LANGFORD – Millions of British Columbians will benefit from new measures to help people with the high cost of living caused by global inflation.
The Province is increasing the next Climate Action Tax Credit payment, boosting the BC Family Benefit and capping rent increases below inflation, a package estimated to be worth up to $1,500 for a family of four.
“Everyone is feeling the squeeze of global inflation, which is driving up the cost of groceries, gas, and other goods and services,” said Premier John Horgan. “Our next support measures will help bring down costs for renters, put money back into people’s pockets and offer families a cushion during challenging times.”
Increase in Climate Action Tax Credit
In October 2022, the maximum amount for the Climate Action Tax Credit for low- and moderate-income British Columbians will be enhanced by up to an additional $164 per adult and $41 per child. This means a family with two children can receive up to an additional $410.
While the Province works toward a net-zero emissions-free future, the B.C. government uses revenue raised by the carbon tax to reduce costs for people with lower incomes through the Climate Action Tax Credit. About 85% of people in B.C. will benefit from the increase.
The tax-free credit is delivered four times a year, and the amount will depend on family size and income. The October 2022 payment is increased by up to $164 for an individual and up to $41 for each child in a family. A single parent will receive $164 for their first child. Enhancements are fully phased out at an income of around $148,000 for a family of four.
The estimated cost of delivering the temporary increase is $500 million.
Increase in BC Family Benefit
The BC Family Benefit provides a tax-free monthly payment to families with children under the age of 18. Formerly known as the Child Opportunity Benefit, the tax credit was launched in 2020 to help combat child poverty and help low- and moderate-income parents provide opportunities for their children.
About 75% of families with children receive the BC Family Benefit and will receive the enhanced payments 2023. In January, February and March 2023, the BC Family Benefit will rise by as much as $58.33 per child, for each month. A family with two children will receive up to $350 from this top-up.
A single parent with one child can receive up to an additional $58 per month from January to March, or $175 total. The benefit is fully phased out at an income of $115,000 for a single parent with one child.
The increase will provide a family of four up to an additional $116 per month from January to March, or up to $350 total. A family of four earning less than $117,000 will receive at least $300 more in benefits from January to March.
The estimated cost of delivering the temporary increase is $100 million.
No one needs to apply for the enhanced Climate Action Tax Credit and BC Family Benefit. The temporary increases will be automatically received if income tax filing is up to date.
Cap on rents
To support renters amid exceptionally high global inflation rates on housing, the Province is capping allowable rent increases below inflation for 2023.
The maximum allowable rent increase for 2023 is set at 2%, to help keep more money in the pockets of tenants faced with rising cost pressures. Capping the annual allowable rent increase at 2% instead of the rate of inflation will provider renters with significant savings.
For example, a renter paying $2,000 in rent will save up to $816 next year. Savings will be higher for people with higher existing rent.
If landlords choose to increase rent, they must provide a full three months’ notice to tenants using the correct notice-of-rent increase form. This means the earliest tenants could see an increase in rent is Jan. 1, 2023.
The 2023 maximum increase for manufactured home park tenancies will be 2%, plus a proportional amount for the change in local government levies and regulated utility fees.
In 2018, the Province capped annual rent increases to inflation, saving renters hundreds of dollars a year. Prior to that, rent increased at inflation, plus an additional 2%.
The annual allowable rent increase supports repairs and upgrades to maintain safe housing, while ensuring renters do not face excessive or unpredictable rent increases.
Additional supports are available to help renters with the cost of living, including: interest-free loans through the BC Rent Bank. Renters with low to moderate incomes facing a temporary financial crisis and at risk of eviction or essential-utility disconnection, may be eligible for an interest-free loan to help them maintain their housing.
Government is also working with BC Hydro on an additional cost-of-living measure to help B.C. residents reduce expenses during this period of high global inflation.
Learn More:
For information on new and existing support measures for B.C. residents, visit: https://www2.gov.bc.ca/gov/content/family-social-supports/affordability/family-benefit (http://www.gov.bc.ca/savemoney)
