In this section you will find:
Components of welfare incomes
In Prince Edward Island, households that qualify for basic social assistance payments also qualify for:
- Recurring additional social assistance payments from the province,
- Federal child benefits for households with children, and
- Federal and provincial tax credits and/or benefits.
Together, these components form a household’s total welfare income. Households may receive less if they have income from other sources, or more if they have special health- or disability-related needs.
In 2023, all example households in Prince Edward Island received additional payments from both the provincial and federal governments related to the increased cost of living due to high inflation. These payments are included where applicable in the table below.
Table 1PE shows the value of the welfare income components of the four example household types in Prince Edward Island in 2023. All four households are assumed to be living in Charlottetown, receiving provincial social assistance starting January 1 and for the entire year, and earning no employment income. The child in the single-parent household is two years old and the children in the couple household are ten and 15. Other assumptions for calculating incomes are in the methodology section.
Table 1PE: Components of welfare incomes for all example households in Prince Edward Island, 2023
*AccessAbility Supports provide people with a disability with an Assured Income benefit made up of allowances for food, essentials, and community living, as well as a shelter benefit. AccessAbility Supports recipients can also access other income supports depending on their circumstances.
Total annual welfare incomes in 2023 ranged from $18,250 for the unattached single considered employable to $50,930 for the couple with two children. The income of the unattached single with a disability was $20,104 and that of the single parent with one child was $32,294.
Basic social assistance: Three of the example households received benefits through the Social Assistance program. The unattached single with a disability received benefits through AccessAbility Supports. No changes were made to Basic Unit Rates for all households or to the Community Living Expense amount of $150, which the unattached single with a disability received in 2023.
Note that the unattached single with a disability was also eligible for a wide range of disability-specific supports through the AccessAbility Supports Program, including personal, housing, caregiver, and community supports. These supports are provided based on a monthly funding ceiling that is determined according to a capability assessment and through case management wherein clients identify eligible supports within the ceiling amounts. Eleven monthly funding ceiling levels range from $0 (non-funded supports) to $4,000. Funding is typically paid directly to the service provider.
Additional social assistance: All four households received additional social assistance benefits. Each received the Communication Rate of $60 per month; 2023 was the first year that this benefit was paid to all households for the full 12 months. The couple with two children also received $450 through the School Allowance: $100 for the ten-year-old and $125 for the 15-year-old, issued in both August and December. This amount did not change in 2023.
The One-Time Inflation Top-Up Payment of $150 per individual in the household (including children) was not available in 2023.
Federal child benefits: Both households with children received the Canada Child Benefit (CCB), which increased with inflation in July 2023 from $583.08 to $619.75 per month for a child under six years of age and from $491.91 to $522.91 per month for a child aged six to 17.
Provincial child benefits: Prince Edward Island does not currently have a child benefit program.
Federal tax credits/benefits: All four households received the GST/HST credit, which increased in July 2023 with inflation. The unattached single considered employable and the unattached single with a disability received $315.50 in basic GST/HST credit, while the single parent with one child received $631 and the couple with two children received $963.
Three households also received the GST/HST credit supplement: the unattached single considered employable received $84.39, the unattached single with a disability received $121.38, and the single parent with one child received the maximum amount of $166.
All households also received the Grocery Rebate, which was an additional one-time GST credit payment related to the increased cost of living due to high inflation, paid in July 2023. The unattached single considered employable received $187.73, the unattached single with a disability received $205.73, the single parent with one child received $386.50, and the couple with two children received $467.
Starting in July 2023, residents of Prince Edward Island became eligible for the federal climate action incentive (CAI). Both unattached single households received $240, the single parent with one child received $360, and the couple with two children received $480.
Provincial tax credits/benefits: All four households also received the PEI Sales Tax Credit (STC) of $110 per year for an individual plus $55 for a spouse, common-law partner, or eligible dependant. These amounts remained unchanged in 2023.
A one-time inflationary support payment was also paid in January 2023 with the STC in the amount of $500 per single-person household and $1,000 per couple or single parent.
Cost-of-living payments
As mentioned earlier, all four households received payments from both the provincial and federal governments related to the higher cost of living resulting from high inflation in 2023. A one-time provincial inflationary support payment was provided in January in the amount of $500 for the two unattached single households and $1,000 for the households with children. The federal Grocery Rebate was paid in July 2023 and was equivalent to the two regular GST credit (and credit supplement if applicable) payments received in the first half of 2023. These amounts are included in, and are not in addition to, the benefits described in the Components section above.
Table 2PE: Cost-of-living payments for all example households in Prince Edward Island, 2023
Changes to welfare incomes
Figures 1PE and 2PE show how the total welfare incomes for each of the four example household types in Prince Edward Island have changed over time.
Note that the values are in 2023 constant dollars, not current dollars, calculated using the Canada CPI. Using constant dollars takes into account the effect of inflation given that inflation reduces current dollar values over time. Also note that using the CPI for Prince Edward Island would result in a slightly different trendline.
Figure 1PE: Welfare incomes for example unattached single households in Prince Edward Island 1986–2023, in 2023 constant dollars
After a period of relative stasis through the late 1980s, the total welfare income of the unattached single considered employable declined significantly between 1991 and 1996. Another period of stability followed, lasting until 2017. A period of large increases from 2018 through to 2023 followed, culminating in a total welfare income of $18,250 in 2023. The welfare income of this household increased by 4 per cent between 2022 and 2023 and by 21 per cent since the start of the time series in constant 2023 dollars.
The total welfare income of the unattached single with a disability saw a similar trend from the start of the time series until 1993, with a decline that was less severe but continued until a steep drop in 2003, followed by a period of relative stability through to 2017. Increases from 2018 through to 2023 resulted in a total welfare income for this household of $20,104 in 2023. The welfare income of this household increased by 3 per cent between 2022 and 2023 and by 17 per cent since the start of the time series in constant 2023 dollars.
The increases in 2018 were due to a change in shelter allowance policy for the unattached single considered employable in recognition of PEI’s changing rental market, and the introduction of an Assured Income for the unattached single with a disability through the AccessAbility Supports program. Increases in 2019 through 2022 were due to the combination of basic benefit increases, provincial and federal COVID-19 pandemic-related payments in 2020 and 2021, and inflation- and Hurricane Fiona-related support payments in 2022. Increases in 2023 were largely the result of monthly basic benefit increases that came into force in the last month of 2022 and the introduction of the federal climate action incentive, as well as the one-time inflationary support payment.
Figure 2PE: Welfare incomes for example households with children in Prince Edward Island 1986–2023, in 2023 constant dollars
The welfare income of the single parent with one child saw a period of slight increases from 1989 until 1992, declines through to 1999, a period of stasis until 2005, and a long period of gradual increase until 2019. The welfare income of the couple with two children followed a similar trajectory but started at and maintained a higher value across the time series; it also had some sharper variations, particularly in the later years. Increases since 2015 were due to a number of factors, including changes to federal child benefits between 2015 and 2017, higher basic social assistance benefits since 2017, provincial and federal COVID-19 pandemic-related payments in 2020 and 2021, and inflation- and Hurricane Fiona-related support payments in 2022; in 2023, the increase was due to monthly basic benefit increases that came into force in the last month of 2022 and the introduction of federal climate action incentive payments, as well as the one-time inflationary support payment. The total welfare incomes of these households reach their highest levels across the time series in 2023.
In 2023, the total welfare income of the single parent with one child was $32,234, which is a 3 per cent increase compared to 2022 and a 38 per cent increase since the start of the time series in constant 2023 dollars. The total welfare income of the couple with two children was $50,930, which is an increase of 2 per cent compared to 2022 and an increase of 43 per cent since the start of the time series in constant 2023 dollars.
Adequacy of welfare incomes
The adequacy of a household’s total welfare income can be assessed by comparing it to established thresholds of poverty and/or low income.
Two measures of poverty are commonly used in Canada:
- The Market Basket Measure (MBM), Canada’s Official Poverty Line, identifies households whose disposable income is less than the cost of a “basket” of goods and services that represents a basic standard of living.
- The Deep Income Poverty (MBM-DIP) threshold identifies households whose disposable income is less than 75 per cent of the MBM.
There are also two commonly used measures of low income:
- The Low Income Measure (LIM) identifies households whose income is substantially below what is typical in society (i.e., less than half of the median income).
- The Low Income Cut-Off (LICO) identifies households that are likely to spend a disproportionately large share of their income on food, clothing, and shelter.
Note that MBM thresholds vary by province and community size, and LICO thresholds vary by community size. As such, we use the thresholds for the province’s largest city, Charlottetown, in the analysis below. Note also that we use after-tax LIM and LICO thresholds, and that the LIM thresholds for 2023 are estimates based on increasing the 2022 thresholds to account for inflation.
Also note that none of the poverty or low-income measures currently in use in Canada accounts for the higher cost of living faced by people with disabilities, and that these additional costs are not reflected in our analysis.
More information about the thresholds is available in the methodology section.
A table containing comparisons of the welfare incomes of the four example household types in Prince Edward Island with all four poverty/low-income thresholds is available for download.
Poverty threshold comparisons
The welfare incomes of all four example household types in Prince Edward Island were below Canada’s Official Poverty Line (MBM) in 2023, and one of the four was also below the Deep Income Poverty threshold (MBM-DIP). This means that all four PEI households were living in poverty in 2023, and one of the four was living in deep poverty.
Figures 3PE and 4PE compare 2023 welfare incomes of the four example household types to the 2023 MBM and MBM-DIP thresholds for Charlottetown.
Figure 3PE: Welfare incomes and poverty thresholds for example unattached single households in Prince Edward Island, 2023
The unattached single considered employable had the least adequate income relative to the poverty thresholds. Their income was $1,665 below the Deep Income Poverty threshold and $8,304 below the Poverty Line. This means their income was 92 per cent of the MBM-DIP and 69 per cent of the MBM.
The unattached single with a disability fared better, with a welfare income that was above the Deep Income Poverty threshold by $189, but below the Poverty Line by $6,450. This means their income was 101 per cent of the MBM-DIP and 76 per cent of the MBM.
Note that the poverty experienced by people with disabilities is underrepresented because neither the MBM nor the MBM-DIP account for the additional costs associated with disability. See the methodology section for more information.
Figure 4PE: Welfare incomes and poverty thresholds for example households with children in Prince Edward Island, 2023
The single parent with one child had a welfare income that was $4,130 above the Deep Income Poverty threshold but $5,258 below the Poverty Line. This means their income was 115 per cent of the MBM-DIP but only 86 per cent of the MBM.
The welfare income of the couple with two children was the most adequate relative to the poverty thresholds. Their income was $11,100 above the Deep Income Poverty threshold but remained below the Poverty Line by $2,176. This means their income was 128 per cent of the MBM-DIP and 96 per cent of the MBM.
Low-income threshold comparisons
The welfare incomes of all four households were below the LIM threshold and those of two households were below the LICO threshold, as shown in the table linked above.
The least adequate income relative to the thresholds was that of the unattached single considered employable, whose total welfare income was 61 per cent of the LIM and 86 per cent of the LICO. The most adequate income relative to the thresholds was that of the couple with two children, whose total welfare income was 85 per cent of the LIM and 127 per cent of the LICO.
The unattached single with a disability had an income that was 67 per cent of the LIM and 95 per cent of the LICO. The income of the single parent with one child was 76 per cent of the LIM and 126 per cent of the LICO.
The LIM and LICO thresholds used are for after-tax income, as noted above.
Changes to adequacy of welfare incomes
Figures 5PE and 6PE show the total welfare incomes of each of the four example household types in Prince Edward Island as a percentage of the Market Basket Measure (MBM), starting in 2002.
The black line at the top of each graph (i.e., the 100 per cent threshold) represents Canada’s Official Poverty Line. This means that the graphs show how far below the Poverty Line the four households’ total welfare incomes have been in each year over the past 22 years.
The grey line indicates the Deep Income Poverty threshold, which is 75 per cent of the MBM. The graphs therefore also show the relationship between total welfare incomes and deep poverty in each year over the past 22 years.
Three trendlines for each household are shown in the graphs. These lines illustrate the relationship between welfare incomes and changes made to the MBM due to “rebasing.” The two rebasings, occurring in 2008 and 2018, are indicated with a dotted vertical line. Rebasing updates the measure, including the items and costs included in the basket, to better reflect contemporary circumstances and typically creates a higher poverty threshold than that of a previous base. The trendlines demonstrate changes to household poverty levels within the years in which each base is applied. A trendline rise within those periods indicates an improvement in a household’s level of poverty while a decline indicates a deepening of their poverty. For the years in which rebasing took place (2008 and 2018), we include the percentage of welfare income relative to the MBM using both the previous and the new base to show how rebasing affects adequacy.
Note that MBM thresholds vary by province and community size. The MBM thresholds used here are for Charlottetown. More information is in the methodology section.
Figure 5PE: Welfare incomes as a percentage of the MBM for example unattached single households in Prince Edward Island, 2002–2023
The welfare income of the unattached single considered employable was least adequate relative to the Poverty Line of all the example households. In 2002, their income was only 43 per cent of the Poverty Line. After a long period of relative stasis, their income began to improve relative to the Poverty Line in 2018, reaching its highest level — 69 per cent of the Poverty Line — in 2023.
Overall, the income of the unattached single considered employable increased by 26 percentage points relative to the Poverty Line across the entire time series. This represents a substantial improvement in the depth of their poverty over the past 22 years. It is important to note, however, that this household was living below the Deep Income Poverty threshold across the entire time series and was still living in deep poverty in 2023.
The welfare income of the unattached single with a disability started the time series in 2002 at 64 per cent of the Poverty Line, after which it declined and plateaued until 2017. After the 2018 rebasing, their income also increased and ended the time series in 2023 at its highest point of 76 per cent of the Poverty Line, marking the first year in which their income was above the Deep Income Poverty threshold.
Overall, the welfare income of the unattached single with a disability was 12 percentage points higher relative to the Poverty Line in 2023 than at the start of the time series in 2002. This represents an improvement in the depth of their poverty over the past 22 years. Despite recent gains, however, their income was below the Deep Income Poverty threshold for most of the time series, meaning that they would have lived in deep poverty for 21 of the last 22 years.
Figure 6PE: Welfare incomes as a percentage of the MBM for example households with children in Prince Edward Island, 2002–2023
The welfare income of the single parent with one child started the time series at 66 per cent of the Poverty Line and stayed relatively constant with minor fluctuations through to 2013 when it began increasing until 2017. After the 2018 rebasing, their income declined relative to the Poverty Line, but steadily increased through to 2023 when it ended the time series at 86 per cent of the Poverty Line.
Overall, the welfare income of the single parent with one child ended the time series 20 percentage points higher relative to the Poverty Line than it began in 2002. This indicates a significant improvement in the depth of their poverty across the entire time series. However, this household’s total welfare income was below the Deep Income Poverty threshold for 13 of the last 22 years. Although progress has been made in recent years, this household would have lived in deep poverty for more than half of the time series.
The welfare income of the couple with two children was the most adequate relative to the Poverty Line among all four households. Starting the time series at 72 per cent of the Poverty Line, their income stayed relatively constant through to 2014, when it began increasing until 2017. After the 2018 rebasing, their income fluctuated sharply, ending the time series in 2023 at the high point of 96 per cent of the Poverty Line.
Overall, the welfare income of the couple with two children ended the time series 24 percentage points higher relative to the Poverty Line than it began in 2002. Once again, this indicates a significant improvement in the depth of their poverty across the time series. However, it is important to note that their income was below the Deep Income Poverty threshold for most of the time series and as such would have been living in deep poverty for most of the last 22 years prior to the recent progress.
Access to data
The data for Prince Edward Island is available for download, including:
- Components of welfare income for all households, with a breakdown of cost of living-related payments.
- Welfare incomes in 2023 constant dollars over time for all households.
- Welfare incomes in current dollars over time for all households.
- Adequacy of welfare incomes: a comparison of each household’s welfare income with all four poverty and low-income thresholds.
- Adequacy over time: each household’s welfare income relative to the Official Poverty Line (MBM) from 2002–2023.