Poverty is on the rise in Canada. The cost of living is soaring, and it’s hitting everyone hard. But for people with disabilities, it’s even tougher. 27% of people in Canada have a disability. Canada’s official data suggests that of those with severe disabilities living alone, 28% live in poverty. However, we know from the families and people we work on behalf of, that the rate of poverty for people with an intellectual disability who live outside the family home is much higher and is estimated to be 73%. 

People with disabilities often have additional expenses related to their disability. You would think that when the government measured poverty, they would include these costs – but they don’t.

Why Measuring Poverty Matters

Measuring poverty is important. It helps us understand how much money people need to meet their basic needs and participate in society. It guides government policies and welfare programs, making sure services go to those who need them most.

But when we measure poverty, it needs to be accurate. If it’s not, government support won’t be either. In Canada, we use the Market Basket Measure (MBM) as the official poverty measurement. And for people with disabilities, it’s far from accurate.

What is the Market Basket Measure?

The Market Basket Measure adds up how much money a family needs for basic things like food, clothes, a place to live, transportation, and other essentials.  If a family’s income is less than this amount, they are seen as living in poverty.

The Problem with the Market Basket Measure for People with Disabilities

The Market Basket Measure misses a key factor: the additional costs of living with a disability. These costs can be big and include things like medical supplies, assistive devices, personal support workers, and changes to homes and vehicles.

Advocates argue that the poverty line for people with disabilities is around 30% higher than the standard poverty line.  For example, in Toronto in 2023, the poverty line according to the Market Basket Measure was $28,765, but this doesn’t consider the extra costs of living with a disability.

Imagine needing an electric wheelchair, which can cost between $1,766 and $4,754, or more if you need more technology and reclining options. Or modifying your home with a ramp or accessible bathroom. Someone with a disability might need a personal support worker, a support animal, or therapy services. These aren’t luxuries. They’re necessities for well-being and social inclusion, but they come at a cost.

Why Is This Important?

Living with a disability can cost thousands of dollars each year. But the Market Basket Measure does not include these costs. This means it does not show the true level of poverty for Canadians with disabilities.

This is important because the Market Basket Measure sets the official poverty line, which is used to decide on support for people with disabilities. This includes programs like the Canada Pension Plan Disability Benefit (CPP-D), the Disability Tax Credit (DTC),  provincial/territorial disability income assistance programs, and as we have just seen recently, the new Canada Disability Benefit (CDB).

On average, social assistance is about 40% below the poverty line. When poverty data is wrong, the support is wrong too, and people with disabilities remain in poverty.

The Need for Change

The government needs to measure poverty accurately for everyone in Canada, including people with disabilities. The poverty line should change to include the higher cost of living with a disability. This would help us understand poverty better and make sure people with disabilities get the support they need.

Here’s what needs to change:

  • Figure out the extra costs of disability and change the Market Basket Measure to include these costs.
  • Collect better data on the extra costs of disability.
  • Update poverty lines to include the unique financial situations of people with disabilities.
  • Use poverty measurements that include not just money, but also social exclusion, discrimination, and lost opportunities.
  • Incorporate the Accessible Canada Act (ACA) definition of disability into the Market Basket Measure. This would reflect the social model of disability, recognizing what disability means in people’s daily lives.

To build a truly inclusive society, our way of measuring poverty must show the real challenges that all people face, especially those with disabilities. This is the only way we can make policies and supports that truly help everyone get out of poverty.

We recently sent our views and recommendations for changes to the Market Basket Measure to Statistics Canada. You can read more about our brief here.