'It's just not fair': Retirees speak out on being excluded from federal rebate cheques

Retiree on federal rebate Carol Sheaves of Moncton, N.B., shares her frustrations about retirees not being eligible for the Working Canadians Rebate.

Carol Sheaves, who has worked for five decades in Canada, says it's not fair that retirees like her won't get the government's newly proposed rebate cheques.

Although the 67-year-old woman from Moncton, N.B., considers the $250 payments "a freaking joke" that won't help much with skyrocketing costs, she feels seniors who have worked for so many years deserve it too.

"I've paid dues, taxes, whatever, since I was about 17 years old. That's a long time to pay taxes, to help out the economy in this country," Sheaves said in a video interview with CTVNews.ca on Monday. She worked administrative jobs and owned a couple small businesses with her 70-year-old husband Frank before they both retired. "We worked all our lives, and I think we're entitled to that and more."

Sheaves says she and Frank have been receiving Canada Pension Plan (CPP) and Old Age Security (OAS) payments, a small work pension and returns on their investments. While she doesn't consider herself to be in serious financial trouble, she said rent has increased by about $300 to more than $1,600 since she and her husband sold their Newfoundland home in January 2021 and began renting an apartment in Moncton in September of that year. They are watching their money carefully and always look out for discounts for groceries, she added.

"When we retired, we figured we had sufficient funds to put aside to help with our retirement," Sheaves said. "But of course, the world has gone crazy. Like everything, the prices have gone up."

The federal government announced last week a two-month GST/HST break on certain goods, as well as plans in April to give Canadians who made $150,000 per year or less in 2023 a "Working Canadians Rebate" of $250. Both measures are expected to cost a total of $6.3 billion.

While the tax break on some goods applies to anyone, Sheaves was among the seniors who expressed their frustrations to CTVNews.ca about not being among the 18.7 million Canadians who are expected to qualify for the government's planned rebate.

CanAge, a national seniors’ advocacy organization, is pushing the government to extend the tax credit to retirees.

“Our members are reaching out to us in record numbers. They are furious," Laura Tamblyn Watts, CEO of CanAge, said in a press release Monday. "They feel ignored and forgotten, especially as the weather is getting colder and costs are skyrocketing.”

Government says it’s helping seniors

When asked why rebate cheques were not being given to seniors who are not working or those with disabilities, Prime Minister Justin Trudeau told reporters Friday that working Canadians were making their voices heard about needing financial support.

Katherine Cuplinskas, deputy director of communications for Deputy Prime Minister and Finance Minister Chrystia Freeland, says many seniors work so they are eligible for the Working Canadians Rebate.

To qualify, she said Canadians need to have made less than $150,000 in net income in 2023 and meet the following criteria: received EI benefits, paid EI premiums, or made CPP contributions.

While inflation has cooled and interest rates are dropping, she suggested that the measures are meant to help make the improvements tangible.

"We can’t set prices at the checkout, but we can give Canadians break – to help them afford the things they need and save for the things they want," she said in an email to CTVNews.ca Monday in response to seniors' concerns about being excluded from the proposed rebate cheque.

The Liberal government has also raised benefits for all seniors across the country since 2015, she added.

As an example, she said the Liberals have reversed the Conservative decision to increase the Old Age Security (OAS) and Guaranteed Income Supplement (GIS) eligibility age from 65 to 67. The government also amended the Canada Pension Plan to give a top-up to the death benefit and provided a 10 per cent increase to the maximum GIS benefit for the lowest income single seniors, as well as boosted by 10 per cent OAS benefits for seniors 75 and older, she added.

In any case, Sheaves questions whether the cheques will be that helpful since many Canadians will struggle more over Christmas and won't get the rebate until spring.

She especially worries for young people, the poor and homeless.

"It's getting harder and harder for a person to survive," she said. "It's just not fair. I really, really feel bad for the young people. I feel bad for us too, but the young people, they have not got a chance."

When asked whether the proposed measures could be focused on helping youth instead, given the high youth unemployment in the country, the government pointed to the spillover benefits of the cheques. Women and Gender Equality and Youth Minister Marci Ien told CTV Question Period host Vassy Kapelos in an interview that aired Sunday that entire families are saving money and benefiting from the tax break and rebate.

Seniors struggling to survive

Regardless of their eligibility for the cheque, Pamela Dudas of Vancouver says many seniors like her are finding it hard to make ends meet.

The 67-year-old former accountant says she is eligible for the rebate since she worked last year. Though she retired this year, she says she plans to find work as a fitness trainer to help with finances since she only gets about $26,000 a year from government pension.

She bought a two-bedroom condo when she was younger and rents a room to her friend, a 73-year-old retiree who isn't eligible for the cheque. She said her friend couldn't find an affordable place to live as he had a stroke and is surviving only on government pension, so she let him rent one of her rooms for $800, less than half the average rent for a bachelor suite in the city.

"It doesn’t make sense -- why give a $250 rebate for people making $150,000 and under but not seniors," Dudas said in a phone interview with CTVNews.ca on Monday, noting many seniors are on the cusp of or living in poverty.

Bill Cole of Toronto called the exclusion of retired seniors a "discriminatory insult," noting they live on fixed incomes.

"Retired seniors represent a significant voting bloc and many are facing significant affordability issues as inflationary pressure eat away at our retirement income," Cole wrote in an email to CTVNews.ca on Nov. 22.

Anita Reilander of Calgary wonders why people who earn more, including those making up to $150,000, will get the benefit.

"If those people can't make ends meet on those earnings, they need financial training, not extra money," she wrote in an email to CTVNews.ca on Nov. 22.

She said the $250 would be put to good use by seniors living on pensions of around $20,000.

Ann La Touche of Winnipeg says she and her husband Robin Kelly have savings so they aren't the ones who will be hurt by the exclusion.

Calling the rebate cheque a "drop in the bucket," the 67-year-old retiree says a better measure is a guaranteed basic income to ensure people can afford to live comfortably.

"It works because it cuts down on bureaucracy, it cuts down on a lot of government costs of running all sorts of programs and it allows some people to do things that they wouldn't otherwise," she said in a video interview with CTVNews.ca on Monday.

With files from CTV News Ottawa News Bureau's Stephanie Ha and CTVNews.ca Managing Producer Kendra Mangione