MENA Newswire, OTTAWA: Canadian Prime Minister Mark Carney on Jan. 26 announced a package of food affordability measures centered on a temporary increase to the federal GST credit, which the government is rebranding as the Canada Groceries and Essentials Benefit. The plan is aimed at low and modest income households as grocery costs continue to outpace broader inflation for many families. Carney outlined the measures at a press conference in Ottawa.
Under the proposal, the benefit amount would rise by 25% for five years starting in July 2026, with payments continuing on the existing quarterly schedule used for the GST and HST credit. The government also proposed a one time top up equal to 50% of the 2025 to 2026 benefit value, to be paid in spring 2026 and no later than June 2026. Federal guidance notes the measures are proposed and require parliamentary approval.
Officials said more than 12 million Canadians would receive additional support if the changes pass. The government said the combined effect of the higher benefit and one time top up would bring the maximum total support this year to up to C$1,890 for a qualifying family of four and up to C$950 for a qualifying single adult. For the following four years, the government said the maximum would be about C$1,400 a year for a family of four and about C$700 a year for a single adult.
Carney said the measures are designed to put additional cash into households that qualify based on income and tax filing, with eligibility determined through annual returns. The GST and HST credit system is administered through the Canada Revenue Agency, and the government framed the updated benefit as a targeted approach that relies on existing delivery channels rather than a new application process.
Food benefit expansion and payment timeline
Alongside the benefit increase, the federal package includes support intended to address cost pressures across the food supply chain. The government set aside C$500 million from the Strategic Response Fund for capital investment in the food sector, with the stated goal of helping businesses manage disruption related costs without passing them on to consumers. The announcement also includes C$150 million targeted to small and medium sized enterprises connected to the food economy.
The federal plan includes additional funding for community supports as food banks report sustained demand. Carney said the government will provide C$20 million to the Local Food Infrastructure Fund to help food banks and other community organizations expand capacity and improve access to nutritious food for families facing immediate hardship. The funding is aimed at equipment, storage, and distribution projects that can increase local delivery.
The government also said it is developing a National Food Security Strategy focused on strengthening domestic food production and improving access to affordable, nutritious food. In its announcement, the government positioned the strategy as a longer term framework to reduce food insecurity, while the benefit increase is intended to provide near term relief through direct payments.
Cost, scope, and next steps
Carney said the measures would cost C$3.1 billion in the first year, with ongoing costs estimated at between C$1.3 billion and C$1.8 billion annually in each of the following four years. The government tied the package to affordability pressures that have remained prominent in public debate, with grocery price increases continuing to weigh on household budgets even as other measures of inflation have eased.
Implementation depends on legislative approval and administrative readiness, with the proposed 25% benefit increase scheduled to begin with payments issued from July 2026. The one time top up is planned for spring 2026, no later than June 2026, according to federal benefit guidance. The government said further details on program delivery and related food security initiatives will be released through standard federal channels.