The cost of living in Canada is a growing concern, especially for newcomers. A recent Leger poll for OMNI news found that 83% of 1522 newcomers surveyed are struggling with affordability issues, making their transition to Canadian life tougher. Moreover, Statistics Canada reports that over a third of new arrivals spend more than 30% of their income on rent, highlighting the pressing need for affordable housing solutions.
In response, the Canadian government announced new measures on February 6th to ease the financial burden on Canadians and newcomers alike. These initiatives aim to make both housing and groceries more affordable, building on previous efforts to address the cost of living.
Housing Affordability Boost
Deputy Prime Minister Chrystia Freeland revealed an injection of $99 million CAD into the Canada Housing Benefit (CHB), bolstering support for low-income renters. This boost increases the CHB’s total allocation to $325 million CAD for the fiscal year 2023-2024, offering direct financial relief to those in need via provincial and territorial plans. Overall, the CHB will see a $4.8 billion CAD investment over eight years.
This is part of a broader strategy to make homes more affordable, including:
- The $4 billion Housing Accelerator Fund, encouraging cities to fast-track housing production, with a goal of adding 100,000 new homes in three years.
- The Canadian Mortgage Charter, setting out mortgage relief policies for homeowners in financial distress.
- The Tax-Free Home Savings Account, allowing first-time buyers to save up to $40,000 CAD for a down payment, tax-free.
These measures, alongside the 2023 fall economic strategy, underscore the government’s commitment to increasing the supply of affordable housing.
Tackling Grocery Prices and More
Minister of Innovation, Science and Industry, François-Phillipe Champagne, announced a focus on corporate practices affecting prices for essentials like groceries. The government plans to triple funding for the Contributions Program for Non-profit Consumer and Voluntary Organisations. This boost supports research into consumer affairs, specifically examining practices like:
- Shrinkflation: Reducing product size or quantity while maintaining or increasing prices.
- Skimpflation: Compromising on product quality by using cheaper ingredients but keeping prices steady or higher.
These steps come as Canada, alongside many Western nations, grapples with rising living costs, aiming to provide relief to consumers and ensure a smoother settlement process for newcomers.
Why This Matters
For newcomers and established residents alike, these government initiatives offer a beacon of hope in the face of rising living costs. By directly addressing housing affordability and scrutinizing corporate practices in essential goods, Canada is taking concrete steps to ensure that its promise of a better life remains within reach for all.
