Issue 127 – 26, November 8, 2026
A Budget Change That Supports Caregivers
Canada’s 2026 federal budget proposes an important change to the Canada Caregiver Credit (CCC). If the reform is passed, the credit will become fully refundable in 2027, providing eligible caregivers with up to $1,260 a year. The amount will also increase over time with the cost of living.
The change is expected to provide $845 million in additional support over four years. It reaches 180,000 people who receive no help from the credit today.
Right now, the CCC is a non-refundable tax credit. It can reduce the amount of tax someone owes, but it does not give them money if they owe little or no tax.
A refundable credit works differently. If the credit is more than the tax a person owes, they can still receive the difference. That means more eligible caregivers could get direct financial support, including people with low incomes.
NDP MP Leah Gazan, who represents Winnipeg Centre, and the Congress of Union Retirees have been calling for this change. The Canadian Centre for Caregiving Excellence (CCCE) has been a driving force on this issue and called for it as part of its National Caregiving Strategy. Through the Act on Care campaign, more than 30,000 people sent letters to the Prime Minister and elected officials across the country to support the strategy.
The proposed budget change is a major step for that campaign and for caregivers. As Liv Mendelsohn, CEO of the CCCE, said, making the credit refundable sends a message to caregivers that their work matters and their voices are being heard.
Caregivers provide support to family members, friends and others who need help because of age, illness or disability. Their work helps families and communities, but it can also bring serious costs.
One in four Canadians is a caregiver today, and about half of us may provide care at some point in our lives. According to “Caring in Canada 2026”, caregivers face an average financial cost of $12,000 each year. Many also balance care with paid work.
A refundable credit will not solve every challenge caregivers face. But it could help with everyday costs and provide support to people who may not benefit from a tax credit that only lowers taxes.
If passed, the change would put money directly into the hands of eligible caregivers. For people facing rising costs while caring for someone they love, that support could make a meaningful difference.
Read more - Caring in Canada 2026
Canada Needs a Stronger Care Economy
Care is part of everyday life. It includes looking after children, supporting older adults, helping people with disabilities, teaching, providing health care, and assisting people who are new to Canada. Some care is paid work. Some is unpaid work done by family members and friends. Together, this work is called the “care economy”.
Care is essential to people and to the country. When people have access to good care, they can stay healthier, learn, work, and take part in their communities. Care services also help parents and other family members take paid jobs. This means that investing in care can benefit both people and the wider economy.
The care economy is also a major part of Canada’s economy. In 2025, health and social services, along with education, made up 13.5 per cent of Canada’s economy. These sectors employed more than one in five workers, and women held most of those jobs. The value of unpaid care work is also very large, though it is often left out of common measures of the economy.
Despite its importance, the care economy does not always get the support it needs. Many care workers have faced heavy demands for years. Workplaces often struggle to hire and keep enough staff. When there are too few workers, people may have to wait longer for services, and the quality of care can suffer.
Care work is often done by women, including many women from racialized communities. Yet this work can be undervalued and overlooked. Migrant care workers may face added risks, such as insecure jobs and unfair treatment. Unpaid care work, which is often done by women at home, is also easy to ignore in public discussions.
Earlier this year, the Canadian Centre for Policy Alternatives held the “Reimagining Canada’s Care Economy Roundtable”. Care workers, unions, community groups, advocates, and researchers took part. They came from areas such as health care, childcare, and services for newcomers.
The group discussed shared problems and ways to improve care in Canada. They agreed that care workers need decent jobs, and that everyone should be able to get high-quality care when they need it.
Participants called for a national plan to make sure people can access care. They also said Canada should:
- Improve pay and working conditions so care workers can stay in their jobs.
- Protect and strengthen public and non-profit care services.
- Make sure policies consider gender and fairness.
- Respect the rights of migrant care workers.
- Collect better information and research about care work.
- Share public reports so people can track progress.
The roundtable’s message was clear: Canada needs to think of care as a public good, not simply as a private responsibility or a way to make money. Strong care services support people, families, and the country.
Read more - care-economy.pdf
OAS and GIS Payments
Old Age Security (OAS) and the Guaranteed Income Supplement (GIS) went up by 1.4% for the October-to-December quarter. This is the largest increase among the four adjustments planned for 2026.
The new amounts appeared in the October 28 payment. But the amount you keep may depend on which benefits you receive, whether the benefit is taxable, and whether some of your OAS is being reduced because of your income.
The increase applies to the current maximum amounts for OAS benefits:
OAS, ages 65 to 74 $751.97 to $762.50
OAS, ages 75 and over $827.17 to $838.75
GIS, single seniors $1,123.17 to $1,138.89
Service Canada had not released the final October rates when this information was prepared. So. these figures are estimates, not official amounts.
OAS payments are taxable. GIS, is not taxable.
For example, an OAS increase of $10.53 a month could be worth about $8.52 after tax to an Ontario senior in the lowest tax bracket. The exact amount depends on the person’s tax situation.
A single senior receiving GIS might get an increase of about $15.72 a month. Because GIS is not taxed, that person would keep the full increase.
The OAS recovery tax is sometimes called a “clawback.” It reduces OAS for people whose income is above a set limit.
For the July 2026 to June 2027 period, the income limit is $93,454. It is based on income from 2025 and does not change with the October increase.
Above that limit, OAS is reduced by 15 cents for every extra dollar of net income. So, someone already affected by the recovery tax may not receive the full OAS increase. They may also owe tax on the part they do receive.
Lower-income seniors who receive GIS may keep more of their increase because GIS is not taxable or subject to the OAS recovery tax.
People aged 75 and over also receive a higher OAS amount. Their pension includes a permanent 10% increase that began in July 2022. The new 1.4% adjustment is added to that higher amount.
Read more - Old Age Security payment amounts - Canada.ca