Prime Minister Mark Carney revealed a set of affordability initiatives on Monday aimed at assisting Canadian families grappling with the escalating cost of living. The primary measure unveiled in Monday’s announcement is the Canada Groceries and Essentials Benefit, which is intended to enhance the amounts families and individuals receive through their GST rebate over the next five years.
Carney emphasized the importance of aiding Canadian families in need while establishing a pathway towards long-term food security and affordability during his address in Nepean, Ont. The government plans to utilize the GST rebate tailored for Canadians with low and modest incomes, as groceries and essential items constitute a significant portion of their household expenditures.
In its initial year, the benefit will provide a one-time boost to low- and modest-income Canadians eligible for the GST rebate, raising the annual amount for a family of four from $1,100 to $1,890 and increasing it from $540 to $950 for individuals. Beginning in 2026/27 and continuing for the subsequent five years, the GST rebate will be augmented by 25%, resulting in an annual sum of up to $1,400 for a family of four and approximately $700 for an individual.
To combat the escalating cost of groceries, which have been outpacing inflation, Carney disclosed plans to allocate $500 million from the government’s Strategic Response Fund to assist food suppliers in expanding capacity and boosting productivity. This funding will support food businesses seeking to make capital investments to fortify their supply chains, with the government also introducing a $150-million Food Security Fund to aid small- and medium-sized enterprises in expanding greenhouses and abattoirs.
Furthermore, the government will allocate $20 million from the Local Food Infrastructure Fund to alleviate pressure on food banks, enabling community food programs to offer more nutritious food to families in need. Carney announced the development of a National Food Security Strategy to bolster food production, enhance access to affordable, healthy food, and address food insecurity in Canada’s North.
In response to the announcements, Opposition House leader Andrew Scheer criticized the GST rebate as a temporary measure that will not provide lasting relief to Canadians. Despite his reservations, Scheer stated that Conservatives would support temporary relief measures and expressed willingness to collaborate with the Liberals on the GST boost, provided it is presented as a standalone bill free from unrelated elements. Conservative Leader Pierre Poilievre affirmed the party’s commitment to allowing the GST top-up to pass Parliament during question period.