Starting July 2025, several Canadian federal benefits are receiving boosts due to inflation, ensuring that vulnerable populations are better supported.
This increase will affect millions of Canadians across various benefit programs, from the Canada Child Benefit (CCB) to the Canada Workers Benefit (CWB).
With inflation adjustments and the introduction of a new Canada Disability Benefit, many households will be receiving more financial support in the coming months. Here’s what you need to know about the new increases and how you can benefit.
Overview of Canada’s Benefit Payment Increases
In response to rising living costs, the Canada Revenue Agency (CRA) is increasing several key federal benefit payments, including:
- Canada Child Benefit (CCB)
- GST/HST Credit
- Canada Workers Benefit (CWB)
- Child Disability Benefit (CDB)
- Old Age Security (OAS)
- New Canada Disability Benefit
These adjustments are part of Canada’s ongoing effort to assist families, workers, and individuals with disabilities, especially during times of inflation. The increase is primarily set to keep pace with inflation, which this year is 2.7%. But the new increases could be even more significant depending on your situation.
Canada Child Benefit (CCB) Increase
The Canada Child Benefit provides monthly, tax-free payments to eligible families to assist with the cost of raising children. Starting in July 2025, the maximum amount of the CCB will increase:
- For children under 6 years old, the maximum annual benefit will rise to $7,997 ($666.41 per month).
- For children aged 6 to 17, the maximum annual benefit will be $6,748 ($562.33 per month).
These increases come as part of the annual inflation adjustment, and for eligible families, this means more financial support starting in July 2025. The income threshold for receiving the maximum amount is $37,487 of adjusted family net income.
GST/HST Credit Update
The GST/HST Credit is designed to help low- and modest-income Canadians offset the cost of the Goods and Services Tax (GST) or Harmonized Sales Tax (HST) paid throughout the year. Starting July 2025, the maximum credit will increase:
| Single | Couples | Children |
|---|---|---|
| Up to $533 annually | Up to $698 annually | Up to $184 annually per child |
This will give individuals and families extra assistance every quarter. For single individuals, this equates to $133.25 per quarter, and for couples, it’s $174.50 quarterly. Payments will be made on July 4, 2025, for the first installment.
Canada Workers Benefit (CWB) Increase
The Canada Workers Benefit is a refundable tax credit designed to help lower-income workers. This benefit is receiving an even larger increase than most others this year — 4.7% instead of the typical 2.7%.
- Single workers without children will now receive up to $1,590 annually ($265 per advance payment).
- Eligible families can receive up to $2,739 annually ($456.50 per advance payment).
- The disability supplement for eligible individuals increases to $821 annually ($136.83 per advance payment).
The income phase-out thresholds are also rising, which means more people will be eligible for the CWB. The first advance payment will be July 11, 2025.
Child Disability Benefit (CDB)
The Child Disability Benefit (CDB) is designed to provide additional support to families raising a child with severe disabilities. The maximum annual CDB for eligible families will increase to $3,411 per child, which works out to $284.25 per month.
The income threshold for the CDB is $81,222, after which the benefit gradually reduces. Families do not need to apply separately for the CDB; if they already receive the Canada Child Benefit and their child is eligible for the Disability Tax Credit (DTC), they will receive this benefit automatically.
Old Age Security (OAS) Increase
For those aged 65 and above, Old Age Security (OAS) payments are also going up. The OAS is a monthly government payment designed to support senior Canadians. For the July to September 2025 period, OAS will increase by 1%, resulting in an annual increase of 2.3%. The estimated amounts are:
- $734.95 per month for those aged 65 to 74.
- $808.44 per month for those 75 and older.
New Canada Disability Benefit
A new benefit is being introduced for the first time in July 2025 — the Canada Disability Benefit. This $2,400 annual benefit is aimed at providing direct financial support to low-income adults with disabilities. Those who are approved for the Disability Tax Credit will be eligible for up to $200 per month.
This new benefit, along with the other adjustments, demonstrates Canada’s commitment to providing better support for individuals with disabilities.
How Much More Will You Receive?
The chart below summarizes the new increases and payment amounts for the various benefits:
| Benefit | Previous Amount | New Amount | Increase |
|---|---|---|---|
| GST/HST Credit | $133 per quarter (single) | $133.25 per quarter (single) | $0.25 per quarter |
| Canada Child Benefit | Up to $7,787 for under-6 | Up to $7,997 for under-6 | $210 annually |
| Canada Workers Benefit | Up to $1,520 (single) | Up to $1,590 (single) | $70 annually |
| Old Age Security | $725 for 65-74 | $734.95 for 65-74 | $9.95 monthly |
| Canada Disability Benefit | N/A | Up to $2,400 annually | New benefit |
Canada’s benefit payments are increasing across the board in July 2025, helping low-income families, workers, seniors, and people with disabilities.
The 2.7% inflation adjustment means many of these individuals will receive more money in the coming months, and for some, the increases could be even more significant.
Whether you receive the Canada Child Benefit, Canada Workers Benefit, or Old Age Security, it’s important to stay informed about these updates, as your financial situation could improve based on these changes. Keep an eye on the dates and make sure you’re receiving all the support you’re entitled to.
FAQs
How much will the Canada Child Benefit increase in July 2025?
The Canada Child Benefit will increase by up to $210 annually for children under 6, and $178 for children aged 6 to 17.
When will the Canada Workers Benefit payments go out?
The first advance payment for the Canada Workers Benefit will be sent out on July 11, 2025.
How can I qualify for the new Canada Disability Benefit?
To qualify, you must be a Canadian resident, approved for the Disability Tax Credit, and meet specific income requirements.