In recent developments, Canada has taken significant steps to address the rising cost of living, particularly impacting newcomers. A recent Leger poll conducted for OMNI news revealed that 83% of surveyed newcomers found affordability challenges were making their settlement in Canada more challenging.

Statistics Canada further highlighted that over a third of recent newcomers were in rental situations where more than a third of their pre-tax income was spent on rent.

The federal government announced new policies on February 6th to combat these challenges, building on similar measures implemented last year.

Housing Measures Deputy Prime Minister Chrystia Freeland shared that an additional $99 million would be allocated to the Canada Housing Benefit (CHB). This program directly delivers financial support to low-income renters, and with this contribution, the total investment in CHB for the fiscal year 2023-2024 reached CAD 325 million. Over eight years, the CHB is funded with a cumulative $4.8 billion.

The recent funding injection into the CHB is part of a broader strategy to enhance housing in Canada, including initiatives such as:

1. The $4 billion Housing Accelerator Fund, incentivizes municipalities to remove zoning restrictions and increase housing production.
2. The Canadian Mortgage Charter outlines mortgage relief policies for homebuyers facing financial difficulties.
3. The Tax-Free Home Savings Account, tax-free, allows first-time homebuyers to contribute up to CAD 40,000 for their first home.

The fall economic strategy for 2023 also emphasized plans to boost the supply of affordable housing in Canada.

Measures for Groceries and Essentials

In the same announcement, Minister of Innovation, Science, and Industry, François-Philippe Champagne, revealed plans to triple funding for Canada’s Contributions Program for Non-profit Consumer and Voluntary Organisations. This initiative supports research on consumer affairs, specifically focusing on two business practices:

1. Shrinkflation: Reducing the size or quantity of a product while maintaining or increasing the price.
2. Skimpflation: Using less expensive, often inferior ingredients while presenting the product as unchanged.

These measures come as Canada, like many other nations, grapples with the escalating cost of living.

In conclusion, Canada’s aim to address affordability concerns is evident through these robust policies. From bolstering housing benefits to scrutinizing corporate practices affecting essential purchases, the government aims to create a more accessible and affordable living environment for all residents, including newcomers. These strategic initiatives align with Canada’s dedication to ensuring economic prosperity and improved living standards for its diverse population.

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