Mr. Speaker, the global landscape, as we know, is rapidly changing, leaving economies, businesses and workers under a cloud of uncertainty. In response, Canada's government has focused on what we can control, which is building a stronger economy to make life more affordable for all Canadians. To that end, we are securing new trade and investment partnerships abroad and building our strength here at home to create good career opportunities with higher wages for Canadians. However, we understand that many Canadians are struggling to make ends meet and need immediate support.
When we go to the grocery store, we see higher prices, and it is harder for Canadians to put food on the table for their families. With the new Canada groceries and essentials benefit, normally known as the goods and services tax, or the GST, credit, we are making groceries and other essentials more affordable. I am proud to say that the new Canada groceries and essentials benefit will provide additional support for more than 12 million Canadians, including many in my riding of Sydney—Glace Bay.
We are increasing the amount of the benefit by 25% in five years, beginning in July of 2026. On top of that, we are providing a one-time payment this spring, equivalent to a 50% increase in the 2025-26 value of the HST credit. Combined, this means that a family of four will receive over $1,800 this year and about $1,400 a year for the next four years. A single person will receive up to $950 this year and about $700 a year for the next four years.
The government is also setting aside $500 million for the strategic response fund to help businesses address the cost of supply chain disruptions without passing on the cost to Canadians at the checkout line. We will also, for the same reason, dedicate $150 million under the existing regional tariff response initiative to support investments in food security by small and medium-sized enterprises and the organizations that support them. As we know, thanks to budget 2025, we are doing much more to make life more affordable for Canadians.
Budget 2025 builds on the many actions we have already taken to support Canadian businesses at a time of significant uncertainty and affordability challenges. When we look at things such as rate reductions, which is currently before Parliament as Bill C-4 and would apply to a taxable income of up to $550,000 in 2026, that is essential. This change would ensure that 22 million Canadians would benefit from tax relief up to $420 per person, saving two-income families up to $840 this year.
We are making many initiatives happen to support Canadians. It is a tough time for Canadians, and these measures, along with other measures, focus on businesses, business support and sector support. Building Canada strong is not just a slogan. It has deep meaning in terms of building Canada and building for Canadians with Canadian workers. Together with the hub and spoke model, this is a focus on solutions over slogans.