Budget offers little new relief for middle-income Canadians struggling with costs
OTTAWA — The latest federal budget promises billions of dollars in affordability relief, but middle-income Canadians struggling with the cost of living may find little new immediate help in the spending plan.
The 2026 federal budget attempts to provide affordability relief, yet middle-income Canadians grappling with rising costs may see limited immediate assistance. While Ottawa allocated new aid for lower-income households, families earning above certain thresholds may miss out on benefits. For instance, the budget offers a $339 grocery benefit for singles and $679 for a couple with two children, but these payments decrease as incomes increase.
The budget also aims to expand the Canada Workers Benefit, raising maximum annual payments for low-income workers to $1,859 and families to $3,143. For middle-income Canadians struggling with housing, utilities, and groceries, the government relies on long-term economic growth to raise wages and purchasing power. Economists argue that while this strategy offers minimal short-term relief, boosting business investment and productivity can enhance living standards over time.
Alexandre Laurin, vice-president and director of research at the C.D. Howe Institute, contends that addressing the economy is crucial for significantly improving affordability for middle-income Canadians.
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