The upcoming federal budget is set to increase funding for a union training program and introduce a refundable tax credit for personal support workers (PSWs). The government plans to enhance union-based apprenticeship training for Red Seal trades by doubling the federal Union Training and Innovation Program (UTIP) budget from $25 million to $50 million annually for three years. This move fulfills a long-standing promise by the Liberal Party and echoes a similar commitment made by Conservative Leader Pierre Poilievre.
Secretary of State for Labour John Zerucelli stated, “Our new government is investing in Canadian workers, creating high-quality careers, and expediting project completion.” Additionally, a new temporary tax credit for PSWs will allow eligible workers to claim a refund on their taxes equivalent to five percent of their eligible earnings, up to a maximum of $1,100 per year for five years. Details on eligibility criteria were not provided in the initial announcement.
Minister of Jobs and Families Patty Hajdu confirmed that the PSW tax credit is supported by $1.5 billion over five years. The initiative aims to address the financial struggles faced by PSWs, with veteran PSW Kelly Stephenson highlighting the challenges of low pay in the healthcare sector.
The funding increase for union training and the introduction of the PSW tax credit are part of a series of budget measures unveiled by Zerucelli ahead of Prime Minister Mark Carney’s budget presentation on November 4. Other proposed measures include investing $97 million over five years to establish a fund for recognizing foreign credentials and implementing new restrictions on non-compete agreements in contracts for federally regulated businesses.
Prime Minister Carney has hinted at potential sacrifices in the upcoming budget, which is anticipated to include initiatives related to climate competitiveness, immigration, and talent attraction. To pass the budget, the Liberal government will require the support of at least one other party, as it is considered a confidence vote. Failure to pass the budget could lead to another election, as indicated by Liberal House leader Steven MacKinnon in a recent interview.
