A new federal budget package includes a grocery benefit top-up for some low-income Canadians and an expanded Canada Workers Benefit, while middle-income households face income-tested limits.
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A new federal budget offering affordability support is set to provide limited immediate relief for middle-income Canadians facing pressure from everyday costs, while fresher assistance in Budget 2026 is aimed at lower-income households.
The plan includes a one-time grocery benefit top-up of up to $339 for singles and $679 for a couple with two children, but the payments are phased out as household income rises.
The budget also proposes expanding the Canada Workers Benefit for low-income workers, increasing maximum annual payments by $150 to $1,859 for individuals and by $200 to $3,143 for families.
For Canadians struggling with housing costs, utility charges, and grocery bills, the government’s approach relies on longer-term economic growth to improve wages and purchasing power.
Alexandre Laurin, vice-president and director of research at the C.D. Howe Institute, said the best way to improve affordability for middle-income Canadians is to raise productivity and wages, while arguing targeted low-income benefits are more sustainable than broader universal or tax-cut style measures.
As an example of broad cost relief, Ottawa extended the temporary suspension of the federal excise tax on gasoline and diesel ahead of the budget, a measure Ottawa estimates will cost an additional $2.9 billion, bringing the total cost to $5.3 billion in 2026-27.
Laurin said the gasoline excise tax suspension is expensive because everyone gets the relief, and a report released last month by Parliamentary Budget Officer Annette Ryan found higher-income families benefit the most from the temporary suspension and subsequent reduction of federal fuel excise taxes.
The Parliamentary Budget Officer report said the estimated benefit increases with family income, rising from $132 per family in the lowest income quintile to $468 per family in the highest quintile, based on consumption, for the period from April 20, 2026, to March 31, 2027.
With financial pressures continuing, an Abacus Data survey released this week found that nearly two-thirds of respondents identified the cost of living as a top concern, and Carleton University associate professor Ian Lee warned that relying on investment and economic growth could be risky if incomes stagnate.
The report was first published Nov. 6, 2026.
scope: National
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