By Chris Brown

Budget’s affordability measures total $2.3B this year

Feb 28, 2023 | 3:20 PM

EDMONTON, AB – As Albertans grapple with the rising cost of living, the province’s 2023 budget contains affordability measures on vehicle insurance, energy price relief and the indexation of personal income taxes.

Many of the initiatives were previously announced by the government, which says they total $2.3 billion in 2023-24, $1.5 billion in 2024-25 and another $1.8 billion in 2025-26.

Finance Minister Travis Toews says the rise in global energy prices and getting the province’s fiscal house in order put the province in the position to support Albertans.

“This budget funds a number of affordability measures, certainly in the upcoming budget year and even in the future years,” he said.

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Rate increases to private passenger vehicle insurance are being paused until the end of 2023 and the government is requiring insurance companies give most Albertans an option to pay premiums through payment plans rather than annually.

Monthly rebates on home electricity are in place until April 2023 and the Natural Gas Rebate program will be made permanent. It sees rebates provided when natural gas prices exceed $6.50 per gigajoule, though the trigger price is not expected to be reached over the next three years based on current natural gas price forecasts.

The suspension of the full 13 cents per litre on gas and four cents per litre on marked gas provincial fuel tax is in place until June 30, 2023. After that, fuel tax rates will be determined quarterly based on average oil prices.

All told, there is $2.7 billion in energy affordability measures.

Budget 2023 formalizes the six months of $100 monthly relief payments for seniors with household incomes under $180,000 and for parents or guardians with children under 18 with household incomes under $180,000.

There is also $904 million over four years to index the Alberta Child and Family Benefit, Income Support, Assured Income for the Severely Handicapped (AISH), and Alberta Seniors Benefit to inflation on an ongoing basis.

Other affordability measures include:

• More subsidies and tax breaks for adoptive families.
• More affordability grants to child-care operators and subsidies for parents.
• 10 per cent wage increase for workers in the social services sector.
• Larger tax credit on charitable donations.