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The BC government is also capping rent increases at two per cent by 2023
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September 7, 2022 • 1 hour ago • 3 minutes read • 9 comments Prime Minister John Horgan looks on during an announcement on financial aid due to inflation and cost of living increases and support during a conference press conference at Goudy Field in Langford, BC on Wednesday, September 7, 2022. Photo by CHAD HIPOLITO/THE CANADIAN PRESS
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British Columbia Premier John Horgan announced a $600 million plan Wednesday to support lower-income families during the current surge in inflation.
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Horgan said this would include a one-time, additional $500 million to the existing BC Climate Action Tax Credit, with the increase in early October, and an additional $100 million going to the Benefit Fund for BC Children’s Opportunities (launching late 2020). which will start in January and last three months.
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Horgan said the Child Opportunity Fund will be renamed the BC Family Benefit and will apply to families with a family income of less than $82,578.
The Climate Tax Credit is a tax-free quarterly payment made to low-income individuals and families to help offset the carbon taxes they pay. Under the plan, a person making less than $36,900 a year will see their October payment rise from $195 to $358, then drop back to $195 in January.
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The Children’s Opportunity Fund is a tax-free monthly payment for families with children under the age of 18. For the first three months of 2023, that monthly payment will increase to $58 per month per child.
No-one needs to claim Enhanced Credit and Family Allowance because the temporary increases will be paid automatically if a person’s income tax return is up to date.
Horgan’s announcement came on the same day the Bank of Canada raised its benchmark interest rate by 0.75 percentage points in an effort to curb inflation. This will lead to increased costs for people with variable interest rates on mortgages and lines of credit, and people with credit cards.
The inflation rate started to jump about six months ago as the COVID-19 subsided and Russia invaded Ukraine, leading to an increase in the cost of energy.
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Horgan said the BC NDP had also decided to cap rent increases by 2023 at two per cent, despite legislation dictating that those annual increases should be adjusted for inflation. An estimated 1.5 million people in BC are renters.
“Everyone is feeling the squeeze from global inflation, which is driving up the cost of groceries, gas and other goods and services,” Horgan said. “Our upcoming support measures will help reduce costs for tenants.”
Horgan credited his government with providing $400 million in ICBC rebates ahead of the spike in inflation.
Horgan said his government planned to announce relief measures for BC Hydro later this year.
Canada’s year-over-year inflation rate was 7.6 percent in July, down from 8.1 percent in June as gasoline prices fell.
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Canadian Center for Policy Alternatives senior economist Marc Lee said the government’s offer was underwhelming, given that B.C. Finance Minister Selina Robinson presented the year-end budget numbers last month past that included a surplus of $1.3 billion.
“They’re just giving back the money they take from taxes,” Lee said.
He said the overall impact of the $600 million injection of cash into BC’s economy would not lead to inflationary pressures because two-thirds of the inflation rate in Canada right now is due to external sources.
— With archives from The Canadian Press
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