Branded as the ‘Canada Groceries and Essentials Benefit,’ the federal government says new relief is coming for Canadians facing rising grocery and household costs.
Prime Minister Mark Carney announced a new affordability package on Monday that includes a temporary boost to the GST credit which could soon be renamed to the the Canada Groceries and Essentials Benefit.
If approved, the newly named benefit plan would see credit payments increase by 25% for five years starting in July 2026. On top of that, eligible Canadians would receive a one-time payment equal to 50% of their annual credit, expected to arrive as early as the spring of 2026 and no later than June.
The government says the changes are aimed at helping low- and modest-income households manage day-to-day costs, particularly at the grocery store.
More than 12 million Canadians are expected to benefit, including about 500,000 people who do not currently receive the GST credit.
According to the Department of Finance Canada, the measures would provide $11.7 billion in additional support over six years.
Using government estimates, a single person without children could receive up to $402 in additional support for the 2026–27 benefit year. A couple with two children could see up to $805 in added support. Including the one-time top-up, total benefits for that year could reach $950 for a single individual and $1,890 for a family of four.
Once the one-time payment is issued, regular payments under the expanded benefit would continue quarterly in July, October, January and April.
Canadians would not need to apply for the extra payments, but eligibility depends on filing income tax returns. Those who have not yet filed their 2024 or 2025 returns would need to do so to receive the benefit.
Carney said the cost of essentials has been “too high for too long,” acknowledging that many households are feeling the pressure right now, even as broader economic measures take time to show results.
Alongside the benefit, the federal government also announced additional steps aimed at food affordability, including funding to support food banks, investments to strengthen food supply chains, and measures designed to boost domestic food production.
Legislation to implement the Canada Groceries and Essentials Benefit is expected to be introduced in the coming weeks.
All measures are subject to parliamentary approval.
