From a grocery benefit expansion to rental assistance and payments for more low-wage workers, Thursday’s federal budget includes a number of measures aimed at making life more affordable.
But they were still eclipsed by a focus on investment.
One of the main direct pocketbook measures is a top-up to the Canada Groceries and Essentials Benefit — a pre-existing program that gives quarterly payments to Canadians with low and modest incomes.
The top-up will increase those payments by 50 per cent for the 2026-27 program year. Combined with previous increases, a single person could get up to $1,290. A couple with two children could get up to $2,570.
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The government says the program will give Canadians collectively $4.1 billion more in support to help pay for essentials.
More low-income workers will also get benefit payments to help them make ends meet. Those who make a minimum of $3,000 annually get a refundable tax credit under the Canada Workers Benefit, but that threshold is being lowered to $500 for all workers. The budget also increases those credits slightly, to $1,859 for single individuals who don’t have kids and $3,143 for families.
Other measures aimed at bringing down costs were already announced. The government suspended the excise tax on fuel — which saves Canadians about 10 cents a litre on the cost of gasoline — in April, and later extended that to the end of January 2027. The tax will come back at a 50 per cent rate until the end of March 2027 and then return to its regular level.
In all, the budget shows the government spending $5.3 billion on that relief at the pumps.
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Overall, the federal government’s fiscal plan pledges $22 billion for new spending on affordability measures.
But aside from that direct spending on things like groceries and gas — measures that will support Canadians in the short term — economist Armine Yalnizyan says there’s little in the budget for everyday people.
“It’s not like they’re doing nothing,” Yalnizyan said. “But the short answer is Canadians are going to need a lot of patience because this budget is not there to support them.”
The biggest-ticket spending on affordability is related to housing, with $11.2 billion dedicated to ending homelessness within 10 years. That money would help build supportive and transitional housing and provide support to facilities that care for people in a mental health or substance abuse crisis.
To help low-income renters, the government is also renewing the Canada Housing Benefit for 10 years to support Canadians with direct monthly rental assistance, to the tune of $1.7 billion starting in the 2028-29 fiscal year.
Yalnizyan said the pledge to end homelessness is a welcome one — as is the commitment to extend the ban on foreign purchases of rental properties to January 2026. But the housing benefit doesn’t go far enough, she says, and the money to fund new housing projects won’t benefit Canadians for years to come.
New homes under construction in the community of Upper Caledon East. The federal budget pledged $11.2 billion to end homelessness, as well as more money to build non-market housing and regular homes. (Patrick Morrell/CBC)
“There is money there for it but it’s not coming through fast enough,” Yalnizyan said. “There’s too much wait and see, come and talk to us later,” Yalnizyan said.
Those affordability measures are also eclipsed by tax cuts and investments in infrastructure and other major projects. The previously announced productivity mega-deduction alone accounts for $36 billion worth of spending, compared to $22 billion overall for affordability.
Rather than boosting everyday Canadians, Yalnizyan says the budget is focused on catalyzing investment and attracting new spending within Canada.
“It’s not a bad budget for all of that, but they’ve left out the people,” Yalnizyan said.
