With the cost of living at an all-time high, many Albertans are feeling the financial strain. Rising inflation has made it harder to afford essentials like food, gas, electricity, and childcare. In response, the Alberta government introduced the Alberta Affordability Plan, a series of relief measures aimed at reducing financial stress for seniors, families, students, and small businesses.
Table of Contents
This comprehensive guide outlines who qualifies for affordability payments, what financial assistance is available in 2025, and when you can expect payments.
Alberta Affordability Plan: What’s Included?
The Alberta Affordability Plan consists of multiple programs that provide fuel tax relief, rebates on electricity and natural gas, post-secondary education subsidies, low-income benefits, and financial support for workers. Let’s take a closer look at each.
1. Fuel Tax Relief: Save at the Pump
Fuel prices have been a major concern for Albertans, which is why the government completely lifted the fuel tax until December 2023. This translated to significant savings:
- 13 cents per litre on gas and diesel
- 4 cents per litre on marked fuel
Even after December 2023, fuel tax savings continue based on the West Texas Intermediate crude oil price. If oil prices remain high, Albertans can still expect some relief at the pump. However, fuel tax is still being collected on aviation and rail fuel.
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2. Electricity Rebates and Price Protection
Electricity Rebates (June 2022 – July 2023)
Due to high electricity bills, Alberta introduced monthly rebates totaling $500. These rebates were applied as account credits rather than direct cash payments:
- July – December 2023: $50 per month
- January – February 2023: $75 per month
- March – April 2023: $25 per month
Electricity Price Protection (Winter 2023-2024)
For Albertans on the regulated rate option (RRO), high winter electricity prices were deferred and are being spread over 21 months (April 2023 – December 2024) to prevent financial strain.
3. Natural Gas Rebates: Automatic Savings on Heating
Albertans who heat their homes with natural gas received monthly rebates credited directly to their utility accounts. The amount varied based on the natural gas provider and billing cycle.
Those who don’t use natural gas but still qualify for support were given the option to apply separately for financial relief.
4. Affordable Post-Secondary Education: Lower Tuition & Student Aid
Post-secondary students have also benefitted from tuition caps, lower student loan interest rates, and extended repayment periods.
- 2% Cap on Tuition Increases: Beginning in the 2024/2025 school year, tuition increases are limited to 2% annually for domestic students, keeping Alberta’s tuition rates competitive.
- Lower Student Loan Interest: Interest rates for both fixed and variable student loans have been reduced to prime rates.
- Extended Grace Period for Student Loan Repayment: Graduates now have 12 months before they must start repaying their student loans, up from the previous 6 months.
- Higher Income Threshold for Repayment Assistance: Students earning under $40,000 per year (up from $25,000) can now qualify for repayment assistance.
- Extra Support for Low-Income Students: Students enrolled in qualifying programs from August 2022 to July 2023 could receive $475 per month in financial aid if they applied at least 30 days before their program started.
5. Increased Low-Income Benefits
To help Alberta’s most vulnerable citizens, the government increased several low-income benefits by 6%:
- AISH (Assured Income for the Severely Handicapped)
- Income Support Payments
- Alberta Senior Benefits
- Alberta Child and Family Benefits
Low-Income Transit Pass
The Alberta government also introduced a low-income transit pass program to make public transportation more accessible. Eligibility depends on local community programs.
Increased Funding for Food Banks
To address food insecurity, Alberta allocated $20 million over two years to food banks and meal programs.
6. Affordability Payments (January – July 2023)
To combat inflation, Alberta launched affordability payments for seniors and families with children. The program ran from January to July 2023, offering up to $600 over six months.
Who Qualified?
- Seniors aged 65+
- Families with dependent children
Income Threshold
Households with an adjusted income below $180,000 were eligible, based on tax records with the Canada Revenue Agency (CRA).
Automatic Enrollment for Certain Groups
Albertans receiving AISH, Income Support, CPP Disability, PDD, or Alberta Seniors Benefits automatically received affordability payments without needing to apply.
Foster and kinship caregivers were also automatically included in the program.
7. Help for Workers & Drivers
Lower Provincial Income Taxes
- Currently, 1.3 million Albertans pay no provincial income tax.
- The number of tax-exempt Albertans is expected to increase throughout 2025.
Lower Childcare Costs
- Alberta capped licensed childcare costs at $10 per day as part of a federal-provincial agreement.
- New Changes in April 2025: Some age groups will see childcare costs increase to $15 per day instead.
Paused Auto Insurance Rate Increases
While insurance rate hikes were frozen until the end of 2023, some pre-approved increases may still affect policy renewals in 2025.
Applying for Affordability Payments: What You Need to Know
How to Apply
Applications for affordability payments were submitted through the official Alberta government portal.
However, applications closed on July 31, 2023. Those who successfully applied received payments monthly until December 2023.
For those receiving AISH, CPP Disability, or Income Support, payments were automatically deposited.
Alberta Affordability Payment Dates: When Will You Get Paid?
For Automatic Benefit Recipients (AISH, CPP Disability, Income Support, etc.)
- Payments started on January 31, 2023 and were deposited at the end of each month.
For Those Who Applied Separately
- Once approved, payments were sent at the end of the application month.
- Future payments arrived at the end of each month until all funds were distributed.
Final Thoughts: What’s Next for Alberta’s Affordability Plan?
While some affordability programs have ended, the Alberta government may introduce new financial support in 2025. As inflation remains a challenge, additional rebates or benefit adjustments could be announced.
To stay informed, check official government updates and keep an eye on upcoming policy changes affecting affordability payments.
Would you like to explore other government financial aid programs available in 2025? Let me know how I can help!
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