The federal government is proposing a new support measure aimed at easing grocery and everyday costs for low- and modest-income households.
Credit: Department of Finance Canada
According to the Department of Finance Canada, the Canada Groceries and Essentials Benefit would replace and build on the existing GST Credit, starting in spring 2026, pending parliamentary approval and Royal Assent.
The benefit is designed to help an estimated 12.6 million individuals and families as food prices continue to outpace broader inflation. Over six years, the program would deliver $11.7 billion in additional support.
The plan has two main components. First, a one-time top-up payment equal to a 50 per cent increase of the 2025–26 GST Credit would be issued as early as possible in spring 2026 and no later than June. This payment alone would provide $3.1 billion in immediate assistance to current GST Credit recipients.
Second, beginning in July 2026, regular benefit payments would increase by 25 per cent for five years. That change would add $8.6 billion in support between 2026–27 and 2030–31 and expand eligibility to about 500,000 additional individuals and families. The benefit would be indexed to inflation and paid quarterly in July, October, January, and April.
Illustrative examples show how the changes would work:
- A single senior with $25,000 in net income would receive a $267 one-time top-up and a $136 increase for 2026–27, for a total increase of $402 and total annual benefits of $950.
- A couple with two children earning $40,000 would receive a $533 top-up and a $272 increase, totalling $805 in additional support and $1,890 overall for the year.
Credit: Department of Finance Canada
Recipients do not need to apply; they must file their 2024 and 2025 tax returns to receive the payments. Enabling legislation is expected to be introduced in the coming weeks.