Pierre Trudeau
Social programs and spending

In 1971, Trudeau's government greatly expanded unemployment insurance, making coverage nearly universal as coverage for the Canadian labour force jumped to 96 percent from 75 percent. The system was sometimes called the 8/42, because one had to work for eight weeks (with at least 20 hours per week), and wait two weeks, to get benefits for the other 42 weeks of the year. This expansion also opened the UI program up to maternity, sickness, and retirement benefits, covered seasonal workers for the first time, and allowed mothers to receive up to 15 weeks of benefits if they had 20 or more insurable weeks. The reforms increased the maximum benefit period to 50 weeks, though the benefit duration was calculated using a complex formula depending on labour force participation and the regional and national unemployment rates. In 1977, the government simplified the benefit duration formula but introduced a variable entrance requirement dependent on the unemployment rate in the applicant's region; the changes also mandated that workers in areas with low unemployment regions work twice as long to be eligible for benefits as workers in high unemployment regions.

In 1973, Trudeau's government amended the National Housing Act to provide financial assistance for new home buying, loans for co-operative housing, and low interest loans for municipal and private non-profit housing. The amendments saw the introduction the Rental Rehabilitation Assistance Program, which established that homeowners and occupants in low income neighborhoods could qualify for small grants to be used for home repair. Also introduced was the Assisted Home Ownership Program which allowed the Canada Mortgage and Housing Corporation (CMHC) to start providing grants and subsidized interest rates to low income families (though in 1978 an amendment discontinued the provision of grant money to these families, which led to a high incidence of defaults, and in turn, necessitated that the federal government provide financial assistance to the CMHC). The amendments saw the passage of the Rent Supplement Act, which enabled the CMHC to partner with private landlords, cooperatives, and not-for-profit associations to provide affordable housing; in addition, the act saw the CMHC agree to fund the difference between market rental prices and rent prices geared to the specific occupant's income. Lastly, the Canada Rental Supply Program was introduced to provide interest-free loans for 15 years to developers who agreed to allocate a proportion of units toward social housing initiatives. In order to ensure that loans contributed to the provision of low income housing, the CMHC was restricted to giving loans amounting to $7500 or less per unit.

The Registered home ownership savings plan (RHOSP) was introduced in the government's November 1974 budget. Similar to RRSPs, proceeds from the RHOSP could be received tax-free for either a down payment for the acquisition of an owner-occupied dwelling or to buy furnitures for the dwelling (or the spouse's dwelling). Individuals who already owned a home (either owner-occupied or rented to another person) could not deduct RHOSP contributions. In 1976, Trudeau's government allowed for transfers of funds between the RHOSP (for instance to select a plan with better returns). In 1977, the government tightened the rules of the RHOSP (the reforms removed the purchase of furnitures from the list of usage allowed for tax-free use of RHOSP proceeds starting in 1978; disallowed deductible contributions for a taxpayer whose spouse owned a home; suspended tax-free rollover of RHSOP funds to an RRSP; and capped the lifetime of the RHOSP at 20 years).

In 1977, Trudeau's government established the financial program Established Programs Financing to help finance the provincially -run healthcare and post-secondary education system, through transfer payments, by cash and tax points. This system lasted until 1995.

In 1979, Trudeau's government restructured family allowances by increasing the role of the tax system in child support and decreasing the role of family allowances. The government established an annual Refundable Child Tax Credit of $200 for families with incomes of $18,000 or less. As incomes increased above this level, benefits would be taxed away to disappear completely at $26,000. Since the median income for families during this time was $19,500, the majority of families received some benefit from the new program.
oulipo:avoid_letter[o], combination:repeat_prompt