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.
Table 1PE shows the value of the welfare income components of the four example household types in Prince Edward Island in 2024. 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, 2024
*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 2024 ranged from $18,322 for the unattached single considered employable to $52,217 for the couple with two children. The income of the unattached single with a disability was $20,308 and that of the single parent with one child was $32,320.
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.
The Basic Unit Rate (BUR) for households receiving Social Assistance increased effective March 1. The BUR increased from $511 to $537 for the unattached single considered employable, from $804 to $845 for the single parent with one child, and from $1,703 to $1,789 for the couple with two children. This represents an increase of 5 per cent for all these households.
The Shelter Rate for households receiving Social Assistance also increased effective March 1, increasing from $850 to $875 for the unattached single considered employable, from $1,000 to $1,025 for the single parent with one child, and from $1,168 to $1,193 for the couple with two children. This means an increase of 3 per cent, 2.5 per cent, and 2 per cent respectively.
For households receiving AccessAbility supports, both the BUR and the Shelter Rate also increased effective March 1. For the unattached single with a disability, the BUR increased from $511 to $537, which represents a 5 per cent increase. The Shelter Rate increased from $850 to $875, which is an increase of 3 per cent. This household also received the Community Living Expense allowance, which also increased effective March 1 from $150 to $165, for an increase of 10 per cent. [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.]
Note that shelter rates for both Social Assistance and AccessAbility supports are based on the number of bedrooms required for the household; rates range from 1 to 5 bedrooms.
Additional social assistance: All four households received additional social assistance benefits. The unattached single households received the Communication Rate of $40 per month and the households with children received $60 per month. These amounts remained unchanged in 2024.
The couple with two children also received $450 through the School Age Allowance. The amount of this benefit increased in March from $100 to $200 for the ten-year-old and from $125 to $250 for the 15-year-old; the benefit was issued in both August and December for a total of $900.
Federal child benefits: Both households with children received the Canada Child Benefit (CCB), which increased with inflation in July from $619.75 to $648.92 per month for a child under six years of age and from $522.92 to $547.50 per month for a child aged six to 17.
Provincial child benefits: Prince Edward Island did not have a child benefit program as of 2024.
Federal tax credits/benefits: All four households received the GST/HST credit, which increased with inflation in July. The unattached single households received $332.50 in basic GST/HST credit, the single parent with one child received $665, and the couple with two children received $1,015.
Three households also received the GST/HST credit supplement. The unattached single considered employable received $107.39, the unattached single with a disability received $143.39, and the single parent with one child received the maximum amount of $175.
The federal Grocery Rebate, which was provided as a one-time GST/HST credit payment in response to high inflation in 2023, was not available in 2024.
All four households received the federal Canada Carbon Rebate (CCR), previously known as the climate action incentive (CAI). Both unattached single households received $450, the single parent with one child received $675, and the couple with two children received $900. These amounts reflected an increase over 2023.
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 2024.
The One-Time Inflationary Support payment was no longer available in 2024.
Cost-of-living payments: Several jurisdictions, including the federal government, provided additional payments in 2022 and 2023 related to the increased cost of living resulting from high inflation. While four provincial or territorial jurisdictions continued to provide inflation-related payments in 2024, neither Prince Edward Island nor the federal government did so. See the Overview section for more information.
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 2024 constant dollars, not current dollars, and are calculated using the Canada Consumer Price Index (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 have resulted in a slightly different trendline.
Figure 1PE: Welfare incomes for example unattached single households in Prince Edward Island 1986–2024, in 2024 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 was followed by a slight decrease in 2024. The welfare income of this household ended the time series at $18,322, which is a 2 per cent decrease compared to 2023 but a 14 per cent increase since the start of the time series, in constant 2024 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 were followed by a slight decrease in 2024. The welfare income of this household ended the time series at $20,308, which is a 1 per cent decrease between 2023 and 2024 but a 16 per cent increase since the start of the time series, in constant 2024 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. In 2024, the slight decrease was mainly due to the loss of provincial and federal inflation-related cost-of-living benefits, which offset the increase in basic social assistance benefit amounts.
Figure 2PE: Welfare incomes for example households with children in Prince Edward Island 1986–2024, in 2024 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 (CAI) payments, as well as the one-time inflationary support payment. In 2024, their income trajectories slightly diverged: the income of the single parent with one child decreased, mainly due to the loss of provincial and federal inflation-related cost-of-living benefits, while the income of the couple with two children had a minimal increase.
In 2024, the total welfare income of the single parent with one child was $32,320, which is a 2 per cent increase compared to 2023, and a 30 per cent increase since the start of the time series, in constant 2024 dollars. The total welfare income of the couple with two children was $52,217, which is an increase of 0.1 per cent compared to 2023, and an increase of 38 per cent since the start of the time series, in constant 2024 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 2024 are estimates based on increasing the 2023 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 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 2024, 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 2024, and one of the four was living in deep poverty.
Figures 3PE and 4PE compare 2024 welfare incomes of the four example household types to the 2024 MBM and MBM-DIP thresholds for Charlottetown.
Figure 3PE: Welfare incomes and poverty thresholds for example unattached single households in Prince Edward Island, 2024
The unattached single considered employable had the least adequate income relative to the poverty thresholds. Their income was $1,972 below the Deep Income Poverty threshold and $8,736 below the Poverty Line. This means their income was 90 per cent of the MBM-DIP and 68 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 $14, but below the Poverty Line by $6,750. This means their income was 100 per cent of the MBM-DIP and 75 per cent of the MBM.
Note that the poverty experienced by people with disabilities is underrepresented because neither the MBM nor the MBM-DIP accounts 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, 2024
The single parent with one child had a welfare income that was $3,621 above the Deep Income Poverty threshold but $5,946 below the Poverty Line. This means their income was 113 per cent of the MBM-DIP but only 84 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 $11,630 above the Deep Income Poverty threshold but remained below the Poverty Line by $1,899. This means their income was 129 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 below.
The least adequate income relative to the thresholds was that of the unattached single considered employable, whose total welfare income was 59 per cent of the LIM and 85 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 84 per cent of the LIM and 128 per cent of the LICO.
The unattached single with a disability had an income that was 66 per cent of the LIM and 94 per cent of the LICO. The income of the single parent with one child was 74 per cent of the LIM and 123 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) for Charlottetown, 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 23 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 23 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 fluctuations in the graph trendlines are due to a combination of changes in welfare incomes and the cost of living. Both factors must be considered when analyzing trends.
Figure 5PE: Welfare incomes as a percentage of the MBM for example unattached single households in Prince Edward Island, 2002–2024
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 in 2023, and ending the time series in 2024 at 68 per cent of the Poverty Line.
Overall, the income of the unattached single considered employable increased by 25 percentage points relative to the Poverty Line across the entire time series. This represents a substantial improvement in the depth of poverty experienced by households in these circumstances over the past 23 years. It is important to note, however, that households in these circumstances would have been living below the Deep Income Poverty threshold across the entire time series and would have still been living in deep poverty in 2024.
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. Their income increased after the 2018 rebasing and reached the level of the Deep Income Poverty threshold for the first time in 2023. In 2024, their income continued this trend, ending the times series at 75 per cent of the Poverty Line.
Overall, the welfare income of the unattached single with a disability was 11 percentage points higher relative to the Poverty Line in 2024 than it was at the start of the time series in 2002. This represents an improvement in the depth of poverty experienced by households in these circumstances over the past 23 years. Despite recent gains, however, their income would have been below the Deep Income Poverty threshold for 21 years in the 23-year time series, meaning that households in these circumstances would have lived in deep poverty for most of the last 23 years.
Figure 6PE: Welfare incomes as a percentage of the MBM for example households with children in Prince Edward Island, 2002–2024
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 thereafter through to 2023. In 2024, their income dropped slightly, ending the time series at 84 per cent of the Poverty Line.
Overall, the welfare income of the single parent with one child ended the time series 18 percentage points higher relative to the Poverty Line than it began in 2002. Although this indicates a significant improvement in the depth of poverty experienced by households in these circumstances across the time series, they would have lived below the Deep Income Poverty threshold for 13 of the last 23 years. Despite the progress made in recent years, households in these circumstances 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 2024 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 poverty experienced by households in these circumstances across the time series. It is important to note, however, that their income would have been 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 23 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.
- Welfare incomes in 2024 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 2002–2024.