Government must tackle affordability crisis

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This article was published 28/12/2023 (668 days ago), so information in it may no longer be current.

It’s the most generous time of the year. It’s also the most expensive.

As the holiday season wanes and attention turns from fulfilling Christmas wish lists to affording basic grocery items, many Canadians aren’t feeling very jolly about the future of their personal finances.

The slumping economy and cost-of-living crisis have been top news items throughout 2023. It’s a story that’s likely to continue into the new year despite gradually slowing inflation rates.

A recent survey from The Salvation Army shines a light on just how cash-strapped households have become. Data from the charity’s annual report suggests one in four Canadians are extremely concerned about having enough income to cover their basic needs.

The survey also suggests one in five people are eating less or skipping meals so other family members can eat. The situation is particularly acute for single parent households.

In Manitoba, these findings should come as no surprise.

It was another banner year for the Christmas Cheer Board, and not in a good way. For the first time in its 104-year history, the charitable organization was forced to close hamper applications early due to outsized demand. The Cheer Board received 20,500 requests for food and festive assistance this year, up from the record-breaking 18,000 applications received in 2022.

The need extends well beyond holiday cheer.

Food bank use has spiked locally since the outset of the pandemic, with Harvest Manitoba experiencing a 30 per cent increase in demand over the last year. Forty per cent of the organization’s clients are employed, an indication that income is not meeting the higher cost of everything from groceries to housing to gasoline.

A recent report from the Canadian Centre for Policy Alternatives placed Winnipeg’s living wage — the hourly rate at which a household can meet its basic needs — at $19.21. That’s nearly $4 higher than the province’s latest minimum wage hike and a five per cent jump over the centre’s 2022 living wage calculation.

Despite the introduction of $10-a-day daycare bringing down the monthly expenses of many families with children, the cost of virtually everything else has continued to rise.

In Winnipeg, shelter is a main driver of the proposed living wage. High mortgage rates have priced many people out of the housing market and low rental vacancy rates have made it harder to find budget-friendly apartments. Low income families can only afford to lease four per cent of the city’s rental stock, according to the Canada Mortgage and Housing Corporation. At the same time, many tenants are facing rent increases in January for the first time since the province implemented a pandemic-era rate freeze.

The situation is dire but there are glimmers of hope on the horizon.

Last week, the City of Winnipeg secured $122 million in federal funding for housing. While the amount falls $70 million short of the city’s original request, it still represents a positive investment in local housing.

While money from the Housing Accelerator Fund comes with some controversial zoning changes, the funding is expected to fast-track construction of more than 3,000 housing units in Winnipeg, including affordable 900 units, over the next three years. Mayor Scott Gillingham hopes to exceed those targets.

Premier Wab Kinew has also raised the idea of turning derelict buildings into new housing as a way to meet demand and address chronic homelessness in the province. It’s a creative solution that has the potential to root out problem landlords and revitalize run-down properties.

In the week prior to the Christmas break, the provincial government received the gift of a major boost in federal equalization payments in the coming year. Manitoba is set to receive $4.3 billion from the feds in 2024. It’s integral that the NDP government makes the best possible use of that funding bump to make life easier and more affordable for Manitobans.

As more families are forced to find creative ways to stretch a dollar, governments must do the same.