Prince Edward Island

Common menu bar

PRINCE EDWARD ISLAND (PE)

Government’s plan to release a Poverty Reduction discussion paper early in 2011 noted in the November 2010 Throne Speech
Welfare income for a couple with two children has been the highest among the provinces since 2004
Asset levels unchanged since 1989 except for lone parent, which has decreased considerably

CURRENT SITUATION

	Single employable person	Single person with a disability	Lone parent with a 2-year-old child	Couple with two children aged 10 & 15
*PE 2009 WI*	*$6,906*	*$9,067*	*$16,531*	*$24,045*
**Rank among provinces***	7	9	6	1
% of MBM	44%	57%	80%	76%
% of After-tax LICO	45%	59%	88%	83%
% of After-tax median income	33%	43%	52%	31%
Highest 2009 WI	$9,593 (NL)	$12,905 (ON)	$19,297 (NL)	$24,045 (PE)
Lowest 2009 WI	$3,773 (NB)	$8,665 (NB)	$14,829 (MB)	$19,775 (NB)

* #1 rank is the highest

CHANGES IN WELFARE INCOMES FROM 1986 TO 2009

Peak years (highest over time) were 1992 or earlier for all family types.
Since peak year, there have been losses for all family types. The following losses are the largest among the provinces:
- Single employable persons have seen a decrease of over $4,000 (37% loss);
- Single persons with a disability have seen a decrease of just under $3,500 (28%).
Ranked #1 for a couple with 2 children since 2004.

LIQUID ASSET EXEMPTION POLICY

	Single employableperson	Single person with a disability	Lone parent with a 2-year-old child	Couple with two children aged 10 & 15
2009 exemption*	*$50 - $200*	*$900*	*$50 - $1,200*	*$50 - $1,800*
1989 exemption adjusted to 2009 for inflation	$76	$1,376	$1,835	$76

* Lower amounts are for those requiring assistance for four months or less.

Levels have not changed since 1989 for a single employable, a person with a disability and a couple with 2 children.
The level for a lone parent with one child applying for welfare decreased this decade from $1,200 to $50 (2005).
Considerable losses due to inflation for the single person with a disability and the lone parent with one child.

EARNINGS EXEMPTION POLICY

PE exempts a flat rate amount, followed by a percentage of earnings over this amount.

Single employableperson	Single person with a disability	Lone parent with a 2-year-old child	Couple with two children aged 10 & 15
$75 of earned income plus 10% of the balance		$125 of net earned income plus 10% of the balance

EXAMPLE

Treatment of monthly earnings of $400
	Single Person	Lone Parent
Amount exempted	$107.50	$152.50

Remainder of income is deducted from welfare cheque.

PE uses the federal WITB model.
A single employable welfare recipient with $400 earnings/month would have been eligible for $360 in WITB in 2009 ($30/month)