Statistics Canada uses the term Low Income Cut-Off or LICO. What does it mean?
Essentially LICO is a statistical number that defines where poverty ends. It is based on where you live and the size of your family. It is not an exact science; however it does help government to determine if one is living above or below the statistical poverty line.
LICO is calculated for urban and rural areas. Sometimes as in today’s Guardian, it is shown in after-tax income. The 2006 table below is before taxes, a number that most people can calculate from their wages or income.
Charlottetown 2006
Single Person $18,147
Family of 4 $33,721
PEI Rural 2006
Single Person $14,596
Family of 4 $27,122
The reality on PEI is that anyone working for minimum wage in Charlottetown or Summerside is living below LICO. You need to work 52 hours per week and only have 5 sick days in a year to break even with LICO.
If you are a single person on CP Disability, the average benefit in 2006 was $9,000. You would be $9,000 short of the poverty line.
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