The military has created a new program to gradually phase out its old housing benefit, after hearing feedback from members who were set to lose the payments. Members of the Canadian Armed Forces march in Calgary on Friday, July 8, 2016. (THE CANADIAN PRESS/Jeff McIntosh)

By Canadian Press

New Program

Canadian Armed Forces to phase out old housing benefit over three years

Aug 7, 2023 | 4:30 PM

Canada’s military has created a new program to gradually phase out its old housing benefit after hearing feedback from members who were set to lose the payments.

The Armed Forces announced plans in March to create a new housing allowance that is based on salary, rather than where a soldier is posted.

It was estimated the move would make thousands of people eligible for the new allowance while cutting off thousands of others.

The military said that would result in a savings of $30 million a year.

In an update to members, the director general of compensation and benefits says an interim program will phase out the old benefit with decreasing payments until July 2026.

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Brig.-Gen. Virginia Tattersall says eligible members will be enrolled automatically and should get a lump-sum payment to cover the summer months sometime in the fall.

This report by The Canadian Press was first published Aug. 7, 2023.