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Making life more affordable for Canadians this year

Press Release

September 13, 2022

Canadians are feeling the rising cost of living, particularly through higher food prices and rent. While inflation is a global challenge – caused by the COVID-19 pandemic and Russia’s illegal and unjustifiable invasion of Ukraine – we are helping families weather its impacts by working to put more money back in the pockets of the middle class and those working hard to join it this year.

The Prime Minister, Justin Trudeau, today announced that the government’s first pieces of legislation introduced in the upcoming Parliamentary sitting would make life more affordable for Canadians who need it most.

The measures in these bills would:

  • Double the Goods and Services Tax Credit (GSTC) for six months, delivering support to roughly 11 million individuals and families who receive the tax credit, including about half of Canadian families with children, and more than half of Canadian seniors. Single Canadians without children would receive up to an extra $234 and couples with two children would receive up to an extra $467 in their pockets this year. Seniors would receive an extra $225 on average.
  • Provide a Canada Dental Benefit to children under 12 who do not have access to dental insurance, starting this year. Direct payments totalling up to $1,300 per child over the next two years (up to $650 per year) would be provided for dental care services. This is the first stage of the government’s plan to deliver dental coverage for families with income under $90,000, and will allow children under 12 to get the dental care they need while we develop a comprehensive national dental care program.
  • Provide a one-time top-up to the Canada Housing Benefit to deliver $500 to 1.8 million Canadian renters who are struggling with the cost of housing. This more than doubles our Budget 2022 commitment, reaching twice as many Canadians as initially promised. This new one-time federal benefit will be in addition to the Canada Housing Benefit currently co-funded and delivered by provinces and territories. The federal benefit will be available to applicants with an adjusted net income below $35,000 for families, or below $20,000 for individuals, who pay at least 30 per cent of their income on rent.

These measures build on the strong action we have been taking since 2015 to make life more affordable and build an economy that works for all Canadians. From cutting taxes for the middle class and raising them on the wealthiest one per cent, to delivering a Canada Child Benefit and raising it every year to continue putting more money back in the pockets of nine out of 10 families with children, to cutting regulated child care fees in half on average by the end of this year for families across the country, we are delivering support for the middle class and those working hard to join it.

Quote

“From helping families pay rent to making sure people can afford the dental care they need and putting hundreds of dollars back in the pockets of Canadians, this suite of new measures will support families who need it the most, when they need it the most. As we head into a new Parliamentary sitting, we are working hard to continue delivering results for the middle class and those working hard to join it.”

The Rt. Hon. Justin Trudeau, Prime Minister of Canada

Quick Facts

  • This targeted support package totals more than $4.5 billion, of which $3.1 billion is in addition to funding previously allocated in Budget 2022.
  • Doubling the Goods and Services Tax Credit for six months will provide $2.5 billion in relief for Canadians who need it most.
  • The Canada Dental Benefit would deliver over $900 million to support dental health, starting in 2022-23. The Canada Dental Benefit for uninsured children under the age of 12 is the first stage of the government’s plan to deliver dental care for families with income under $90,000 who do not have access to dental insurance. The Canada Dental Benefit would provide direct payments to eligible applicants totalling up to $650 per year per child for dental care services for applicants with a family income under $70,000, $390 for those with a family income of $70,000 to $79,999, and $260 for those with a family income of $80,000 to $89,999. Parents or guardians of eligible children would need to apply to access payments.
  • A new national dental program is under development, with the goal of expanding dental coverage to under 18-year-olds, seniors, and persons living with a disability in 2023, with full implementation for all families with incomes under $90,000 by 2025.
  • The $500 payment for renters doubles our commitment made in Budget 2022, providing $1.2 billion in relief for 1.8 million eligible Canadians.
  • In addition to today’s announcement, the following measures will support Canadians this year:
    • Enhancing the Canada Workers Benefit at a cost of $1.7 billion in new support for an estimated three million low-income workers this year, with a couple receiving up to $2,400 more this year, and single workers receiving up to $1,200 more. Most recipients first received this additional support through their 2021 tax refund.
    • Cutting regulated child care fees in half on average for families in Canada by the end of this year.
    • A 10 per cent increase to the Old Age Security (OAS) pension for seniors 75 years and older, which began in July 2022, and will provide more than $800 in new support to full pensioners over the first year, and increase the number of beneficiaries by more than three million seniors.
    • Providing more support for students by doubling the Canada Student Grant amount until July 2023 and by waiving interest on Canada Student Loans through to March 2023.
  • Here’s how we will make life more affordable for Canadians this year:
    • A couple in Ontario with an income of $45,000 and a child in daycare could receive about an additional $7,800 above existing benefits this fiscal year.
    • A single recent graduate, living in Alberta, with an entry-level job and an income of $24,000 could receive an approximate additional $1,300 in new and enhanced benefits.
    • A senior with a disability in Quebec could benefit from over $2,500 more this year than she received last year.
  • Canada has the lowest total government deficit in the G7 this year, and by far the lowest net debt burden among these countries (32.1 per cent of GDP versus an average of 97.5 per cent of GDP for the group as a whole).
  • The International Monetary Fund and the Organisation for Economic Co-operation and Development predict that the Canadian economy will see the strongest growth in the G7 this year and next.

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