Mr. Speaker, let me start again. I see the Conservatives are full of enthusiasm this afternoon, but I want to make sure that they clearly understand what we are doing in the House.
The second bill, as I was saying, was Bill C-15, the budget implementation act, which would help lay the groundwork for the generational investments that have been included in budget 2025. In other words, we have a long-term vision. It is one that is focused on building a strong and resilient Canadian economy while, at the same time, remaining focused on the more immediate needs of Canadian families and Canadian workers.
All of this is part of our response to a rapidly changing and increasingly uncertain world. We know, for example, that while inflation has cooled off since its postpandemic peak, food inflation remains stubbornly high for Canadian families. Global supply chain shocks caused by tariffs, geopolitical disruptions and climate change have all caused food prices to rise around the world.
That is why I am pleased to inform the House that the Canada groceries and essentials benefit will put hundreds of dollars into the bank accounts of more than 12 million Canadians. That is very significant. Everyone in the House should rejoice that we are going to meet the moment for Canadian families.
We know that affordability is a priority for Canadians, and it is a priority for our government. I would like to believe that it is a priority for everyone here, and I urge all members of the House to work in collaboration with us and help pass the bill in the swiftest manner one can imagine. The Canada groceries and essentials benefit will deliver real help to Canadians who are struggling with the cost of groceries and everyday essentials.
This new benefit will replace the GST credit, but more importantly, it will be more generous. As a refresher, the GST credit is a non-taxable payment made four times a year to help low- and modest-income individuals and families. It is a way of making our tax system more equitable. However, for many Canadians, this assistance is no longer sufficient as a result of rising food costs. We are therefore proposing to increase this benefit by 25%.
In addition, this year we will add a one-time payment equal to 50% of the current benefit, because what people need is immediate support. Since 2020, food inflation has added an average of $782 to household budgets. That is precisely what we are seeking to offset. People understand our long-term vision for growing the Canadian economy, but they also need immediate relief. That is why we are stepping up.
Right now, a person living alone who is eligible for the GST credit can receive a maximum of $443 per year. That same person would get approximately $950 in total from the one-time payment during the 2026-27 benefits year, thanks to the changes we are proposing. This is material, this is timely and this is important for Canadian families. For a couple with two children, the amount would increase from approximately $1,086 to $1,890. That is $800 more in the pockets of Canadian families.
It is right that members of the House are rejoicing, and I know my Conservative colleagues are rejoicing in their hearts at being able to support Canadian families.
Making life more affordable for Canadians is the right thing to do. This is part of Canadian values. When times are tough, Canadians rise up and help each other. That is why the first thing we did with Bill C-4 was cut the income tax for 22 million Canadians. Some 22 million Canadians have received a tax cut. This is significant and, in fact, it was the first act of our government. This represents savings of up to $840 for a two-income family.
With that same legislation, we will formally cancel the federal consumer carbon pricing, bringing down gasoline prices by approximately 18¢ a litre in most provinces and territories. We are also lowering the upfront costs of buying a new home by eliminating the GST for first-time homebuyers, saving them up to $50,000.
This is a government that understands Canadians and responds to Canadians' needs.
We are also continuing to lower the cost of child care, ensuring that 900,000 children and their families can save thousands of dollars every year. We have also made Canada's national school food program permanent so that we can feed up to 400,000 children a year and save participating families with two children an average of $800 a year. Canadian families across the country welcome this kind of help. We are implementing automatic federal benefits for 5.5 million individuals by 2028 so that Canadians can easily and reliably receive the assistance they are entitled to.
We are leaving no stone unturned when it comes to making life more affordable for Canadians. Affordability must be a central measure of our country's economic success. Affordable housing helps workers live near their job. Accessible child care enables more parents to fully participate in the workforce. National school food programs help families and children get ahead, and less expensive groceries and food security mean that Canadians can afford a healthy meal. They mean not having to choose between eating well and other basic needs.
The new Canada groceries and essentials benefit is going to really improve the lives of those who need it most. That is what is in this bill, so I urge all members of the House to support it. I know my colleagues care about this legislation because it helps Canadian families at a time when they need it most. This is one step we are taking to make Canadians' grocery bills more affordable. However, as I said, it is not the only one.
As the Prime Minister announced last week, we will also be implementing long-term solutions that will help us tackle food security and build more resilient supply chains.
For example, we will capitalize on the strategic response fund, the purpose of which, I would remind the House, is to help the sectors affected by tariffs adapt, diversify and grow. We are committing $500 million from this fund to help food businesses expand capacity and increase productivity.
We will be spending $150 million specifically to help small and medium-sized enterprises through the regional tariff response initiative. This funding will prioritize investments that expand capacity and increase productivity in order to increase the food supply and ease price pressures. I want to take this opportunity to thank the president of the Union des producteurs agricoles du Québec for the insight he gave us into measures that the government could be taking to help farmers.
In order to take the pressure off food banks, we will also be investing $20 million in the local food infrastructure fund.
All of these investments will help us improve food security in Canada. I know that this is an issue many Canadians across the country are worried about.
To lower the cost of food production in Canada, the Prime Minister also announced that we are introducing immediate expensing for greenhouse buildings. This measure would support increased domestic supply and investment in food production over the medium and long term. We will develop a national food security strategy to make food more affordable, and we will work with the provinces and territories to standardize unit price labelling so that Canadians can shop and compare prices easily in this era of shrinkflation. I think this is something we should all be rejoicing about.
We are taking action on several fronts to address a complex issue that is very real for Canadians and Canadian families. There are several causes of the food price inflation we are currently seeing, many of which are outside Canada. We cannot control what other countries do, but we can control how we respond here in Canada. This bill is our response: support for food production here in Canada, stronger supply chains and help for people who need it most. This bill is part of our commitment to build a stronger, more resilient Canadian economy and make life more affordable for Canadians.
In fact, we are already seeing progress. Some everyday expenses such as gas prices at the pump, child care fees and cellphone bills have come down. Wages are growing faster than inflation and have been growing so for 33 consecutive months. Those are the facts. This is the Canadian economy, which any commentator has said is resilient.
Currently, the price of groceries and other necessities continues to be high. That is why we are taking action in a targeted and responsible manner. We are protecting the most vulnerable Canadians while remaining fiscally responsible. That is what Canadians expect. Our goal is clear. We want an economy that works for everyone. We want real economic growth that is shared by all. We want an economy where costs are reasonable and where help is available when Canadians need it.
We want to make sure that Canadians feel the benefits of our country's economic growth in their wallets and at the kitchen table, not just hear about them in economic reports. That starts with everyone being able to put good food on the table. That is how we build Canada strong, and that is what we are doing.
Canada is strongest when all Canadians are strong. That is why we are acting: because we believe in every Canadian. We believe in every Canadian family, and we believe in Canada.
