New Affordability Benefits Will Save Canadian Families $1890 This Year

HWAD Office Team
2 days ago
3 min read

Canadians are facing continued economic uncertainty as global pressures affect supply chains, prices, and household budgets. In response, Prime Minister Mark Carney has announced significant new federal benefits that will make groceries and other essentials more affordable, while strengthening Canada’s economy and supporting families.

The Prime Minister emphasized the need to immediately reduce the cost of groceries and help Canadians struggling to make ends meet, while Canada continues to build the strongest economy in the G7. These new benefits build on recent government actions to cut taxes, boost homebuilding, and protect key social programs (like $10 a day child care), while reducing the cost of living for Canadian households.

With increasing costs, many Hamilton West-Ancaster-Dundas residents are struggling to afford groceries and other essentials. This is especially true for parents raising growing families and seniors on a fixed income. Our government is taking immediate action to save hardworking Canadian families up to $1890 this year, and another $1,400 per year for the next four years (a total of nearly $7,500 over five years). We are also taking action across the food system to increase domestic food production and further reduce prices, while we continue to strengthen the broader Canadian economy. All residents should be able to afford the lifestyle they deserve. MP John-Paul Danko, Hamilton West-Ancaster-Dundas

Putting More Money Back in Canadians’ Pockets

At the centre of today’s announcement is the new Canada Groceries and Essentials Benefit. Beginning in July 2026, the benefit will increase by 25 per cent for five years. In addition, eligible Canadians will receive a one-time payment this year equal to a 50 per cent increase. Combined, these changes mean:

A family of four could receive up to $1,890 this year, and approximately $1,400 per year for the following four years.
A single individual could receive up to $950 this year, and about $700 per year for the next four years.

More than 12 million Canadians are expected to benefit from this added support, helping households manage rising grocery and essential costs.

Strengthening Food Security and Supply Chains

To address the drivers of food prices, the federal government is also taking action across the food system. This includes:

$500 million from the Strategic Response Fund to help businesses absorb supply-chain disruption costs rather than passing them on to consumers.
A new $150 million Food Security Fund under the Regional Tariff Response Initiative to support small and medium-sized businesses and the organizations that work with them.
Financial incentives to encourage greenhouse domestic food production and investment.
$20 million for the Local Food Infrastructure Fund to help food banks and community organizations deliver nutritious food to families facing immediate need.

The government will also develop a National Food Security Strategy, focused on strengthening domestic production, improving access to affordable food, implementing unit price labelling, and supporting the Competition Bureau’s oversight of food supply chains.

Building on Broader Affordability Measures

Today’s announcement builds on several recent federal actions to lower costs for Canadians, including:

A tax cut for 22 million Canadians by lowering the first personal income tax rate from 15 per cent to 14 per cent as of July 1, 2025.
Eliminating the GST for first-time homebuyers on new homes up to $1 million, and reducing it on homes priced up to $1.5 million.
Cancelling the federal consumer carbon tax effective April 1, 2025, helping reduce gas prices and overall inflation.

Budget 2025 also made the National School Food Program permanent, introduced Automatic Federal Benefits to ensure Canadians immediately receive the supports they qualify for, and advanced competition measures in sectors like telecom and banking to lower everyday costs.