Welfare

The basic needs approach is used to measure rates of absolute poverty in developing countries. It defines the absolute minimum resources necessary for long-term physical well-being. A traditional list of "basic needs" includes food, water, shelter and clothing. The poverty line is defined as the amount of income required to satisfy those needs. In 2004, 4.9% of Canadians were below the poverty line. 4.9% represents 1.6 million Canadians Relative poverty measures reveal information about disparities of income within a population. If a society becomes richer, even those in the bottom income bands may see their incomes rise as well. A measure which accounts for this rise is a "relative measure of poverty". Low-income cut-off (LICO) rates represent an income threshold below which a family will likely devote a larger share of its income on the necessities of food shelter and clothing than the average family. As of 2011, 8.8% of Canadians were below the LICO. 8.8% represents 2.9 million Canadians. Discretionary income is the amount of an individual's income available for spending after the essentials have been taken care of: total personal income after subtracting taxes and minimal survival expenses (such as food, medicine, rent or mortgage, utilities, insurance, transportation, property maintenance, child support, etc.) that maintain a certain standard of living.