Question Period Note: Tabling of the Main Estimates for the Department of Employment and Social Development for the fiscal year ending March 31, 2026

What are the financial highlights for the Department of Employment and Social Development’s Main Estimates for the fiscal year ending March 31, 2026?

• For the fiscal year ending March 31, 2026, planned budgetary expenditures for the Department of Employment and Social Development are totalling $105.7 billion.
• This represents a net increase of approximately $7.0 billion – or approximately 7% – over the Main Estimates of $98.7 billion for the fiscal year ending March 31, 2025.
• The increase is primarily attributable to :
• a $4.4 billion rise in Old Age Security (OAS) program forecasts of the statutory spending, mainly due to the indexation of benefits;
• a $1.5 billion increase in voted grants and contributions, primarily for Early Learning and Child Care payments to provinces and territories;
• and a $0.8 billion allocation for statutory spending of the new Canada Disability Benefit.

Employment Insurance and Canada Pension Plan benefits, along with their related administrative costs, are not included in the Estimates but are reflected in the Departmental Plan.
Table: Variance of planned budgetary expenditures for the year ending March 31, 2026 compared to the year ending March 31, 2025 (in millions of dollars)
Main Estimates by fiscal year Vote 1 Operating Vote 5
Grants and Contributions Vote 10 Debt Write-off Statutory Items Total
2025 26 Main Estimates 1,299.7 11,647.0 197.3 92,589.4 105,733.4
2024 25 Main Estimates 1,296.7 10,185.6 0 87,249.9 98,732.2
Increase / (Decrease) 3.0 1,461.4 197.3 5,339.5 7,001.2
Approximately $105,733.4 million in total budgetary funding is anticipated through the Main Estimates, including $13,144.0 million in voted appropriations and $92,589.4 million in planned statutory spending.
Almost 98% of planned budgetary expenditures in 2025-26 Main Estimates will benefit Canadians through statutory and voted transfer payment programs, including the Old Age Security (OAS) program, the Canada Student Financial Assistance Program and Canada Apprentice Loans, the Canada Education Savings Program, the Canada Disability Savings Program, the new Canada Disability Benefit, the Early Learning and Childcare Program, and the Workforce Development Agreements.
Overall, the Department of Employment and Social Development’s total budgetary authorities for the fiscal year 2025 to 2026, show a net increase of $7,001.2 million, or approximately 7% from the previous year’s total Main Estimates of $98,732.2 million.
This increase is primarily attributable to the following items:
• An increase of $4,388.0 million to the OAS program primarily explained by the expected increase to average monthly benefit amounts paid, resulting mainly from the indexation of benefits, and an expected increase in the number of Guaranteed Income Supplement (GIS) recipients.
• Voted grants and contributions (Vote 5) are expected to reach $11,647.0 million by March 31, 2026, an increase of $1,461.4 million from the Main Estimates for the year ending March 31, 2025, mainly attributable to an increase to payments to provinces and territories for Early Learning and Child Care and for the new National School Food Program.
• An increase of $750.0 million for the new Canada Disability Benefit, which aims to alleviate poverty for persons with disabilities that are in the lowest income thresholds by providing a payment of up to $200 per recipient per month starting in July 2025.
• An increase of $215.1 million to the Canada Student Financial Assistance Program and Canada Apprentice Loans, mainly due to 2 Budget 2024 measures:
a) increasing Canada Student Grants by 40% above pre-pandemic levels until July 31, 2025; and
b) expanding the Canada Student Loan Forgiveness benefit to 10 new occupations, effective Fall 2025.
• An increase of $197.3 million to write-off unrecoverable Canada Student Loans and Canada Apprentice Loans (Vote 10), mostly due to reaching the legislated statute of limitation, which occurs after 6 years have elapsed without any payment or acknowledgement of the debt. The write-off represents less than 1% of the total direct loan portfolio.
• An increase of $72.0 million to the statutory costs of Employee Benefit Plans mainly due to a rate increase.
• An increase of $15.2 million for other items.
• These increases are offset by a decrease of $97.8 million for service delivery to the public on behalf of other government departments under the Department of Employment and Social Development Act, which is mainly due to anticipated decreases in costs to deliver passport services and the Canadian Dental Care Plan, as well as the sunsetting of certain partnerships (for example, delivery of the Canada-Ukraine Transitional Assistance Initiative).
Regarding non-budgetary loans, there is a net increase in authorities of $18.1 million from the Main Estimates for the year ending March 31, 2025, mainly due to 2 Budget 2024 measures:
a) increasing the interest-free Canada Student Loan limit from $210 to $300 per week of study until July 31, 2025,
b) partially offset by the expansion of the Canada Student Loan Forgiveness benefit to include 10 new occupations, effective Fall 2025.

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