As part of Canada’s economic plan, the Honourable Deputy Prime Minister and Minister of Finance, Chrystia Freeland, announced that the federal government is taking new measures
To provide rent support to low-income renters, increase the availability of emergency shelter spaces in cities nationwide, and combat corporate greed to reduce grocery prices.
The Deputy Prime Minister first announced a $99 million national increase for the Canada Housing Benefit. This program aids in reducing rent costs by providing direct rent support payments to Canadians. With this boost, the federal government’s contribution to the Canada Housing Benefit in 2023-24 rises to $325 million. These funds will help low-income renters through rent support programs run by provinces and territories. By 2027-28, the Canada Housing Benefit aims to make rent cheaper for over 300,000 low-income households, showing the government’s commitment to solving housing affordability problems.
The Deputy Prime Minister also highlighted that the federal government is allocating $100 million in emergency winter funding. It will help 85 communities nationwide to increase shelter spaces for individuals facing homelessness. This investment will support shelters in expanding their capacity, providing temporary rental assistance, and offering additional warming spaces and meals to those in need. These updates come after a recent $362.4 million boost to the Interim Housing Assistance Program (IHAP). This program gives communities what they need to shelter people who are seeking safety in Canada from violence, war, and persecution.
Minister François-Philippe Champagne tripled federal funding for Canada’s program supporting consumer and volunteer groups to reduce grocery and essential item costs, now at $5 million annually. Minister Champagne is launching new projects with consumer advocacy groups to investigate and reveal price inflation, harmful business practices like shrinkflation and skimpflation and other corporate greed driving up grocery prices. The federal government urges major grocers to develop short-term plans to stabilize grocery prices. These steps will enhance affordability and aid those in need, displaying the federal government’s commitment to making an economy that helps everyone.
| Shrinkflation is when companies shrink the size of a product but keep the price the same.Skimpflation happens when manufacturers use cheaper ingredients in the same food products to save money. |
Quick Facts: Canada’s Housing Support
Canada Housing Benefit (CHB):
- Funding: Jointly funded with provinces and territories, this initiative totals $4.8 billion over eight years.
- Objective: Provide direct financial aid to Canadians facing housing needs.
- Focus: Includes $630 million for individuals experiencing gender-based violence.
- Aid: Offers direct rent support to assist low-income Canadians with housing costs.
One-Time Top-Up to Canada Housing Benefit(CHB):
- Issued: Early last year.
- Beneficiaries: Over 800,000 families earning under $35,000 and individuals earning under $20,000.
- Aim: Provided $500 tax-free payments to aid with rent, particularly for those spending 30% of their income on rent.
Interim Housing Assistance Program (IHAP):
- Funding: Nearly $750 million since 2017.
- Purpose: Alleviates interim housing pressures due to increased asylum claimants.
- Aid: Distributed to provinces and municipalities to address housing needs.
Canada’s Economic Plan for Housing is robust and action-oriented. The Affordable Housing and Groceries Act swiftly eliminated GST on new rental housing, easing financial burdens. Through the Apartment Construction Loan Program, a significant allocation of over $40 billion is earmarked to construct more than 101,000 rental homes by 2031-32, addressing housing shortages. The Affordable Housing Fund, backed by over $14 billion, aims to create 60,000 new affordable homes and repair 240,000 existing ones. The Housing Accelerator Fund, with $4 billion in allocation, incentivizes municipalities to streamline construction by removing zoning barriers, targeting the swift completion of at least 100,000 homes in three years and 500,000 in a decade. The Rapid Housing Initiative, funded with over $4 billion, aims to build 15,500 affordable homes for people experiencing homelessness and those in dire housing need. The Federal Lands Initiative, supported by over $200 million, focuses on repurposing federal lands and buildings to construct 4,500 new homes.
Additionally, Canada Mortgage Bonds provide vital aid, unlocking $20 billion in financing yearly to construct 30,000 new rental apartments. The Tax-Free First Home Savings Account offers up to $8,000 annually, with a lifetime limit of $40,000, for first-home down payments. Lastly, with a nearly $4 billion investment, the Reaching Home Program aims to eradicate chronic homelessness across Canada, reflecting the government’s commitment to ensuring accessible and affordable housing for all.
The Bottom Line
Canada’s recent economic plan demonstrates a robust commitment to addressing critical challenges in housing affordability and grocery prices. Efforts like expanding the Canada Housing Benefit and funding emergency shelters aid those in need. At the same time, actions against corporate greed in the grocery industry show a solid commitment to consumer well-being. Through substantial investments and targeted programs, the government is actively working to create a more inclusive and accessible economy for all Canadians, ensuring that no one is left behind.
