Province announces ‘affordability’ funds By: Danielle Da Silva Posted: 11:19 AM CDT Wednesday, Aug. 31, 2022 Last Modified: 11:59 AM CDT Wednesday, Aug. 31, 2022 Updates

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The Progressive Conservative government is cutting cheques for families and low-income seniors struggling beneath the mounting cost of living, but stopped short of ponying up cash to help all Manitobans feeling the sting of high inflation.

“Everyone is feeling the pinch right now,” Premier Heather Stefanson said during a Wednesday morning announcement at a St. Vital playground, flanked by more than a dozen of her PC colleagues.

“It’s hard enough for many, many families, as well, to make ends meet — and we want to ensure that we’re helping them.”

Weeks after promising relief from 40-year-high inflation was on the way, Stefanson said the province will spend $87 million to mail cheques to families with a net household income less than $175,000 and to seniors with a household income less than $40,000.

Eligible families will receive a $250 benefit cheque for the first child and $200 for each additional child. An estimated 145,000 households are expected to benefit, according to the province.

Eligible seniors, meanwhile, will receive $300, if they claimed the Education Property Tax Credit in 2021. An estimated 52,000 households are expected to receive such a cheque.

Employment and income assistance rates will also increase permanently in November, the premier said. That means an extra $50 for adults without dependent children and an extra $25 for disability claimants per month.

“We think that this is the responsible and practical approach to help those that are most in need right now,” Stefanson said when pressed on why her government has excluded from the program working adults who do not have children.

Provinces including Saskatchewan and Quebec have issued inflation relief payments of $500 for all adults, with the latter limiting the benefit to people with a net income of $100,000 or less. Stefanson said the Manitoba government is focused on getting cheques out in the broadest and most expeditious way.

“We’ve already taken a number of measures,” Stefanson added. “This is one more step in that direction — and we’ll continue to move in that direction to ensure that the most vulnerable Manitobans get what they need in these very difficult times.”

“This is one more step in that direction– and we’ll continue to move in that direction to ensure that the most vulnerable Manitobans get what they need in these very difficult times.” – Premier Heather Stefanson

Canadian Association of Retired Persons Winnipeg chapter vice-president Carmen Nedohin said the $300 cheque will make a difference to some seniors. However, it will not be enough to cover cuts to the education property tax rebate for renters and the seniors school tax rebate.

Many will roll their eyes at the payment, she said.

“You’ve taken away from Peter to pay Peter in this case,” Nedohin said. “And now they’re saying to Peter, ‘OK, here’s some of your money back. Look at what we’re doing, isn’t this fantastic?’”

Canadian Centre for Policy Alternatives Manitoba office director Molly McCracken was also critical of the program, saying the cheques do not go far enough, and the province’s program will not reach enough people, to make a meaningful impact.

Instead, it will put additional funds into the pockets of families with an above-average household income, rather than target those most in need, McCracken said.

According to Statistics Canada, the median income of a two-person household in Manitoba was $99,100 in 2020.

“It’s disappointing this is not more evidence-based. We do have a lot of data on who’s most impacted by the inflationary increases: those are low- and moderate-income households who spend more of the proportion of their money on the basic needs that are affected by inflation, of food, shelter, and fuel,” McCracken said.

The benefit cheque for families, meanwhile, is a drop in the bucket compared to the extreme inflationary pressure they are feeling, she said.

“Hopefully, (government is) listening and can do more, and more in a more comprehensive way, for those most in need. And soon, because people are really feeling the pinch.”

“Hopefully, (government is) listening and can do more, and more in a more comprehensive way, for those most in need. And soon, because people are really feeling the pinch.” – Molly McCracken

Finance Minister Cameron Friesen said the $175,000 threshold for benefit cheques was reached by multiplying the average industrial wage by 3 1/2 times.

Friesen argued households with a net income of $100,000 or more are also struggling with the cost of living. “Raising children is expensive,” he said.

Christopher Adams, an adjunct professor of political studies at the University of Manitoba, said the Tories are hoping to win favour with suburban Winnipeg voters and seniors heading into the general election next year.

Holding back cheques for other Manitobans is unlikely to hurt the party in the polls, Adams wagered.

“There will be some who, rightly or wrongly, will be concerned that they’re left out in the fact that they’re not running a household with children,” Adams said. “The suburban Winnipeg voters are, by and large, families and those are the ones who are concerned about inflation.”

“The suburban Winnipeg voters are, by and large, families and those are the ones who are concerned about inflation.” – Christopher Adams

Adams said the boost to welfare rates could also signal increased attention by government to the needs of people on social assistance.

“Manitoba has a real poverty problem and it has a real poverty problem with children,” he said. “It reverberates into a lot of other things like education, health and welfare, and so we do need to see poverty reduced in this province.”

Harvest Manitoba chief executive officer Vince Barletta said his organization has long advocated for an increase to welfare rates, adding this is the first increase to general assistance in about two decades.

“When inflation’s high, it’s the people who have the least that hurt the most,” Barletta said. “And so any increase to EIA rates, the $50 we saw in the announcement today, is going to have a big impact.”

— with files from Malak Abas and Dylan Robertson

danielle.dasilva@freepress.mb.ca

Danielle Da Silva
Reporter

Danielle Da Silva is a general assignment reporter.

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