The federal government has announced a series of new affordability measures intended to reduce the cost of groceries and other everyday essentials for Canadians.

Among the key changes is the introduction of the Canada Groceries and Essentials Benefit, which replaces the former GST Credit. The benefit will increase by 25 per cent starting in July 2026 and will include a one-time payment this year equivalent to a 50 per cent boost. According to federal estimates, a family of four could receive up to $1,890 this year and approximately $1,400 annually over the following four years, while single individuals could receive up to $950 this year and about $700 annually afterward.

The government also announced several initiatives aimed at stabilizing food prices and strengthening domestic supply chains, including:

• $500 million to help businesses manage supply chain disruptions without raising checkout prices
• A $150 million Food Security Fund to support small and medium-sized food producers
• $20 million in additional support for food banks and local food organizations
• Tax incentives for greenhouse construction to boost domestic food production
• Development of a National Food Security Strategy focused on affordability, competition, and clearer unit price labelling

Officials state these measures are intended to provide both immediate financial relief and longer-term stability in food production and pricing.

The announcement builds on earlier federal affordability actions such as personal income tax reductions, removal of the federal consumer carbon tax, and expanded school food programs.

“One of the best things about Canada is that you don’t have to be born rich to succeed. To protect that fundamental value, we are building a stronger economy that benefits everyone – creating thousands of new career opportunities with better wages. We’re also bringing in new measures to lower costs and make sure Canadians have the support they need now. We’re building Canada strong, because we’re strongest when we look after each other and when we ensure everyone has the chance to get ahead.”
The Rt. Hon. Mark Carney, Prime Minister of Canada

For more information visit the Government of Canada website at https://www.canada.ca/en/department-finance/news/2026/01/the-new-canada-groceries-and-essentials-benefit.html