Madam Speaker, I will be sharing my time with the member for Madawaska—Restigouche.
I am pleased to speak today in support of Bill C-19, an important measure that aims to provide Canadians with a tangible way to cope with the cost of living, particularly the cost of groceries and essentials. This bill will amend the Income Tax Act to increase the maximum annual amounts of the GST credit by 50% for the 2025-26 benefit year. It also provides for an additional 25% increase in these amounts starting in the 2025-26 benefit year, for a period of five years.
The need for the new Canada groceries and essentials benefit is simple and clear. It will help more than 12 million Canadians afford everyday essentials, starting in the spring of 2026. We know that lower-income Canadians are struggling to absorb the rising cost of food and other basic expenses. Prices remain too high, and this reality is evident in all our communities.
The cost of living is a major concern for Canadians, and no less for our government. For us, affordability is a key priority of action, and we are constantly on the lookout for concrete solutions to address the challenges confronting households. The GST credit increase and this new benefit are other examples of our determination, in an uncertain world, to focus on things within our control by taking direct action to put more money back in the pockets of Canadians and make life more affordable.
This benefit builds on the existing GST credit to provide additional support amounting to $11.7 billion over six years. Our goal is to provide a one-time top-up as soon as possible in the spring of 2026. This one-time payment alone will deliver $3.1 billion in additional support to individuals and families already receiving the GST credit. Starting in July 2026, the 5-year 25% increase in the Canada grocery and essentials benefit will deliver $8.6 billion in additional support between 2026 and 2031. In all, these measures amount to $402 additional dollars for a single person with no children, $527 for a couple with no children and $805 for a couple with two children. These amounts are intended to directly offset the increased cost of groceries, which has outpaced the overall rate of inflation ever since the pandemic.
To illustrate the impact this measure will have in concrete terms, a single senior with $25,000 in net income would receive a one-time top-up of $267 plus a longer-term increase of $136 for the 2026-27 benefit year, for a total increase of $402. In total, this person would receive $950 for the 2026-27 benefit year. Similarly, a couple with two children with $40,000 in net income would receive a one-time top-up of $533 plus an increase of $272 for a total increase of $805. In total, this family would receive $1,890 for the 2026-27 benefit year.
After the one-time top-up payment is made in the spring of 2026, eligible families and individuals will receive the enriched regular payments as of July 2026. These payments will be made at the start of each quarter to permit timely access to the funds to help families with day-to-day expenses.
These amounts will be in addition to existing benefits like the Canada child benefit, the Canada disability benefit and the guaranteed income supplement.
It is important to note that recipients will not have to apply to receive these additional payments. However, they will need to have filed their 2024 tax return to receive the one-time payment and their 2025 tax return to receive the increased payments starting in July 2026.
In my riding of Alfred‑Pellan, this measure will have a very real impact. Alfred‑Pellan is home to many families, workers, newcomers and seniors who live alone. These are hard-working people who contribute to the vitality of our community and who are telling us very clearly that the cost of groceries is putting increasing pressure on their budgets. For these households, a few hundred extra dollars can have a real and immediate impact.
I also want to mention the other important measures announced by the Prime Minister in conjunction with the announcement for the Canada groceries and essentials benefit. These measures are part of a comprehensive approach to address food insecurity, support farmers and strengthen supply chains.
They include setting aside $500 million from the strategic response fund to help businesses address the costs of supply chain disruptions without passing those costs on to Canadians at the checkout line.
These measures also include creating a $150-million food security fund for small and medium enterprises and the organizations that support them, as well as providing $20 million to the local food infrastructure fund to ease immediate pressures with food banks.
In addition, we are taking measures to lower the cost of food production, such as accelerated depreciation for greenhouse buildings and the development of a national food security strategy to tackle the root causes of food insecurity by strengthening domestic food production and improving access to affordable, nutritious food.
The cost of groceries and essentials is still too high. Too many Canadians are still struggling to put food on the table. Affordability pressures, particularly those associated with food, demand an immediate response. That is why our government is taking action through concrete, responsible solutions to make life more affordable.
The new Canada groceries and essentials benefit will deliver real help to thousands upon thousands of Canadians. We estimate that 12.6 million individuals and families will receive this benefit, which provides material support where it is most needed. I therefore urge all members to support Bill C-19 in order to offer tangible relief to Canadians.