A monthly e-bulletin highlighting what people are
doing to put housing back on the public agenda in
Ontario, across Canada and around the world.
In this issue... |
What the 2015 Federal Budget means for those at-risk or experiencing homelessness |
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| On April 21, the federal government released its 2015 Budget. The long-awaited Economic Action Plan comes just months before the upcoming election, and has already been touted by many as equal parts campaign material and financial plan. While the Budget has its offerings for everyone from Canadian families to retired seniors, of particular interest was how the feds would contribute to addressing poverty and homelessness at the national level. The Budget focuses on a few key areas that will impact low-income individuals and families as well as those with housing instability: Working Income Tax Benefit (WITB) The Working Income Tax Benefit (WITB) is an income-supplement given to low-income individuals or families. As of now, eligible taxpayers on WITB receive approximately $700-1,000 per year. While no adjustments have been made to the value of WITB in the new Budget, a commitment to “improving the take-up” has been made. This means improving awareness of eligibility requirements of the benefit, and encouraging those who are eligible to take advantage of this tax savings. Expanding the Universal Child Care Benefit As announced earlier this year, and reaffirmed in the new Budget, the Universal Child Care Benefit has been increased to $160 per month for each child under six years of age, while also creating a new benefit for $60 a month for children aged 6-17. This benefit is available to all Canadian families; however, it’s low to medium-income families who will value this increased support most. Affordable Housing The Federal Government has openly addressed the issue of affordable and social/subsidized housing in the Budget. They have committed $2.3 billion per year for the next 4 years to “help ensure Canadians in need have access to affordable, sound and suitable housing”. $1.7 billion of this will be directed to the Canadian Mortgage and Housing Corporation to support 570,000 households that are dependent on social housing support (this includes social housing both on and off-reserve). On an annual basis, $170 million will then be given to First nations to “support the construction, rehabilitation, and renovation of affordable housing on reserves and to enhance the management of the housing stock”. While this is certainly good news, it’s important to note that no new funds have been allocated to the Homelessness Partnering Strategy (HPS), the federal government’s main body for addressing precarious, insecure, or lack of housing. The current funding for HPS (set in 2013) continues until 2019. One other potentially positive change announced in the budget is the removal of the mortgage prepayment penalty on long-term, non-renewable loans with the Canada Mortgage and Housing Corporation. While no additional funds are allocated to social housing here, this caveat allows co-operative and social housing providers to access private sector loans with more favourable interest rates, significantly reducing their mortgage expenses and allowing them to re-direct freed up funds towards improving the condition and quality of housing. Mental Health Though the issue of mental health may not be considered directly tied to housing, we know that people experiencing poverty or homelessness often suffer from mental illness (for Canada’s homeless population, it’s 1 in 5). The new budget announces the renewed mandate of the Mental Health Commission of Canada, which will continue for 10 years beginning in 2017-2018. This important commission promotes mental health awareness and education in Canada, and “fosters change in the delivery of mental health services”. In addition, the federal government proposes $2 million of funding per year dedicated to specialized mental health services in First Nations communities. For more information, read the full budget report here. See some of the responses from leaders and stakeholders on CBC.
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