Mr. Speaker, it is great to be here this afternoon. I will be sharing my time with my hon. colleague from Kingston and the Islands. I am thankful for the opportunity to warm up the crowd before he knocks it out of the park.
I will start my remarks by thanking the people of Terrebonne, the people of Scarborough Southwest and the people of University–Rosedale for electing three strong, powerful women, Liberal candidates, to the House. I look forward to welcoming those members to the House and seeing our Prime Minister and the leader of the official opposition drag those members into Parliament to take their seats in the people's House. It is a great day in Parliament for Liberals as we note that the public has shown confidence once again in our leader.
I appreciate the opportunity to participate in today's debate and to highlight the many announcements that our government is making to address the affordability challenges that we know Canadians are struggling with.
It is clear that the current impact of military conflicts on global refinery capacity and fuel transport systems means Canadians and consumers around the world are facing higher prices at the pump, which is creating uncertainty and pressure on household finances. This is exacerbated by a number of crises that have happened over the last few years that we all, I am sure, would like to forget, and that have shocked our economy and made it challenging for families. We all acknowledge that.
I am also pleased to say that we are taking further action to help Canadians manage these challenges, as announced earlier today by the Prime Minister and the Minister of Finance. The Prime Minister made it very clear that Canada's government will use the improvement in the fiscal outlook associated with higher oil prices to provide targeted relief to households and businesses.
Specifically, we are reducing pressure on fuel prices at the pump by suspending the application of the federal fuel excise tax on gasoline and diesel, effective next week and lasting until Labour Day, September 7, delivering over $2.3 billion in relief. This temporary suspension of excise taxes for gasoline and diesel is expected to save the average Canadian filling up a 50-litre tank of fuel $5.75 on regular gasoline and up to $2.30 on diesel.
This builds on one of the very first actions we took as a government, which we have talked about numerous times in the House. We lowered costs at the pump in most provinces and territories. Members opposite will remember their pleas to cancel the consumer fuel charge, and we did so with great ease. Canadians will save money on the price at the pump in provinces and territories. Our government also removed the requirement for provinces and territories to have a consumer-facing carbon price as of April 1, 2025.
At the same time, our government understands that Canadians do not spend money just on gas, which is why we have been taking action to reduce other pressures on their household costs right across the board, including, for example, a recent announcement we made introducing the Canada groceries and essentials benefit, which builds on the former GST credit. We are increasing its amount by 25% for five years as of July 2026.
In addition to that, we are providing a one-time payment, as early as possible this spring, equivalent to a 50% increase in the year 2025-26. That is a significant increase to the annual value of what was known as the GST credit. Combined, this means families of four will receive up to $1,890 this year and about $1,400 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. That is literally making life more affordable for millions and millions of Canadians. In fact, the Canada groceries and essentials benefit will provide additional support for more than 12 million Canadians.
We are not only putting more money in the pockets of those who need it most, but also leaving more money in their pockets with our middle-class tax cut. We have lowered the first marginal personal income tax rate by 1%, from 15% to 14%, since July 1, 2025. That impacts 22 million Canadians. It saves the average person $420 a year and two-income families $840 a year. This rate reduction applies to taxable income of up to $58,523 in 2026, providing meaningful relief to middle-class Canadians during the current period of economic uncertainty.
This is coupled with a number of other affordability measures that our government has moved forward on, one of which I am very proud of, and that is funding the national school food program to feed 400,000 more kids per year and ensuring that it continues in perpetuity by making that program permanent. We will continue to save families with two children $800 on their grocery bill over the course of a year. That is not insignificant. Members opposite mock this program. They have called it garbage and said a whole bunch of negative things to throw shade on the national school food program.
I had the opportunity, before my political career, to serve on the board of Food Secure Canada, which is an organization that works on food insecurity. A national school food program was its top ask of the federal government for many years. It is something I have advocated for regularly over the course of my time in Parliament. It is great to see that program get a federal investment of $200 million per year, matching the amounts that provinces and territories put in and ensuring that we get to feed 400,000 more kids who otherwise would not have food. It is appalling to me that the Conservatives did not support this program. That they mocked it and would not stand up for hungry children is just a sham.
I also want to mention that we have worked on affordability issues in the housing market. We recognize that many young Canadians are struggling to purchase their first home, and that is a travesty, absolutely. We need to make sure we are building more affordable housing supply, but we have also made it easier by putting measures in place to help young Canadians buy their first home.
We moved forward with the first-time homebuyers rebate. With this rebate, we have effectively eliminated GST for first-time homebuyers on new homes up to $1 million and reduced the GST for first-time homebuyers on new homes between $1 million and $1.5 million. That tax cut, in addition to the others I have mentioned, saves families a lot of money on the purchase of their first home, up to $50,000 on their first home under $1 million. That allows young Canadian families to enter the housing market, making the goal of home ownership a reality for young families. That $50,000 is not an insignificant support, and that is in addition to reducing mortgage insurance, allowing tax-free savings accounts for young families to save for the purchase of their first home and a whole package of other measures that are focused on increasing the housing supply in Canada.
We also moved forward recently with taking action on putting a cap on insufficient funds fees, making banking more fair for average consumers across Canada. Those fees are relatively small, but capping them to $10 is a significant improvement that will save some of our most vulnerable people in Canada a considerable amount of money.
The bottom line is to support Canadians through the current global energy market disruptions. Our government is delivering timely, meaningful and tangible relief for Canadians at a time when they need it most. We are doing so across a wide range of fronts and many categories of the household budget. Our announcement today that we are suspending the federal excise tax on gasoline and diesel is just the last of many concrete steps that we are taking to support Canadians through these challenging periods and positioning them for long-term success by building the strongest economy in the G7.