Affordability Plan

• Enhancing the Canada workers benefit

  By enhancing the Canada Workers Benefit at a cost of $1.7 billion in new support for low-income workers this year, the Government of Canada is putting more money in the pockets of close to 3 million Canadians.

  This means that a modest-income couple could receive up to $2,400 more in support this year.

  At a time of global inflation, most Canada Workers Benefit recipients are receiving this increased support through their 2021 tax return.

  Learn more about the Canada Workers Benefit
• A 10% increase to Old Age Security (OAS)

  Life can get even more expensive as we get older. That is why the government is increasing the OAS pension for seniors 75 and older by 10% as of July 2022.

  This means over $800 in new support to full pensioners in the first year, and increased benefits for more than three million seniors.

  Learn more about Old Age Security
• Affordable early learning and child care

  Because of the Government of Canada’s new affordable, universal early learning and child care system, Canadian families will see their fees reduced by an average of 50% this year for regulated child care spaces.

  The government’s plan means average savings for families of up to $6,000 in British Columbia and in Ontario, $5,610 in Alberta, $5,090 in Newfoundland and Labrador, $4,950 in Nunavut and the Northwest Territories, $4,690 in Nova Scotia, $3,910 in Saskatchewan and in New Brunswick, $3,390 in Prince Edward Island, and $2,610 in Manitoba.

  In Yukon, the government’s plan will expand access to the existing affordable universal child care system, and will create 110 new child care spaces.

  In Quebec, which has a child care system of its own, the government’s plan will help create about 37,000 new child care spaces.

  Learn more about affordable Early Learning and Child Care
• Helping Canadians afford their rent

  Housing is more expensive than ever. As the Government of Canada works to build more homes, fight unfair practices that drive up prices, and make housing more affordable for Canadians, it would also provide, pending Parliamentary approval, a one-time tax-free payment of $500 to nearly two million qualifying Canadians who are struggling with the cost of rent. This doubles the government's Budget 2022 commitment, and would reach twice as many Canadians as initially promised. This new funding would be in addition to the existing Canada Housing Benefit.

  Apply for the One-time top-up to the Canada Housing Benefit
• Dental care for Canadians

  Seeing a dentist is important for our health, but it can also be expensive. One-third of Canadians do not have dental insurance, and in 2018, more than one in five Canadians reported avoiding dental care because of the cost. That is why the Government of Canada will provide dental care to uninsured Canadians with a family income of less than $90,000 annually, starting with children under 12 this year.

  The Canada Dental Benefit will provide families with direct payments totaling up to $1,300 per child over the next two years (up to $650 per year) to cover the cost of dental care for their children under 12. This is the first stage of the government's plan to ensure that Canadians receive the dental care they need, and would allow children under 12 to see a dentist while a comprehensive dental care program is developed.

  Apply for the Canada Dental Benefit
• Double the Goods and Services Tax Credit for six months

  The Goods and Services Tax (GST) Credit is a tax-free quarterly payment that helps people and families with low and modest incomes offset the GST that they pay. Pending Parliamentary approval, doubling the GST Credit for six months would provide $2.5 billion in relief for the Canadians who need it most. Single Canadians without children would receive up to an extra $234 and couples with two children would receive up to an extra $467 this year. Recipients would not need to apply, as the payment would be issued automatically.

  Learn more about the GST Credit
• Benefits that are indexed to inflation

  As the Government of Canada keeps working to make life more affordable for Canadians, important benefits that millions of Canadians count on are indexed to inflation to help keep up with the cost of living.

  This includes the Canada Child Benefit, the Canada Pension Plan, OAS, and the Guaranteed Income Supplement.

• Helping Canadians while fighting climate change

  Climate Action Incentive Payments

  Because of the Government of Canada’s price on pollution, in the provinces where the federal system applies, a family of four will receive $745 in Ontario, $832 in Manitoba, $1,101 in Saskatchewan, and $1,079 in Alberta in Climate Action Incentive payments for the 2022-23 fuel charge year.

  The majority – 8 families out of 10 – will receive more in Climate Action Incentive payments than they will pay as a result of the price on pollution, with low-and middle-income families – who generally produce fewer emissions – benefitting the most.

  As the price on pollution increases, Climate Action Incentive payments will also increase. The Government of Canada does not keep any direct proceeds from pollution pricing.

Budget 2022 also includes a comprehensive plan to make housing more affordable and investments focused on growing a more resilient economy to deliver more good-paying jobs for Canadians.

Related links

• Investing to make life more affordable
• Deputy Prime Minister outlines government’s Affordability Plan for Canadians
• Making life more affordable for Canadians this year
• Legislation to grow Canadian economy and make life more affordable receives Royal Assent