With more Canadians using food banks, one advocacy group wants HST rebates expanded

As more Canadians turn to food banks, affordability advocates want the Canadian government to expand the HST/GST rebate program so that payments for low-income Canadians are larger and more frequent, even if that costs billions of dollars each year.

The Affordability Action Council (AAC), an advocacy group made up of members from around the country, says the government needs to step up as the cost of living continues to rise, making it harder for Canadians of low income levels to make ends meet. 

In a news release last week, the AAC said it had commissioned a researcher from the University of Calgary to "compare different options for the federal government to provide income support."

Though the group said a full report is still coming, member Lisa Rae says the group has seen the research and concluded higher, more regular HST/GST rebates would offer the most effective relief. 

"There's 7 million people in Canada right now that are struggling with food insecurity," said Rae, who is also director of system change with the charity, Prosper Canada.

She says the AAC plans to meet with policymakers "as part of our effort to have the government take action on reducing food insecurity for Canadians in need." 

'Groceries and essentials' rebate proposed

The AAC wants the HST/GST rebate program — which helps off-set the cost of the tax for low-income individuals — to become the groceries and essentials benefit, a monthly payment intended to help pay for food bills.

The group is asking Ottawa to raise the maximum amount Canadians are eligible for. Right now, single adults can receive upwards of nearly $500 in a year, paid in four instalments.

The AAC wants to up that to $1,800, with recipients getting $150 each month "so that people can have a little bit more stability and predictability," Rae said, adding stagnating wages have made it so even Canadians with full-time employment are struggling.

The group would also like eligible households to receive $600 per child, up from $171. 

That could cost about $11 billion, according to the AAC. But Gillian Petit, a senior research associate at the University of Calgary and AAC member, who led the research for the proposal, says it's a worthwhile investment.

"We really need to think about going all in on relief," Petit said. We need to move away from these kind of one-off policies."

In an emailed statement, Canada's Finance Department said it's providing Canadians financial relief through the Child Care Benefit program, and will introduce "generational reforms" to the Competition Act "to help ensure grocery prices stabilize in Canada."

Along with a larger, more regular rebate, the AAC would also like to see Canada introduce automatic tax filing, as only citizens who file their taxes are able to get HST/GST rebates, which the group says excludes many of the country's most destitute people.

Frontline workers report seeing the struggle first-hand

Lee Soda sees first-hand how Canadians are struggling. The executive director of the Agincourt Community Services Association in Scarborough, which helps low-income residents with affordability issues, says while costs are rising in nearly all areas of life, food is often where people first make budget cuts. 

"Rent is always first and foremost," she said. 

"We have heard … from people's recounts of their experience that food is pretty much low on their list. And people have talked about going without food for a day or more. Certainly people talk about skipping meals. That is not uncommon for us to hear as well."

That's what's being seen across the country. Food Banks Canada says the number of people using its services has risen about 80 per cent since the COVID-19 pandemic began. 

A regular food subsidy, she says, could take away some tough budgetary decisions.

"It could mean essentials like a box of diapers and milk for your children. And none of us can undervalue what that means."