The Government of Canada has introduced new measures to make groceries and other essentials more affordable.
To bring down costs for Canadians, the federal government is introducing a new benefit, the Canada Groceries and Essentials Benefit, which will replace the Goods and Services Tax Credit. The benefit will be increased by 25 per cent over five years. Additionally, in June, Ottawa will provide a one-time payment equal to a 50 per cent increase.
This means that a family of four will receive up to $1,890 this year, and approximately $1,400 a year for the next four years. That’s an increase from $1,100.
For a single person, the increase adds up to $950 this year and $700 annually for the next four years.
The Canada Groceries and Essentials Benefit will provide significant support to 12 million Canadians.
“Our government is taking direct action to make life more affordable for Canadians. We are providing immediate relief on groceries and essentials, while strengthening domestic food production, competition, and supply chains to build a more resilient, affordable economy for the future,” said Canada’s Minister of Finance and National Revenue, The Hon. François-Philippe Champagne.
The announcement made in Ottawa introduced a number of government initiatives including:
- Setting aside $500 million from the Strategic Response Fund to help businesses address the costs of supply chain disruptions without passing those costs on to Canadians at the checkout line.
- Creating a $150 million Food Security Fund under the existing Regional Tariff Response Initiative for small and medium enterprises and the organisations that support them.
- Introducing immediate expensing for greenhouse buildings. This allows producers to fully write off greenhouses acquired on or after November 4, 2025, and that become available for use before 2030. This measure supports increased domestic supply and investment in food production over the medium-term. This should lower the cost of food production.
- Easing immediate pressures with food banks by providing $20 million to the Local Food Infrastructure Fund. This supports food banks and other national, regional, and local organisations to deliver more nutritious food to families in need.
- Tackling the root causes of food insecurity by developing a National Food Security Strategy – one that strengthens domestic food production and improves access to affordable, nutritious food.
- Developing measures to implement unit price labelling and support the work of the Competition Bureau in monitoring and enforcing competition in the market, including food supply chains.
“Many Canadians have been feeling the pressure of rising costs for far too long, and our government is focused on delivering support where it’s needed most. These measures will support Canada’s agriculture sector and strengthen the systems Canadians rely on every day,” said The Hon. Heath MacDonald, Minister of Agriculture and Agri-Food. “By taking action now, we’re helping families manage essential costs, improving food affordability, and strengthening a more resilient food system.”
