Publication date: September 07, 2022 • 52 minutes ago • 3 minutes read • 5 comments Premier John Horgan looks during an announcement on financial assistance due to inflation and cost of living increases and support during a press conference at Goudy Field in Langford , BC , on Wednesday, September 7, 2022. Photo by CHAD HIPOLITO /THE CANADIAN PRESS

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BC Premier John Horgan announced a $600 million plan Wednesday aimed at supporting lower-income families during the current period of rising inflation.

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Horgan said this will include a one-time, additional $500 million to the existing BC Climate Action Tax Credit – with the increase starting in early October – and an additional $100 million to the BC Child Opportunity Benefit Fund (which began in late of 2020). which will start in January and last for three months. Start your day with a roundup of BC-focused news and opinion delivered straight to your inbox at 7am, Monday to Friday. By clicking the subscribe button you consent to receive the above newsletter from Postmedia Network Inc. You can unsubscribe at any time by clicking the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300

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Horgan said the child opportunity fund will be renamed the BC Family Benefit and will apply to families with a family income of less than $82,578. Climate Tax Credit is a quarterly tax-free payment made to low-income individuals and families to help offset the carbon taxes they pay. Under the plan, a person earning less than $36,900 a year would see their payment in October rise from $195 to $358 — then drop to $195 in January.

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The Children’s Opportunity Fund is a tax-free monthly payment to families with children under 18. In the first three months of 2023 this monthly payment will increase to $58 per month per child. No one needs to apply for Enhanced Credit and Family Allowance because temporary increases will be received automatically if a person’s income tax return is up to date. Horgan’s announcement came the same day the Bank of Canada raised its key interest rate by 0.75 percentage points in an effort to curb inflation. This will lead to increased costs for people with variable interest rates on mortgages and lines of credit, as well as those with credit cards. The rate of inflation began to pick up about six months ago as COVID-19 weakened and Russia invaded Ukraine — driving up energy costs.

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Horgan said the BC NDP also decided to cap rent increases for 2023 at 2 per cent, despite legislation that dictated those annual increases move in line with inflation. An estimated 1.5 million people in B.C. they are tenants. “Everyone is feeling the pinch from global inflation, which is driving up the cost of groceries, gas and other goods and services,” Horgan said. “Our next support measures will help reduce costs for tenants.” Horgan credited his government with providing ICBC with $400 million worth of rebates before inflation picked up. Horgan said that towards the end of the year his government planned to announce BC Hydro relief measures. Canada’s annual inflation rate was 7.6 percent in July, down from 8.1 percent in June, as gasoline prices eased.

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Canadian Center for Policy Alternatives senior economist Marc Lee said the government’s offer was lackluster since last month BC Finance Minister Selina Robinson delivered last year’s final budget numbers that included a $1.3 billion surplus. “They’re just giving back some of the money they get from taxes,” Lee said. He said the total impact of the $600 million cash infusion on the B.C. economy. it will not lead to inflationary pressures because two-thirds of the rate of inflation in Canada is currently due to external sources. — With files from the Canadian Press More news, less ads: Our in-depth journalism is made possible by the support of our subscribers. For just $3.50 a week, you can get unlimited, ad-lite access to the Vancouver Sun, The Province, the National Post and 13 other Canadian news sites. Support us by subscribing today: The Vancouver Sun | The Province.

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