Budget offers little new relief for middle-income Canadians struggling with costs
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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.
While Ottawa earmarked fresh assistance for lower-income households in Budget 2026, families with earnings above income-tested thresholds may be iced out.
For example, the budget offers 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 incomes rise.
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 middle-income Canadians struggling with rent or mortgage payments, utility costs and high grocery bills, the government is banking on longer-term economic growth to boost wages and purchasing power.
Economists say that while the approach offers little immediate relief, encouraging business investment and productivity can improve living standards over time.
“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,” said Alexandre Laurin, vice-president and director of research at the C.D. Howe Institute.
This report by The Canadian Press was first published Nov. 6, 2026.