Feds Set to Announce Dental Plan
A bit of a misleading headline since they’re also announcing other measures to help combat the affordability crisis, but the dental plan has the most potential to make a serious difference in the lives of Canadians. On September 8th, it was reported that the federal government would be making an announcement on a national dental care plan, the doubling of the GST credit, and a top-up to the Canada Housing Benefit. Unfortunately, due to the passing of Queen Elizabeth II, the announcement was delayed and so we can probably expect it to come the next time the House of Commons sits which looks to be September 20th.
Here’s what we know so far:
1. It sounds like the feds are doing just enough to keep their supply and confidence agreement with the NDP going. After NDP leader Jagmeet Singh stated that without a dental plan in place by the end of 2022, the NDP would be pulling out of their agreement, the Liberals came up with something. The plan is to create a temporary system that would apply in 2022 for families with kids under 12 years of age. With no existing dental coverage and a family income of less than $70,000 per year, families will be eligible for a cheque worth $650 per child; with a yearly family income between $70,000 and $80,000, families will be eligible for a cheque worth $390 per child; and with a yearly family income between $80,000 and $90,000, families will be eligible for a cheque worth $260 per child. While the NDP are pushing for a broader qualification for the $650 cheques and an insurance-based system, it’s definitely a start. The Liberals are not touting it as a finished product but as a stopgap while they figure out the nuances of a system that aims to be permanent by the end of 2023, extended to under-18s, seniors, those living with a disability, and is more in line with what they pledged in their budget earlier this year.
2. The feds are also looking to double the GST credit for a period of six months. The GST is currently based on net family income and is paid out each fiscal quarter. The current credit pays up to $467 a year for single individuals and up to $612 for married Canadians or those in a common-law relationship as well as up to $161 for each child under 19 years of age. 12 million Canadians could be eligible for the new credit, and it would mark an attempt by the federal government at trying to support the Canadians most vulnerable to the current affordability crisis without further exacerbating inflation.
3. A $500 payment to those already receiving the Canada Housing Benefit and spending at least 30% of their monthly income on rent. This top-up could benefit 2 million Canadians and would provide direct rent assistance for lower income households. The feds could also renew the top-up in 2023 if the cost of living hasn’t changed.
It’s really nothing that’s going to move mountains, but it’s a start. The budget has a lot of lofty promises and ideas so it’s refreshing to see the government strive to achieve some of them. It does also seem to be a bit calculated in trying to boost the Liberal party’s popularity with the CPC leadership vote happening on September 10th. It’ll be interesting to see what the details look like once it’s been presented in the House of Commons. We’ll stay tuned.