTER 5 - COUPLE WITH TWO CHILDREN AGED 10 AND 15
Chapter 5
COUPLE WITH TWO CHILDREN AGED 10 AND 15
WIDE VARIATION CONTINUED ACROSS THE COUNTRY
At the provincial level:
- The highest total welfare income1 in 2009 for a couple with two children was $24,045 in Prince Edward Island.
- The lowest total welfare income was $19,775 in New Brunswick.
- The median value was $22,220. In other words, half of the 2009 total welfare incomes were below $22,220 and half were above it.
At the territorial level:
- Incomes were considerably higher in the territories, due to the higher cost of living. Nunavut's incomes were the highest, with average monthly rents in excess of $2,800.
INCREASE OVER LAST YEAR BUT DECREASE OVER TIME
Between 2008 and 2009, couples with two children saw an increase in their total welfare incomes in all jurisdictions except the Northwest Territories. Most of these were due to welfare rate increases for families with children. In New Brunswick, Saskatchewan, Alberta, and the Yukon the increases were implemented mid-to late 2008. Six provinces implemented increases in 2009: Newfoundland and Labrador, Prince Edward Island, Nova Scotia, Quebec, Ontario, and Saskatchewan. Both Ontario and the Yukon also increased their child benefit rates substantially – Yukon in July 2008 and Ontario in July 2009.
Between 2008 and 2009, the cost of living increased by 0.3 percent. When adjusted for inflation, the increases in welfare incomes ranged from 0.4% in Manitoba to 9.7% in the Yukon. The Northwest Territories saw a decrease of less than 1%.2
When welfare incomes for the period 1990 to 2009 were adjusted for inflation, none of them came close to the 45.9% increase in the cost of living over the 19 years. Couples with two children saw increases in New Brunswick (24.5%), Yukon (18%), Quebec (12.6%), and Newfoundland and Labrador (10.4%). In two provinces – Ontario and Manitoba – welfare incomes decreased by over 20%.
Table 5.2 further illustrates the extent of the decline in welfare incomes for a couple with two children over the years. It shows the year in which welfare incomes were at their peak and the year they were at their lowest, and then compares these amounts to the 2009 welfare incomes. Note that the dollar amounts are in constant dollars.
- Six jurisdictions had their peak years in this decade – Newfoundland and Labrador, New Brunswick, Yukon and Nunavut in 2009, Quebec in 2006, and Nova Scotia in 2001.
- The jurisdictions with their lowest years during this decade are Ontario, Manitoba, Saskatchewan, Alberta, British Columbia, the Northwest Territories, and Nunavut.
- Prince Edward Island, Ontario, Manitoba, Saskatchewan, Alberta and British Columbia all peaked between 1986 and 1994.
- The amount of the decrease in total welfare incomes was severe in some cases. Ontario and Manitoba showed the highest overall decreases, at $7,283 in Ontario and $6,248 in Manitoba. These represent losses of over 20%.
| Table 5.1: Welfare Incomes for a couple, two children aged 10 and 15 | |||||||
|---|---|---|---|---|---|---|---|
| Basic Social Assistance | Other P/T* Benefits | Federal Child Benefits | P/T* Child Benefit | GST Credit | P/T* Tax Credits | 2009 Total Income | |
| Newfoundland and Labrador (NL) |
$12,999 | $1,200 | $6,512 | $681 | $747 | $200 | $22,339 |
| Prince Edward Island (PE) | $16,436 | $350 | $6,512 | - | $747 | - | $24,045 |
| Nova Scotia (NS) | $12,468 | $150 | $6,512 | $1,090 | $747 | - | $20,967 |
| New Brunswick (NB) | $10,896 | $1,120 | $6,512 | $500 | $747 | - | $19,775 |
| Quebec (QC) | $10,947 | $1,159 | $6,512 | $3,249 | $747 | - | $22,614 |
| Ontario (ON) | $13,210 | - | $6,512 | $1,700 | $747 | $526 | $22,695 |
| Manitoba (MB) | $14,057 | $160 | $6,512 | - | $747 | - | $21,476 |
| Saskatchewan (SK) | $15,920 | $215 | $6,512 | - | $747 | $607 | $24,001 |
| Alberta (AB) | $14,472 | $275 | $6,607 | - | $747 | - | $22,101 |
| British Columbia (BC) | $13,213 | $290 | $6,512 | - | $747 | $417 | $21,179 |
| Yukon (YK) | $26,073 | $685 | $6,455 | $1,380 | $747 | $0 | $35,340 |
| Northwest Territories (NT) | $26,258 | - | $6,137 | $380 | $747 | $0 | $33,522 |
| Nunavut (NU) | $52,380 | - | - | - | - | - | $52,380 |
*Provincial/Territorial
Data for 1990 are not available for the Northwest Territories. Nunavut became a separate terrirotuy in 1999
| Table 5.2: Changes in welfare incomes, from peak year and low year to 2009 Couple with 2 children, 10 and 15 | |||||||
|---|---|---|---|---|---|---|---|
| 2009 Amount(1) | Peak Year(2) | Peak Amount(3) | $ Change from Peak to 2009(4 = 1-3) | Low Year(5) | Low Amount(6) | $ Change from Low Amount to 2009(7 = 1-6) | |
| NL | $22,339 | 2009 | $22,339 | $0 | 1997 | $19,373 | $2,965 |
| PE | $24,045 | 1986 | $25,881 | -$1,836 | 1999 | $21,911 | $2,134 |
| NS | $20,967 | 2001 | $21,648 | -$681 | 1995 | $19,747 | $1,220 |
| NB | $19,775 | 2009 | $19,775 | $0 | 1989 | $15,850 | $3,925 |
| QC | $22,614 | 2006 | $22,704 | -$90 | 2000 | $19,526 | $3,088 |
| ON | $22,695 | 1992 | $29,978 | -$7,283 | 2003 | $20,559 | $2,136 |
| MB | $21,476 | 1992 | $27,724 | -$6,248 | 2000 | $20,558 | $918 |
| SK | $24,001 | 1986 | $25,093 | -$1,092 | 2005 | $20,661 | $3,341 |
| AB | $22,101 | 1986 | $26,886 | -$4,785 | 2008 | $20,772 | $1,329 |
| BC | $21,179 | 1994 | $23,838 | -$2,659 | 2005 | $19,740 | $1,439 |
| YK | $35,340 | 2009 | $35,340 | $0 | 1986 | $28,398 | $6,942 |
| NT | $33,522 | 1999 | $33,988 | -$466 | 1997 | $31,660 | $1,862 |
| NU | $52,380 | 2009 | $52,380 | $0 | 2007 | $51,324 | $1,056 |
*Peak amounts and low amounts are in 2009 constant dollars.
Green colour is for peak years and orange colour is for low years during this decade.
ADEQUACY OF 2009 WELFARE INCOMES
The 2009 total welfare incomes for a couple with two children were compared with a number of low-income measures, including the after-tax Low-income cut-offs (AT LICO) and the Market Basket Measure (MBM), as well as with the median after tax income and the average after tax income.3
All 2009 welfare incomes for a couple with two children were below the AT LICO by $5,000 or more. The smallest gap was in Prince Edward Island, at $5,044, or 83% of the LICO. Quebec, Ontario, Manitoba, Alberta and British Columbia had differences of over $12,000. British Columbia's welfare income was only 61% of the AT LICO.
The Market Basket Measure provides a good estimate of the cost of living because it is sensitive to differences in the cost of the basket of goods – including transportation, shelter, clothing and food components – and services in different parts of Canada.4 When welfare incomes were compared to the MBM, the smallest gap was in Saskatchewan at $4,735. The highest gap was $9,121 in Nova Scotia. Welfare incomes ranged from 69% to 84% of the MBM.
When welfare incomes were compared with average after-tax incomes, the gap was larger. Welfare incomes of a couple with two children were below the average after-tax income of all couples with two children by $15,000 or more in eight provinces.
The gap between welfare incomes and median after-tax incomes exceeded $50,000 in all provinces and territories except for Nunavut.
- In half of the provinces, the welfare incomes of a couple with two children were below two thirds of the AT LICO.
- In half of the provinces, the welfare incomes of a couple with two children were 75% or more of the Market Basket Measure. They were highest in Saskatchewan, at 84% of the MBM, and lowest in New Brunswick at 69%.
The median income is the only measure available for the territories.
- Expressed as a percentage of the median after-tax income, the lowest welfare income for a couple with two children was in Alberta at 23%.
- At the provincial level it reached a high of 31% in Prince Edward Island.
| Table 5.3: Measuring the adequacy of welfare incomesCouple with 2 children, 10 and 15 | |||||
|---|---|---|---|---|---|
| 2009 Total Welfare Incomes | AT LICO | MBM* | Median AT Income* | Average AT Income* | |
| NL | $22,339 | $29,455 | $29,936 | $81,538 | $37,599 |
| PE | $24,045 | $29,089 | $31,703 | $76,892 | $34,591 |
| NS | $20,967 | $29,455 | $30,088 | $80,975 | $36,395 |
| NB | $19,775 | $29,455 | $28,745 | $77,097 | $35,593 |
| QC | $22,614 | $34,829 | $28,316 | $76,227 | $37,198 |
| ON | $22,695 | $34,829 | $31,267 | $78,591 | $43,113 |
| MB | $21,476 | $34,829 | $27,589 | $78,601 | $39,804 |
| SK | $24,001 | $29,455 | $28,736 | $84,137 | $44,015 |
| AB | $22,101 | $34,829 | $30,982 | $97,891 | $51,435 |
| BC | $21,179 | $34,829 | $30,065 | $76,411 | $43,614 |
| YK | $35,340 | n/a | n/a | $96,755 | n/a |
| NT | $33,522 | n/a | n/a | $107,684 | n/a |
| NU | $52,380 | n/a | n/a | $67,130 | n/a |
*Estimated for all couples with 2 children
WELFARE INCOMES COMPARED TO MBM, 2002–2009
Compared to 2008, welfare incomes of a couple with two children as a percentage of the MBM increased in all provinces except for British Columbia, where it remained the same.
*Estimated
Since 2002, welfare incomes for a couple with two children have been hovering at 75% or more of the MBM in five provinces: Newfoundland and Labrador, Prince Edward Island, Quebec, Manitoba and Saskatchewan. Manitoba has had the highest ratio – over 80% – for all but the last two years. New Brunswick has had the lowest ratio, at or just below 70% for the seven-year period.
The following charts show welfare incomes as a percentage of the MBM by region.
WI of a couple with two children aged 10 and 15 as a percentage of MBM*
*Estimated
*Estimated
1 Note that to ensure the comparability of the data as much as possible, we made a number of assumptions in calculating the levels of assistance. These assumptions include: where welfare households lived; the employability of the household head; the type of housing and entitlement to additional assistance. See Methodology.
2 All welfare incomes over time are expressed in 2009 constant dollars to factor out the effects of inflation.
3 Definitions of these measures can be found in the Methodology Bulletin of Poverty Profile 2007: http://www.cnb-ncw.gc.ca/l.3bd.2t.1ils@-eng.jsp?lid=11
4 The MBM for year 2009 was estimated based on the MBM for the year 2008. A review process changed the MBM thresholds (base 2008) and therefore the incidence of low income has been impacted.