A federal budget released in 2026 promises affordability measures, including a grocery benefit top-up that phases out as household incomes rise.
The Story
The federal government’s 2026 budget points to affordability support, but it may deliver limited immediate relief for middle-income Canadians facing higher costs of living.
The plan includes a one-time grocery benefit top-up of up to $339 for singles and $679 for a couple with two children, with payments phased out as household incomes increase.
The budget also proposes expanding the Canada Workers Benefit for low-income workers, raising maximum annual payments by $150 to $1,859 for individuals and by $200 to $3,143 for families.
For Canadians who are still struggling with expenses such as rent or mortgage payments, utilities, and grocery bills, the federal approach relies on longer-term economic growth to boost wages and purchasing power rather than new short-term targeted assistance for households above income-tested thresholds.
Economists said the strategy offers little immediate relief, while highlighting that encouraging business investment and productivity could improve living standards over time. Alexandre Laurin, vice-president and director of research at the C.D. Howe Institute, said that “If you really want to make a dent in the standards of living and improve affordability for middle-income Canadians, you have to work on the economy.”
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