As published in the Hamilton Spectator, April 9, 2025

The recent cancellation of the Canada Carbon Rebate (CCR) has sparked significant concern for low-income Canadians who have come to rely on these payments to help offset basic living expenses.

The CCR was designed to return the proceeds from carbon pricing directly to households, with the intent of mitigating the financial impact of carbon taxes. While it was never meant to be a low-income supplement, its removal will leave many vulnerable residents facing financial shortfalls.

Consider a single parent with two children residing in Ontario. Under the CCR, this family would have received $980 per year. For families living in rural areas, an additional 20 per cent supplement was available, increasing the annual benefit to $1,176. The elimination of these payments represents a substantial loss, particularly for those already struggling to make ends meet.

As Canada approaches the upcoming federal election, it is imperative for policymakers to consider how the loss of the CCR will disproportionately impact those who are already facing mounting financial challenges.

Two federal measures that could help offset this loss and support these individuals and families would be to:

1. Enhance existing tax credits that benefit low to modest income families, like the Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit. This is even more necessary given the imminent increase in the cost of goods due to tariffs. By increasing the credit amounts or adjusting eligibility thresholds, more funds could be directed to those in need.
2. Introduce targeted support programs specifically aimed at low-income singles and families. We experienced a brief taste of this in 2023 when the federal government introduced a one-time grocery rebate. The Affordability Action Council has been calling on the federal government to create a Groceries and Essentials Benefit, which would resurrect that rebate and combine it with the GST/HST credit. With calculations based on both family composition and family net income, this would not only provide increased rebates for all who qualify, but also ensure the lowest income households would see a larger increase.

Providing effective income supports requires the contribution of multiple orders of government. In addition to these federal enhancements, we call on our recently re- elected provincial government to increase income assistance programs such as Ontario Works, Ontario Disability Support Program and the personal needs allowance. These programs need to reflect current economic realities and provide a more robust safety net for vulnerable populations.

The removal of the Canada Carbon Rebate and its impact has amplified an already urgent need for alternative support mechanisms to assist low-income Canadians. As the federal election approaches on April 28, and residents consider how they will cast their vote, it is crucial for all political parties to present clear strategies addressing what they will do to ensure economically vulnerable citizens are not left behind in the transition to new fiscal policies.

Image by Engin Akyurt from Pixabay