The Downtown Eastside (DTES) of Vancouver is the poorest neighbourhood in the city and one of the poorest in Canada.
According to the City’s Downtown Eastside Housing Plan, 67% of DTES residents have low incomes (based on 2001 census). The median income in the DTES is $12,084 compared to $47,309 for the rest of the city.
According to a more recent City survey 60% of Single Room Occupancy (SRO) residents, 62% of non market SROs, and 25% of social housing residents in the area rely on income assistance. Income assistance rates in BC range from $610 a month for a single person who the government defines as able to work, to $906 for a person who the government recognizes as having a serious disability. This survey says that 77% of SRO residents and 72% of social housing residents have annual incomes of $15,000 or less.
The 2005 Statistics Canada low income cut off line for a single person in a city is $20,778 and for a family of 4: $38,801.
Incomes are so low in the DTES because welfare, disability, and seniors benefits are so low and because the minimum wage, at $8 an hour or $6 an hour for new workers, does not provide enough income to get above the low income cut off.
While incomes in the DTES have always been low, the purchasing power of welfare and minimum wage is much less now than it was 25 or 30 years ago when the neighbourhood was healthier. For example, in 1975, the minimum wage was 122% of the poverty line (low income cut off); now the $8 minimum is only 80% of the poverty line. If welfare for a single person had the same purchasing power today that it had in 1981, it would be $870 a month. But people only get $610 a month today.
The loss of purchasing power in the area is significant because developers, the City and others claim that the way to help business in the DTES is to build condos that have richer residents. They would be able to afford to buy more things in local stores. The Carnegie Community Action Project wants income for low income residents to increase so they, too, can buy things in local stores. This means pressing the provincial government to increase welfare and minimum wage and the federal government to increase pensions for seniors. CCAP is working with the Raise the Rates Coalition on these issues (see www.raisetherates.org).
