A new Nanos Research survey reveals that over three-quarters of Canadians support or somewhat support a proposed 10% increase in Old Age Security (OAS) benefits for seniors aged 65 to 74. Despite the strong public backing, prominent economic experts are warning that expanding OAS is a “terrible policy” due to its high cost and lack of targeting for those in need.
The proposed increase is part of a Bloc Québécois demand, which has put political pressure on Prime Minister Justin Trudeau’s minority Liberal government. Bloc leader Yves-François Blanchet has given the government until the end of October to act on this and another bill or face the possibility of an election.
Economic experts, including former Liberal finance minister John Manley and former Bank of Canada governor David Dodge, criticized the proposal, citing concerns over its economic and social implications. The Parliamentary Budget Officer estimates the expansion would cost over $16 billion over five years, adding significant strain to federal finances.
While most Liberal MPs voted against the Bloc’s motion, it passed with support from opposition parties, making the issue a potential flashpoint for the government as it navigates public and political expectations.