Components of welfare incomes
In Quebec, households that qualify for basic social assistance payments also qualify for:
- Recurring additional social assistance payments from the province,
- Federal and provincial child benefits, for households with children, and
- Federal and provincial tax credits 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 2022, all example households 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 1QC shows the value of the welfare income components of the four example household types in Quebec in 2022. All four households are assumed to be living in Montreal, 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 1QC: Components of welfare incomes for all example households in Quebec, 2022
* These amounts reflect a significant policy shift in 2022 that has impacted the benefits available to people pursuing employment-related training and other activities. This shift is described below. Note that participation in these activities is mandatory for new social assistance recipients (unless they qualify for Social Solidarity or are otherwise exempt due to their circumstances).
Total annual welfare incomes in 2022 ranged from $16,355 for the unattached single with a disability to $58,338 for the couple with two children. The unattached single considered employable received $20,905 and the single parent with one child received $25,715.
Basic social assistance: The unattached single considered employable and the couple with two children households received Aim for Employment benefits for the first six months of 2022. In the latter six months of 2022, they received the Allocation d’aide de l’emploi, or Manpower Training, benefits under the Aim for Employment program.
For the first six months of 2022, these two households received basic Aim for Employment program allowances: $681 per month for the unattached single considered employable and $1,054 per month for the couple with two children. These allowances increase with inflation in January of each year. In addition, they received the program’s Participation Allowance. Our calculations reflect the maximum Participation Allowance amounts of $260 per month per adult for activities related to training or the acquisition of skills — rather than $165 per month per adult for other types of activities — for both households. These amounts remained unchanged in 2022. These households also received the Monthly Adjustment amount of $45 per month for the first six months of 2022, which also remained unchanged in 2022.
Starting in July, these two households received weekly Manpower Training benefits. The amount of these benefits depends on which of the three program pathways that the person is enrolled in. Our calculations reflect the maximum available benefit amount of $475 per week for each adult in the household, which applies to those people in the Skills Development Component who undertake qualifying training activities.
Aim for Employment and Manpower Training
The move to the much higher weekly Manpower Training benefits in July 2022 is the result of a major policy change in Quebec that is intended to incentivize work-related activity by making Aim for Employment recipients eligible for the same benefits available to other Quebecers receiving training and employment supports. As a result, the unattached single considered employable and the couple with two children became ineligible for regular monthly Aim for Employment benefits as of July but stayed on the Aim for Employment caseload. The inclusion of this change in our calculations reflects both Quebec’s mandatory enrolment in the Aim for Employment program for new social assistance recipients considered employable as well as the assumptions in this report’s methodology.
The level of benefits included in our calculations reflects only one of three pathways within the Aim for Employment program. The Intensive Employment Search component and the Development of Social Skills component both provide a Participation Allowance of $70 a week in addition to the basic benefit. The Skills Development Component has three levels of employment-assistance allowance: $370 a week for general training, Job Readiness Projects, and the Targeted Initiative for Older Workers; $475 a week for qualifying training (which we have included in our calculations, as noted above); and an amount equal to the minimum wage for 35 hours of work for the Support for Self-Employment Measure. Note that participation in this program is only available for 12 months, with a possible extension to 24 months. Following this period, a household would be eligible to receive regular Social Assistance program monthly benefit amounts; in 2022, these were $681 per month for the unattached single considered employable and $1,054 per month for the couple with two children, plus any associated additional allowances.
The unattached single with a disability received Social Solidarity program benefits in the amount of $1,035 per month. The single parent with one child received Social Assistance program benefits in the amount of $681 per month. Both Social Assistance and Social Solidarity benefits increase with inflation every January. For the single parent with one child, our calculations also include the Temporarily Limited Capacity Allowance of $144 per month from the Social Assistance program, which increased from $140 in 2021. Both households also received the Monthly Adjustment amount of $45 per month for the single parent with one child and $103 per month for the unattached single with a disability, which remained unchanged in 2022. (Note that although the single parent is typically required to take part in the Aim for Employment program, our calculations reflect non-participation due to the young age of their child.)
NOTE: The Government Action Plan for Economic Inclusion and Social Participation 2017–2023, which was announced December 10, 2017, introduced a Basic Income Program for people with severe employment constraints. Program implementation will be phased in by 2023. Starting January 1, 2019, Social Solidarity Program recipients who have been in the program for at least 66 of the past 72 months became eligible for a new benefit, the “ajustement de la prestation de base 66/72.” As of January 1, 2022, the amount of the ajustement is $365 per month for unattached singles and single-parent families and $227 per month for two-adult families.
Additional social assistance: In addition to basic assistance, both households with children received $1,410 through the Shelter Allowance administered through Revenu Québec, which increased from $100 per month to $170 per month in October. The couple with two children also received the annual School-Related Allowance of $76 for the ten-year-old and $123 for the 15-year-old, amounts that remained unchanged in 2022.
Federal child benefits: Both households with children received the Canada Child Benefit (CCB), which increased with inflation in July 2022 from $569.42 to $583.08 per month for a child under six years of age and from $480.41 to $491.91 per month for a child aged six to 17.
The COVID-19 pandemic-related CCB Young Child Supplement of $1,200 that the single-parent household received in 2021 was not available in 2022.
Provincial child benefits: Both households with children received the Family Allowance, which increases with inflation each January and, for 2022, was $2,614 for one child and $5,228 for two children. The single parent with one child received the Family Allowance Single Parent Supplement of $917. The couple with two children also received the School Supply Supplement of $108 per child, which was slightly increased in 2022.
Federal tax credits/benefits: All four households received the GST/HST credit, which increased in July 2022 with inflation. The unattached single considered employable and the unattached single with a disability received $302.50 in basic GST/HST credit, while the single parent with one child received $605 and the couple with two children received $923. Three households also received the GST/HST credit supplement: the unattached single received $34.11, the unattached single with a disability received $67.83, and the single parent with one child received the maximum amount of $159.
All households received an additional one-time GST credit payment related to the increased cost of living due to high inflation, paid in November 2022. The unattached single considered employable received $169.97, the unattached single with a disability received $187.13, the single parent with one child received $386.50, and the couple with two children received $467.
Provincial tax credits/benefits: All four households received the Quebec Solidarity Tax Credit, which increased with inflation in July 2022 from $85.67 to $87.92 per month for the unattached single households, from $96.08 to $98.58 for the single parent with one child, and from $130.00 to $133.42 for the couple with two children.
Cost-of-living payments
As mentioned above, all four households received payments from both the provincial and federal governments related to the higher cost of living resulting from high inflation in 2022. The provincial Special One-Time Cost of Living Tax Credit was a one-time payment provided in May 2022 in the amount of $500 per adult, and the Refundable Cost of Living Tax Credit was a one-time payment provided in December 2022 in the amount of $600 per individual (i.e., both adults and children). The federal one-time GST credit payment was paid in November 2022 and was equivalent to the two regular GST credit (and credit supplement if applicable) payments received in the latter half of 2022.
Table 2QC: Cost-of-living payments for all example households in Quebec, 2022
Changes to welfare incomes
Figures 1QC and 2QC show how the total welfare incomes for each of the four example household types in Quebec have changed over time. Note that the values are in 2022 constant dollars, not real dollars. Using constant dollars takes into account the effect of inflation, as measured by the national Consumer Price Index, given that inflation reduces real dollar values over time.
Figure 1QC: Welfare incomes for example unattached single households in Quebec 1986–2022, 2022 constant dollars
After large increases in the late 1980s and early 1990s, the welfare income of the unattached single considered employable remained stable, with a slight decline, until 2011; after 2011 their income saw a small increase then stayed at about the same level until 2018. In 2019, their income increased substantially, largely due to the higher work-related allowances associated with the newly mandatory Aim for Employment program. In 2022, their income increased significantly, which was primarily due to the transition in July 2022 from Aim for Employment benefits to Manpower Training benefits under the Aim for Employment program, as described in the "Components of welfare incomes" section.
The welfare income of the unattached single with a disability remained relatively flat through the 1990s and through to 2017, with a small increase in 2012. Starting in 2018, their income increased through to 2020, when it began to decline until 2022. The increase in 2018 was largely due to enhancements in basic social assistance benefits. The 2020 increases were largely the result of COVID-19 pandemic-related payments as well as regular inflationary increases to most benefits. The 2021 and 2022 declines were primarily due to the loss of pandemic-related payments and the effects of high inflation.
In 2022, the total welfare income of the unattached single considered employable was $20,905 and that of the unattached single with a disability was $16,355.
Figure 2QC: Welfare incomes for example households with children in Quebec 1986–2022, 2022 constant dollars
The total welfare income of the single parent with one child gradually increased across the time series until 2021, with fluctuations in the late 1980s and early 1990s. Their income peaked at $27,805 in 2021, declining to $25,715 in 2022.
The total welfare income of the couple with two children followed a similar trend, with more of a decline in the mid-1990s, and much higher increases in 2005, 2019, 2020, and 2022. The 2022 high of $58,338 is a significant increase across the time series.
Increases between 2015 and 2017 were primarily the result of changes to federal child benefits. The large increase between 2018 and 2019 for the couple with two children was due to the inclusion of the Aim for Employment Participation Allowance for both adults, while the single parent received the much lower Temporarily Limited Capacity Allowance. The 2020 increases were primarily due to COVID-19 pandemic-related payments as well as yearly inflationary increases to most benefits, while the 2021 declines were primarily due to the loss of pandemic-related payments. The large increase in 2022 for the couple with two children was due to much higher weekly Manpower Training benefits for both adults in the couple, which reflects the significant policy change described in the "Components of welfare incomes" section. The 2022 decline for the single parent with one child is due to the effects of high inflation.
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.
As mentioned in the Introduction, there are two commonly used measures of poverty 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, Montreal, in the analysis below. As well, the LIM thresholds are estimates based on increasing the 2021 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 persons 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 Quebec with all four poverty / low-income thresholds is available for download.
Poverty threshold comparisons
Figures 3QC and 4QC compare 2022 welfare incomes for the four example household types to the 2022 MBM and MBM-DIP thresholds for Montreal.
The welfare incomes of three of the four example household types in Quebec were below Canada’s Official Poverty Line in 2022, including one that was below the MBM-DIP. This means that three of the households were living in poverty in 2022, and of those one was living in deep poverty.
Figure 3QC: Welfare incomes and poverty thresholds for example unattached single households in Quebec, 2022
The unattached single considered employable had an income that was $3,644 above the Deep Income Poverty threshold but $2,109 below the Poverty Line. This means their income was 121 per cent of the MBM-DIP and 91 per cent of the MBM.
The unattached single with a disability had the lowest income relative to the poverty thresholds. Their income was $906 below the Deep Income Poverty threshold and $6,659 below the Poverty Line. This means their income was 95 per cent of the MBM-DIP and 71 per cent of the MBM.
Note that the poverty experienced by persons with disabilities is underrepresented because neither the MBM nor the MBM-DIP account for the additional costs associated with disability.
Figure 4QC: Welfare incomes and poverty thresholds for example households with children in Quebec, 2022
The single parent with one child had a welfare income that was $1,309 above the Deep Income Poverty threshold but $6,827 below the Poverty Line. This means their income was 105 per cent of the MBM-DIP and 79 per cent of the MBM.
The couple with two children had the highest income relative to the poverty thresholds. Their income was $23,818 above the Deep Income Poverty threshold and $12,311 above the Poverty Line. This means their income was 169 per cent of MBM-DIP and 127 per cent of the MBM.
Low-income threshold comparisons
The welfare incomes of the example households were below or at the low-income thresholds, as shown in the table linked above.
The lowest income relative to these thresholds was that of the unattached single with a disability, whose total welfare income was only 56 per cent of the LIM and 67 per cent of the LICO. The highest was that of the couple with two children, whose total welfare income was 100 per cent of the LIM and 127 per cent of the LICO.
The unattached single considered employable had a welfare income of 72 per cent of the LIM and 86 per cent of the LICO. The single parent with one child had a welfare income of 62 per cent of the LIM and 87 per cent of the LICO.
Changes to adequacy of welfare incomes
Figures 5QC and 6QC show the total welfare incomes of each of the four example household types in Quebec as a percentage of the Market Basket Measure (MBM), starting in 2002.
The black line at the top of each of the graphs (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 20 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 20 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.
Note that MBM thresholds reflect the conditions in each province and vary by community size. The MBM thresholds used here are for Montreal. More information is in the methodology section.
Figure 5QC: Welfare incomes as a percentage of the MBM for example unattached single households in Quebec, 2002–2022
Of the example households, the welfare income of the unattached single considered employable was the lowest relative to the Poverty Line across the time series until 2022. In 2002, their income was only 56 per cent of the Poverty Line. After hovering between 46 and 56 per cent until 2017, their income increased in 2019 and 2020, followed by a slight decrease in 2021, and then a significant increase in 2022, which is the result of the policy change described in the “Components of welfare incomes” section.
Overall, the income of the unattached single considered employable increased by 35 percentage points relative to the Poverty Line across the entire time series, from 56 to 91 per cent. Although this represents a significant improvement in the depth of their poverty, the household was still living below the Poverty Line in 2022. Their income was also below the Deep Income Poverty threshold for the entire time series except for 2022, which means that they consistently lived in deep poverty until 2022.
The welfare income of the unattached single with a disability started the time series at 80 per cent of the Poverty Line, which was followed by decreases and variability down to 68 per cent in 2011 and 2019. After a slight uptick in 2020 and a slight decline in 2021, their income increased relative to the Poverty Line again in 2022, ending the time series at 71 per cent.
Overall, the welfare income of the unattached single with a disability was nine percentage points lower relative to the Poverty Line in 2022, at 71 per cent, than it was in 2002, at 80 per cent. This indicates a deepening of their poverty over the time series. As well, their income started the time series above the Deep Income Poverty threshold but fell below starting in 2008, meaning that they would have consistently lived in deep poverty for the majority of the time series.
Figure 6QC: Welfare incomes as a percentage of the MBM for example households with children in Quebec, 2002–2022
The welfare income of the single parent with one child started the time series at 82 per cent of the Poverty Line in 2002. Their income saw a general increasing trend relative to the Poverty Line after each MBM rebasing. In 2020, this trend continued with another increase in their income relative to the Poverty Line, which then decreased for two consecutive years through to 2022. This household’s income ended the time series at 79 per cent of the Poverty Line.
Overall, the welfare income of the single parent with one child fared best relative to the Poverty Line among all four households until 2018 but it has since fallen behind two of the other three households. Their income was three percentage points lower in 2022 than it was in 2002, which indicates a slight deepening of their poverty across the time series. Nevertheless, their income was above the Deep Income Poverty threshold across the entire time series, meaning that although they were living in poverty for the last 20 years, they were not living in deep poverty.
The welfare income of the couple with two children started the time series at 74 per cent of the Poverty Line and followed a similar trend to that of the single parent with one child until 2018. After 2018 their income varied significantly relative to the Poverty Line, seeing large increases in 2019 and 2020, a small decrease in 2021, then a significant increase again in 2022 due to the substantial policy change described in the “Components of welfare incomes” section.
Overall, the welfare income of the couple with two children was 53 percentage points higher in 2022, at 127 per cent of the Poverty Line, than it was in 2002, at 74 per cent. This indicates a significant improvement in the depth of their poverty across the time series and a standard of living above the Poverty Line as of 2022. However, it is important to note that their income was below the Deep Income Poverty threshold for eight of the past 20 years, meaning that they lived in poverty for most of the time series, and lived in deep poverty for a few of those years.
Access to data
The data for Quebec is available for download, including:
- Components of welfare income for all households, with a breakdown of cost of living-related payments.
- Welfare incomes in 2022 constant dollars over time for all households.
- Welfare incomes in real 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 2002–2022.