The federal government is giving seniors a one-time, tax-free top-up payment to help manage extra costs associated with COVID-19.

An 6.7 million seniors who get old age security will get $300, while the roughly 2.2 million who get the guaranteed income supplement will receive $200.

“So if you are receiving both OAS and GIS, you will get an additional $500 in total to help you,” said Prime Minister Justin Trudeau, who noted that OAS and GIS payments to seniors who forget to file their taxes on time won’t be suspended.

He says another $20 million will be invested in the New Horizons for Seniors program – which funds various community projects for seniors in their communities. That money will help mitigate the impacts of isolation, such as virtual exercise programs and providing tablets.

In all, the government estimates this new measure will cost $2.5-billion as many of the country’s seniors are facing an increase in the cost of living as a result of the COVID-19 pandemic. That includes more dispensing fees for medications or delivery fees for food and services. Many seniors have also seen their savings take a beating as stock markets have tumbled.

“It’s all small amounts, but it adds up” said Seniors Minister Deb Schulte.

This money, announced on Tuesday, is in addition to $1.3 billion in a one-time special payment through the Goods and Services Tax (GST) credit in April. The government says more than four million seniors received this top-up, with an average of $375 going to single seniors and $510 for senior couples.

– With files from the Canadian Press