Trudeau reveals details of plan to help low-income families
Families will be able to get hundreds of dollars!
Recently we wrote about a project to help low-income families pay for dental care for children. Yesterday the details of the planned innovations were revealed, they were announced by Prime Minister Trudeau in New Brunswick at a Liberal party meeting:
"Today we are announcing additional targeted new measures that will support the middle class and the people who work hard to join it. These will be the very first pieces of legislation we will introduce when the House returns."
The statement was scheduled to be released as early as September 8, but due to the death of Queen Elizabeth II, the speech was postponed.
The fulfillment of these commitments is consistent with the terms of the government's trust and delivery agreement with the New Democrats, which was to have been completed by the end of the year.
1. Canada Dental Benefit
First of all, information was confirmed about the dental allowance for children under the age of 12: families with incomes under $90,000 CAD will receive money for two years to pay for dentists. The size of the payment will depend on family affluence:
- $650 CAD will be provided per child if the family's net income is less than $70,000 CAD;
- $390 CAD — for incomes between $70,000 and $79,999 CAD;
- $260 CAD — for income between $80,000 and $89,999 CAD
To access the benefit, parents or guardians must apply through the Canada Revenue Agency and certify that:
- their child does not have access to private dental care;
- they will have their own dental expenses for which they will use the benefit;
- they understand that they will need to provide receipts to verify cash expenses incurred, if necessary.
Under this program, 500,000 children will be eligible for a portion of dental coverage, and it is assumed that receiving this benefit will not reduce any pre-existing federal income benefits. If approved by the Legislature, the plan would be implemented on Dec. 1. The federal budget for 2022 allocates $5.3 billion CAD to Health Canada for the next five years to oversee implementation of the Canada Dental Benefit.
Trudeau said the next step will be to provide dental care to under-18s, seniors and people with disabilities by the end of 2023, before the program is fully implemented by 2025.
2. Support for tenants
There are also plans to supplement the $500 CAD one-time rental support program, called the Canada Housing Benefit, for renters with adjusted net incomes below $35,000 CAD for families or $20,000 CAD for those living alone.
The surcharge was included in the federal budget for 2022, with the government allocating $475 million CAD to those eligible this year. Now the Liberals say the proposed funding is $1.2 billion CAD.
3. Increase of discount on value added tax
Jagmeet Singh, leader of the New Democratic Party of Canada, also called for an increase in the Value Added Tax rebate. The program is currently a tax-free payment made four times a year to low-income individuals and families to offset the goods and services tax.
Under the current program, single Canadians with a maximum income of just over $49,000 CAD receive $467 CAD per year. Those who are married or in a union receive a maximum of $612 CAD, and an additional $161 CAD for each child up to age 19, depending on family income.
If the law passes, the government estimates that:
- a single mother with one child and a $30,000 CAD net income will receive $1,160 CAD this year;
- a single elderly person with a net income of $20,000 CAD — $701 CAD;
- a couple with two children and a net income of $35,000 CAD — $1,401 CAD.
It is reported that the increase will be temporary and will last six months.
The government estimates that 11 million people will be supported through this $2.5 billion CAD project.