Finance Minister and Deputy Prime Minister Chrystia Freeland announced today that eligible Canadians will start receiving the first of three advance payments from the Canada Workers Benefit (CWB) directly deposited in their bank accounts.
Enhanced Canada Workers Benefit for Struggling Canadians
Canadians eligible for the enhanced Canada Workers Benefit will receive the first of three automatic advance payments without having to apply. The CWB, a refundable tax credit supporting over four million workers, is being reworked to aid those facing rising inflation.
Supporting Families and Essential Workers
“We believe that a strong country, a healthy country, is a country with a strong and effective social safety net,” stated Finance Minister Chrystia Freeland during a press briefing in Charlottetown, P.E.I. “Our lowest-paid and essential workers often struggle to make ends meet.”
Advance Payments to Ease Financial Burden
The government will issue “advance payments” to eligible CWB recipients, ensuring they don’t have to wait until tax time to receive their benefits. The CWB is indexed to inflation, providing up to $2,616 for eligible families and up to $1,518 for qualifying single workers this year.
How the Advance Payments Work
Canadian workers who received the benefit in 2022 will automatically receive the first advance payment from the Canada Revenue Agency. The second payment will arrive in October, followed by the third in January. The final payment will be distributed after eligible workers file their 2023 tax returns.
The advance payments are equivalent to the minimum entitlement for the year and remain constant, even if income decreases from the previous tax year. For example, a single worker earning $25,000 a year would have received a refund of about $1,200 last year. Under the new advance payments structure, they will receive $200 in each of their July, October, and January payments, with the final $600 distributed after filing 2023 taxes.
Additional Measures to Tackle Inflation
Finance Minister Chrystia Freeland highlighted the changes to the CWB as part of a comprehensive plan to address the rising cost of essential goods and services. Other measures introduced by the government include the national child-care plan, the Canada Dental Benefit, the grocery rebate, and the Canada Child Benefit.
Conservative Leader’s Response
Conservative Leader Pierre Poilievre, speaking in Sudbury, Ont., attributed the escalating cost of living to the policies of the Liberal and New Democratic parties. He stressed the importance of a government that prioritizes the needs of working Canadians.
Note: All eligible recipients will automatically receive their advance payments as part of the enhanced Canada Workers Benefit. The second and third payments are scheduled for October and January, respectively, with the final payment following the 2023 tax returns.
| Measures | Details |
|---|---|
| Waiving Interest on Student Loans | Financial relief for students with waived interest on their loans. |
| Sending More Money to Low-Income Workers | Additional financial support to assist low-income workers. |
| National Child-Care Plan | A plan to improve access to affordable child-care services. |
| Canada Dental Benefit | Initiative to expand dental coverage for Canadians. |
| Grocery Rebate | Rebate program to help offset the rising cost of groceries. |
| Canada Child Benefit | Financial support for families with children. |
Source: CBC News
