Question Period Note: Canadian Forces Housing Differential

What is this Government doing to help ease the cost of living burden on military members?

• Canadian Armed Forces members and their families are our top priority, and we are taking steps to ensure they are supported.
• For instance, we have provided a cost of living adjustment to the rates of pay for military members.
• We have also recently released the Canadian Forces Housing Differential to ensure that those Canadian Armed Forces members who most require support are prioritized.
• Most members’ salaries allow for affordable housing in the majority of Canadian posting locations.
• However, this policy will bridge the gap for those who based on their salaries, have a difficult time affording basic housing in high-cost locations in Canada, such as Victoria.
• The policy is designed to be equitable, and assist members with housing costs when they are relocated within Canada.
• We recognize the need to ensure that military compensation remains fair and relevant to the evolving needs our members.

* If pressed on $30 million discrepancy *

• The Canadian Forces Housing Differential policy aligns with our efforts to support members in a deliberate and issues-focused manner.
• This new policy was closely negotiated with Treasury Board and aligns with broader government policies and guidelines; it will also ensure that National Defence stays within budget.
• Along with increased rates of pay, this policy is one measure being taken to meet the needs of our members.

Post Living Differential (PLD)

• The PLD allowance was intended to moderate the impacts associated with moving to a higher cost of living area. PLD allowance was separate from pay.
• The purpose of the PLD was to ensure that the cost of living for CAF members was maintained at a predictable level, no matter where they were posted within Canada. PLD rates were taxable and were to be set annually based on a Treasury Board-approved methodology.
• In April 2009, the Government of Canada froze PLD rates at their 2008 levels to undertake a comprehensive review with Treasury Board Secretariat to ensure the PLD was meeting the needs of today’s CAF members.

Canadian Forces Housing Differential (CFHD)

• The CFHD will replace the PLD and will take effect on July 1, 2023.
• The CFHD is TBS-mandated, and the result of significant deliberation by the DND, CAF and TBS to establish a policy that respects the allotted annual budget for this differential, while focusing on assisting those CAF members who require housing assistance most.
• The CFHD is focused on lower-salaried members in exceptionally expensive locations, such as Victoria and Toronto.

February 2021 Pay Increase

• The pay increase applied to general service officers, pilots, medical and dental officers, as well as all non-commissioned members.

Canadian Forces Housing Differential (CFHD)

• The new policy will take effect on July 1, 2023, and will replace the Post Living Differential (PLD).
• Whereas PLD was based on general cost of living (e.g., housing, groceries, transportation, childcare costs, etc.) in the geographical area compared to Ottawa/Gatineau, CFHD will provide varying degrees of financial assistance toward housing at each place of duty.
• It is estimated that about 28,000 Canadian Armed Forces members will qualify for the new housing benefit.